Latest news with #ASML
Yahoo
11 hours ago
- Business
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ASML (ASML) Gets EUR700 Price Target From Deutsche Bank — Analysts Stick With ‘Buy' Despite Headwinds
ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks on Wall Street's Radar. On July 17, Deutsche Bank analyst Robert Sanders lowered the price target on the stock to EUR700.00 (from EUR750.00) while maintaining a 'Buy' rating. The price target reduction follows ASML narrowing its 2025 sales growth forecast to 15%. It now expects sales to grow roughly 32.50 billion euros ($37.71 billion). The firm is particularly concerned about ASML's lowered extreme ultraviolet (EUV) unit shipment forecast for 2025. The forecast was reduced from 'below 50' low NA shipments to just 42 units, which suggests execution issues at key customers, Intel and Samsung. It noted how Intel has bought a fleet of EUV equipment for its 18A technology ramp. However, it seems to be experiencing difficulties, particularly for external customers. A street-level view of a large financial firm, symbolizing the strength of the company's investments. For Samsung, the firm's analysis reveals that the company kept on investing despite the DRAM market being down. As a result, there is an excess of High-Bandwidth Memory (HBM) capacity, but it's still waiting on Nvidia for approval. ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing. While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
13 hours ago
- Business
- Yahoo
ASML's Q2 Beat Fails to Impress as Bernstein Flags Order Weakness
ASML Holding N.V. (NASDAQ:) is one of the . On July 16, Bernstein lowered the firm's price target on the stock to $743 from $806 and kept a 'Market Perform' rating on the shares. The analysts told investors in a research note that ASML has reported pretty strong Q2 results with revenue/margin and order beats. It also reiterated its 2025 guidance with 15% growth from last year. However, closer inspection by the firm has revealed that orders are also not as strong as they seem. In particular, there has been a EUR1.4B backlog adjustment seen due to 'customers' response to export controls.' ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing. While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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
Yahoo
16 hours ago
- Business
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5 Artificial Intelligence (AI) Stocks You Can Buy and Hold for the Next Decade
Key Points Nvidia, TSMC, and ASML are all great long-term plays on AI infrastructure. Meta is investing heavily in AI and is well-positioned for an AI world. Alphabet should not be overlooked for what the company is doing in AI. 10 stocks we like better than Nvidia › Artificial intelligence (AI) isn't just a technology trend -- it's transforming the word we live in. As such, investing in leading AI companies for the long haul could be a smart move. Let's look at five AI stocks you can buy and hold for the next decade. 1. Nvidia When it comes to AI infrastructure, Nvidia (NASDAQ: NVDA) is the clear leader. Its graphic processing units (GPUs) are the main chips used to train and run AI workloads. The company had an over 90% market share in the GPU market in Q1, while its data center revenue has jumped more than 9x over the past two years. That kind of growth from a $4.17 trillion company is almost unheard of. The company's wide moat comes from its CUDA software platform, which it pushed into universities and research labs long before AI became mainstream. As a result, CUDA became the primary platform on which developers learned to program GPUs, and a plethora of libraries and tools were built on top of its software to help optimize the performance of its chips for AI. Outside of AI, Nvidia's auto segment is also seeing strong growth. Revenue hit $567 million last quarter, with the company projecting $5 billion for the year. With the advent of autonomous driving, this could become another big growth leg for the company in the future. 2. Taiwan Semiconductor Manufacturing Today, most chipmakers don't manufacture their own chips; they just design them. That is where Taiwan Semiconductor Manufacturing (NYSE: TSM) steps in. It is the world's leading semiconductor contract manufacturer, making chips for leading chip designers like Nvidia, Advanced Micro Devices, Apple, and Broadcom. Manufacturing advanced chips isn't an easy process, as it requires both scale and technological expertise. Foundries are constantly racing to shrink node sizes, as the more transistors that can be packed onto a chip, the better a chip's performance and power efficiency. TSMC has a wide lead in advanced node manufacturing. Chips built on 7nm and smaller nodes made up 73% of revenue last quarter, while 3nm chips alone accounted for 22%. Apple has already locked in future supply for its 2nm line. As rivals have struggled, TSMC has become a vital partner to leading chip designers. This has given it pricing power, as chip designers work closely with the company to secure future capacity to meet growing demand for advanced chips. 3. ASML While TSMC manufactures advanced chips, ASML (NASDAQ: ASML) is the company that provides the equipment that makes it possible. It has a near-monopoly on extreme ultraviolet lithography, which is the technology used to make advanced chips. ASML's business is driven by chipmaker capital spending. With TSMC and Intel planning to invest hundreds of billions into new capacity, ASML will benefit. As long as demand for advanced chips keeps rising, it should continue to see solid demand moving forward. The company also recently introduced a new technology called a high numerical aperture extreme ultraviolet lithography system, or High NA EUV. This technology will help shrink chip sizes even further. While TSMC has balked at these machines' nearly $400 million price tag, last quarter it shipped its fifth High NA EUV system. It now has machines placed at the three largest semiconductor contract manufacturers, and none of them are likely going to want to fall behind. With companies looking to design more powerful AI chips in the future, ASML looks well-positioned for the long run. 4. Meta Platforms Meta Platforms (NASDAQ: META) owns one of the most powerful digital ad platforms in the world, and AI is making it better. Its Llama model is increasing personalization and engagement across Facebook and Instagram, which is driving strong revenue growth. In Q1, its ad impressions rose 5%, while pricing climbed 10%. That's a strong sign that users are spending more time on its apps, and that advertisers are getting more value from the platform. Meta's new AI tools are helping marketers generate better creative content and target users more effectively. That makes campaigns better and increases return on ad spend, which keeps advertisers coming back. Meta is also investing heavily in its AI infrastructure, giving it more control over performance and cost. The company is also just starting to serve ads on both its messaging platform, WhatsApp, and its new social media site, Threads. WhatsApp has more than 3 billion users, and Threads has already hit 350 million. As such, both have a long runway of ad growth ahead. Overall, Meta looks well-positioned for an AI world. 5. Alphabet Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) moat should not be underestimated. While investors fear that AI will disrupt its core search business, investors are missing what Google truly does. Google isn't about search; it's about content discovery, and whether that is delivered via traditional search or AI, the company has a few big advantages. Its biggest advantage is distribution. Its Chrome browser has a more than 65% browser market share, while its Android operating system runs on more than 70% of smartphones. It's also the default search engine on Apple devices and partners with other browsers like Opera. The company also has decades of user search data and the world's largest ad network, with unprecedented scale and reach. Importantly, Google is integrating AI into products people already use. Its new AI Mode in search turns Google into an AI assistant, not just a list of links. A recent Oppenheimer survey showed 82% of users found it more helpful than traditional search, and 75% said it was more useful than ChatGPT. That's a strong signal that Google is getting this right. Its cloud computing unit, Google Cloud, is also gaining momentum. Q1 revenue rose 28%, and operating income more than doubled. Cloud customers are using Google's Vertex AI tools to train and deploy models. It even has developed its own custom AI chips, which even OpenAI has been testing. Meanwhile, Waymo is another underappreciated asset. It's now running over 250,000 paid robotaxi rides per week and has started expanding into new markets through its Uber partnership. Alphabet's Willow quantum chip is also showing real progress in reducing error rates. This may take years to play out, but it could be another growth engine down the road. Overall, with its combination of leading and emerging businesses, Alphabet looks like one of the best AI stocks to own over the long term. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet and Opera. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Alphabet, Apple, Intel, Meta Platforms, Nvidia, Taiwan Semiconductor Manufacturing, and Uber Technologies. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. 5 Artificial Intelligence (AI) Stocks You Can Buy and Hold for the Next Decade was originally published by The Motley Fool 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
Yahoo
a day ago
- Business
- Yahoo
Why Is Semtech (SMTC) Stock Soaring Today
What Happened? Shares of semiconductor company Semtech (NASDAQ:SMTC) jumped 5.8% in the afternoon session after hedge fund Edgestream Partners L.P. significantly increased its investment in the company. According to a regulatory filing, Edgestream Partners L.P. boosted its holdings in the semiconductor company by a remarkable 496.0% during the first quarter. The firm acquired an additional 54,185 shares, bringing its total stake to 65,110 shares, valued at approximately $2.24 million. Such a substantial purchase by an institutional investor was often interpreted by the market as a strong vote of confidence in a company's future prospects and strategy. Is now the time to buy Semtech? Access our full analysis report here, it's free. What Is The Market Telling Us Semtech's shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 2 days ago when the stock dropped 3.2% on the news that a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike. The negative sentiment was triggered after the Dutch firm, whose complex machines are essential for producing advanced chips, warned it could no longer guarantee growth in 2026. ASML's management cited "increasing uncertainty driven by macro-economic and geopolitical developments," including the potential for new U.S. tariffs. As an industry bellwether, a company whose performance is seen as an indicator of the entire sector's health, ASML's comments are a key signal of future capital spending. The warning sent a chill through the market, as concerns grow that trade tensions could disrupt the highly globalized semiconductor supply chain and slow down investment from chip manufacturers. Semtech is down 13.5% since the beginning of the year, and at $53.72 per share, it is trading 30.4% below its 52-week high of $77.15 from January 2025. Investors who bought $1,000 worth of Semtech's shares 5 years ago would now be looking at an investment worth $1,002. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
ASML Stock Declines 9% After Q2 Earnings: Should You Hold or Fold?
ASML Holding ASML shares have dropped 9.5% since the company reported its second-quarter 2025 results on July 16. ASML net sales grew 23.2% year over year to €7.69 billion, while EPS surged 47.1% to €5.90. Converted to the U.S. dollar, ASML Holding's second-quarter revenues and EPS were $8.7 billion and $6.70, respectively, both surpassing analysts' expectations. The top line beat the Zacks Consensus Estimate by 1.8%, while the bottom line surpassed it by 12.8%. ASML Holding N.V. Price, Consensus and EPS Surprise ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote Despite strong quarterly results, the market reaction was negative, largely because of what the company said about 2026 uncertainty and weaker-than-expected third-quarter guidance. ASML Turns Cautious About 2026 Outlook Management backed away from earlier confidence about growth in 2026. Previously, ASML Holding had expected demand to keep rising, especially with AI fueling more chip production. However, on the second-quarter call, the company said that it 'cannot confirm growth in 2026,' pointing to customer hesitation and ongoing market uncertainty. During the call, ASML Holding acknowledged that ongoing U.S.-China tariff discussions, including the Section 232 tariff review, are negatively impacting customer capital spending timelines. This hesitation may delay orders and revenue recognition in late 2025 and into 2026, casting doubt on near-term growth continuity. Additionally, ASML Holding issued disappointing guidance for the third quarter. The company expects third-quarter revenues between €7.4 billion and €7.9 billion. As per the Euro/USD currency exchange rate as of July 16, the top-line guidance ranges from $8.6 billion to $9.2 billion, significantly lower than the Zacks Consensus Estimate of $9.81 billion. ASML expects the third-quarter gross margin in the 50-52% range, depicting a significant decline from 53.7% in the second quarter. This sequential decline is expected mainly due to margin-dilutive High NA system revenues and fewer upgrade orders. All these factors have caused near-term uncertainty about ASML Holding's prospects. However, considering the growing AI-driven demand for advanced chip-making tools, the company's long-term prospects seem bright, making the stock worth holding. EUV Technology Keeps ASML in a Strong Position ASML Holding's dominance in the semiconductor manufacturing sector is unchallenged. The company maintains a near-monopoly on extreme ultraviolet (EUV) lithography, which is essential for producing advanced chips at 3nm and below. Its EUV systems are crucial for leading chipmakers such as TSMC, Samsung and Intel, positioning ASML as a key enabler of cutting-edge semiconductor manufacturing. ASML Holding's High-NA EUV technology represents the next frontier in chip manufacturing. Designed for sub-2nm nodes, these advanced systems will be critical for the industry's future. While the adoption of High-NA EUV has been slower than expected, the long-term potential remains enormous. As chipmakers ramp up production of smaller, more powerful chips, ASML's High-NA EUV tools will play a pivotal role, driving sustained demand. Additionally, ASML Holding made substantial progress in High NA EUV during the second quarter with the shipment and installation of the first EXE:5200B system. This platform is critical for enabling the 1.4nm node and beyond. Customers are validating the performance, and ASML sees High NA insertion into high-volume manufacturing beginning in 2026-2027, offering a major long-term revenue and margin driver. The company's technological superiority ensures high barriers to entry, giving it a competitive moat. With EUV technology being essential for advanced semiconductor fabrication, ASML Holding's dominance remains intact, supporting its long-term growth outlook. ASML Holding projects 30% growth in EUV revenues this year. Customers are increasing EUV layers in DRAM nodes, using ASML's tools to reduce multi-patterning complexity. AI Growth Continues to Support ASML's Future ASML Holding is well-positioned to capitalize on the artificial intelligence (AI) revolution, which is driving massive demand for advanced semiconductors. With AI workloads requiring cutting-edge GPUs, high-bandwidth memory and AI accelerators, the demand for smaller and more powerful chips is rising. This trend plays directly into ASML's hands, as its EUV and High-NA EUV machines are vital for manufacturing these advanced chips. As cloud providers, data centers and tech giants expand their AI infrastructure, ASML Holding's lithography tools will be in greater demand. This AI-driven semiconductor expansion ensures long-term growth tailwinds for ASML. ASML Trades at a Reasonable Price Compared to Peers ASML stock currently trades in line with the sector. Its forward 12-month price-to-earnings (P/E) ratio of 25.70 is slightly lower than the Zacks Computer and Technology sector's average of 27.67. Image Source: Zacks Investment Research ASML Holding also trades at lower P/E multiples compared with other semiconductor players, including Intel INTC, NVIDIA NVDA and Advanced Micro Devices AMD. Currently, Intel, NVIDIA and Advanced Micro Devices trade at P/E multiples of 43.82X, 35.60X and 33.68X, respectively. Shares of ASML have risen 7.6% year to date (YTD), underperforming the sector's gain of 8.6%. Shares of semiconductor giants Intel, NVIDIA and Advanced Micro Devices have soared 13.7%, 28.9% and 32.5%, respectively, YTD. YTD Price Return Performance Image Source: Zacks Investment Research Final Thoughts: Hold ASML for the Long Term The recent dip in ASML Holding stock is more about short-term uncertainty than a breakdown in fundamentals. The company still leads in one of the most critical technologies for advanced semiconductor production. Its tools are essential for enabling AI, next-gen computing and high-performance memory. Despite near-term caution around 2026 and geopolitical risks, ASML's market position, tech advantage and long-term demand drivers remain intact, making the stock worth retaining at the moment. ASML Holding carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
