Which of these semiconductor equipment makers is a better buy right now?ASML (ASML 0.32%) and Lam Research (LRCX -0.14%) are two of the world's top semiconductor equipment makers. ASML is the world's largest producer of lithography systems, which are used to optically etch circuit patterns onto silicon wafers. It's also the only producer of high-end extreme ultraviolet (EUV) lithography systems for producing the world's smallest chips. Lam Research is a top producer of wafer fabrication equipment (WFE) for ...

ASML warned investors to expect weak Q1 results, but keep your eye on the bigger picture.Semiconductor equipment giant ASML Holding (ASML 2.74%) has stitched together impressive gains on the stock market so far this year, appreciating by nearly 28% as of this writing, and the company's fourth-quarter 2023 results played a key role in driving that surge.ASML released its Q4 results on Jan. 24. Investors liked what they saw, and the stock hit a new high. The Dutch semiconductor bellwether has maintained its m ...

Growing chip demand is a long-term catalyst that could lift the stock to new highs.Share prices of ASML (ASML 2.74%) have surged to new highs this year, as the growth outlook for the semiconductor industry improves. JPMorgan analyst Sandeep Deshpande maintained an overweight (buy) rating on the stock with a $1,200 price target. That suggests a nearly 23% price gain over the next 12 months from the current share price of $979.Several chip companies have recently reported improving growth with solid near-term ...

Maria Vonotna Earnings Preview: FY Q1 2024 Advanced Semiconductor Materials Lithography Holding NV, colloquially known as ASML (NASDAQ:ASML), is entering the April earnings season with strong momentum. The company beat sales and gross margin guidance in the Q4 report and recorded 30% YoY revenue growth. Meanwhile, management did not guide for full year 2024 sales growth. Instead, the company expects 2024 sales to match the 2023 figure of $30b, with Q1 sales of $5.5b-$6b with 48%-49% gross margin. The co ...

The hot topic around the tech stock world is definitely artificial intelligence (AI). It seems that news related to AI is unavoidable, and almost every company is trying to show its shareholders where it is utilizing AI to improve its business. We may be in the hype cycle for AI right now, but it does seem like this technology is here to stay and could be significantly transformational to society.As an investor, the trick is to separate the companies with legitimate AI businesses and those that are pretendi ...

ASML (ASML -1.09%) often refers to itself as "the most important tech company you've never heard of." Still, that moniker is likely becoming less accurate as more investors become aware of the company's importance in the production of equipment that creates the world's most advanced semiconductors.That realization likely played a role in taking its stock price around $1,000 per share, making it the 20th most expensive stock trading on U.S. exchanges today. Such a nominal price leads investors to ask if ASML ...

Company Performance - ASML closed at $970.92, marking a +2% move from the previous day, outperforming the S&P 500's gain of 0.89% [1] - Over the past month, ASML shares appreciated by 4.65%, surpassing the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56% [1] - The upcoming EPS for ASML is projected at $2.85, indicating a 46.33% drop compared to the same quarter of the previous year [1] - The latest consensus estimate predicts ASML's revenue to be $5.73 billion, reflecting a 20.88% decrease compared to the same quarter of the previous year [1] Annual Forecast - The Zacks Consensus Estimates forecast earnings of $20.45 per share and revenue of $30.46 billion for the entire year, indicating changes of -5.02% and +2.2%, respectively, compared to the previous year [2] Analyst Estimates and Valuation - Recent changes to analyst estimates for ASML indicate a changing landscape of near-term business trends, with upward revisions expressing analysts' positivity towards the company's operations [2] - ASML currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate moving 0.12% higher over the past month [3] - ASML's Forward P/E ratio is 46.55, which is a premium compared to the industry average Forward P/E of 29.35 [3] - The company has a PEG ratio of 2.3, compared to the Semiconductor Equipment - Wafer Fabrication industry's average PEG ratio of 2.86 [3] Industry Overview - The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 98, placing it in the top 39% of all 250+ industries [4] - The Zacks Industry Rank evaluates the power of distinct industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

There are some alternative chip stocks available beyond the marquee names of Nvidia (NASDAQ:NVDA), Intel (NADAQ:INTC) and the like. The reason I’m bullish on these companies is because they have one thing in common: lower valuations than the mainstream stocks we’re all used to talking about.The stretched valuations of the big semiconductor players is a key risk to investing in them. Many have ridden the wave of strong demand and investor enthusiasm for sectors like artificial intelligence and autonomous veh ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Nvidia (NVDA -0.12%) stock's artificial intelligence (AI)-powered surge has sent its valuation to incredible levels, putting the chipmaker well out of reach of value investors looking to capitalize on the proliferation of this technology.Nvidia's sales multiple of 36 and trailing earnings multiple of 73 are significantly higher than the technology sector's price-to-sales ratio of 7.2 and earnings multiple of 45. Of course, Nvidia's forward price-to-earnings ratio of 35 indicates that the semiconductor bellw ...