ASML Holdings has delivered a +57.4% gain since my last 'strong buy' rating, far outperforming the S&P 500. ASML's strong margins, robust cash generation, and AI-driven revenue growth justify its premium valuation, despite some concerns over China demand in 2026. With shares near historical resistance and bullish signals overextended, I am selling 60% of my position to lock in profits.
TSMC's Q3 2025 results confirmed its structural strength, posting 40.8% YoY revenue growth and a 50.6% operating margin, driven by expanding AI and HPC demand amid global capacity diversification. ASML's Q3 2025 reflected resilient EUV equipment demand, 51.6% gross margin, and €5.4 B in bookings, as management reaffirmed AI-driven lithography intensity and long-term revenue potential up to €60 B. ASML trades at a “perfection premium” near 35.7× P/E FWD and 27.5× EV/EBITDA, while TSMC's ~13.8× EV/EBITDA FWD and 35% ROE suggest undervaluation of its industrial and geopolitical power.
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's investment of 1.3B euros in Mistral AI deepens its integration of AI into lithography systems, setting the stage for faster, smarter chipmaking innovation.
ASML Holding N.V. ( ASML ) is the world's sole manufacturer of extreme ultraviolet (EUV) lithography systems, indispensable for fabricating sub-4nm semiconductors that power AI, data centers, and advanced consumer electronics.
ASML (NASDAQ:ASML), the Dutch semiconductor equipment powerhouse recognized as one of the most vital companies within the semiconductor ecosystem, has witnessed its stock rise nearly 8% over the past week, having surged by almost 50% from levels observed in early August. This rally follows a phase of renewed enthusiasm regarding the semiconductor cycle, driven by robust quarterly results, durable long-term guidance, and ongoing AI-related chip demand that shows no signs of abating.
ASML Holding N.V. ASML shares have jumped 43% over the past three months, far outpacing the Zacks Computer and Technology sector's 13.4% gain.
Does ASML (ASML) have what it takes to be a top stock pick for momentum investors? Let's find out.
When investors think about leading artificial intelligence (AI) growth stocks, names like Nvidia, Broadcom, and Advanced Micro Devices may come to mind. And while these three chip designers are redefining modern data centers, there's an equally important semiconductor company that should be getting equal attention.
ASML is rated Hold, reflecting strong fundamentals, cash generation, and unique market dominance in advanced lithography for AI-driven chip demand. ASML benefits from robust pricing power and strategic positioning, but faces risks from geopolitical tensions and potential future competition, especially from China. Momentum and cash flow grades are strong, but growth lags AI peers; current valuation reflects both solid fundamentals and AI-driven market enthusiasm.
With extreme ultraviolet (EUV) demand starting to come into the artificial intelligence (AI) deal cycle, investors can stop worrying about whether this will be a short-term spike in the tech trade. Shares of ASML Holding NASDAQ: ASML are rallying just over 2% following its latest quarterly earnings report, signaling growing confidence in the technology sector's long-term upside.
ASML delivered strong Q3 earnings, with robust system bookings, but missed on revenue. ASML's lithography machine demand reflects ongoing CapEx momentum driven by AI and hyperscaler investments in Data Centers.