There's no way around it. I'm approaching the age of 40 faster than I'd like.
ASML (ASML) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
ASML's stock dropped 10% to $683 after the DeepSeek disruption, presenting a buying opportunity for long-term investors. Q4 2024 net sales reached €9.3B, surpassing guidance, with €2.9B from EUV and €4.2B from non-EUV systems. 2025 revenue guidance is €30B-€35B, with projected gross margins between 51% and 53%, signaling continued growth.
The artificial intelligence (AI) ecosystem was rocked recently by news that Chinese start-up DeepSeek had developed a cost-effective and competent large language model on the cheap. That revelation called into question the tens of billions of dollars that are being poured into the buildout of AI infrastructure, but it looks like the robust spending environment in the tech sector is here to stay.
Artificial intelligence (AI) investing experienced a shakeup at the end of January with the release of DeepSeek's R1 model. This model was reported to have been trained far more cheaply than its U.S. counterparts and performed similarly in some areas.
ASML has been recovering from the DeepSeek triggered selloff, as buyers accumulate while others fear. ASML's High-NA have started to make inroads into its operating performance, but may take some time to scale. China's revenue headwinds should normalize, paving the way for possibly less volatility through 2026.
DeepSeek sent shockwaves through the AI investing world recently when it announced that it trained its AI model for just $5.6 million. As a result, many investors were worried that the entire AI support industry could come crashing down.
ASML Holding N.V.'s dominant market position in advanced lithography and rising AI-related manufacturing needs are key drivers for future growth and stock momentum recovery. Recent Q4 results show strong bookings, revenue growth, and margin expansion, with a cautious yet optimistic outlook for FY2025. ASML's renewed share buyback program signals confidence in undervaluation, supporting the stock price and enhancing shareholder value.
Shares of ASML Holding (ASML 0.96%) rallied after the company's fourth-quarter earnings report showed soaring orders for the company's devices that make semiconductors. The stock has been up and down over the past year, as it has been pressured over Chinese trade restrictions and, more recently, over what impact DeepSeek could have on chip demand.
ASML's Q4 2024 earnings showed strong performance with net sales of €9.3B, driven by Installed Base Revenue and advanced system sales, boosting investor confidence. Despite broader challenges, ASML's backlog remains healthy at €36B, and management expects a recovery in H2 2025, with strong growth anticipated through 2030. ASML's shares are attractively priced at a forward P/E of 30x, with projected EPS growth of 20%+ in 2025 and 2026, presenting a buying opportunity.
In this video, Motley Fool contributor Jason Hall explains why semiconductor manufacturing equipment leader ASML (ASML 0.32%) stock is primed to beat the market.
The technicals are overall strong as the chart showed the stock being in an uptrend, the moving averages saw improvement, and the indicators as a whole had bullish signals. Most recent earnings show that the fundamentals of the business are rock solid. In addition, guidance shows growth is expected to rise further. The P/S and P/E ratios fail to adequately reflect revenue and EPS growth, respectively, as the multiples are at below average levels.