Investors shouldn't underestimate the power of momentum. And two kinds of stocks have plenty of momentum these days: mega-cap monsters with market caps of $200 billion or more and stocks with a major focus on artificial intelligence (AI).
The ASML stock price has crashed hard in the past few months as concerns about the artificial intelligence industry remained. After peaking at $1,104 on July 11, the stock crashed by almost 35% to the current $732.
ASML has held on to its November lows firmly, as things have started to settle down. The AI compute debate has gone into overdrive as investors assess whether China-based DeepSeek's progress could unhinge America's AI compute leadership. TSMC's confident CapEx outlook and AI revenue projections suggest such fears seem overstated.
Despite two consecutive years of 20%-plus gains for the S&P 500 (^GSPC -0.29%), less than 30% of all stocks actually beat the index in both 2023 and 2024 -- a record-low percentage for the past 30 years.
ASML's critical role in semiconductor manufacturing, driven by AI advancements, makes it a key player with significant growth potential, despite geopolitical challenges. Open-source AI models like DeepSeek-R1 democratize AI, increasing demand for advanced chips and benefiting ASML's specialized EUV lithography tools. ASML's robust financials, including a strong installed base services segment, provide stability and growth opportunities amid cyclical semiconductor market fluctuations.
When it comes to investing, I am constantly searching for high-quality companies trading at great valuations. This does not mean I will time the exact bottom, but I will know I am buying a great company at a great price, otherwise I likely won't make a purchase.
Chip stocks have been all the rage in financial markets ever since the whole AI frenzy started in late 2022. However, not all chip stocks were made equal.
The latest trading day saw ASML (ASML) settling at $732.25, representing a -1.87% change from its previous close.
Dutch Prime Minister Dick Schoof held "critical conversations" with visiting Chinese Vice Premier Ding Xuexiang, he said on Friday, including discussions on human rights and on semiconductor equipment supplier ASML.
I forecast ASML Holding N.V.'s 2025/2026 revenue growth at 15% annually, buoyed by High-NA EUV adoption. My $1,290 price target indicates a 31.5% two-year CAGR. The current valuation includes a 25% safety margin. ASML's monopoly in EUV lithography, strategic partnerships, and AI-driven demand solidify its competitive moat, despite risks like reduced Chinese revenue and geopolitical tensions over Taiwan. ASML as a value trade offers 30%+ annual returns over two years, underpinned by a $39B FY26 revenue forecast and stabilized margins, with delayed customer acceptance risks already priced in.
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 City of Eindhoven plans to purchase an industrial park that serves as an incubator for the region's tech manufacturing industry and is used by computer chip equipment giant ASML , authorities said on Wednesday.