Latest news with #TaiwanSemiconductorManufacturing
Globe and Mail
2 days ago
- Business
- Globe and Mail
ASML Shares Tumble. Time to Run for the Hills or Buy the Dip?
Key Points ASML's stock dropped after the company was uncertain about its 2026 growth outlook. The company reported strong Q2 results, driven by the continued growth of AI chips. With a virtual monopoly on the technology needed to create advanced chips, the sell-off looks like a buying opportunity. 10 stocks we like better than ASML › Shares of ASML Holding (NASDAQ: ASML) sank after the company warned it was uncertain about its growth outlook for 2026. The stock has fallen about 30% over the past year, as of this writing. For those unfamiliar with ASML, the Dutch company is a semiconductor equipment manufacturer that makes the devices that foundries, such as Taiwan Semiconductor Manufacturing, use to make chips. It has a virtual monopoly on extreme ultraviolet (EUV) lithography, which is the manufacturing process used create advanced chips, such as Nvidia 's graphics processing units (GPUs). 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 » The company has also developed a new technology called a high numerical aperture extreme ultraviolet lithography system, or High NA EUV, to help shrink nodes. Nodes represent the size of the transistors used on a chip, and foundries and chipmakers are continually looking to shrink node sizes, as that makes the chips more powerful and energy-efficient. However, the cost of ASML's new High NA EUV machines is around $400 million each, which has led customers to push back. An uncertain 2026 outlook ASML's Q2 results were actually quite strong. Revenue for the quarter jumped 23% to 7.7 billion euros ($9 billion) and came in at the high end of the company's guidance range of 7.2 billion to 7.7 billion euros ($8.4 billion to $9 billion). Its equipment sales rose nearly 18% year over year to 5.6 billion euros ($6.5 billion), while its service revenue soared 42% to 2.1 billion euros ($2.5 billion). During the quarter, the company sold 67 new lithography systems and nine used systems compared to 89 new and 11 used systems in the year-ago quarter. However, 48% of its sales came from higher-priced EUV technology versus only 31% a year ago, as it had a large percentage of sales to China a year ago. The company said that growth is being driven by artificial intelligence (AI) and that more customers are shifting toward EUV technology. It sees its customers looking to increase their EUV capacity by 30% this year. Overall, it is looking for a 15% increase in revenue in 2025, with a sustained improvement of its service business in the second half. It noted that the direct and the indirect impact of tariffs remains uncertain, and that it's navigating the situation the best it can. Its net bookings, which can be a good indicator of future revenue growth, were solid, coming in at 5.5 billion euros ($6.4 billion). That was well ahead of the 4.2 billion euros ($4.9 billion) in net bookings that analysts were expecting. However, its Q3 guidance calling for revenue of between 7.4 billion euros ($8.6 billion) and 7.9 billion euros ($9.2 billion) was below the analyst consensus of 8.3 billion euros ($9.7 billion). Looking toward 2026, the company continues to expect strong demand coming from AI. However, given the current macroeconomic and geopolitical environment -- along with some companies dealing with company-specific issues that could impact the timing of their capital expenditure (capex) -- it is unclear what its growth next year might look like. Should investors buy the dip? While ASML's Q2 results were strong, investors were clearly disappointed with the company's commentary about 2026. To be fair, the semiconductor equipment business is notoriously lumpy. A few large foundries make up the bulk of its EUV business, while Chinese companies had been rushing to get their lower-end equipment on fears it too would be banned in the country. Meanwhile, Intel and Samsung, two of the world's largest foundries, have had their share of struggles, which could be leading to some of the uncertainty with regard to next year. That said, I view the sell-off in ASML shares as a buying opportunity. The company basically has a 100% market share when it comes to the EUV technology that is needed to make advanced chips. And with demand for advanced chips continuing to grow, foundries are going to need EUV machines to make them. Meanwhile, while leading foundry TSMC has balked at the high price of ASML's new High NA EUV machines, it cannot afford to delay their use indefinitely, as the cost of falling behind technologically would be much worse. Following the market sell-off, ASML shares trade at a forward price-to-earnings (P/E) multiple of 27x based on 2025 analyst estimates. With nearly no competition for EUV lithography and growing demand for advanced chips, this is a stock you'd want to own at these levels for the long term. Should you invest $1,000 in ASML right now? Before you buy stock in ASML, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ASML 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
Yahoo
2 days ago
- Business
- Yahoo
ASML Shares Tumble. Time to Run for the Hills or Buy the Dip?
Key Points ASML's stock dropped after the company was uncertain about its 2026 growth outlook. The company reported strong Q2 results, driven by the continued growth of AI chips. With a virtual monopoly on the technology needed to create advanced chips, the sell-off looks like a buying opportunity. 10 stocks we like better than ASML › Shares of ASML Holding (NASDAQ: ASML) sank after the company warned it was uncertain about its growth outlook for 2026. The stock has fallen about 30% over the past year, as of this writing. For those unfamiliar with ASML, the Dutch company is a semiconductor equipment manufacturer that makes the devices that foundries, such as Taiwan Semiconductor Manufacturing, use to make chips. It has a virtual monopoly on extreme ultraviolet (EUV) lithography, which is the manufacturing process used create advanced chips, such as Nvidia's graphics processing units (GPUs). The company has also developed a new technology called a high numerical aperture extreme ultraviolet lithography system, or High NA EUV, to help shrink nodes. Nodes represent the size of the transistors used on a chip, and foundries and chipmakers are continually looking to shrink node sizes, as that makes the chips more powerful and energy-efficient. However, the cost of ASML's new High NA EUV machines is around $400 million each, which has led customers to push back. An uncertain 2026 outlook ASML's Q2 results were actually quite strong. Revenue for the quarter jumped 23% to 7.7 billion euros ($9 billion) and came in at the high end of the company's guidance range of 7.2 billion to 7.7 billion euros ($8.4 billion to $9 billion). Its equipment sales rose nearly 18% year over year to 5.6 billion euros ($6.5 billion), while its service revenue soared 42% to 2.1 billion euros ($2.5 billion). During the quarter, the company sold 67 new lithography systems and nine used systems compared to 89 new and 11 used systems in the year-ago quarter. However, 48% of its sales came from higher-priced EUV technology versus only 31% a year ago, as it had a large percentage of sales to China a year ago. The company said that growth is being driven by artificial intelligence (AI) and that more customers are shifting toward EUV technology. It sees its customers looking to increase their EUV capacity by 30% this year. Overall, it is looking for a 15% increase in revenue in 2025, with a sustained improvement of its service business in the second half. It noted that the direct and the indirect impact of tariffs remains uncertain, and that it's navigating the situation the best it can. Its net bookings, which can be a good indicator of future revenue growth, were solid, coming in at 5.5 billion euros ($6.4 billion). That was well ahead of the 4.2 billion euros ($4.9 billion) in net bookings that analysts were expecting. However, its Q3 guidance calling for revenue of between 7.4 billion euros ($8.6 billion) and 7.9 billion euros ($9.2 billion) was below the analyst consensus of 8.3 billion euros ($9.7 billion). Looking toward 2026, the company continues to expect strong demand coming from AI. However, given the current macroeconomic and geopolitical environment -- along with some companies dealing with company-specific issues that could impact the timing of their capital expenditure (capex) -- it is unclear what its growth next year might look like. Should investors buy the dip? While ASML's Q2 results were strong, investors were clearly disappointed with the company's commentary about 2026. To be fair, the semiconductor equipment business is notoriously lumpy. A few large foundries make up the bulk of its EUV business, while Chinese companies had been rushing to get their lower-end equipment on fears it too would be banned in the country. Meanwhile, Intel and Samsung, two of the world's largest foundries, have had their share of struggles, which could be leading to some of the uncertainty with regard to next year. That said, I view the sell-off in ASML shares as a buying opportunity. The company basically has a 100% market share when it comes to the EUV technology that is needed to make advanced chips. And with demand for advanced chips continuing to grow, foundries are going to need EUV machines to make them. Meanwhile, while leading foundry TSMC has balked at the high price of ASML's new High NA EUV machines, it cannot afford to delay their use indefinitely, as the cost of falling behind technologically would be much worse. Following the market sell-off, ASML shares trade at a forward price-to-earnings (P/E) multiple of 27x based on 2025 analyst estimates. With nearly no competition for EUV lithography and growing demand for advanced chips, this is a stock you'd want to own at these levels for the long term. Do the experts think ASML is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did ASML make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. ASML Shares Tumble. Time to Run for the Hills or Buy the Dip? 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
Time of India
3 days ago
- Business
- Time of India
Nvidia's China restart faces production obstacles: The Information report
Synopsis Nvidia informs Chinese clients about limited H20 chip availability. Production restart is not planned. US government's April ban led to order cancellations. Manufacturing capacity booked at Taiwan Semiconductor Manufacturing was also cancelled. Nvidia had planned to resume H20 chip sales to China. The company is now facing challenges due to export restrictions.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Strong Earnings Fuel Stock-Market Records This Week
The S&P 500 and Nasdaq composite ground to new highs this week after corporate earnings reports and economic data signaled that the U.S. is still powering through President Trump's trade wars. Bumper bank profits showed that businesses and consumers kept opening their wallets last quarter. Record earnings for the world's largest chip maker, Taiwan Semiconductor Manufacturing, propelled potentially tariff-sensitive semiconductor stocks higher. A University of Michigan survey suggested consumer sentiment is rebounding slightly in July, while inflation expectations are declining.
Globe and Mail
5 days ago
- Business
- Globe and Mail
TSMC Earnings: AI Drives Demand
Key Points TSMC reported strong revenue and earnings growth, although currency was a headwind. Demand for AI chips is booming, which is pushing up demand for TSMC's leading nodes. The company expects strong sequential growth in the third quarter. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Here's our initial take on Taiwan Semiconductor Manufacturing 's (NYSE: TSM) fiscal 2025 second-quarter financial report. Key Metrics TSMC Noted Strong Demand for Leading Nodes TSMC, as it is better known, missed analyst expectations for revenue in the second quarter, but currency exchange rate fluctuations were mostly to blame. Revenue still soared 44% in U.S. dollars thanks to soaring demand for the company's most advanced 3nm and 5nm node semiconductor chips. TSMC's 3nm nodes accounted for 24% of total revenue, while the 5nm nodes accounted for 36% of revenue. 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 » High-performance computing, which includes AI-related chips, accounted for 60% of revenue, up from 52% in the second quarter of last year. HPC revenue rose by 14% from the first quarter as AI infrastructure spending ramps up around the world. The ongoing shift toward TSMC's more advanced nodes benefited the company's profitability. Gross margin jumped more than 5 percentage points year over year to 58.6%, operating margin rose more than 7 percentage points to 49.6%, and net profit margin jumped nearly 6 percentage points to 42.7%. The company spent $9.63 billion on capital expenditures during the second quarter to support its growth, bringing the year-to-date total to $19.69 billion. For the third quarter of fiscal 2025, TSMC expects to generate revenue between $31.8 billion and $33 billion, a gross margin between 55.5% and 57.5%, and an operating margin between 45.5% and 47.5%. Immediate Market Reaction Shares of TSMC were up around 4% by noon on Thursday. Strong revenue growth, thanks to soaring demand for AI chips, along with even stronger earnings growth, was enough to push up the stock. What to Watch TSMC has a stranglehold on the leading-node portion of the foundry market, making it the only game in town for AI chip designers like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). With total planned AI infrastructure investments exploding, TSMC's advanced nodes will remain in high demand for the foreseeable future. While AI is a tailwind, macroeconomic uncertainty could eventually hurt demand for other types of chips. Helpful Resources Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing 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
