ASML Stock: Is it a Buy Now?

ASML Holding is a leading semiconductor equipment supplier with a monopoly on crucial technology for chip production. Its growth is expected to continue as it rolls out newer EUV systems for even smaller chips. Despite a 30% pullback from its record closing price, ASML's stock still looks reasonably valued relative to its growth potential.

ASML Holding, a leading semiconductor equipment supplier, has seen its stock price decline by nearly 30% from its record closing price. Despite this pullback, the company's stock remains reasonably valued relative to its growth potential. ASML Holding's growth is expected to continue as it rolls out newer EUV systems for even smaller chips.

On Thursday, ASML Holding reiterated its long-term growth outlook at its investor day, expecting global semiconductor sales to exceed $1 trillion by 2030, with a compound annual growth rate of about 9% from 2025 to 2030 [1]. The company also expects sales in 2030 to range between €44 billion and €60 billion, consistent with previous forecasts [1].

However, ASML Holding faces near-term challenges. In its second-quarter earnings call, the company backed away from earlier confidence about growth in 2026, pointing to customer hesitation and ongoing market uncertainty [2]. Additionally, ASML Holding issued disappointing guidance for the third quarter, expecting revenues between €7.4 billion and €7.9 billion, indicating year-over-year growth of 14.6% at the midpoint [2]. This forecasted growth rate is significantly lower than the 46% increase registered in the first quarter and 23.2% in the second quarter [2].

Despite these near-term challenges, ASML Holding remains a long-term investment opportunity. The company's monopoly on EUV lithography technology is essential for manufacturing the smallest and most advanced chips used in AI accelerators, high-performance computing, and smartphones [2]. Demand for EUV systems remains robust, with top customers like Taiwan Semiconductor Manufacturing, Samsung, and Intel investing heavily in advanced node development [2].

In conclusion, while ASML Holding faces near-term challenges, its long-term growth prospects remain compelling. The company's strong technology position and expected growth in the semiconductor industry make it a viable long-term investment option.

References:
[1] https://www.moomoo.com/news/post/58563560/record-tr4cking-news-astera-labs-q2-earnings-review-poised-to-benefit-from-mass
[2] https://finance.yahoo.com/news/asml-vs-amat-semiconductor-equipment-142100508.html
[3] https://www.nasdaq.com/articles/asml-vs-amat-which-semiconductor-equipment-leader-better-buy