The Swiss major bank UBS Group's analysts have lowered their recommendation for shares in Dutch ASML Holding from "buy" to "hold".
UBS experts have had a buy recommendation on the share for two years. But now they are warning that the growth potential in artificial intelligence (AI) is on the verge of becoming "overhyped".
ASML is a major manufacturer of advanced equipment for semiconductor factories around the world.
The UBS downgrade comes after AI boom's big winner, American Nvidia, took a big hit on Wall Street on Tuesday and appears to continue downward. Nvidia is dragging many AI sector shares with it.
Since UBS gave ASML shares a "buy" stamp in August 2022, they have risen by over 60 percent. But in Wednesday's trading, the share fell by 7 percent.
UBS still describes ASML as one of the best investment opportunities in Europe's technology sector. And more than three-quarters of the analyst corps following the sector have a "buy" stamp on the share.
