Stock Split Watch: Is ASML Next?

Core Viewpoint - A stock split could be beneficial for ASML, given its high share price and strong market position in the AI and semiconductor sectors [1][2]. Group 1: Stock Price and Market Capitalization - ASML's shares have increased by over 50% in 2025, trading close to $1,040, with a market capitalization exceeding $403 billion [1]. - The company's share price is above $1,000, similar to historical levels seen in companies like Nvidia and Amazon before they executed stock splits [4]. Group 2: Potential Benefits of a Stock Split - A stock split could make ASML's shares more accessible to a broader range of investors, potentially increasing its shareholder base [3][4]. - Historical stock splits indicate management's willingness to adjust share counts when necessary, with the last split occurring in October 2007 [5]. Group 3: Financial Performance - In Q3, ASML reported revenues of €7.5 billion and net income of €2.1 billion, with net system orders totaling €5.4 billion, including €3.6 billion for EUV lithography systems [7]. - The company anticipates fiscal 2025 sales of approximately €32.5 billion and a gross margin of 52%, with long-term revenue projections for fiscal 2030 ranging from €44 billion to €60 billion [7]. Group 4: Market Trends and Future Projections - Analysts project a 41% year-over-year growth in EUV lithography sales to €11.1 billion, with total revenue expected to rise 14% year-over-year to €32.3 billion [10]. - Demand for DRAM is outpacing supply, leading manufacturers to plan capacity expansions, which could increase demand for ASML's lithography systems [11]. Group 5: Investment Considerations - ASML trades at 34.6 times forward earnings, which may seem high, but its market dominance and AI-driven growth prospects justify consideration for investment [12].