ASML Holding (ASML.AS) Conference Call Summary Company Overview - **Company**: ASML Holding (ASML.AS) - **Event**: Communacopia + Technology Conference - **Presenters**: Jim Kavanagh (Head of Investor Relations), Ted Shafer (Director Investor Relations Americas) Key Industry Insights 1. Positive Developments from Trade Agreements - Recent trade agreements between the US and EU are seen as incrementally positive for ASML, particularly for 2026, as they reduce the risk of a 30% tariff on EUV tools that had previously caused hesitation among fab owners [2][4] 2. China Demand Normalization - Demand from China is expected to gradually normalize, contributing around 20% of total revenues in the future, down from the mid-20s percentage today. Management anticipates a softening of demand in 2026, but SMIC's capacity additions are viewed as a positive driver [2][7] 3. Leading-edge Logic Demand - There are no signs of disruption in leading-edge Logic demand, with a well-defined baseline for customer discussions focused on technology ramp profiles. ASML expects continued orders for 2nm tools through the second half of 2025 into 2026 [2][8] 4. DRAM EUV Adoption - The adoption of EUV technology in DRAM is expected to offset a near-term pause in lithography intensity. ASML anticipates a rise in EUV penetration as DRAM roadmaps progress beyond 1β to 1γ nodes [2][8] 5. Strategic Partnerships - ASML's partnership with Mistral aims to enhance its AI capabilities, aligning with customer needs and facilitating the development of tailored AI solutions. This partnership is expected to support ASML's AI roadmap [2][8][9] Financial Outlook 1. Revenue Projections - ASML's revenue is projected to grow from €28.26 billion in 2024 to €39.93 billion by 2027, indicating a strong growth trajectory [10] 2. Price Target and Rating - ASML is rated as a "Buy" with a 12-month price target of €935, representing an upside of 36.9% from the current price of €683.20 [10] Key Risks - Potential risks include delays in EUV technology, cyclicality in capital expenditures, and unfavorable shifts in market share [10] Additional Insights - The management highlighted that while there is uncertainty related to macroeconomic factors, recent datapoints have become more positive post-results, indicating a healthier competitive dynamic in the foundry space [2][6]