TLDR
- ASML CEO Christophe Fouquet said the first products made on High-NA machines will arrive within months, covering both memory and logic chips.
- High-NA tools cost up to $400 million each — top customer TSMC recently called them too expensive.
- ASML opened at $1,472.39, with a 52-week range of $683.48 to $1,603.49 and a market cap of $579 billion.
- Institutional investors including AQR Capital and UBS Asset Management increased their positions in Q1.
- Wall Street holds a consensus “Moderate Buy” rating with an average price target of $1,504.38.
ASML CEO Christophe Fouquet told attendees at imec’s conference in Belgium on Tuesday that the first chips produced on the company’s High-NA extreme ultraviolet (EUV) machines are expected within months.
The announcement covers both memory and logic chip applications. Fouquet said the new tools will bring down costs for patterning — the process of etching circuitry onto the most advanced chips.
“In the next few months, we will be looking at the first few products wherever, in memory, in logic, being exposed on the High-NA system,” Fouquet said.
The timing is notable given that TSMC, ASML’s biggest customer, pushed back on the tools just weeks ago. TSMC said the machines, which can cost up to $400 million each, were too expensive.
Despite that friction, ASML is pressing forward. Getting the first products out of High-NA machines is a key milestone for justifying those price tags to the broader industry.
ASML stock opened at $1,472.39 on Tuesday, down roughly 1.96% on the day. The stock has traded between $683.48 and $1,603.49 over the past twelve months.
Institutional Investors Stay Active
On the institutional side, buying continued into the first quarter. AQR Capital Management grew its position by 141.1%, while UBS Asset Management raised its stake by 153.1%. Profund Advisors added 1,110 units to its holdings in Q4, a 16.1% increase.
Overall, institutional investors hold 26.07% of ASML’s outstanding stock.
The company reported quarterly earnings on March 30, posting $8.28 earnings per unit. Revenue came in at $10.15 billion. Net margin stood at 27.65%, with return on equity at 48.69%.
Analysts expect full-year earnings of $37.09 per unit. The stock trades at a P/E of 52.81 and a P/E/G of 1.23.
Analyst Ratings Stay Mixed
The analyst picture is uneven. Wall Street Zen downgraded ASML from “buy” to “hold” on May 3. Santander cut it from “neutral” to “underperform” back in January. Zacks dropped its rating from “strong-buy” to “hold” in March.
Jefferies and DZ Bank both maintained “neutral” ratings in April.
Still, the overall consensus holds at “Moderate Buy,” with 21 analysts rating it a buy and three giving a strong buy. Six have it at hold and two at sell.
The average price target sits at $1,504.38 — above Tuesday’s open.
On the positive side, ASML recently partnered with Tata Electronics for India’s $11 billion Dholera semiconductor fab. The deal opens a new market for future tool sales.
ASML also reported ongoing transactions under its share buyback program, which signals continued capital return to investors.
The stock’s 50-day moving average is $1,416.86. Its 200-day moving average is $1,285.48.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Be the first to comment