ASML (ASML) Soars 3.03% on Strong Chip Tech Outlook

ASML Holding's stock price surged by 3.03% in pre-market trading on August 7, 2025, reflecting strong investor sentiment and market optimism.

ASML's revenue is significantly influenced by its partnership with TSMC, which accounts for approximately 17% of its total revenue. Both companies are pushing towards the development of 2nm and smaller chips, a goal that is crucial for the advancement of semiconductor technology.

ASML's financial performance in 2024 showed a 2.56% increase in revenue to 28.26 billion euros, although earnings decreased to 7.57 billion euros. Despite this, the company's long-term growth prospects remain robust, with estimates of revenue between 44 and 60 billion euros and gross margins of 56-60% by 2030.

Investors have taken a bullish stance on ASML, driven by the company's dominant position in the lithography market, particularly in the EUV segment, where it holds a monopoly. This position is crucial for the manufacturing of advanced chips used in AI and other high-tech applications.

ASML's strong fundamentals, including a healthy margin, predictable revenue, and exposure to a growing industry, make it an attractive investment for long-term investors. The company's role in lithography, an essential part of chip manufacturing, further solidifies its position in the market.