Will Logic and Memory Growth Help ASML Meet 30-35B Euro Sales Target?

Group 1: Company Performance - ASML Holding reported net sales of €7.74 billion for Q1 fiscal 2025, reflecting a year-over-year increase of 46.4% and aligning with management's guidance of €7.5-€8 billion [1][10] - The company reaffirmed its full-year revenue outlook of €30 billion to €35 billion, indicating a potential year-over-year growth of 15% at the mid-point [1] - Bookings for the first quarter totaled €3.9 billion, with 60% from logic customers and 40% from memory, showcasing strong demand in both segments [2][10] Group 2: Technology Advancements - All NXE:3800E systems are now fully operational, supporting 220 wafers per hour, which is crucial for high-volume manufacturing in logic and memory applications [3] - ASML has shipped its fifth and final NXE:5000 system and plans to begin shipments of the NXE:5200 from Q2 2025, indicating progress in High NA EUV technology [4][10] - The adoption of EUV and High NA technologies is expected to enhance customer confidence and drive growth momentum in the near term [5] Group 3: Competitive Landscape - Applied Materials anticipates over 40% growth in DRAM revenues for fiscal 2025, driven by increased adoption of advanced etch systems [6] - Lam Research reported record foundry revenues, supported by demand for advanced packaging and DRAM technologies [7] Group 4: Valuation and Estimates - ASML trades at a forward price-to-sales ratio of 8.05X, which is higher than the industry average of 7.5X [11] - The Zacks Consensus Estimate for ASML's fiscal 2025 earnings implies a year-over-year growth of 30.45%, while fiscal 2026 estimates suggest a growth of 13.58% [14]