ASML is the sole producer of cutting-edge EUV lithography machines for advanced 3nm chip manufacturing. Huawei and SMEE are developing an LDP-based EUV system, aiming for mass production by 2026, potentially reducing costs and energy use compared to ASML's LPP method. Huawei's SAQP technique can achieve 5nm-equivalent transistor density using DUV tools, though it's costly and suffers from low yields.
Artificial intelligence (AI) is rapidly shifting from hype to reality. It feels like yesterday that ChatGPT first went viral.
ASML (ASML) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
The latest trading day saw ASML (ASML) settling at $662.63, representing a -1.77% change from its previous close.
Claiming that one company holds the key to all advanced technology is a big statement, but it's true when you consider what ASML (ASML -2.69%) does. It manufactures extreme ultraviolet (EUV) lithography machines, and it's the only company on the planet with the technology to do so.
The market started to recover at the end of March, but it still has a way to go before returning to its highs. In particular, many tech stocks are even further off their highs than the broader market.
I am upgrading ASML to a "strong buy" due to renewed strength in net bookings and earnings, despite previous concerns about revenue growth. ASML's recent quarterly report showed a 170% surge in net bookings and impressive gains in net sales and profits, outperforming expectations. Despite higher valuations compared to peers, ASML's stock has found support near $650, with bullish technical indicators suggesting limited downside risk.
Price Target: $923 per share with an 2 year IRR of 14%. ASML owns a structural monopoly in the lithography market, with substantial organic growth, pricing power, and %ROIC. Whilst data center, chips, and application could get commoditized, ASML remains to be an indispensable backbone of the AI revolution.
ASML (ASML) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
ASML investors have remained resolute through the recent market selloff, demonstrating their conviction in the semiconductor leader. President Trump's reciprocal tariffs and industry-specific add-ons could impinge on ASML's outlook, so we cannot underplay these risks. Yet, ASML's battered valuation suggests the market isn't foolish, reflecting these headwinds into its thesis.
In the most recent trading session, ASML (ASML) closed at $726.74, indicating a -0.15% shift from the previous trading day.