Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ASML over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...

The majority of U.S. stock indices ended last week on a strong note, witnessing a sharp rise on April 11, 2025, as investors’ concerns surrounding the freshly erupted U.S.-China trade war eased somewhat. Producer price data released last Friday, which showed that wholesale inflation fell in March, must have also added to investors’ optimism and was reflected in the form of share price hikes. This might attract investors to the stock market. However, considering the fact that the global stock market has seen ...

ASML Holding N.V. (ASML) is slated to report its first-quarter 2025 results on April 16.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.ASML expects revenues between €7.5 billion and €8 billion. The Zacks Consensus Estimate is pegged at $8.08 billion, indicating an increase of 40.7% from the year-ago quarter’s level.The Zacks Consensus Estimate for earnings is pegged at $6.12 per share, up 81.1% from the year-ago quarter’s earnings of $3.38. The estimate has been revised upward by 1 ...

关税持续搅动全球金融市场。 在经历了史诗级动荡后，华尔街迎来了一则重大利好。有分析称，在特朗普政府豁免了热门消费电子产品和关键零 部件之后，美国科技行业暂时脱离了崩溃的边缘。另外，阿斯麦、台积电等科技巨头下周将披露最新季度财报，或 将为投资者带来新的考验。 在经历了史诗级动荡后，华尔街迎来了一则重大利好。特朗普政府已同意对智能手机、电脑、芯片等电子产品免除 所谓"对等关税"，此举有望在一定程度上缓解关税对美国消费者的价格冲击，苹果、三星等消费电子巨头或从中受 益。 美国投行Wedbush分析师Dan Ives称，在特朗普政府豁免了热门消费电子产品和关键零部件之后，美国科技行业暂 时脱离了崩溃的边缘。 他警告称，如果没有这些豁免，美国科技行业将倒退十年，人工智能革命的进程也将大大减缓。 当前美股第一季度财报季已经拉开序幕，阿斯麦、台积电、奈飞等科技巨头下周将披露最新季度财报，或将为 投资者带来新的考验。 回到市场层面，本周标普500指数累计大涨5.7%，为2023年11月来最佳单周表现；道指累计上涨4.95%，纳指累计 大涨7.29%。其中，大部分涨幅都来自周三的反弹，纳指当天暴涨超12%。 分析认为，这种剧烈 ...

Company Overview - ASML is a global leader in lithography systems essential for semiconductor production, particularly in the manufacturing of AI chips [3][4] - The company holds a technological monopoly in extreme ultraviolet (EUV) lithography systems, which are crucial for producing advanced semiconductor chips [4][10] Market Position and Financial Performance - ASML's share price has decreased by over 30% in the past year, but its competitive advantages position it as a top long-term investment in the tech sector [2] - In 2024, ASML generated 21.8 billion euros in net system sales, with 44 EUV systems sold, accounting for 38% of total sales [5] - The company reported total revenue of 28.3 billion euros in 2024, reflecting a modest increase of 2.6% from 2023 [8] Growth Potential - The global semiconductor market is projected to grow significantly, with sales expected to reach $1 trillion by 2030, driven by the increasing demand for AI technology [7] - ASML anticipates revenue projections of 7.5 billion to 8 billion euros for Q1 2025, representing a year-over-year increase of 42% to 51% [9] - Long-term sales projections for ASML suggest potential revenues of 44 billion to 60 billion euros by 2030 [9] Competitive Landscape - ASML faces competition primarily from China's investment of approximately $40 billion in its chip industry, but the complexity of EUV systems makes it challenging for competitors to match ASML's offerings [6] - Despite potential competition, ASML's dominant market position and technological edge provide a strong foundation for future growth [12]

Company Overview - ASML shares increased by 15.4% to close at $687.26, following a broader market rally after US President Trump's announcement to pause reciprocal tariffs for 90 days [1] - The stock had previously experienced a 13.7% loss over the past four weeks [1] Earnings Expectations - ASML is expected to report quarterly earnings of $6.12 per share, reflecting a year-over-year increase of 81.1% [2] - Revenue projections stand at $8.08 billion, which is a 40.7% increase compared to the same quarter last year [2] Market Trends - The consensus EPS estimate for ASML has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - ASML holds a Zacks Rank of 2 (Buy), suggesting positive market sentiment [3] Industry Comparison - ASML is part of the Zacks Semiconductor Equipment - Wafer Fabrication industry, where Advanced Energy Industries (AEIS) also operates [3] - AEIS shares rose by 19.3% to $95.61, but have seen a decline of 22.4% over the past month [3] - AEIS has a consensus EPS estimate of $0.97, representing a 67.2% increase from the previous year, and holds a Zacks Rank of 3 (Hold) [4]

Industry Overview - Semiconductor sales have been steadily increasing, driven by enthusiasm for artificial intelligence (AI), particularly generative AI, leading to a surge in revenues across multiple industries [1][3] - The semiconductor industry was a major contributor to last year's stock market rally, indicating its integral role in the broader tech sector [1] Sales Performance - Global semiconductor sales reached $54.9 billion in February, marking a 17.1% increase from $46.9 billion in February 2024 [3] - This represents the 10th consecutive month of over 17% year-over-year growth, although there was a month-over-month decline of 2.9% [4] - The total global semiconductor sales for 2024 are projected to be $627.6 billion, a 19.1% increase from $526.8 billion in 2023 [5] Market Outlook - The semiconductor market is expected to continue expanding, with predictions of double-digit growth in 2025 [6] - A report estimates the global semiconductor market size will reach $627.76 billion by 2025 and $1,207.51 billion by 2034 [7] Key Companies - **NVIDIA Corporation**: A leading designer of graphic processing units (GPUs) with an expected earnings growth rate of 48% for the current year, currently holding a Zacks Rank 2 [8][9] - **RF Industries, Ltd.**: Engaged in the design and manufacture of coaxial connectors, with an expected earnings growth rate of over 100% for the current year, holding a Zacks Rank 1 [10][11] - **ASML Holding N.V.**: A world leader in advanced technology systems for the semiconductor industry, with an expected earnings growth rate of 21.9% for the current year, holding a Zacks Rank 2 [12][13] - **Magnachip Semiconductor Corporation**: Designs and manufactures analog and mixed-signal semiconductor products, operating through three key segments [14]

Core Viewpoint - The current market downturn presents buying opportunities for investors in tech stocks, particularly ASML, TSMC, and Supermicro, despite the challenges posed by tariffs and geopolitical tensions [1][2]. Group 1: ASML - ASML is the leading producer of lithography systems essential for chip manufacturing, particularly the only supplier of extreme ultraviolet (EUV) systems [3][4]. - The stock has declined nearly 40% over the past year due to export curbs and tariffs, but the exclusion of semiconductors from tariffs and growth in the AI market are expected to support its EUV business [4][5]. - Analysts project ASML's revenue and earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 12% and 22% from 2024 to 2027, respectively, making its stock appear historically cheap at 20 times next year's earnings [5][6]. Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the largest contract chipmaker globally, producing chips for major companies like Apple and Nvidia, with operations in multiple countries [7]. - The stock has seen a 3% increase over the past year but has dropped 27% year to date due to tariffs and geopolitical tensions, although a $165 billion investment in U.S. fabs over the next four years may mitigate these impacts [8][9]. - Analysts expect TSMC's revenue and EPS to grow at a CAGR of 22% and 24% from 2024 to 2027, driven largely by the AI market expansion, with the stock trading at 13 times next year's earnings [9]. Group 3: Supermicro - Supermicro specializes in building servers for data centers, focusing on dedicated AI servers, and has a strong partnership with Nvidia for GPU access [10][11]. - The stock has plummeted nearly 70% over the past year due to various setbacks, including allegations of inflated revenue and regulatory scrutiny, but has recently made improvements by hiring a new auditor and submitting its 10-K filing [11][12]. - Analysts forecast Supermicro's revenue and EPS to grow at a CAGR of 38% and 22% from 2024 to 2027, respectively, with the stock trading at 9 times next year's earnings, indicating potential for a higher valuation if the company stabilizes and expands its U.S. manufacturing [12].

Core Viewpoint - ASML Holding has faced a challenging year with a 36% decline in stock value, but upcoming Q1 2025 results on April 16 may signal a turnaround for the company [1][2]. Financial Performance - ASML anticipates revenue between 7.5 billion euros and 8 billion euros for Q1 2025, representing a year-over-year increase of 46% at the midpoint [3]. - Analysts predict an 85% year-over-year increase in earnings to 5.75 euros per share for Q1 2025 [4]. Market Drivers - The growth in artificial intelligence (AI) is identified as a key driver for the semiconductor industry, leading to increased demand for high-performance computing and high-bandwidth memory products [4][5]. - ASML's extreme ultraviolet (EUV) machines are crucial for manufacturing advanced chips, and their adoption is gaining momentum [5]. Customer Demand - Taiwan Semiconductor Manufacturing Company (TSMC) has significantly increased orders for ASML's EUV machines, with a nearly 2.7 times increase in quarterly bookings to almost 7.1 billion euros [6][7]. - TSMC accounted for 15% of ASML's revenue last year, and its planned capital spending increase of nearly one-third from $30 billion in 2024 is expected to positively impact ASML [8][9]. Industry Trends - Micron Technology is also increasing its capital expenditures by 73% to $14 billion, primarily to support high-bandwidth memory, which is projected to grow at an annual rate of 42% through 2033 [10]. - The demand for EUV lithography equipment is expected to rise due to the growing need for advanced chips in AI servers [10]. Investment Outlook - ASML is positioned to deliver stronger-than-expected results, which could lead to a bullish trend in its stock price [11]. - Currently trading at 25 times forward earnings, ASML presents a discount compared to the Nasdaq-100 index's earnings multiple of 29, making it an attractive investment opportunity [12].

Core Viewpoint - ASML Holding and Applied Materials are key players in the semiconductor supply chain, with ASML holding a dominant position in EUV lithography and Applied Materials providing a broad range of semiconductor fabrication equipment [1][2]. Group 1: ASML Holding - ASML Holding has a near-monopoly on extreme ultraviolet (EUV) lithography, crucial for producing advanced semiconductors [3][4]. - The company is investing in next-generation technologies like High-NA EUV, which are essential for smaller semiconductor nodes [5]. - In Q4 2024, ASML reported a 24% increase in revenues and a 30% increase in earnings year-over-year, with a record backlog of €36 billion indicating strong future revenue visibility [6]. - ASML's revenue growth guidance for Q1 2025 is 46.5%, and for the full year 2025, it is 15% [6]. - Geopolitical risks, particularly export restrictions to China, pose challenges, as China accounted for approximately 41% of ASML's lithography shipments in 2024 [7]. Group 2: Applied Materials - Applied Materials is the largest supplier of semiconductor fabrication equipment, with a strong position in AI-driven semiconductor technology [8]. - In fiscal 2024, revenues from advanced semiconductor nodes exceeded $2.5 billion, with expectations to double in fiscal 2025 [9]. - In Q1 fiscal 2025, Applied Materials reported a 7% increase in revenues and a 12% increase in non-GAAP EPS [9]. - The company faces challenges from U.S. export restrictions to China, which are expected to reduce fiscal 2025 revenues by $400 million [10]. - A slowdown in the ICAPS segment could negatively impact Applied Materials' overall performance [11]. Group 3: Price Performance and Valuation - Year-to-date, ASML shares have decreased by 10.1%, while Applied Materials shares have declined by 16.7% [13]. - ASML is trading at a forward earnings multiple of 23.56X, below its three-year median of 30.04X, while Applied Materials has a forward sales multiple of 14.13X, significantly lower than its median of 18.14X [14]. - ASML's valuations reflect high growth expectations and improving profitability, suggesting that its premium may be justified if execution is sustained [15]. Group 4: Estimates Comparison - The Zacks Consensus Estimate for ASML's 2025 sales and EPS implies year-over-year growth of 12.4% and 21.9%, respectively [18]. - For Applied Materials, the estimates for fiscal 2025 sales and EPS imply a year-over-year increase of 6% and 8.2%, respectively, with recent downward revisions [20]. Conclusion - ASML Holding has a stronger growth profile and a monopoly in EUV technology, making it a more compelling long-term investment compared to Applied Materials, which faces more uncertain growth prospects [21].