As shares of chip maker Nvidia soar, Bank of America is also bullish on semiconductor device maker ASML Holding. The firm reiterated its buy rating on the Dutch semiconductor equipment company. Analyst Didier Scemama raised his price target on US-traded ASML shares to $855 from $837, representing a 20.6% increase from Thursday’s close. Shares are up nearly 30% in 2023. “We continue to monitor [semiconductor capital equipment] as the best way to invest [the AI] thematic in Europe and increase PO as sector multiples expand, reflecting the lack of opportunities in Europe to invest in the generative AI theme,” Scemama said in a note on Friday. “ASML has industrialized a new generation of EUV (extreme ultraviolet) lithography technology that we believe will support many of the disruptive trends of this decade,” said Scemama. ASML YTD mountain ASML in 2023 Lithography tools are a “critical part” of the semiconductor manufacturing process, according to the bank. Scemama estimates that ASML currently holds almost 90% of the market share in the production of lithography tools. “The company benefits from technology transitions as well as new additions in high-end logic and memory chip capacity,” he added. The analyst also sees an annual company revenue growth rate of 17% over the next four years for ASML. Scemama’s price target increase follows a sharp jump in Nvidia shares. The chipmaker climbed to an all-time high on Thursday on strong current-quarter revenue outlook as demand for AI chips rises. Many analysts welcomed the news by raising their price targets on Nvidia. Shares rose 1.4% in premarket trading on Friday. —CNBC’s Michael Bloom contributed to this report.