Is ASML Holding Stock a Buy Now?

Core Viewpoint - ASML Holding's stock experienced a significant decline following the release of its first-quarter 2024 results, primarily due to concerns over tariff-related uncertainties despite stronger-than-expected quarterly performance [1][2]. Financial Performance - ASML reported first-quarter revenue of 7.74 billion euros, representing a 46% increase year-over-year, with net income nearly doubling compared to the previous year [4]. - The company's revenue guidance for the second quarter is projected at 7.45 billion euros, slightly below the consensus estimate of 7.73 billion euros [4]. - Despite the shortfall in quarterly guidance, ASML maintained its full-year guidance, indicating confidence in long-term performance [2][4]. Order Book and Market Demand - ASML's net bookings for Q1 were just under 4 billion euros, a decrease from 7 billion euros in Q4 2024, missing consensus estimates by nearly 1 billion euros [5]. - Year-over-year, net bookings increased by almost 10%, suggesting solid demand for ASML's chipmaking equipment despite quarterly fluctuations [6]. - CEO Christophe Fouquet expressed optimism about growth in 2025 and 2026, driven by strong semiconductor market demand, particularly from AI applications [7]. Customer Insights and Industry Outlook - TSMC, a key customer, reported solid Q1 results and maintained its 2025 capital expenditure forecast of $38 billion to $42 billion, a 33% increase from the previous year [8][9]. - The semiconductor industry association SEMI anticipates a 2% increase in global fabrication equipment spending this year, followed by an 18% increase in 2026 [9]. Tariff Developments - Recent tariff-related developments, including exemptions on semiconductor imports and a 90-day pause on reciprocal tariffs, indicate potential for reduced uncertainty in the semiconductor sector [10]. Valuation and Investment Opportunity - ASML's stock is currently trading at 25 times trailing earnings, which is lower than the Nasdaq-100 index's multiple of 28, making it an attractive investment opportunity [11][12]. - Analysts expect healthy bottom-line growth for ASML, supported by its reiterated full-year guidance and potential catalysts such as AI [12][14].