ASML stock's underperformance against its semi peers has likely baffled investors. It faces significant geopolitical headwinds and potential delays in fab construction by its foundry customers. Management is confident in capitalizing on the AI growth prospects, but Wall Street seems hesitant to fully re-rate its potential.
ASML told investors it expects a strong year in 2025.
The spectre of US-imposed technology export controls looms large for Dutch semiconductor machinery maker ASML Holding NV (NASDAQ:ASML) as its third-quarter results approach. ASML, which is the only company in the world operating at the apex of the semiconductor machinery industry, has found itself stuck in the middle of political wrangling between the two nations.
ASML (ASML) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ASML crossed above the 20-day moving average, suggesting a short-term bullish trend.
Concentrated portfolios can build true wealth by focusing on a few high-conviction stocks rather than diversifying across mediocre companies. Despite current market challenges, ASML, Broadcom, and Amazon are worth buying for their industry-leading positions, strong profitability, and reasonable valuations. ASML's monopoly in lithography, Broadcom's diversified custom chips and software, and Amazon's efficient e-commerce and AWS growth offer substantial long-term opportunities.
This essential supplier is key to making the most advanced AI chips for training large language models.
The window could be closing for ASML to split its stock.
In the most recent trading session, ASML (ASML) closed at $833, indicating a +0.07% shift from the previous trading day.
Recently, Zacks.com users have been paying close attention to ASML (ASML). This makes it worthwhile to examine what the stock has in store.
Bain & Company recently predicted a potential chip shortage; these three stocks would benefit.
ASML (ASML) reachead $822.35 at the closing of the latest trading day, reflecting a -1.31% change compared to its last close.
ASML shares have dropped due to U.S. export restrictions to China, but I think this impact is already priced in, making shares a strong buy. ASML's near-monopoly on EUV lithography is crucial for AI chip production, with growing demand from TSMC, Samsung, and Intel. OpenAI's new o1 model and Nvidia's Blackwell chips will further drive AI demand, benefiting ASML through increased semiconductor fabrication needs.