ASML Holding shares climbed more than 4% on Friday after research firm Lynx Equity Strategies issued a bullish call on memory chipmakers Micron Technology and Sandisk. The note sparked a sympathy rally across the chip sector, and ASML's lithography systems stand to benefit as clients scale up production to meet AI-driven demand.
ASML Holding stock rose 4.17%, or $68.69, to close at $1,714.88 on Friday. The Netherlands-based company, which specializes in the photolithography systems used to print circuits onto microprocessors, rallied alongside other chip stocks after an upbeat research note on two of its customers.
Bullish note on Micron, Sandisk sparks the move
Lynx Equity Strategies analyst K.C. Rajkumar rated Micron Technology and Sandisk as buys, with anticipated upside of 33% and 49%, respectively. Sandisk stock jumped nearly 12% on the report. Micron rose 6% over the same stretch. Both stocks had come down from a period of volatility, and the analyst sees their prospects as solid as computing demand grows amid the proliferation of artificial intelligence.
ASML's gain trailed both peers, but the move still reflects its position as a supplier to the chipmakers. Its lithography systems are indispensable for many clients, and that need will only grow as Micron, Sandisk and other chipmakers ramp up production to meet AI-driven demand.
Market cap tops $634 billion
Friday's rally lifted ASML's market cap to $634 billion. Shares traded in a day's range of $1,675.92 to $1,721.66. The stock's 52-week range spans $766.24 to $1,999.96.
The company posted a gross margin of 52.73%. Its dividend yield stands at 0.55%. Those figures, combined with its role supplying equipment across the chip industry, position ASML as a less conspicuous way to play the same AI-driven demand lifting its customers.
Source: The Motley Fool
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