Core Viewpoint - ASML Holding has experienced a significant stock price decline of 32.2% over the past six months, underperforming both the Zacks Computer and Technology sector and the S&P 500 [1][5] Financial Performance - In Q3 2024, ASML reported net sales of €7.5 billion and net income of €2.1 billion, reflecting year-over-year growth of 11.9% and 9.7% respectively, with earnings per share increasing by 9.8% to €5.28 [6] - The company projects Q4 sales between €8.8 billion and €9.2 billion, with a gross margin of 49-50%, indicating potential profitability challenges [7] Market Position and Competitive Landscape - ASML's stock has underperformed compared to peers like Lam Research, Applied Materials, and Advanced Energy Industries, with the latter's shares rising by 8.1% while the former two have seen declines of 24.7% and 28% respectively [2] - Despite the recent decline, ASML maintains a premium valuation with a forward 12-month price-to-earnings multiple of 28.17X, higher than the industry average of 27.86X [12][13] Strategic Initiatives - ASML's High NA EUV systems are crucial for advanced chip manufacturing, particularly for AI and high-performance computing, although they are associated with short-term margin pressures due to high production costs [8][9] - The company has a €36 billion order backlog, indicating sustained demand for its advanced lithography equipment [15] Geopolitical and Macroeconomic Challenges - Geopolitical tensions, especially between the U.S. and China, pose risks, as China accounted for 47% of ASML's lithography shipments in Q3 2024 [10] - Broader macroeconomic issues, including inflation and slowing demand in mobile and PC markets, further complicate the near-term outlook for ASML [11] Long-Term Outlook - ASML is well-positioned for long-term growth, aligning with megatrends such as AI adoption and digital transformation, supported by global investments in semiconductor fabrication plants [16] - The company’s adaptability and commitment to enhancing capacity and supply-chain partnerships are key to meeting rising demand in a rapidly evolving market [16] Investment Recommendation - Given the short-term challenges and the company's strong market position, holding ASML stock is recommended as it allows investors to participate in its long-term growth story while navigating temporary volatility [17][18]

Core Viewpoint - A lawsuit has been filed against ASML Holding N.V. and certain senior executives for potential violations of federal securities laws, with claims related to misleading statements about the impact of new export controls on the company's financial outlook [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of New York, titled City of Hollywood Firefighters' Pension Fund v. ASML Holding N.V., et al., No. 24-cv-8664 [2]. - Investors have until January 13, 2025, to request to lead the case [2]. Group 2: Company Performance and Allegations - ASML is a key supplier in the semiconductor industry, providing photolithography machines essential for chipmakers [3]. - The complaint alleges that ASML misrepresented the effects of new Dutch export controls on its financial outlook, claiming that the company was on a recovery path [3]. - On October 15, 2024, ASML reported earnings significantly below expectations, attributing this to a slower-than-anticipated market recovery, resulting in a 16% drop in stock price from $872.27 to $730.43 per share [4]. - Following an earnings call on October 16, 2024, where ASML cited cautious customer behavior and declining sales to China, the stock fell an additional 6.4% to $683.52 per share [5].

Core Viewpoint - ASML Holding, a crucial player in the semiconductor supply chain, has faced challenges in 2024 but is expected to rebound in 2025 [1][2]. Company Overview - ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines essential for producing advanced microchips, enabling high-performance devices like smartphones and GPUs [3][4]. - The company operates as a legal technological monopoly, with no close competitors, requiring significant investment and time for any potential rivals to catch up [4]. Market Dynamics - Recent export bans from Western governments, particularly the U.S. and the Netherlands, aim to prevent ASML's advanced machines from reaching China and its allies, impacting sales [5]. - In Q3, 2024, 47% of ASML's sales were to China, but management anticipates this will normalize to about 20% in 2025 due to current economic conditions in China [6]. Financial Performance - Following a reduction in 2025 revenue guidance from €30-40 billion to €30-35 billion, ASML's stock experienced a significant sell-off, dropping 20% post-earnings release [7]. - The company's forward P/E ratio has decreased from 53 to 35, making it a more reasonable investment opportunity, although still not considered cheap [8][10]. Future Outlook - Management projects revenue growth for 2030 to be between €44 billion and €60 billion, indicating an annual growth rate of 8% to 14%, alongside a 1% dividend and stock buybacks [10]. - While a turnaround may not be immediate in 2025, there is optimism for ASML's stock performance as it approaches 2026 [11].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of ASML Holding N.V. regarding a class action lawsuit due to alleged misleading statements and omissions related to the semiconductor industry [1][2]. Group 1: Allegations - The complaint alleges that ASML's management provided materially false and/or misleading statements about the severity of issues faced by suppliers in the semiconductor industry [2]. - It is claimed that the recovery pace of sales in the semiconductor industry was slower than publicly acknowledged by ASML [2]. - The defendants allegedly created a false impression of having reliable information on customer demand and growth while downplaying risks from macroeconomic fluctuations and regulatory restrictions on semiconductor technology exports [2]. - As a result, the statements made by ASML regarding its business operations and prospects lacked a reasonable basis [2]. Group 2: Class Action Details - The class period for the lawsuit is defined as January 24, 2024, to October 15, 2024 [2]. - Shareholders are encouraged to register for the class action by January 13, 2025, to be eligible for potential recovery [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and fraud [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [4].

Core Viewpoint - A class action securities lawsuit has been filed against ASML Holding N.V. alleging securities fraud affecting investors between January 24, 2024, and October 15, 2024 [1][2]. Group 1: Allegations of the Lawsuit - The lawsuit claims that ASML's management made false statements regarding the severity of issues faced by suppliers in the semiconductor industry, which were more severe than indicated [2]. - It is alleged that the recovery pace of sales in the semiconductor industry was slower than publicly acknowledged by ASML's management [2]. - The complaint asserts that ASML's management created a false impression of having reliable information on customer demand and growth while downplaying risks from macroeconomic fluctuations and stricter export regulations on semiconductor technology [2]. - As a result, the statements made by ASML regarding its business operations and future prospects lacked a reasonable basis [2]. Group 2: Next Steps for Affected Investors - Investors who suffered losses during the specified timeframe have until January 13, 2025, to request appointment as lead plaintiff in the lawsuit [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4]. - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4].

Group 1: Market Overview - Tech stocks have experienced significant growth in 2024, driven by demand for artificial intelligence (AI) and expectations of ongoing technological advancements [1][2] - The S&P 500 index has risen by 28% this year, while the Nasdaq Composite index has increased by 32% [2] Group 2: ASML Analysis - ASML is the leading provider of lithography machines essential for semiconductor fabrication, particularly in extreme ultraviolet lithography (EUL) [5][6] - Despite its market leadership, ASML's stock has declined by 35% from its peak due to geopolitical tensions affecting exports to China and demand weakness in lower-end chip markets [6][7] - ASML's technology is critical for manufacturing advanced AI chips, and its long-term performance is expected to yield substantial returns [8][9] Group 3: Cognex Analysis - Cognex specializes in machine vision equipment and solutions, with a long-term growth outlook despite a 60% decline in share price from its all-time high [10] - Recent demand weakness is attributed to a cyclical slowdown in key markets such as automotive and consumer electronics, exacerbated by rising interest rates [11][12] - The underlying demand for machine vision technology remains strong, with a projected annual growth rate target of 15% as automation adoption increases [13][14]

Investment Rating - The report maintains a positive outlook on ASML, with a slight adjustment in the shipment guidance for EUV lithography machines in 2025 [2]. Core Insights - ASML's Q3 revenue reached €7.47 billion, a year-on-year increase of 11.9%, slightly exceeding the company's guidance of €6.7-7.3 billion and Bloomberg consensus of €7.2 billion [2]. - The gross margin for Q3 was 50.8%, down 1.1 percentage points year-on-year, aligning with the company's guidance of 50%-51% [2]. - Net profit for the quarter was €2.08 billion, a 9.7% increase year-on-year, with an operating profit margin of 32.7% [2]. - The EPS was €5.28, surpassing Bloomberg consensus of €4.88 [2]. - New orders for the quarter totaled €2.6 billion, significantly below market expectations of €5.4 billion, with logic and storage accounting for 46% and 54% respectively [2]. - The backlog stood at €36 billion, a decrease of €3 billion quarter-on-quarter [2]. - The company declared a dividend of €1.52 per share for Q3 [2]. Financial Performance Summary - Total revenue for the fiscal year ending December 31 is projected to be €27.56 billion, with a year-on-year growth of 30.16% [4]. - Net profit is expected to be €7.84 billion, with a slight decrease in EPS forecasted for 2025 at €19.2 [4]. - The estimated P/E ratio based on a share price of $706.52 is 36.3 [4]. - The dividend per share is projected to increase to €6.4 in 2025 [4]. Future Guidance - The company has revised its 2025 net sales guidance to €3-3.5 billion, down from the previous €3-4 billion, primarily due to expected lower shipments of High NA EUV lithography machines [2]. - The gross margin guidance for 2025 has been adjusted to 51%-53%, down from 54%-56% [2]. - The company anticipates a CAGR of 9% for semiconductor sales from 2025 to 2030, with sales expected to exceed $1 trillion by 2030 [2]. - For Q4 2024, the net sales guidance is set at €8.8-9.2 billion, aligning with Bloomberg consensus of €9 billion [2].

Group 1 - ASML is considered an attractive investment opportunity in the tech sector, with a bullish recommendation and ambitious price target from analyst Jakob Bluestone [1] - ASML specializes in precision lithography machines for chipmaking and is the sole provider of these devices globally, serving major clients like Taiwan Semiconductor Manufacturing [2] - Bluestone projects ASML's revenue for 2030 to be 6% higher than current analyst consensus estimates, with potential for the stock price to double within four years if the price-to-earnings ratio remains at 25 [3] Group 2 - ASML recently faced a decline in investor confidence due to a significant reduction in its 2025 net sales guidance, now expecting 30 billion euros ($31.5 billion) to 35 billion euros ($36.8 billion) compared to the previous guidance of 30 billion euros to 40 billion euros ($42 billion) [4] - The market's concerns are viewed as short-term headwinds, while long-term demand for essential chipmaking equipment is expected to grow, particularly with the rise of artificial intelligence [5]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of ASML Holding N.V. regarding a class action lawsuit due to alleged misleading statements and omissions related to the semiconductor industry [1][2]. Group 1: Allegations - The complaint alleges that ASML's management provided materially false and misleading statements about the severity of issues faced by suppliers in the semiconductor industry [2]. - It is claimed that the recovery pace of sales in the semiconductor industry was slower than publicly acknowledged by ASML [2]. - The defendants allegedly created a false impression of having reliable information on customer demand and growth while downplaying risks from macroeconomic fluctuations and regulatory restrictions on semiconductor technology exports [2]. Group 2: Class Action Details - The class period for the lawsuit is defined as January 24, 2024, to October 15, 2024 [2]. - Shareholders are encouraged to register for the class action by January 13, 2025, to potentially be appointed as lead plaintiffs [3]. - Participants will be enrolled in a portfolio monitoring software to receive updates on the case's status [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and fraud [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of ASML Holding N.V. regarding a class action lawsuit due to alleged misleading statements and omissions related to the semiconductor industry [1][3]. Group 1: Allegations - The complaint alleges that ASML's management provided materially false and/or misleading statements about the severity of issues faced by suppliers in the semiconductor industry [3]. - It is claimed that the recovery pace of sales in the semiconductor industry was slower than publicly acknowledged by ASML [3]. - The defendants allegedly created a false impression of having reliable information on customer demand and growth while downplaying risks from macroeconomic fluctuations and stricter export regulations [3]. - As a result, the statements made by ASML regarding its business, operations, and prospects lacked a reasonable basis [3]. Group 2: Class Action Details - The class period for the lawsuit is defined as January 24, 2024, to October 15, 2024 [3]. - Shareholders are encouraged to register for the class action by January 13, 2025, to participate in potential recovery [4]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's status [4]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and illegal business practices [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].