Shares in ASML, the Dutch giant in the semiconductor industry, were in the lead in the AEX index on Monday afternoon in the wake of an upgrade by Morgan Stanley analysts, who say they see an end to the cycle of downward revisions to market forecasts that have recently weighed on the stock.

At around 3:15 p.m., the lithography systems supplier's share price was up around 2.5%, reaching its highest level of the year, while the AEX was barely off the ground (+0.1%).

In a study devoted to the memory sector, Morgan Stanley said that it has upgraded the stock from "equal weight" to "overweight", also boosting its target price from €600 to €950.

The US bank explains that it believes that the unfavorable cycle that has been weighing on the stock is coming to an end, as it appears that investors have finished reducing their forecasts, leading it to begin seeing some signs of improvement.

Although the sector remains challenging in the near term, the New York bank believes that the outlook for 2027 is improving thanks to demand for leading-edge chip technologies, which should prompt major manufacturers, such as Samsung, to invest more.

Furthermore, Morgan Stanley points out that memory prices, which often serve as a leading indicator, are on the up again, a sign that investment will follow and that the current headwinds (declining orders from China and Intel) will gradually disappear.