ASML Holding has outperformed the market over the past 15 years by 9.97% on an annualized basis, resulting in an average annual return of 22.78%. If an investor had bought $1000 of ASML stock 15 years ago, it would be worth $20,832.92 today based on a current price of $745.00. The key takeaway is the impact of compounded returns on long-term cash growth.
ASML Holding N.V., a leading provider of lithography solutions for semiconductor manufacturing, has demonstrated remarkable performance over the past 15 years. An investor who purchased $1000 of ASML stock in 2010 would now have a portfolio worth approximately $20,832.92, based on the current stock price of $745.00. This impressive growth is a testament to the power of compounded returns and the company's consistent performance in the semiconductor industry.
ASML Holding's stock has outperformed the market by an annualized 9.97% over the past 15 years, resulting in an average annual return of 22.78%. This consistent performance can be attributed to several factors, including the company's leadership in advanced lithography technologies and its ability to capitalize on the growing demand for semiconductors, particularly in the AI and automation sectors.
In recent quarters, ASML Holding has reported strong financial results. In 2024, the company's revenue reached €28.26 billion, a 2.56% increase from the previous year. Despite a slight decrease in earnings to €7.57 billion, the company has maintained a robust financial position, with analysts rating the stock as a "Buy" with a 12-month price target of $914.4, representing a 22.32% increase from the latest price [1].
However, the stock has experienced volatility in recent months, with concerns about the company's growth outlook for 2026 and the impact of macroeconomic factors. The company has warned that it cannot guarantee growth in 2026 due to these uncertainties, leading to a post-earnings selloff [2]. Despite this, ASML Holding remains a strong performer with a discounted valuation, trading at a forward 12-month P/E ratio of 26.14, which is lower than the average P/E ratio of the Zacks Computer and Technology sector [3].
ASML Holding's long-term growth outlook remains bullish, with the company expecting global semiconductor sales to exceed $1 trillion by 2030, driven by a compound annual growth rate of about 9% from 2025 to 2030. The company has also committed to increasing dividends and share buybacks, providing additional value to shareholders [2].
In conclusion, ASML Holding's 15-year investment success story highlights the potential of long-term investments in the semiconductor industry. Despite recent volatility, the company's strong fundamentals, leadership position, and discounted valuation make it an intriguing option for investors considering a buy, hold, or sell decision.
References:
[1] https://stockanalysis.com/stocks/asml/
[2] https://www.moomoo.com/news/post/12288378/record-tr4cking-news-default
[3] https://sg.finance.yahoo.com/news/asml-stock-trades-discount-buy-134300359.html
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