Core Viewpoint - ASML Holding N.V. is expected to report second-quarter 2024 results on July 17, reflecting its portfolio strength and growing investments, despite facing market uncertainties and inflationary pressures [1] Financial Expectations - ASML anticipates revenues between €5.7 billion and €6.2 billion for Q2 2024, while the Zacks Consensus Estimate is $6.35 billion, indicating a 15.6% decline from the previous year [1] - The Zacks Consensus Estimate for Q2 earnings is $3.87 per share, reflecting a 27.9% decrease from the year-ago quarter [1][2] Earnings Surprise History - ASML has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters with an average beat of 10.21% [2][3] Industry Context - The semiconductor industry is rebounding due to growing demand and optimism surrounding artificial intelligence (AI), positively impacting wafer fab equipment and ASML's products [5] - The adoption of advanced nodes for digital infrastructure, including 5G and AI, is expected to drive demand for ASML's offerings [5] Product and Service Performance - ASML's investments in Extreme Ultraviolet (EUV) infrastructure are likely to enhance its performance, with strong contributions from its service business [6] - The Installed Base business is benefiting from the uptake of low numerical aperture (NA) machines, particularly the NXE:3800, which offers high productivity [6] Market Challenges - Market uncertainties, including U.S.-China tensions and high inventory levels, are anticipated to negatively impact ASML's quarterly results [7] - Weak momentum among logic customers is expected to be a concern as they adjust to previous capacity additions [7] Stock Performance and Valuation - ASML's shares have increased by 43.3% year-to-date, slightly underperforming the industry average of 44% [8] - The company is trading at a forward 12-month P/E of 41.64X, above the industry average of 34.14X, indicating a stretched valuation [9] Investment Outlook - ASML is well-positioned to benefit from global megatrends in the electronics industry, with management expecting a better second half of 2024 and a cyclical upturn in 2025 [10] - However, near-term prospects are clouded by end-market volatility and U.S.-China tensions, leading to expectations of lower logic revenues compared to the previous year [10]

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Group 1: AI Investment Trends - The AI revolution is driving a multi-year investment cycle across enterprises and consumer internet applications, positively impacting AI wealth-building stocks [1] - In Q1 of fiscal year 2024, major cloud service providers like Amazon and Microsoft increased their capital expenditure plans, highlighting the significant investment required for AI applications [1] - Bank of America projects that capital expenditure for Alphabet, Meta Platforms, and Amazon will rise by $37 billion in 2024, reaching a total of $145 billion [1] Group 2: Capital Expenditure Projections - Big tech companies are expected to spend approximately $500 billion over the next three years on chips, particularly GPUs and ASICs, which will enhance profits for AI wealth-building stocks [2] - The high-end ASIC market is forecasted to grow to between $20 and $30 billion, with a compounded annual growth rate of 20% driven by generative AI demand [3] Group 3: Company-Specific Insights - Marvell Technology holds a 13-15% share in the custom ASIC market and is collaborating with major tech firms like Google and Amazon on custom silicon [3] - JPMorgan analysts predict Marvell Technology could generate $1.6 to $1.8 billion in revenues from networking and custom ASICs this year, with AI revenues expected to double next year [4] - Micron Technology reported Q3 revenues of $6.81 billion, exceeding estimates, with a 50% quarter-over-quarter growth in the data center segment driven by AI demand [5][6] - ASML Holding is benefiting from increased orders due to rising memory demand and government incentives for semiconductor manufacturing, positioning it as a top buy [7][8][9]

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. ...

Pixelbizz/iStock Editorial via Getty Images Investment Thesis ASML Holding N.V. (NASDAQ:ASML) stock has rallied 40% YTD, largely driven by anticipated long-term higher demand for lithography systems amid the GenAI boom. As ASML exclusively manufactures EUV machines, the transition from the pre-EUV to the post-EUV in the semi industry will create a significant growth opportunity for the company. In 2019, EUV patterning technology was deployed for the mass production of 7nm chips. Now, the company is expe ...

bowie15 I knew when I took on this assignment to write about ASML Holding N.V.'s (NASDAQ:ASML) upcoming Q2 2024 earnings call on July 17, 2024, that it would be exceedingly difficult. By all metrics, ASML’s Q1 2024 results were disastrous, as shown in Table 1. According to ASML, every metric was down QOQ, by double-digit percentages. ASML However, CY 2023 was an exceedingly strong year for ASML. In a February 13, 2024 Seeking Alpha article entitled “ASML Led Global WFE Equipment Market In 2023 As Chin ...

Mykola PokhodzhayASML Holdings' (NASDAQ:ASML) shares reached new all-time highs this week as demand for AI infrastructure products is surging. Specifically, semiconductor firm Taiwan Semiconductor Manufacturing (TSM) on Wednesday reported strong preliminary revenue results for its second-quarter which helped drive new interest in ASML as well. According to this company’s revenue update, TSMC saw 40% year over year growth driven by strong demand for AI chips from hyperscalers. ASML, which has Taiwan Semi ...

Mirroring the Nasdaq today, semiconductor stock ASML Holding NV (NASDAQ:ASML) earlier hit a record high of $1,110.09 before turning lower, last seen down 2.4% at $1,073. This price action comes after Susquehanna, which currently holds a positive rating on the stock, lifted its price target to $1,300 from $1,200. The chip name is a candidate for a stock split, as it's trading above $1,000 amid this year's artificial intelligence (AI) rally, much like crypto stock MicroStrategy (MSTR), which announced a 10-fo ...

Both semiconductor titans are on track to capitalize on the AI boom, but which one should you be putting your money on right now?The PHLX Semiconductor Sector index has been in rip-roaring form on the market over the past year, clocking outstanding gains of 60% as of this writing and handsomely outpacing the 28% gains that the S&P 500 index has delivered during the same period.Artificial intelligence (AI) has played a central role in this terrific surge as demand for chips required in training and inferenci ...

One way to analyze investments in a particular industry or sector is by understanding the supply chain. Dig deep into a given industry and the power players will soon emerge. In the case of artificial intelligence (AI), there are a handful of best stocks that also currently appear to have long-term viability. Exposure to the best AI supply chain stocks is likely to be a winning strategy.Each of these firms forms a vital link in the overall AI supply chain. The integral nature of these firms and their appare ...