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.
ServiceNow, Shopify and Twilio are stocks that appear to stand out in this beaten-down sector, but some believe it's too soon to buy.
ASML's AI Supercycle Orders Just Doubled Street Expectations
ASML, LUV and ENVA made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on February 2, 2026.
ASML's near-total control of EUV lithography makes it an indispensable supplier to advanced logic and memory manufacturing, with no credible substitutes for leading-edge chips. Record bookings, a €39B backlog, rising EUV volumes, and higher average system prices confirm that hyperscaler and foundry spending is now flowing through to ASML's revenues and margins. Higher-end EUV systems and a growing installed base services mix are driving margin expansion and recurring revenue growth.
Would you invest in a company that sells only about 40 units of its product annually? If it's a large defense contractor selling jets to the government, that is a substantial sales quota.
ASML Holding N.V. (ASML) Q4 2025 Earnings Call Transcript
ASML has great earnings – and investors sell
ASML doubled in seven months after a prior lack of visibility into 2026. Now, management expects 2026 to be a growth year. Record net bookings and 1+ years of backlog support the reignited growth story.
ASML Holding N.V. dominance in advanced lithography systems has finally conferred it the market's confidence in supplying to the AI chipmakers. Recent Q4 bookings skewed 56% toward memory, indicating new growth optionality and improved market visibility for ASML's order pipeline. Despite high confidence in ASML's EUV monopoly and AI infrastructure buildout, the stock trades at a steep 44x forward earnings versus a 32x sector median.
ASML posts Q4 earnings miss despite 4.9% Y/Y revenue growth, with EUV-driven Systems sales offset by weaker Services and higher costs.
ASML's latest results reignited the rally that has made it Europe's most valuable company, until questions about its capacity to meet record orders sent the stock sliding - highlighting just how stretched expectations have become.