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ASML Holding NV (NASDAQ: ASML) is one of the AI stocks on Wall Street's radar. On July 2, Jefferies reiterated a Buy rating on ASML Holding NV (NASDAQ:ASML) and raised the price target to €1,560 from €1,260. The new price target is based on an FY27 price-to-earnings ratio of 36 times and an enterprise-value-to-EBITDA of 28 times.

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The upgrades came amid expectations that the company is well positioned to benefit as the analog up cycle gains momentum. The hike also comes on the heels of the European semiconductor sector rising by 69% in the second quarter. Analog stocks continued to outperform the broader semiconductor capital equipment names.

Jefferies expects the company to deliver second-quarter revenue of €8.79 billion and a gross margin of 52% in line with the consensus estimate and company guidance. The research firm also expects ASML's full-year revenue to be raised to between €38 billion and €42 billion up from the previous estimate of between €36 billion and €40 billion.

ASML Holding NV (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.

While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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