ASML Holding Stock Trades Near 52-Week High: Is It Still Worth Buying?

Core Insights - ASML Holding has experienced a significant stock price increase of 55.9% year to date, closing at $1,080.85, which is only 5.3% below its 52-week high of $1,141.72 [1][8] - The company's stock performance has outpaced the Zacks Computer and Technology sector, which has gained 25.5% year to date [2] - ASML's strong fundamentals and near-monopoly in semiconductor manufacturing equipment make it a compelling investment opportunity [3] Financial Performance - ASML reported third-quarter 2025 revenues of €7.52 billion, with a year-over-year earnings growth of 3.8% to €5.48 per share, translating to $6.41 per share in U.S. dollars [12] - The gross margin improved to 51.6%, up 80 basis points, despite a 6.3% decline in system sales due to a shift in product mix [13] - For the fourth quarter, ASML expects revenues between €9.2 billion and €9.8 billion, with gross margins projected at 51-53% [14] Growth Drivers - ASML's leadership in extreme ultraviolet (EUV) lithography technology is a key growth driver, essential for producing advanced chips at 3nm and below [4] - The introduction of High Numerical Aperture (High-NA) EUV systems, designed for sub-2nm production, represents a significant technological advancement for the company [5][9] - The rising demand for artificial intelligence (AI) is expected to further boost ASML's growth, as AI workloads require advanced chips that depend on ASML's lithography technology [10][11] Market Position and Valuation - ASML's stock trades at a forward 12-month price-to-earnings (P/E) ratio of 35.95, higher than the sector average of 28.16, reflecting its strong market position and growth potential [15] - Compared to other semiconductor companies, ASML has a higher P/E multiple than NVIDIA and Marvell Technology but lower than Broadcom [19] Investment Recommendation - Given ASML's dominance in EUV technology, emerging High-NA lithography, and increasing demand for AI-related chips, the fundamentals support a recommendation to buy the stock for long-term investors [20]