Latest news with #ChristopheFouquet
India.com
3 days ago
- Business
- India.com
This semiconductor manufacturing company became victim of politics, lost Rs Rs 11000000000000, the company is....
This semiconductor manufacturing company became victim of politics, lost Rs Rs 11000000000000, the company is.... One of the largest technology companies in Europe, ASML, has witnessed a massive loss in the last one year. The market value of the Dutch company plunged to USD 130 billion (about Rs 10.8 lakh crore). In July 2024, its value was USD 130 billion (about Rs 10.8 lakh crore). The value of the company has fallen drastically in less than a year. However, there is no fault of the company in the losses, and it has fallen prey to the political game which is going on between the United States and China. Notably, Dutch company ASML is a crucial link in the semiconductor industry, and it is the only company in the globe that makes EUV (Extreme Ultraviolet Lithography) machines. These EUV machines are essential for chipmaker companies that manufacture the most modern and fastest chips, like TSMC, Samsung and Intel. However, the ongoing trade tensions between Washington and Beijing have badly affected the Dutch company. The US has put a ban on shipping these machines to China, due to which ASML can no longer sell its advanced machines to China. This development has directly affected the sales of the company. ASML CEO Christophe Fouquet stated that the company's sales from China in 2025 will be lower than past years. However, the company has recently started shipping the next-generation High NA EUV machines. Notably, these High NA EUs may remain in demand from big companies like Samsung and Intel in the future. What Does Analyst Said? Although current market conditions are challenging, some analysts remain positive. A US-Europe trade agreement could boost market confidence, and projections suggest ASML's prospects are strong for 2025 and 2026 due to rising demand for its chipmaking equipment. One analysis predicts a potential 17% increase in ASML's stock price in the coming months. What is the history of the company? ASML Holding NV is a Dutch company which was founded in 1984 as a joint venture between Philips and ASM International. Headquartered in Veldhoven, the company became independent in 1995. ASML manufactures and sells photolithography machines for the semiconductor industry, specifically EUV and DUV machines. Most of ASML's revenue comes from Asian countries such as – Japan, South Korea, Taiwan, and China. Asia is its largest market for the Dutch company, accounting for about 70 percent of total sales. But China's contribution is expected to decline in 2025. ASML also has a strong presence in Europe and the America.
Globe and Mail
24-04-2025
- Business
- Globe and Mail
Is ASML Holding Stock a Buy Now?
ASML Holding (NASDAQ: ASML) stock fell sharply after the company released its first-quarter 2024 results on April 16, dropping 7% in a single session as the semiconductor giant's outlook was clouded by the ongoing tariff-related turmoil. The Dutch company, which makes semiconductor manufacturing equipment used by leading chipmakers and foundries around the globe, delivered stronger-than-expected quarterly results that were ahead of Wall Street's expectations. However, ASML's revenue guidance for the current quarter fell short of expectations, though the good news is that the company hasn't changed its full-year guidance despite the uncertainty. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Let's take a closer look at ASML's latest results and check whether the stock's steep drop could be a buying opportunity. ASML expects growth ahead despite the tariff uncertainty ASML's first-quarter revenue landed at 7.74 billion euros, a jump of 46% from the year-ago period. The company's net income nearly doubled on a year-over-year basis. ASML expects its second-quarter revenue to land at 7.45 billion euros at the midpoint of its guidance range. That missed the consensus estimate of 7.73 billion euros by a whisker. The good part is that ASML's guidance points toward a 19% jump in its top line from the year-ago period, which is healthy considering the ongoing turmoil. But then, investors are concerned about the effect of tariffs on ASML's order book. The company received just under 4 billion euros' worth of net bookings in Q1, down from 7 billion euros in the fourth quarter of 2024. The bookings figure missed the consensus estimate by almost a billion euros. However, investors should note that ASML's net bookings increased by almost 10% year over year. Moreover, ASML's bookings tend to vary in volume from one quarter to another. For instance, its bookings in Q4 2024 were double what analysts were expecting. So, it may be difficult to gauge ASML's prospects based on the bookings it receives every quarter, but the fact that this figure increased on a year-over-year basis in Q1 suggests that the demand for its chipmaking equipment remains solid. CEO Christophe Fouquet is confident that ASML's business is on track for growth in 2025 and 2026. He remarked on the latest earnings conference call: Looking longer term, the semiconductor market remains strong with Artificial Intelligence creating growth in recent quarters and we see some of the future demand for AI solidifying which is encouraging. Our conversations so far with our customers confirm our expectation that both 2025 and 2026 will be growth years. Of course, ASML does accept that there is "an increased uncertainty across the global economy due to the on-going discussion on tariffs." But the latest results of one of its key customers indicate that the semiconductor equipment market could continue to remain in good health. Taiwan Semiconductor Manufacturing, popularly known as TSMC, reported solid Q1 results on April 17. The company, which fabricates chips for well-known consumer electronics companies and artificial intelligence (AI) -focused chipmakers, pointed out that it hasn't witnessed any alteration in its customers' behavior thus far. What's more, TSMC has reiterated its 2025 capital expenditure forecast of $38 billion to $42 billion. That would be a 33% jump from last year at the midpoint. This is good news for ASML, as TSMC is one of its most important customers, since the latter is the world's largest foundry. Meanwhile, semiconductor industry association SEMI expects global fabrication equipment spending to increase by 2% this year, followed by a stronger jump of 18% in 2026. Recent tariff-related developments, such as the exemption of duties on imports of semiconductors, computers, and chips, along with the 90-day pause on "reciprocal" tariffs to ensure that there is time for negotiations, suggest that the Trump administration is willing to be flexible. If the negotiations turn out to be favorable, then the cloud of uncertainty that has weighed on fast-growing companies such as ASML could go away. The stock's valuation is very attractive right now ASML's post-earnings drop has made the stock even more attractive. It is trading at 25 times trailing earnings, which is a discount to the tech-heavy Nasdaq-100 index's earnings multiple of 28. Considering that the company has reiterated its full-year guidance and points out that catalysts such as AI could help drive long-term growth for its semiconductor equipment, it's easy to see why analysts are expecting its bottom-line growth to remain healthy going forward. ASML EPS Estimates for Current Fiscal Year data by YCharts. So, investors who are sitting on extra cash after saving enough for bad times, clearing their bills, and closing high-interest loans could consider buying this semiconductor stock, thanks to its cheap valuation and healthy long-term growth potential. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $266,353!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,790!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $566,035!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of April 21, 2025
Yahoo
24-04-2025
- Business
- Yahoo
Is ASML Holding Stock a Buy Now?
ASML Holding (NASDAQ: ASML) stock fell sharply after the company released its first-quarter 2024 results on April 16, dropping 7% in a single session as the semiconductor giant's outlook was clouded by the ongoing tariff-related turmoil. The Dutch company, which makes semiconductor manufacturing equipment used by leading chipmakers and foundries around the globe, delivered stronger-than-expected quarterly results that were ahead of Wall Street's expectations. However, ASML's revenue guidance for the current quarter fell short of expectations, though the good news is that the company hasn't changed its full-year guidance despite the uncertainty. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Let's take a closer look at ASML's latest results and check whether the stock's steep drop could be a buying opportunity. ASML's first-quarter revenue landed at 7.74 billion euros, a jump of 46% from the year-ago period. The company's net income nearly doubled on a year-over-year basis. ASML expects its second-quarter revenue to land at 7.45 billion euros at the midpoint of its guidance range. That missed the consensus estimate of 7.73 billion euros by a whisker. The good part is that ASML's guidance points toward a 19% jump in its top line from the year-ago period, which is healthy considering the ongoing turmoil. But then, investors are concerned about the effect of tariffs on ASML's order book. The company received just under 4 billion euros' worth of net bookings in Q1, down from 7 billion euros in the fourth quarter of 2024. The bookings figure missed the consensus estimate by almost a billion euros. However, investors should note that ASML's net bookings increased by almost 10% year over year. Moreover, ASML's bookings tend to vary in volume from one quarter to another. For instance, its bookings in Q4 2024 were double what analysts were expecting. So, it may be difficult to gauge ASML's prospects based on the bookings it receives every quarter, but the fact that this figure increased on a year-over-year basis in Q1 suggests that the demand for its chipmaking equipment remains solid. CEO Christophe Fouquet is confident that ASML's business is on track for growth in 2025 and 2026. He remarked on the latest earnings conference call: Looking longer term, the semiconductor market remains strong with Artificial Intelligence creating growth in recent quarters and we see some of the future demand for AI solidifying which is encouraging. Our conversations so far with our customers confirm our expectation that both 2025 and 2026 will be growth years. Of course, ASML does accept that there is "an increased uncertainty across the global economy due to the on-going discussion on tariffs." But the latest results of one of its key customers indicate that the semiconductor equipment market could continue to remain in good health. Taiwan Semiconductor Manufacturing, popularly known as TSMC, reported solid Q1 results on April 17. The company, which fabricates chips for well-known consumer electronics companies and artificial intelligence (AI)-focused chipmakers, pointed out that it hasn't witnessed any alteration in its customers' behavior thus far. What's more, TSMC has reiterated its 2025 capital expenditure forecast of $38 billion to $42 billion. That would be a 33% jump from last year at the midpoint. This is good news for ASML, as TSMC is one of its most important customers, since the latter is the world's largest foundry. Meanwhile, semiconductor industry association SEMI expects global fabrication equipment spending to increase by 2% this year, followed by a stronger jump of 18% in 2026. Recent tariff-related developments, such as the exemption of duties on imports of semiconductors, computers, and chips, along with the 90-day pause on "reciprocal" tariffs to ensure that there is time for negotiations, suggest that the Trump administration is willing to be flexible. If the negotiations turn out to be favorable, then the cloud of uncertainty that has weighed on fast-growing companies such as ASML could go away. ASML's post-earnings drop has made the stock even more attractive. It is trading at 25 times trailing earnings, which is a discount to the tech-heavy Nasdaq-100 index's earnings multiple of 28. Considering that the company has reiterated its full-year guidance and points out that catalysts such as AI could help drive long-term growth for its semiconductor equipment, it's easy to see why analysts are expecting its bottom-line growth to remain healthy going forward. So, investors who are sitting on extra cash after saving enough for bad times, clearing their bills, and closing high-interest loans could consider buying this semiconductor stock, thanks to its cheap valuation and healthy long-term growth potential. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $266,353!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,790!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $566,035!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 21, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Is ASML Holding Stock a Buy Now? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
ASML Holding NV (ASML) Q1 2025 Earnings Call Highlights: Strong EUV Sales and Strategic Challenges
Total Net Sales: EUR7.7 billion. Net System Sales: EUR5.7 billion (EUV: EUR3.2 billion, Non-EUV: EUR2.5 billion). Install Base Management Sales: EUR2 billion. Gross Margin: 54%. R&D Expenses: EUR1.161 billion. SG&A Expenses: EUR281 million. Effective Tax Rate: 16.7%. Net Income: EUR2.4 billion. Earnings Per Share (EPS): EUR6. Cash, Cash Equivalents, and Short-term Investments: EUR9.1 billion. Free Cash Flow: Minus EUR475 million. Net System Bookings: EUR3.9 billion (EUV: EUR1.2 billion, Non-EUV: EUR2.8 billion). Dividend: EUR1.52 per ordinary share for Q1 2025; total 2024 dividend proposal of EUR6.40 per ordinary share. Share Purchases: EUR2.7 billion in Q1 2025. Warning! GuruFocus has detected 2 Warning Sign with CFG. Release Date: April 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q1 2025, in line with guidance. The company achieved a gross margin of 54%, exceeding expectations due to favorable EUV product mix and customer productivity milestones. Net income for Q1 2025 was EUR2.4 billion, representing 30.4% of total net sales, with an earnings per share of EUR6. ASML Holding NV (NASDAQ:ASML) continues to see strong demand in the AI sector, which is expected to drive growth in 2025 and 2026. The company is making significant progress in EUV technology, with milestones achieved in both low NA and high NA platforms, supporting customer roadmaps and cost optimization. ASML Holding NV (NASDAQ:ASML) experienced a negative free cash flow of EUR475 million in Q1 2025 due to customer payment dynamics and investments in fixed assets. There is increased uncertainty in the business environment due to ongoing discussions about tariffs, which could impact ASML Holding NV (NASDAQ:ASML) and its customers. The gross margin for the second half of 2025 is expected to be lower than the first half due to potential tariff impacts and lower upgrade revenue. ASML Holding NV (NASDAQ:ASML) faces challenges with the geopolitical situation, particularly regarding tariffs that could affect the semiconductor supply chain. The company anticipates a wider range of gross margins for Q2 2025 due to uncertainties around tariffs and their absorption in the value chain. Q: Could you consider flexibility around the pricing of high-NA to facilitate adoption? A: Christophe Fouquet, CEO: The main reason for not adopting new systems quickly is tool maturity, not price. We focus on achieving maturity to ensure optimized cost of technology. Lowering prices without maturity would create issues for customers. Q: What kind of bookings run rate should we expect to see growth in 2025 and 2026? A: Roger Dassen, CFO: We believe 2026 will be a growth year based on technology and market demand, despite macroeconomic uncertainties. While we have a strong backlog, additional bookings are needed for growth, but we won't quantify the exact run rate needed. Q: Is China still expected to account for around 25% of sales this year? A: Roger Dassen, CFO: Yes, we expect China to be slightly over 25% of sales this year, with demand particularly strong in the mainstream business. The backlog composition for China remains in the 20% to 25% range. Q: How are customer conversations regarding tariffs affecting delivery schedules? A: Christophe Fouquet, CEO: Tariff announcements have not changed business conversations with customers. There is uncertainty, but discussions have not fundamentally altered business planning or delivery schedules. Q: Can you provide an update on the adoption of single-exposed EUV versus multi-patterning? A: Christophe Fouquet, CEO: Adoption is happening gradually. Each new customer node with better cost of technology, like the 3800E, presents an opportunity for more single-exposed adoption. This is an ongoing effort with customers. Q: What is the expected impact of tariffs on gross margins for the full year? A: Roger Dassen, CFO: It's difficult to predict the full-year impact due to uncertainty around tariffs. We aim to minimize exposure and believe the tariff burden should be shared across the value chain, not solely by ASML. Q: How does the geographic diversification of fabs affect your business? A: Roger Dassen, CFO: Dispersed fabs may lead to increased capacity needs, potentially driving semiconductor demand. However, tariff uncertainties add complexity to this scenario. Q: What are the key milestones for the EXE platform from R&D to production? A: Christophe Fouquet, CEO: There are three phases: R&D validation with EXE5000, early production testing with EXE5200, and high-volume manufacturing expected in 2027-2028. Progress is ongoing with customers. Q: How does the order volatility relate to tariff uncertainties? A: Roger Dassen, CFO: Order volatility is more related to the lumpiness of order intake rather than tariff uncertainties. Major orders require significant governance, affecting subsequent quarters' order intake. Q: How are you addressing the US tariffs in relation to encouraging semiconductor manufacturing in the US? A: Roger Dassen, CFO: The complexity of tariffs is recognized by all parties, including the US administration. There is a need for more time to understand how to reconcile onshoring goals with tariff impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
AMD (AMD) Stock Trades Down, Here Is Why
Shares of computer processor maker AMD (NASDAQ:AMD) fell 7.6% in the pre-market session after chip tool maker ASML posted weak bookings (a key demand indicator) which fell below Wall Street's expectations, noting that tariffs had made the industry's outlook more uncertain. The semiconductor industry's intricate supply chain means that ASML's performance has cascading effects on other players. Investors treat ASML's outlook as a proxy for demand in the industry, and if ASML's orders are down, it suggests chip producers are delaying capacity expansion. ASML's CEO, Christophe Fouquet, called out "customer cautiousness" and a "more gradual" recovery in areas outside of AI. Such caution among customers can imply reduced demand by affecting their short-term revenues and stock valuations. Separately, Nvidia announced it might be unable to sell some high-end chips (including the H20 chips) to China due to new export controls and requirements from the Trump administration. As a result, the company planned to take a $5.5 billion charge due to inventory writedowns and canceled sales. This announcement raised the possibility that other semiconductor manufacturers might face similar risks. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AMD? Access our full analysis report here, it's free. AMD's shares are very volatile and have had 21 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 12 days ago when the stock dropped 8.4% on the news that China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was especially rough for the US chipmakers because a big chunk of their business leans on demand out of China. The new tariffs not only threaten to erode profit margins but also risk reducing market share. Adding to the uncertainty, the Trump administration signaled the possibility of further regulatory action against the sector. Although semiconductor firms were notably excluded from the broad tariffs unveiled on April 2, 2025, their exclusion raised concerns that targeted restrictions could still be forthcoming. AMD is down 26.2% since the beginning of the year, and at $89.07 per share, it is trading 51.6% below its 52-week high of $183.96 from July 2024. Investors who bought $1,000 worth of AMD's shares 5 years ago would now be looking at an investment worth $1,563. 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
