ASML Rises 3.4% on Bullish Outlook, Dividend Hike

ASML Holding rose 3.4% in pre-market trading on July 28, 2025, reflecting investor optimism following the company's investor day presentation.

During the event, ASML reaffirmed its long-term growth prospects, projecting global semiconductor sales to exceed $1 trillion by 2030, with a compound annual growth rate of approximately 9% from 2025 to 2030. The company also committed to increasing dividends and share buybacks, aiming for an average sales growth rate of 8% to 14% over the next five years.

ASML's CEO Roger Dassen emphasized the company's capital allocation strategy, which includes significant cash returns to shareholders through increased dividends and stock repurchases. The company also expects its gross margin to range between 56% and 60% by 2030.

Despite its dominant position in the lithography market, ASML faces challenges from macroeconomic volatility, geopolitical tensions, and cautious expansion plans by key customers. The surge in demand for AI-driven semiconductor technologies presents both opportunities and uncertainties for the company.

Analysts have noted ASML's limited exposure to China and its strong position in leading-edge wafer fabrication tools, which could drive outperformance. However, geopolitical risks, including U.S. export controls and Taiwan-China tensions, remain potential headwinds for the company.