Latest news with #ASMLHoldingN.V
Yahoo
30-05-2025
- Business
- Yahoo
ASML Holding N.V. (ASML): A Bull Case Theory
We came across a bullish thesis on ASML Holding N.V. (ASML) on Monopolistic Investor's Substack. In this article, we will summarize the bulls' thesis on ASML. ASML Holding N.V. (ASML)'s share was trading at $746.51 as of 28th May. ASML's trailing and forward P/E were 29.62 and 27.47 respectively according to Yahoo Finance. Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process. ASML, a Dutch company, plays a critical but often understated role in the semiconductor industry by producing the highly complex extreme ultraviolet (EUV) lithography machines essential for manufacturing the world's most advanced chips. Its technology works by generating EUV light through an intricate process involving vaporized tin droplets and lasers inside a vacuum chamber, with precision-engineered multilayer mirrors and reticles transferring chip patterns onto silicon wafers with extraordinary accuracy. The company's machines operate with near-perfect environmental controls, managing temperature within thousandths of a degree and positioning wafers with micrometer precision, reflecting an unparalleled level of engineering sophistication that is extremely difficult for competitors to replicate. Despite holding significant pricing power, ASML chooses not to excessively raise prices, balancing profitability with the broader goal of supporting ongoing research and innovation in the tech ecosystem, maintaining around 50% gross margins. The Dutch government recognizes ASML's strategic importance and supports its growth through initiatives like Project Beethoven, aimed at expanding infrastructure and preserving jobs domestically as ASML expands globally. This combination of technological leadership, prudent pricing, and strong governmental backing positions ASML as a vital, resilient player in the semiconductor supply chain, underpinning the future of advanced computing technologies. Previously, we have covered ASML Holdings N.V. (ASML) in May 2025 wherein we summarized a bullish thesis by FluentInQuality on Substack. The author highlighted the company as the sole global provider of extreme ultraviolet (EUV) lithography machines, essential for producing the world's most advanced semiconductors. It emphasized ASML's unmatched technological moat, strong financials with high margins and return on invested capital, and significant geopolitical importance, positioning the company as a critical bottleneck in the semiconductor supply chain. Since our last coverage, the stock is up 10.96%. ASML Holding N.V. (ASML) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held ASML at the end of the first quarter which was 86 in the previous quarter. While we acknowledge the risk and potential of ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
21-05-2025
- Business
- Yahoo
ASML Holding Stock Soars 17% in a Month: Should You Bet on It Now?
ASML Holding N.V. ASML has seen its share price soar more than 17% over the past month. This surge has significantly outperformed the S&P 500 index, which gained 12.1% during the same period. Image Source: Zacks Investment Research This outperformance raises the question: Should investors accumulate ASML shares or book profits and exit the investment? ASML Holding's recent rally stemmed from broader market optimism. Progress in U.S.-China trade negotiations has been boosting market sentiment since late April. Protracted trade tensions had previously dampened global economic forecasts and corporate earnings expectations due to tariffs and retaliatory measures. Last week, the United States and China reached a deal to slash tariffs temporarily. The United States has agreed to lower its overall tariffs on Chinese imports to 30% from 145%. On the other hand, China will reduce duties on U.S. imports to 10% from 125%. The new adjustments will be effective for 90 days. The recent trade deal suggests easing tensions between the two largest economies and smoother international trade flows. This improved outlook fostered investor confidence, leading to a rally in the equity market as fears of further economic disruption subsided and prospects for global growth seemed brighter. Apart from ASML Holding, this broader market optimism also boosted share prices of other semiconductor players, including Lam Research LRCX, KLA Corporation KLAC and Applied Materials AMAT. Over the past month, shares of Lam Research, KLA Corporation and Applied Materials have soared 32.5%, 24% and 19.6%, respectively. ASML Holding's long-term growth potential and invigorated investor optimism make the stock worth buying. ASML'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. 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 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, making it a compelling buy. ASML Holding's first-quarter 2025 financial results demonstrated its resilience amid the ongoing macroeconomic uncertainties. The company posted €7.74 billion in net sales, marking a 46% year-over-year increase. Net income surged 92% to €2.36 billion, while earnings per share (EPS) grew 93% to €6.00, highlighting ASML's operational efficiency. ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote The gross margin expanded 300 basis points year over year to 54%, driven by strong cost management and improved productivity in its advanced lithography systems. This margin expansion reflects ASML's ability to maintain profitability even in a challenging macro environment. ASML Holding's 2025 guidance also signals confidence in its future growth. The company expects 15% revenue growth for the year, driven by the rising demand for both EUV and DUV (deep ultraviolet) lithography systems. Additionally, ASML forecasts a 70-basis-point margin expansion in 2025, indicating higher profitability ahead. ASML stock currently trades at a premium to the Zacks Computer and Technology sector. Its forward 12-month price-to-earnings (P/E) ratio of 26.2 exceeds the sector's average of 25.5. However, the company's near-monopoly in EUV lithography and strong growth prospects justify this premium valuation. Image Source: Zacks Investment Research ASML Holding also trades at higher P/E multiples compared with other semiconductor players, including KLA Corporation, Lam Research and Applied Materials. Currently, KLA Corporation, Lam Research and Applied Materials trade at P/E multiples of 24.1X, 21.25X and 17.09X, respectively. ASML Holding's technological leadership and robust financials offer strong long-term growth potential. The company's dominance in EUV and High-NA EUV technology makes it well-positioned for future growth. With rising demand for advanced nodes, AI chips and high-bandwidth memory, ASML's lithography tools will remain mission-critical, making the stock worth buying. ASML carries a Zacks Rank #2 (Buy) 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 KLA Corporation (KLAC) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
Beyond Tariffs: Why Berenberg Still Sees a 'Buy' in ASML's Future
Berenberg recently lowered the price target on ASML Holding N.V. (NASDAQ:ASML) to EUR 740 from EUR 800 and kept a Buy rating on the shares. ASML makes and sells advanced semiconductor equipment systems. In an investor note, the analyst told investors that the company's Q1 results confirmed that the semi end-market dynamic was developing as expected, and artificial intelligence continued to be the main driver of semi end market demand. Although ASML Holding N.V. (NASDAQ:ASML) acknowledged the near-term tariff uncertainty, the company maintained its 2025 revenue guidance, and expects 2026 to be another growth year, added the advisory. A technician in a clean room working on a semiconductor device, illuminated by the machines. The company recently reiterated its 2025 revenue guidance of €30 billion to €35 billion, with a gross margin expectation of 51%-53%. The full-year growth is expected to be supported by Logic and Memory demand, with AI-related applications being a leading growth driver. Q2 guidance projects net sales between €7.2 billion and €7.7 billion and a gross margin of 50%-53%. While we acknowledge the potential of ASML, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below. Sign in to access your portfolio
Yahoo
18-05-2025
- Business
- Yahoo
Jim Cramer Notes ASML Holding (ASML)'s 'Last Couple Quarters Have Been Weak'
We recently published a list of . In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other stocks that Jim Cramer discussed recently. During Thursday's episode of Mad Money, Jim Cramer cautioned investors against letting excessive pessimism shape how they approach the stock market. 'My view, you can be as cynical and corrosive as you want about the vast majority of things in the world in life. But if you're trying to make big money in the stock market, you're actually better off being critical and constructive. Reflexive negativity is not a smart strategy, and you'll most certainly trade yourself into oblivion with very little show for it.' READ ALSO: Jim Cramer Put These 8 Stocks Under a Microscope Recently and Jim Cramer Commented on These 6 Natural Gas Players. Cramer pointed out that markets often offer strong opportunities, especially on days when sentiment is low, and if investors remain too skeptical, they miss out. He emphasized that these chances do not appear in isolation; they show up often in what he called 'the greatest market in the world.' As per Cramer, many stocks that were once dismissed or 'left for dead' ended up rebounding. He noted, 'The cynics missed all of these moves,' and went on to say, 'You could have caught all of them.' 'So here's the bottom line: If you examined these same opportunities with a jaundiced eye, too critical, too negative, I know what would've happened. You would've passed on all of them. But if you were open-minded, if you were constructive, any one of these could easily have made you a boatload of money.' For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 15. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A technician in a clean room working on a semiconductor device, illuminated by the machines. Number of Hedge Fund Holders: 86 When a caller inquired about ASML Holding N.V. (NASDAQ:ASML), Cramer commented: 'No…. The last couple quarters have been weak, I've gotta tell you. By the way, Applied Materials reported a quarter that some people didn't like tonight. If you want to be in that industry, you have to buy Lam Research. That's the best one.' ASML (NASDAQ:ASML) builds advanced machines used in semiconductor manufacturing, including lithography, metrology, and inspection systems. The company helps chipmakers produce various types of semiconductors and offers upgrades and technical support for its equipment. Calling the company difficult during April 11's episode, Cramer said: 'ASML Holding, that's a Dutch company, is a crucial semiconductor capital equipment business. It also reports and I fear that it will miss as it did last time, causing all the high-end semiconductor stocks to roll over. And by the way, AMAT was up big today. That would go down big if ASML misses. Talk about opaque. I don't even know if these guys know how they're doing right now. It is such a complicated company.' Overall, ASML ranks 9th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of ASML as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . 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
14-05-2025
- Business
- Yahoo
Is ASML Holding (ASML) One of the Best Technology Stocks to Buy for Long-Term Investment?
We recently published a list of the 13 Best Technology Stocks to Buy for Long-Term Investment. In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other tech stocks to buy for long-term investment. On May 12, Jeff Kilburg of KKM Financial and Dan Ives of Wedbush Securities appeared together on CNBC to discuss AI, cybersecurity, and mega-cap tech, especially as tech stocks soar as the US-China tariff deal boosts market confidence. Jeff Kilburg first identified the tech software sector as the primary beneficiary of the recent market pause amid optimism and gains, and highlighted that markets are broadly positive. He noted that many investors underestimated how quickly a China trade deal would materialize and contrasted it with the UK deal, which was expected to be a slower, tentative template. Kilburg suggests that faster deal-making could continue and benefit several software companies, which have been overlooked due to the focus on the MAG7. Dan Ives concurred with Kilburg's view but singled out NVIDIA as the biggest near-to-medium-term beneficiary of the pause, especially given its prior exposure to China tariffs. He referenced the ongoing AI revolution and the surge in AI-related stocks and described the current environment as a dream scenario for tech investors. Ives anticipates new highs for tech and the broader market. He also described a 'golden age' for cybersecurity stocks, which are acting as secondary beneficiaries of AI growth. On a question about the impact of the admin's focus on reducing federal spending and debt, particularly on companies that derive substantial revenue from government contracts, Kilburg responded that this fiscal discipline is actually positive for software companies as it may drive more spending toward efficient software solutions. Kilburg also addressed the sectors to avoid or be cautious about amid the current market environment. He suggests trimming utilities, which have been a safe haven but may now be less attractive. He points out that the VIX volatility index dropping below 20, which is a big change from over 60 in April, indicates reduced market fear and increased investor confidence. This suggests a market environment favoring higher-beta and growth-oriented investments rather than defensive plays. We first sifted through stock screeners, ETFs, and financial media reports to compile a list of the top tech stocks that have grown over 15% in the past 3 years. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A technician in a clean room working on a semiconductor device, illuminated by the machines. 3-Year Revenue CAGR: 19.98% Number of Hedge Fund Holders: 86 ASML Holding N.V. (NASDAQ:ASML) provides lithography solutions to develop, produce, market, sell, upgrade, and service advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems. It also offers hardware, software, and services to chipmakers to produce the patterns of ICs. ASML's EUV/Extreme Ultraviolet system sales contributed EUR3.2 billion to the total net system sales of EUR5.7 billion in Q1 2025. This segment benefited from a favorable product mix with a higher proportion of NXE:3800E systems. Higher average selling prices and the achievement of customer productivity milestones on already installed EUV systems also drove the company's growth. These factors together pushed the gross margin above guidance to 54%. ASML Holding (NASDAQ:ASML) is continuing the ramp-up of leading-edge logic nodes by customers utilizing the NXE:3800E system. Furthermore, the progress in High NA EUV technology, with the shipment of the fifth NXE:5000 system and the upcoming shipments of the NXE:5200, indicates a longer-term growth trajectory for the company. However, Morgan Stanley analyst Lee Simpson lowered the price target on ASML to EUR640 from EUR 680 while keeping an Equal Weight rating. Baron Fifth Avenue Growth Fund is optimistic about ASML Holding (NASDAQ:ASML) due to its monopoly in critical lithography and stated the following in its Q4 2024 investor letter: 'ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that designs and manufactures photolithography equipment for semiconductor manufacturing. While ASML is the leader across all types of lithography, most importantly, it is the only manufacturer of extreme ultra-violet lithography tools, which are critical for the manufacturing of leading-edge chips. Shares fell 16.6% during the fourth quarter (finishing the year down 7.7%) on reduced guidance for 2025 as well as growing investor concerns about the potential impact of U.S. government restrictions on Chinese demand and the possibility of peaking lithography intensity. Despite near-term noise, we believe that the growing demand for chips in general and AI chips in particular will continue to support long-term growth for the wafer fab equipment industry with ASML's competitive positioning remaining unassailable. While lithography as a percentage of capital expenditure may decrease from current levels, the chip layer count requiring lithography will continue to increase, in our view, as chips continue to become more complex. As a monopoly on critical lithography tools supporting an industry with growing demand fueled by the proliferation of AI, we see strong long-term upside for ASML.' Overall, ASML ranks 7th on our list of the best technology stocks to buy for long-term investment. While we acknowledge the growth potential of ASML, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
