
Is ASML Stock a Buy Ahead of Q2 Earnings?
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
What Wall Street Expects
Wall Street is expecting ASML to announce quarterly earnings of $5.94 per share, up 37.5% compared with the same period last year. Revenues are projected to reach $8.55 billion, increasing 27.2% from a year ago.
Will ASML be able to beat these estimates? As one can see below, it has a very strong track record of doing just that in recent times.
Key Issues Ahead of Earnings
ASML said at an investor event last November that 2026 would be a growth year for the business. As the months have gone on, investor confidence in that prediction has grown.
The stock's share price has dropped 24% over the last twelve months, but is up 17% since the start of the year.
In its first quarter the group reported revenue of €7.74 billion, up from €5.29 billion in the same period last year. However, net bookings of €3.94 billion missed analyst forecasts of €4.89 billion. Its net profit was €2.36 billion, versus forecasts of €2.3 billion.
At the time the ASML chief executive Christope Fouquet warned that President Trump's tariffs had created a new uncertainty for the economy and 'our potential market demands.'
Indeed, chip export restrictions to China mean its customers there have been buying lower-end ASML equipment.
There are also concerns over a ramp up in European regulation on the AI and digital sector through measures such as the AI Act.
Analysts, on average, expect second-quarter bookings to reach €4.44 billion, and €21.3 billion for the full-year.
Marc Hesselink, analyst at ING, believes that hitting those forecasts depends largely on orders from the world's top contract chipmaker TSMC (TSM). The company, which is also ASML's top customer, is expected to order the tools it needs for its upcoming manufacturing process, N2, this year.
'We see a better-than-expected demand and order from TSMC and China players, but lower-than-expected demand and order from Intel (INTC) and Samsung,' added Kevin Wang, analyst at Mizuho.
Is ASML a Good Stock to Buy Now?

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
TSMC Breaks $1 Trillion: The Asian Chip Giant Investors Can't Afford to Ignore
TSMC (NYSE:TSM) just made historyagain. After a blistering 50% rally since April, Taiwan Semiconductor Manufacturing Co. closed last week with a market cap above $1 trillion for the first time ever in Taipei. That makes it the first Asian company to reach the milestone since PetroChina's brief stint in 2007. The surge comes on the back of soaring AI chip demand from key customers like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), and a bullish forecast that suggests the rally might not be done yet. TSMC now expects full-year revenue to climb around 30%, hinting that it could be one of the biggest beneficiaries of the tightening global race for AI manufacturing capacity. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Goldman Sachs analysts came away from TSMC's earnings with a strong read: AI demand remains robust, and price hikes could be on the table as early as 2026. They noted the company's tone on advanced nodes has turned even more optimistic. That's in line with what TSMC's recent results are showingstronger-than-expected momentum in its high-end chip segment, right as global hyperscalers are scrambling to secure supply. Foreign investors are also increasingly turning to TSMC's ADRs, now valued around $1.2 trillion, as a more convenient way to gain exposure without the regulatory hoops of Taipei-listed shares. JPMorgan weighed in too, pointing out that solid AI capex and rising wafer prices could help cushion any currency headwinds from a stronger Taiwan dollarpotentially adding resilience to TSMC's gross margins. In short, while the AI arms race is heating up, TSMC is quietly cementing its lead. Investors may be betting that it's no longer just a key supplierit could be becoming a platform stock for the next phase of global tech growth. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


The Hill
14 minutes ago
- The Hill
Republicans press Lutnick on AI chip policy
A group of House Republicans pressed Commerce Secretary Howard Lutnick on Thursday to quickly nail down the administration's policy on artificial intelligence (AI) chip exports after rescinding the Biden administration's framework. Eight GOP lawmakers, led by Rep. Mark Alford (R-Mo.), urged the administration to provide a 'stable exporting structure' to replace former President Biden's AI diffusion rule. 'This rule would have helped China win the AI race, and replacing this rule quickly will provide American innovators a stable environment to compete and win,' they wrote in Thursday's letter, first reported by Semafor. The Trump administration rescinded the AI diffusion rule in May. The rule, unveiled in the final days of Biden's presidency, placed caps on chip sales to most countries around the world. Only 18 U.S. allies and partners were exempted from the restrictions. The diffusion rule faced sharp pushback from the semiconductor industry, with major players like Nvidia slamming it as 'misguided.' The Commerce Department pulled the rule shortly before it was set to go into effect, arguing it would 'have stifled American innovation and saddled companies with burdensome new regulatory requirements.' Alford and his GOP colleagues agreed with the administration's assessment, while pushing for a new framework with know-your-customer and security controls. 'We can only win the AI race with Communist China if we are wisely limiting our foreign adversary's opportunities to develop frontier AI and enabling American companies to compete quickly in the global marketplace,' they added. 'Both prongs are important and the balance between them are crucial.' 'America is winning the AI race, but the competition has been hard fought and will continue to be,' the lawmakers continued. 'Steps must be taken quickly since investments happening now will create the world's tech ecosystem for decades to come.' The letter comes after the Trump administration walked back curbs on some Nvidia chip sales to China last week. Nvidia announced last Monday that it was filing applications to sell its H20 chips after receiving assurances from the U.S. government that its licenses would be granted. The chipmaker revealed earlier this year that the administration was implementing new licensing requirements that would limit its ability to sell the chips in China. The reversal prompted pushback from at least one key Republican lawmaker, Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on the Chinese Communist Party. He raised concerns in a letter to Lutnick on Friday, arguing that the move would boost China's AI capabilities.


CNBC
15 minutes ago
- CNBC
This chart shows how stocks are now ignoring Trump's tariff threats
The stock market is taking President Donald Trump's tariff threats in stride as investors expect milder duties on U.S. trading partners than initially feared. Goldman Sachs looked at the first day performance in the S & P 500 as well as a basket of stocks with high tariff exposure on dates of key trade developments, such as Liberation Day on April 2 and a hike in China duties on April 7. The Wall Street firm found that the market seems to be reacting less and less to the headlines. "The equity market appears to be unconcerned by the recent tariff hike announcements," David Kostin, Goldman's head of U.S. equity strategy, said in a note to clients. "Our client conversations indicate that many investors believe tariff rates will eventually settle lower than what the recent announcements have indicated." The broad equity benchmark plunged 5% on Liberation Day when Trump announced "reciprocal tariffs" on more than 180 countries and territories. On April 7 when Trump raised China levies to a whopping 145%, the S & P 500 dropped another 3%. In contrast, stocks have largely ignored the most recent tariff announcements on July 7 when Trump started to send out tariff letters as well as news of a potential 30% levy on European Union on July 13. The S & P 500 notched a new record high last week, while Goldman Sachs's tariff risk basket is just 4% off its record high. .SPX YTD mountain S & P 500 year to date Goldman said investors have shifted focus on the outlook for economic and earnings growth in 2026. "Consensus earnings revision breadth has recently jumped to the highest level since 2022, and the outperformance of cyclical industries suggests the equity market is pricing an outlook for solid GDP growth despite consensus expectations for sluggish growth in coming quarters," Kostin said. The firm also noted that the recent dollar weakness should provide a small tailwind to S & P 500 earnings. International sales account for 28% of S & P 500 companies' revenue, so a 10% decline in the greenback could give a 2%-3% boost to S & P 500 earnings, Goldman said.