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ASML Holdings(ASML - Free Report) , a Dutch company, is the undisputed leader in photolithography machines, and a critical provider to the semiconductor industry.
Not only does ASML enjoy a competitive advantage in its industry, which has led to tremendous sales, earnings and stock price growth over the last decade, but it also currently boasts Zacks Rank #1 (Strong Buy) rating.
Furthermore, because of the continued expansion of technology and the digital world, as well as the boom in artificial intelligence, ASML Holdings makes for a very attractive stock to consider investing in today.
Image Source: Zacks Investment Research
ASML Holdings Industry Dominance
ASML’s machines are the secret sauce behind the tiny transistors that power our modern electronics. Its technology is crucial because it allows chipmakers to etch ever-more intricate patterns onto silicon wafers, cramming more power into smaller and smaller chips. This relentless miniaturization drives the constant improvement of our phones, laptops, and all sorts of tech.
What makes ASML so important? They've cornered the market the highly advanced technology, extreme ultraviolet lithography (EUV). EUV allows for the creation of super tiny circuits, a must-have for next-generation technologies.
Developing EUV machines is incredibly expensive and complex, and ASML has a huge head start. They've poured years of research and billions of dollars into perfecting it, making them the only company that can produce these machines on a commercial scale.
This creates a nearly impenetrable barrier for any competitor hoping to challenge their dominance. Chipmakers rely so heavily on ASML's expertise that switching to a new supplier would be a risky and expensive gamble. This fosters strong, long-term partnerships, solidifying ASML's position as an essential player in the ever-evolving world of semiconductors.
Robust Growth Forecasts for ASML’s Sales and Earnings
Analysts have raised earnings estimates for ASML Holdings over the past two months, giving it a Zacks Rank #1 (Strong Buy) rating.
Although analysts expect sales and earnings to sputter for FY24, with sales expected to decline 1.25% YoY and earnings to fall 6.5%, next quarter’s sales and earnings and next year’s sales and earnings are projected to snap higher.
Next quarter sales are projected to jump 14.5% YoY and EPS are expected to climb 15.7%. Furthermore, FY25 sales are projected to increase 36.2% YoY and earnings are forecast to jump 55% higher.
ASML Stock Price Breakout
ASML stock has been showing bullish activity all year, and the current setup is no different. In the chart below, we can see that ASML has been building bullish technical patterns and breaking higher.
Just last week, the stock broke out again after coiling for nearly a month. This move higher has pushed the stock to new all-time highs, and it appears it wants to continue to rally.
Image Source: TradingView
Bottom Line
ASML Holdings presents a compelling investment opportunity at the intersection of technological innovation and strong financial performance.
Their dominance in photolithography positions them as a critical partner for the ever-expanding world of semiconductors. This, coupled with a top Zacks Rank and robust growth forecasts, makes ASML a stock with significant potential for long-term investors.
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Bull of the Day: ASML Holding (ASML)
ASML Holdings (ASML - Free Report) , a Dutch company, is the undisputed leader in photolithography machines, and a critical provider to the semiconductor industry.
Not only does ASML enjoy a competitive advantage in its industry, which has led to tremendous sales, earnings and stock price growth over the last decade, but it also currently boasts Zacks Rank #1 (Strong Buy) rating.
Furthermore, because of the continued expansion of technology and the digital world, as well as the boom in artificial intelligence, ASML Holdings makes for a very attractive stock to consider investing in today.
Image Source: Zacks Investment Research
ASML Holdings Industry Dominance
ASML’s machines are the secret sauce behind the tiny transistors that power our modern electronics. Its technology is crucial because it allows chipmakers to etch ever-more intricate patterns onto silicon wafers, cramming more power into smaller and smaller chips. This relentless miniaturization drives the constant improvement of our phones, laptops, and all sorts of tech.
What makes ASML so important? They've cornered the market the highly advanced technology, extreme ultraviolet lithography (EUV). EUV allows for the creation of super tiny circuits, a must-have for next-generation technologies.
Developing EUV machines is incredibly expensive and complex, and ASML has a huge head start. They've poured years of research and billions of dollars into perfecting it, making them the only company that can produce these machines on a commercial scale.
This creates a nearly impenetrable barrier for any competitor hoping to challenge their dominance. Chipmakers rely so heavily on ASML's expertise that switching to a new supplier would be a risky and expensive gamble. This fosters strong, long-term partnerships, solidifying ASML's position as an essential player in the ever-evolving world of semiconductors.
Robust Growth Forecasts for ASML’s Sales and Earnings
Analysts have raised earnings estimates for ASML Holdings over the past two months, giving it a Zacks Rank #1 (Strong Buy) rating.
Although analysts expect sales and earnings to sputter for FY24, with sales expected to decline 1.25% YoY and earnings to fall 6.5%, next quarter’s sales and earnings and next year’s sales and earnings are projected to snap higher.
Next quarter sales are projected to jump 14.5% YoY and EPS are expected to climb 15.7%. Furthermore, FY25 sales are projected to increase 36.2% YoY and earnings are forecast to jump 55% higher.
ASML Stock Price Breakout
ASML stock has been showing bullish activity all year, and the current setup is no different. In the chart below, we can see that ASML has been building bullish technical patterns and breaking higher.
Just last week, the stock broke out again after coiling for nearly a month. This move higher has pushed the stock to new all-time highs, and it appears it wants to continue to rally.
Image Source: TradingView
Bottom Line
ASML Holdings presents a compelling investment opportunity at the intersection of technological innovation and strong financial performance.
Their dominance in photolithography positions them as a critical partner for the ever-expanding world of semiconductors. This, coupled with a top Zacks Rank and robust growth forecasts, makes ASML a stock with significant potential for long-term investors.