ASML (ASML) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this equipment supplier to semiconductor makers have returned +3.2% over the past month versus the Zacks S&P 500 composite's +3.2% change. The Zacks Semiconductor Equipment - Wafer Fabrication industry, to which ASML belongs, has gained 7% over this period. Now the key question is: Where could the stock be headed in ...

The tech sector has been on fire lately, but ASML, Datadog, and ServiceNow should stay hot well into the future.Tech stocks are hot right now. The S&P 500 is near its all-time high and megacap tech stocks dominate the index. Additionally, the Nasdaq-100 Technology Sector Index is just days away from its all-time high. Any way you look at it, it's a good time to be a tech investor.This party won't last forever, though, and a pullback in tech stocks is inevitable at some point. This is why it's a smart strate ...

The split appeared to lift Nvidia and could help other stocks, too.Nvidia stock soared to record highs following its 10-for-1 split. Following that increase, it became the stock with the world's largest market cap. Another chip giant, Broadcom, is far from such an achievement but has shot higher since announcing its own split.Given those reactions, such a move could be next for other AI stocks that announce stock splits. The question for investors is which stocks will make such a move. While the answer to t ...

The stock has been a multibagger since the company's last traditional split over 20 years ago.Artificial intelligence tailwinds have pushed technology stocks higher; some have begun splitting their stock. AI chip kingpin Nvidia executed a 10-for-1 split in May, while Broadcom announced it will do the same in July.Although the company doesn't receive as much attention as other AI stocks, ASML Holding (ASML 2.13%) belongs squarely in the mix. The company builds lithography machines, a vital tool for manufactu ...

With so much focus on innovative technologies such as artificial intelligence, it’s easy to get tunnel vision. Certainly, the usual suspects in the equities sector deserve the attention they’re receiving. At the same time, if you’re playing the strategic game, you don’t necessarily need to chase the hottest flavors of the week. With that, we come to strong buy long-term stocks to consider.Here, we’re not just banking on ideas with compelling and relevant underlying businesses. Rather, we’re specifically tar ...

ASML Stock Performance and Market Position - ASML stock has shown strong performance, rallying +24.4% after a -13.4% pullback to $850s in early May 2024, and is currently trading at +6.6% compared to the wider market at +6.2% [1] - The stock is retesting its all-time high of $1.06Ks, moving away from its 50/100/200 day moving averages [3] - ASML is considered a linchpin in the semiconductor industry, benefiting from the generative AI boom and semiconductor nationalism post-COVID-19 [6] Revenue and Capacity Expansion - ASML's management raised FY2025 revenue guidance to the upper half of €30B to €40B, with adjusted gross margins up to 56%, compared to previous guidance of €24B to €30B in 2021 and €30B to €40B in 2022 [4] - The company plans to significantly expand production capacity by 2025/2026, with DUV units increasing to 600, low NA EUV to 90, and High NA EUV to 6 (up to 20 by 2028), compared to 2023 levels of 396, 42, and 1 units respectively [4] - ASML's capacity constraints are due to high demand, with a multi-year backlog of €38B and net bookings of €3.61B in FQ1'24 [4] Industry Trends and Demand Drivers - The semiconductor and server industries are experiencing hyper-growth, driven by the AI boom, with companies like Nvidia (NVDA) reporting FQ1'25 revenues of $26.04B (+17.8% QoQ, +262.1% YoY) and guiding FQ2'25 revenues of $28B (+7.5% QoQ, +107.4% YoY) [4] - TSMC and Super Micro Computer (SMCI) are also increasing capex and expanding manufacturing capacities to meet the growing demand for AI chips [4] - The automotive and renewable energy sectors are increasingly consuming more semiconductor chips, providing additional growth drivers for ASML [5] Valuation and Investment Outlook - ASML's forward P/E valuation has climbed to 44.57x, nearing the peak of 47x observed in November 2021 [6] - The company maintains a strong competitive moat, with no significant competition expected in the next 20 years, though Canon's nanoimprint lithography machines may pose a minimal threat in the future [6] - A fair value estimate of $769.60 is maintained based on a 1Y P/E mean of 35.55x, with a 2Y price target of $1.29K, offering a potential upside of +21.6% from current levels [6] - The stock is recommended as a Buy, with investors advised to consider dollar-cost averaging and adding positions during moderate retracements for improved margin of safety [6]

Company Performance - ASML's stock closed at $1,050.74, reflecting a -1% change from the previous day, underperforming the S&P 500 which fell by 0.25% [1] - Over the last month, ASML's shares increased by 15.08%, outperforming the Computer and Technology sector's gain of 8.85% and the S&P 500's gain of 3.59% [1] - The upcoming earnings release on July 17, 2024, is anticipated to show an EPS of $3.87, a decline of 27.93% year-over-year, with revenue expected at $6.35 billion, down 15.55% from the same quarter last year [1] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $20.12 per share and revenue of $29.43 billion, reflecting changes of -6.55% and -1.25% respectively from the previous year [2] - Recent changes to analyst estimates indicate the dynamic nature of near-term business trends, with positive revisions suggesting analyst optimism about ASML's profitability [2] Valuation Metrics - ASML has a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate remaining unchanged over the past month [3] - The company is currently trading at a Forward P/E ratio of 52.75, which is higher than the industry average of 34.97, indicating a premium valuation [3] - ASML's PEG ratio stands at 2.24, compared to the Semiconductor Equipment - Wafer Fabrication industry's average PEG ratio of 3.5 [3] Industry Context - The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 194, placing it in the bottom 24% of over 250 industries [4] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Wall Street loves coming up with cute little phrases, whether that be “FANG” or the more recent Magnificent 7. However, Thornburg portfolio manager Nicholas Anderson would like investors to be familiar with a new concept: targeting the best Fantastic 5 stocks for potentially blistering upside.Focused on European mega-capitalization plays, these five enterprises have delivered market-beating performance recently. We’re talking about companies with a market value exceeding $200 billion. Yet even with this tre ...

Today, we will explore three artificial intelligence (AI) stocks challenging Nvidia (NASDAQ:NVDA), each poised with distinct strengths and growth potential for investors. With its cutting-edge GPUs and AI hardware, Nvidia has become the dominant force in the AI space. As a result, NVDA shares are up over 150% year-to-date (YTD).According to the latest McKinsey Global Survey on AI, 65% of organizations have embraced generative AI, nearly doubling adoption rates in the past ten months. As the AI ecosystem evo ...

Pixelbizz/iStock Editorial via Getty Images ASML Holding N.V.'s (NASDAQ:ASML) stock has struggled between 2022 and 2024 as the semiconductor industry entered a cyclical downturn. The following chart from Omdia shows that annual semiconductor industry revenue growth peaked in 2021 and declined to 9% year-over-year in 2023. Omdia 2024 Last year, the semiconductor industry was in a chip supply glut, which hurt many of its customers and slowed ASML's sales growth. Although some experts believe the chip industry ...