This ASML Dip Could Be Gone Before You Know It—Don't Miss Out

Core Viewpoint - ASML Holdings' stock price dropped over 8% in pre-market trading after the release of its Q2 earnings, presenting a potential buying opportunity that may not last long [1] Financial Performance - ASML reported Q2 revenue of $8.92 billion, a 23% increase year-over-year, outperforming consensus estimates by 200 basis points, driven by strength in new technology [3] - The company achieved GAAP earnings of $6.84, which was nearly 90 cents, or 1,500 basis points, better than expected, indicating strong margin performance [5] Guidance and Market Outlook - The guidance for F2026 was uncertain, with no specific figures provided, attributed to macroeconomic headwinds affecting the semiconductor industry [2] - Despite the uncertainty, the Q2 report and guidance for Q3 and F2025 suggest that the business is expected to remain strong through 2026 [2][5] Market Sentiment and Analyst Ratings - Analysts maintain a Moderate Buy rating on ASML, with a 12-month price target of $923.80, indicating a potential upside of 25.91% from the current price [8][9] - Institutional ownership is below 50%, but there is a trend of buying among institutions, supporting the stock's price action [9] Balance Sheet and Capital Returns - ASML's balance sheet remains solid, with net cash and low leverage, allowing for sustained capital returns, including a dividend yield of approximately 0.97% and share buybacks reducing the share count by an average of 1.3% in Q2 [6][7] Market Dynamics - The stock's performance may be influenced by its ability to maintain price levels near moving averages around $750; a drop below this level could lead to a deeper pullback [11] - Short interest in ASML has been increasing, although it remains low below 1% of the float, presenting a potential headwind for the stock [12]