ASML shares are continuing to fall on Tuesday on worries about a new threat from China, but Bank of America said investors shouldn’t be worried. Shares were down another 5% on Tuesday after tumbling 5.9% in the prior session. The Information had reported China is developing immersion deep ultraviolet lithography machines, a market which ASML dominates. Analysts at the bank reiterated their buy rating in a Monday note reacting to the report, as well as their $2,845 price target for U.S.-listed shares. That represents more than 70% upside from Monday’s close. The bank also labels the stock a “top pick.” Bank of America analyst Didier Scemama said the Chinese threat to ASML is only modest. “China remains an important market for ASML, accounting for roughly 20% of group sales and 44% of DUV revenue in 2026,” Scemama wrote in the note. “Replacing ASML would require a domestic alternative with comparable productivity, overlay and cost of ownership. That remains a high hurdle.” Even if China can source 20 argon fluoride immersion tools — what DUVs are classified as — locally, that would only impact 1.4 billion euros of ASML’s sales in 2027, Scemama said. He noted that is just 2.4% of the Dutch company’s group sales, which makes the sell-off overdone. “We think today’s weakness,” referring to Monday’s price action, “is an over-reaction and see current levels as an attractive opportunity,” Scemama said. Analysts overwhelmingly support ASML stock with 22 analysts rating it a buy or strong buy. The average price target of 2,172.27 predicts shares will rally more than 30% from here. ASML 5D mountain ASML 5-day.
