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.
With earnings season now in full swing, investors and analysts are carefully monitoring the results, particularly on high-flying tech and artificial intelligence stocks trading at rich valuations and after the emergence of DeepSeek, which rocked the sector.
DeepSeek induced sell-off has brought ASML down to earth and nearer to our Buy zone, with it offering interested investors with an improved margin of safety. The company's growing installed base implies higher servicing revenues at rich gross margins moving forward, well balancing the lumpy system sales. With high performance GPUs expected to "survive for 1 to 2 years, or up to 3 years," we may see intensified replacement cycle/ lithography system utilization/ servicing/ upgrading cadence ahead.
ASML reported strong Q4 earnings, driven by AI chip demand, with €9.26B revenue and €6.85 EPS, beating consensus estimates. The semiconductor equipment maker forecasts 15% revenue growth for FY 2025, indicating robust demand for its lithography systems. ASML benefited from strong order inflows in Q4 and the confirmed outlook for FY 2025 indicates that the market overreacts to the DeepSeek news.
ASML faced significant headwinds in 2024 despite its monopoly on advanced EUV lithography, driving weak performance relative to the sector. Despite this, the company demonstrated its resilience with very strong Q4 results and a promising 2025 guide. The company recognized revenue on its first two High-NA EUV machines and enjoys very strong installed base sales.
I reiterate a 'Buy' rating for ASML with a one-year target price of US$864 per share, driven by AI's continued growth. ASML reported 28% revenue growth and 96.3% new bookings growth, with significant contributions from HPC and HBM products. Management anticipates €30-€35 billion in revenue for FY25, with high NA EUV systems sustaining competitive advantages and 13% normalized revenue growth.
Top computer chip equipment maker ASML has decided to stop publishing the most closely-watched figure in its quarterly financial results, new order bookings, saying it is too "lumpy" and leads to excessive volatility in its share price.
One of the chip industry giants just posted financial results that helped assuage the fears of many when it comes to AI investing. That company is ASML NASDAQ: ASML, a Dutch equipment manufacturer vital to the semiconductor industry.
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In this video, I will go over ASML's (ASML 4.29%) fourth-quarter earnings report, which beat the company's expectations. Watch the short video to learn more, consider subscribing, and click the special offer link below.