Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
ASML trades at a discount, but cautious guidance, a weak 2026 outlook and trade headwinds weigh on the stock's appeal.
Key Points in This Article: Monopolies, though often regulated, can arise naturally through innovation and market dominance, offering unique investment opportunities.
EUV is indispensable to produce semiconductor chips that is smaller than 5nm, as it is more cost-efficient and higher yield. Recent earnings call signaled potentially a no growth 2026 due to macroeconomic headwinds, which are getting clarified. More and more new fabs are getting constructed in the world by major semiconductor manufacturers such as TSMC, which will require EUV machines.
ASML Holding targets 30% EUV revenue growth in 2025, fueled by Low NA expansion, High NA shipments, and AI-driven chip demand.
The word "monopoly" has a negative reputation in the investment and economic communities, as it is often linked to abusive pricing and unfair advantages that many other businesses and investors might not face. However, monopolies (or near-monopolies for that matter) can also mean outsized returns for investors who can spot them.
ASML Holding N.V.'s core moat—its monopoly on advanced lithography tools—remains unchallenged despite trade uncertainty and cyclical headwinds. Secular demand drivers like AI, automation, and data infrastructure support robust long-term growth for high-end chips and, by extension, ASML. Valuation is attractive, with healthy margins and limited competitive threats; current weakness reflects priced-in short-term risks, not fundamentals.
ASML's recent stock decline is overdone; market overestimates 2026–2027 revenue risk, creating a compelling buying opportunity. My analysis projects a worst-case 12.9% revenue decline, far less severe than the market's implied 21.2%, with Intel's CAPEX cuts manageable. ASML's technological leadership, unmatched supply chain, and strategic partnerships secure its long-term competitive advantage and premium valuation.
Applied Materials' broader chip tool lineup, better near-term outlook and lower valuation give it an edge over ASML Holding right now.
Zacks.com users have recently been watching ASML (ASML) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The market punished ASML's strong 2Q25 results; I believe this created an attractive entry point. Strong customer growth is promising, but the path to orders is complex due to reduced short-term CapEx and geopolitics. My bullish case is simple: ASML's EUV advantage is the non-negotiable engine of 'shrink'.
I maintain a buy rating on Mettler-Toledo, highlighting its capital-light, high-cash-generating model and dominant market position. Recent tariff surprises are non-issue; their impact is marginal and easily offset by MTD's efficiency and strong gross margins. MTD's sustained outperformance is driven by relentless efficiency, disciplined capital allocation, and a sticky, high-margin service business.