ASML (ASML) is expected to deliver a slight beat in Q1 and to sustain double-digit revenue momentum for the next two to three years on GenAI demand, RBC Capital Markets said in a Monday report. The results are due April 15.
RBC analysts said they are modeling revenue of 8.7 billion euros ($10.3 billion) and EPS of 6.59 euros for the quarter, largely in line with market consensus.
"Tight DRAM supply, growing EUV intensity, and re-emergence of
advanced Foundry competition are the other key tailwinds," the note said. EUV refers to extreme ultraviolet lithography systems.
The report said wafer fab equipment demand has further strengthened in recent months, driven by tightness in Dynamic random-access memory and strong 3-nanometer wafer demand.
While clean room is a bottleneck, the report said China is largely de-risked and offers near-term upside potential.
RBC kept its outperform rating and a $1,625 price target.
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