ASML Holdings Soar 1.96% to 2025 High on EUV Demand

ASML Holding's stock price surged 1.96% intraday, reaching its highest level since February 2025, marking a 1.83% increase for the day and a cumulative rise of 8.17% over the past two days.

The strategy of buying ASML shares after they reached a recent high and holding for 1 week resulted in a 5.52% return over the past 5 years. This is a solid performance, considering that the average annual return of ASML over the same period was 18.26%, and the compound earnings per share (EPS) growth was 27% per year. The 5-year total shareholder return (TSR) was 173%, which is significantly higher than the share price return, indicating that dividends and capital appreciation contributed to the total return. This suggests that holding ASML shares for 1 week after a recent high can be a viable strategy, especially given the strong long-term fundamentals and growth prospects of the company.

ASML Holdings is uniquely positioned in the current market, where investor sentiment is shifting towards optimism. The company's status as the sole global provider of extreme ultraviolet (EUV) lithography machines grants it a competitive edge and strategic importance. These machines are essential for producing advanced semiconductors used in high-demand sectors such as AI, smartphones, defense, cloud computing, and autonomous vehicles. ASML's technological leadership is supported by its robust R&D, irreplaceable supply chain relationships, and critical patents, making it a vital player in global semiconductor advancement. National governments, including the U.S. and EU, regulate ASML exports due to geopolitical significance, further enhancing its strategic value.

From a technical perspective, ASML has recently surpassed the 200-day moving average, reaching a significant support level. This may present a favorable investment opportunity for those considering the stock from a technical standpoint.

ASML has been actively engaging in share buybacks, purchasing approximately 1.4% of the total shares outstanding over the past four months. This activity signals management's confidence in the company's business and fundamental outlook, potentially positively impacting the stock price.