Key Takeaways The Zacks Consensus Estimate suggests Q3 revenue growth of up to 7.3% and EPS gains near 10% YoY for ASML.Strong demand for EUV tools from advanced chipmakers continues to power ASML's growth.Export limits to China and macro headwinds remain challenges to ASML's solid momentum.ASML Holding N.V. (ASML) is slated to report third-quarter 2025 results before the market opens on Oct. 15.ASML expects revenues between €7.4 billion and €7.9 billion. The Zacks Consensus Estimate is pegged at $8.81 bill ...

ASML may be growing slower than Palantir, but it can be purchased at a far more attractive price tag.Palantir (PLTR 0.79%) has been one of the biggest success stories in the AI investing realm, as its stock has risen around 2,600% since the AI arms race began in 2023. This has caused Palantir's market cap to swell to around $410 billion, ranking it among the 25 most valuable companies in the world. However, there's another stock involved in the AI arms race that can pass Palantir in valuation by 2030. I'm a ...

Key Takeaways ASML posted 23% revenue growth in Q2 but warned of slower demand and uncertainty beyond 2025.Texas Instruments gained 16% revenue and 15.6% EPS growth in Q2, backed by U.S. manufacturing plans.TXN's internal production drive and CHIPS Act funding boost its stability versus ASML's volatile outlook.ASML Holding (ASML) and Texas Instruments (TXN) play crucial but very different roles in the semiconductor ecosystem. ASML is the sole maker of extreme-ultraviolet (EUV) lithography machines, which ar ...

Group 1 - ASML Holding N.V. is predicted to be one of the 15 stocks that could generate significant wealth in the next five years, with a recent stock price increase of 6.56% to $867.30 following an upgrade from an analyst [1] - Arete Research upgraded ASML from Hold to Buy for the first time in seven years, setting a price target of EUR 879 for its shares [2] - Increased capital expenditure by Taiwan Semiconductor Manufacturing Company (TSMC), estimated to exceed $50 billion in both 2026 and 2027, is expected to benefit ASML [3] Group 2 - UBS analyst upgraded ASML to Buy from Neutral, citing renewed optimism in the company's lithography business, particularly due to the anticipated increase in lithography intensity starting in 2027 [4] - ASML is the sole manufacturer of EUV lithography machines essential for advanced semiconductor production, indicating a strong demand outlook [4]

Group 1 - ASML and Mistral AI have formed a partnership to explore AI models across ASML's lithography systems, with ASML becoming an 11% shareholder in Mistral AI [1][2] - The partnership symbolizes the importance of sovereign AI and trade barriers, bringing together Mistral AI and ASML, a key player in global technology [2] - Mistral AI has received significant US funding and was previously considered for acquisition by major companies like Microsoft, but ASML's investment helps maintain its independence [2] Group 2 - Mistral AI differentiates itself by leveraging open-source models and targeting enterprise customers, launching its first reasoning model, Magistral, in June [3] - The company employs innovative mixture of experts (MoE) architectures, achieving high performance per compute cost, making its models cost-effective [4] - In February 2024, Mistral AI launched Le Chat, a multilingual conversational assistant, enhancing its enterprise platform with free advanced features and extensive third-party integrations [5]

Core Viewpoint - AI investing remains a strong theme in the market, with several stocks identified as excellent buying opportunities in August [1] Group 1: Nvidia - Nvidia is recognized as a leading stock in AI investing due to its GPUs being essential for AI workloads [4] - The U.S. government previously revoked Nvidia's export license for H20 chips to China, resulting in a projected revenue loss of $8 billion from an expected $45 billion [5] - Nvidia has reapplied for its export license and expects approval, which could enhance growth for the remainder of the year [6] Group 2: Taiwan Semiconductor - Taiwan Semiconductor is the largest chip foundry globally, gaining business from competitors and solidifying its market leadership [7] - The company reported a 44% year-over-year revenue growth in Q2, with expectations of nearly 20% compound annual growth rate (CAGR) for revenue over the next five years [8] Group 3: Alphabet - Alphabet reported a 14% year-over-year revenue increase and a 22% rise in diluted earnings per share [9] - The stock trades at less than 20 times forward earnings, making it cheaper than the S&P 500, despite concerns about Google Search losing market share to generative AI [11] - Google Search revenue rose 12% year over year, indicating that Alphabet's stock is undervalued [12] Group 4: ASML - ASML holds a technological monopoly on extreme ultraviolet (EUV) lithography, crucial for chip manufacturing [13] - Increased chip demand is expected to drive demand for ASML's machines, despite some bearish outlooks due to tariff concerns [14] - ASML is projected to deliver strong growth in the coming years, with a price tag of 26 times earnings estimates seen as attractive given its market position [15]

Group 1: Company Overview - ASML Holding and Lam Research are essential players in the semiconductor equipment industry, with ASML leading in lithography technology and Lam Research focusing on etching and deposition systems, complementing each other in the chipmaking process [1][3] - ASML is the only company capable of producing extreme ultraviolet (EUV) lithography machines at scale, necessary for manufacturing chips at 5nm, 3nm, and soon 2nm levels, which are critical for AI processors and data centers [3][4] - Lam Research builds tools for manufacturing next-generation semiconductors, including high-bandwidth memory and advanced packaging, which are vital for AI and cloud data centers [7][8] Group 2: Financial Performance - ASML reported a revenue growth of 46% and a 93% increase in earnings per share in Q1 2025, with an expected revenue increase of 15% for the full year [5][6] - Lam Research's Q3 fiscal 2025 revenues reached $4.72 billion, up 24.5% year over year, with non-GAAP EPS of $1.04, reflecting a 33.3% increase [10][11] - Lam Research's non-GAAP operating margin improved to 32.8% in Q3, with further expansion projected in Q4, indicating effective management of supply-chain risks [12][13] Group 3: Market Dynamics and Risks - ASML's exposure to China is a concern, with 41% of its shipments in 2024 going to that market, and U.S. export restrictions could limit future sales [6] - Lam Research's shipments for gate-all-around nodes and advanced packaging exceeded $1 billion in 2024, with expectations to triple to over $3 billion in 2025, indicating strong demand [9][11] Group 4: Investment Comparison - Year-to-date, ASML shares have risen 14.1%, while Lam Research shares have increased by 33.9% [14] - ASML trades at a forward earnings multiple of 27.34X, higher than Lam Research's 24.17X, suggesting Lam Research is more reasonably priced given its stronger near-term momentum [15] - Lam Research is currently viewed as the better investment option due to better recent stock performance, improving margins, strong product demand, and a lower valuation [17][19]

Core Viewpoint - Investing in artificial intelligence (AI) remains a leading theme in the market, with significant upside potential for both facilitators and deployers of AI technology [1] Facilitators - Facilitators are companies that produce the hardware necessary for AI development, with Nvidia being the most prominent player due to its widely used graphics processing units (GPUs) [4] - Advanced Micro Devices (AMD) is a competitor in the GPU space, showing strong growth despite not having the same market dominance as Nvidia [4] - Broadcom is developing custom AI accelerators known as XPUs, which are designed for specific workloads and can outperform GPUs in certain tasks [5] - Taiwan Semiconductor Manufacturing Company (TSMC) is the leading contract chipmaker for AI chips, projecting a 45% compound annual growth rate in AI-related revenue over the next five years [6] - ASML Holding, the sole manufacturer of extreme ultraviolet (EUV) lithography machines, is expected to benefit from increased chip demand as AI technology grows [7] - The facilitators are currently experiencing significant financial benefits from AI investments, outperforming deployers in terms of immediate results [8] Deployers - Deployers are companies that are integrating AI into their products, with major players including Alphabet, Amazon, and Meta Platforms, all investing billions to enhance their AI capabilities [9] - Alphabet and Amazon also operate large cloud computing businesses, providing essential computing resources for AI development [10] - Although these deployers are heavily investing in AI, they are only beginning to see incremental improvements in their financials, with potential for significant growth as AI enhances workforce efficiency [11] - Other notable companies integrating AI into their products include SentinelOne, which offers AI-driven cybersecurity solutions, and Adobe, which has embraced generative AI trends [12] - Adobe has continued to grow earnings despite concerns about disruption from generative AI, while SentinelOne reported a 23% revenue increase in the first quarter, highlighting its strong performance in cybersecurity [13] - The deployers are expected to experience substantial growth in the coming years as their AI investments mature [14]

Core Viewpoint - Artificial intelligence (AI) is significantly transforming various industries, leading to increased spending on AI solutions and infrastructure, which is reflected in the stock market performance of tech companies [1][2]. Group 1: ASML Holding - ASML Holding has seen limited stock price growth despite the surge in demand for AI chips, with only a 5% increase in stock price over the past couple of years [5]. - The company experienced a challenging 2024, with minimal revenue growth and declining earnings due to weak chip demand in personal computers and smartphones [6]. - In Q1 2025, ASML's revenue increased by 46% year-over-year, and earnings nearly doubled, with new equipment orders worth nearly 4 billion euros, marking a 10% increase from the previous year [7][8]. - ASML forecasts 32.5 billion euros in revenue for 2025, a 15% increase from 2024, with potential for faster growth driven by AI demand [8][10]. - The company’s EUV lithography machines are essential for manufacturing advanced chips, and demand for these chips is expected to grow at an annualized rate of 35% through 2033 [10][11]. - Analysts predict an acceleration in ASML's earnings growth due to increased investments in manufacturing infrastructure by foundries and chipmakers [12]. - ASML's stock is trading at an attractive 27 times forward earnings compared to the U.S. technology sector's average of 47 [14]. Group 2: Ambarella - Ambarella is positioned to benefit from the growth in AI, particularly in the automotive sector and IoT devices, with its computer vision chips [15]. - The edge AI market, where Ambarella operates, is expected to grow at a compound annual growth rate of 33% through 2032 [16]. - Ambarella generated $285 million in revenue for fiscal 2025, with over 70% from edge AI applications, marking a 26% revenue increase [17]. - The company reported a 58% year-over-year revenue increase in Q1 of fiscal 2026, reaching $86 million, and an adjusted profit of $0.07 per share [18]. - Ambarella's guidance for the current quarter indicates a 41% year-over-year revenue jump, suggesting potential for stronger growth than currently anticipated [19]. - Analysts expect Ambarella to report a profit this year, with strong bottom-line growth projected for the next few fiscal years [20]. - The company's serviceable addressable market is expected to reach $13 billion in the next five years, indicating long-term growth potential [22].

Core Insights - ASML is the only manufacturer of EUV lithography machines globally, making it a crucial player in the semiconductor value chain [1] - The company holds a near monopoly on chip manufacturing technology, which positions it as a key contributor to the semiconductor industry [1] Company Overview - ASML is listed on NASDAQ under the ticker ASML [1] - The company is recognized for its significant role in advancing semiconductor manufacturing technology [1] Investment Perspective - The article emphasizes the importance of fundamental analysis in identifying investment opportunities within large-cap companies like ASML [1] - The author expresses a commitment to outperforming the S&P 500 index through strategic investment choices [1]