Both ASML Holding and Applied Materials are essential players in the semiconductor supply chain. Which one is a better investment option?
The company has been a popular play on the AI chip boom but a lack of investment from Samsung and Intel could drag on its results, according to Mizuho.
Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.
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.