ASML Holding(US:ASML) The Motley Fool·2025-12-11 10:15Core Viewpoint - ASML Holdings is positioned to potentially reach a trillion-dollar valuation due to its advanced High-NA EUV lithography machines, which are essential for producing powerful semiconductors for data centers [1][4]. Company Performance - ASML's stock is currently trading around $1,100 per share, reflecting a year-to-date increase of 62%, a 58% rise over the last 52 weeks, and a 143% increase over the past five years [5][6]. - The company's market capitalization is approximately $434 billion, with a gross margin of 52.7% and a dividend yield of 0.66% [7]. Technology and Market Demand - ASML's High-NA EUV machines, costing about $380 million each, enhance the numerical aperture from 0.33 to 0.55, enabling the production of smaller and more complex chip patterns [8][9]. - The demand for ASML's technology is driven by the necessity for advanced AI chips, with no viable alternatives available in the market [14]. Revenue and Growth Potential - To achieve a trillion-dollar valuation, ASML needs to grow its bottom line to nearly $19 billion, representing a 131% increase from current levels [11]. - The company generated approximately $31 billion in revenue in 2024, with projections suggesting it could reach $67 billion by 2034-2036, given the semiconductor sector's annual growth rate of 8% to 10% [10][12]. Analyst Sentiment - A consensus among 25 analysts rates ASML stock as a strong buy, with an average score of 4.56 out of 5, indicating positive market sentiment [13].