Exclusive: ASML unveils EUV light source advance that could yield 50% more chips by 2030 | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A view shows the logo of Dutch computer chip equipment supplier ASML, in Veldhoven, Netherlands, January 29 2025. REUTERS/Piroschka van de Wouw [Purchase Licensing Rights, opens new tab]- Companies- Summary- United States, China aim to rival ASML amid export control talks- Power boost to 1,000W cu ...

Core Viewpoint - The "Magnificent Seven" stocks are experiencing a downturn due to concerns over rising investments in data centers and high earnings growth expectations, prompting analysts to suggest a shift towards cyclical areas of the market [1]. Group 1: Market Trends - The AI rally is expanding beyond mega-cap stocks, indicating that investors can benefit from a wider range of companies poised to gain from AI advancements [2]. - The decline in Big Tech stocks coincides with their AI investments benefiting various downstream players, including data center builders and energy infrastructure companies [2]. Group 2: Analyst Insights - The "Magnificent Seven" stocks are perceived to be struggling due to exhaustion, although they are still regarded as exceptional companies [3]. - There is a notion of a "Great Valuation Rotation" occurring in the markets, suggesting a global rebalancing trade that may persist through 2026 [3].

Core Insights - ASML Holding N.V. has seen a 5.6% increase in stock price since the last report, outperforming the S&P 500, which remained relatively flat [1] - The company reported mixed Q4 earnings, indicating variability in performance metrics [1] Company Analysis - ASML is recognized as the world's largest manufacturer of lithography equipment, a critical component in semiconductor manufacturing [1] - The analysis is provided by an expert in aerospace, defense, and airline sectors, highlighting the potential for significant growth in these industries [1] Investment Context - The investing group, The Aerospace Forum, aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging data-informed analysis [1] - The group also offers access to proprietary data analytics tools to enhance investment decision-making [1]

Core Insights - ASML Holding N.V. has seen a 5.6% increase in stock price since the last report, outperforming the S&P 500, which remained relatively flat [1] - The company reported mixed Q4 earnings, indicating variability in performance metrics [1] Company Analysis - ASML is recognized as the world's largest manufacturer of lithography equipment, a critical component in semiconductor manufacturing [1] - The analysis is provided by an expert in aerospace, defense, and airline sectors, highlighting the potential for significant growth in these industries [1] Investment Context - The investing group, The Aerospace Forum, aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging data-informed analysis [1] - The group also offers access to proprietary data analytics tools to enhance investment decision-making [1]

Core Insights - ASML Holding (ASML) shares have increased by 11.3% over the past month, outperforming the Zacks Computer and Technology sector, which declined by 3.4% [1][7] - ASML's stock is currently considered overvalued, trading at a forward 12-month price-to-sales (P/S) ratio of 12.66X compared to the sector average of 6.37X, as indicated by a Zacks Value Score of F [2] Performance Comparison - In the same period, shares of Lam Research, KLA Corporation, and Applied Materials returned 10.8%, 1.1%, and 19.1%, respectively [2] - ASML's stock has outperformed Lam Research and KLA Corporation but underperformed Applied Materials [1][2] Demand and Growth Outlook - ASML is benefiting from strong demand for artificial intelligence (AI) and high-performance computing (HPC) chips, particularly in high-bandwidth memory (HBM) and advanced DRAM nodes, which is expected to tighten supply through at least 2026 [5][9][10] - The company has a backlog of €38.8 billion and expects revenues in the range of €34-€39 billion for 2026, with a Zacks Consensus Estimate of $43.31 billion, indicating a year-over-year improvement of 17% [10][11] Competitive Position - ASML holds a near-monopoly in extreme ultraviolet (EUV) technology, which is essential for producing the world's most advanced chips at 3nm and below, providing it with significant pricing power and strategic importance with major customers like TSMC, Samsung, and Intel [12] - The company is advancing into sub-2nm production with High Numerical Aperture (High-NA) EUV systems, which are expected to be central to the industry's shift towards denser and more efficient chips [13] Earnings Estimates - The Zacks Consensus Estimate for ASML's 2026 earnings is $33.63, reflecting a year-over-year growth of 20.3%, with recent upward revisions in estimates [13][14] - Current earnings estimates for the upcoming quarters and years indicate stable growth, with the current quarter estimate at $7.61 and the next year at $41.42 [14] Investment Recommendation - Given ASML's unmatched leadership in EUV technology, visibility into AI-driven demand, and strong earnings momentum, the stock is viewed as attractive for long-term investment, currently rated as Zacks Rank 2 (Buy) [10][13]

Group 1 - The Baird Chautauqua International Growth Fund (CCIIX) underperformed its benchmark during the quarter [2] - The underperformance was attributed to stock selection in the healthcare sector [2]

Core Viewpoint - The article highlights ASML as a strong growth stock, emphasizing its favorable growth metrics and potential for solid returns based on the Zacks Growth Style Score and Zacks Rank [2][10]. Earnings Growth - ASML has a historical EPS growth rate of 12.7%, with projected EPS growth of 20.3% for the current year, surpassing the industry average of 20% [5]. Cash Flow Growth - The year-over-year cash flow growth for ASML is 30.9%, significantly higher than the industry average of 4.2%. The company's annualized cash flow growth rate over the past 3-5 years is 21.1%, compared to the industry average of 15.1% [6][7]. Earnings Estimate Revisions - There has been an upward revision in ASML's current-year earnings estimates, with the Zacks Consensus Estimate increasing by 8.8% over the past month, indicating a positive trend [8]. Overall Assessment - ASML has achieved a Growth Score of A and a Zacks Rank of 2, suggesting it is a potential outperformer and a solid choice for growth investors [10].

Core Insights - Mistral AI has announced a €1.2 billion ($1.43 billion) investment in collaboration with EcoDataCenter to enhance Sweden's digital infrastructure [1] - This investment represents Mistral AI's first AI infrastructure project outside of France, aimed at establishing an AI-centric data center in Borlänge, Sweden [2][3] - The facility is expected to commence operations in 2027 and will facilitate the development and deployment of Mistral's next-generation AI models [3] Company and Industry Developments - The partnership will focus on creating AI-specialized data centers, advanced computing capacity, and localized AI capabilities [2] - Mistral's CEO emphasized that this investment is a significant step towards building independent AI capabilities in Europe [3] - The initiative aligns with Europe's broader strategy to enhance its technological infrastructure to compete with U.S. tech giants amid increasing geopolitical tensions [3]

Portfolio Strategy Research 6 February 2026 | 5:01AM GMT Strategy Espresso: Tech wreck: Sharp rotations and what is now priced Sharon Bell +44(20)7552-1341 | sharon.bell@gs.com Goldman Sachs International Guillaume Jaisson +44(20)7552-3000 | guillaume.jaisson@gs.com Goldman Sachs International Peter Oppenheimer +44(20)7552-5782 | peter.oppenheimer@gs.com Goldman Sachs International Giovanni Ferrannini +44(20)7051-2589 | giovanni.ferrannini@gs.com Goldman Sachs International Investors should consider this re ...

Core Viewpoint - The article emphasizes the importance of core values such as excellence, integrity, transparency, and respect for long-term success in the investment sector [1]. Group 1 - The author identifies as a full-time investor with a strong focus on the tech sector and holds a Bachelor of Commerce Degree with Distinction, majoring in Finance [1]. - The author is a lifetime member of the Beta Gamma Sigma International Business Honor Society, indicating a commitment to academic excellence [1]. - The article invites readers to provide constructive criticism and feedback to enhance the quality of the author's work [1]. Group 2 - The author discloses having no stock, option, or similar derivative position in any mentioned companies and no plans to initiate such positions within the next 72 hours [1]. - The article expresses the author's personal opinions and states that no compensation is received for the article, except from Seeking Alpha [1]. - There is a disclaimer regarding the past performance not guaranteeing future results and clarifying that no investment advice is being provided [2].