Besi and ASML prices skyrocket: here's why

Dutch chip stocks Besi and ASML are among the biggest risers on the Damrak on Monday. Both shares gain more than two percent and thus raise the AEX. The reason seems to be mainly due to new price target increases by Bank of America, while investors also continue to look ahead to the next phase of the AI rally.

BE Semiconductor Industries, better known as Besi, rises by more than three percent to around 321 euros on Monday afternoon. This makes the share one of the strongest risers within the AEX.

The immediate reason is a positive report from Bank of America. The US investment bank increased the price target for Besi from 345 to 401 euros and maintained the purchase recommendation.

Analyst Didier Scemama mainly sees opportunities for Besi thanks to the company's strong position in so-called hybrid bonding. This is a technology that allows advanced chips to be linked together more efficiently. This technique is becoming increasingly important as AI processors become more complex and require more computing power.

After last week's investor day, Bank of America also raised expectations for Besi's results towards 2028. The bank now expects sales of almost 2 billion euros, significantly higher than previous estimates.

That optimism is in line with the message that Besi himself delivered last week. The company then increased its long-term revenue and profitability targets. Investors now seem to be incorporating these new growth expectations further into the price.

ASML also benefits from the positive sentiment around artificial intelligence on Monday. The share rose by more than three percent to around 1,708 euros, setting a new record on the stock exchange.

An additional impulse came from Bank of America, which increased the price target for ASML to 2,022 euros. The US investment bank remains positive about the outlook of the chip machine manufacturer, which plays a key role in the global semiconductor industry.

ASML has benefited for years from the growing demand for increasingly powerful chips. The company's machines from Veldhoven are indispensable for the production of the most advanced semiconductors, including chips used for AI applications, data centers and high-performance computing.

With the new record price, investors are once again underlining their confidence in ASML's long-term prospects and the continued growth of the AI market.

Although the price target increases appear to be the main catalyst on Monday, more is playing in the background. Investors are also looking forward to the quarterly figures of memory manufacturer Micron and the US PCE inflation figures this week.

Micron in particular is seen as an important indicator of the demand for AI memory and data centers. Strong figures can further strengthen confidence in the entire semiconductor sector.

This is not only positive for ASML, but also for companies such as Besi and ASM International. They each benefit in their own way from the billions of investments that flow into AI infrastructure worldwide.

For the time being, that optimism does not seem to be diminishing. With share price gains of more than two and three percent, Besi and ASML are once again among the absolute highlights on the Damrak on Monday.