ASML Holding NV's stock surged 5.04% during overnight trading, marking a significant upward movement for the semiconductor equipment maker.
The rally was driven by news that Elon Musk appeared via video link at ASML's internal annual technology conference, where he elaborated on the Terafab super chip factory plan. This ambitious project involves a potential total investment of up to $119 billion and targets 2-nanometer advanced process nodes, which would require large-scale procurement of ASML's EUV lithography equipment and provide potential incremental orders for the company's backlog.
Additionally, the stock received further support from analyst upgrades, with JPMorgan raising its target price on ASML to $2,200 and Morgan Stanley lifting its target to EUR 1,660, both maintaining overweight ratings on the stock.