Latest news with #ASMLHolding
Yahoo
3 days ago
- Business
- Yahoo
ASML Stock Declines 9% After Q2 Earnings: Should You Hold or Fold?
ASML Holding ASML shares have dropped 9.5% since the company reported its second-quarter 2025 results on July 16. ASML net sales grew 23.2% year over year to €7.69 billion, while EPS surged 47.1% to €5.90. Converted to the U.S. dollar, ASML Holding's second-quarter revenues and EPS were $8.7 billion and $6.70, respectively, both surpassing analysts' expectations. The top line beat the Zacks Consensus Estimate by 1.8%, while the bottom line surpassed it by 12.8%. ASML Holding N.V. Price, Consensus and EPS Surprise ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote Despite strong quarterly results, the market reaction was negative, largely because of what the company said about 2026 uncertainty and weaker-than-expected third-quarter guidance. ASML Turns Cautious About 2026 Outlook Management backed away from earlier confidence about growth in 2026. Previously, ASML Holding had expected demand to keep rising, especially with AI fueling more chip production. However, on the second-quarter call, the company said that it 'cannot confirm growth in 2026,' pointing to customer hesitation and ongoing market uncertainty. During the call, ASML Holding acknowledged that ongoing U.S.-China tariff discussions, including the Section 232 tariff review, are negatively impacting customer capital spending timelines. This hesitation may delay orders and revenue recognition in late 2025 and into 2026, casting doubt on near-term growth continuity. Additionally, ASML Holding issued disappointing guidance for the third quarter. The company expects third-quarter revenues between €7.4 billion and €7.9 billion. As per the Euro/USD currency exchange rate as of July 16, the top-line guidance ranges from $8.6 billion to $9.2 billion, significantly lower than the Zacks Consensus Estimate of $9.81 billion. ASML expects the third-quarter gross margin in the 50-52% range, depicting a significant decline from 53.7% in the second quarter. This sequential decline is expected mainly due to margin-dilutive High NA system revenues and fewer upgrade orders. All these factors have caused near-term uncertainty about ASML Holding's prospects. However, considering the growing AI-driven demand for advanced chip-making tools, the company's long-term prospects seem bright, making the stock worth holding. EUV Technology Keeps ASML in a Strong Position ASML Holding's dominance in the semiconductor manufacturing sector is unchallenged. The company maintains a near-monopoly on extreme ultraviolet (EUV) lithography, which is essential for producing advanced chips at 3nm and below. Its EUV systems are crucial for leading chipmakers such as TSMC, Samsung and Intel, positioning ASML as a key enabler of cutting-edge semiconductor manufacturing. ASML Holding's High-NA EUV technology represents the next frontier in chip manufacturing. Designed for sub-2nm nodes, these advanced systems will be critical for the industry's future. While the adoption of High-NA EUV has been slower than expected, the long-term potential remains enormous. As chipmakers ramp up production of smaller, more powerful chips, ASML's High-NA EUV tools will play a pivotal role, driving sustained demand. Additionally, ASML Holding made substantial progress in High NA EUV during the second quarter with the shipment and installation of the first EXE:5200B system. This platform is critical for enabling the 1.4nm node and beyond. Customers are validating the performance, and ASML sees High NA insertion into high-volume manufacturing beginning in 2026-2027, offering a major long-term revenue and margin driver. The company's technological superiority ensures high barriers to entry, giving it a competitive moat. With EUV technology being essential for advanced semiconductor fabrication, ASML Holding's dominance remains intact, supporting its long-term growth outlook. ASML Holding projects 30% growth in EUV revenues this year. Customers are increasing EUV layers in DRAM nodes, using ASML's tools to reduce multi-patterning complexity. AI Growth Continues to Support ASML's Future ASML Holding is well-positioned to capitalize on the artificial intelligence (AI) revolution, which is driving massive demand for advanced semiconductors. With AI workloads requiring cutting-edge GPUs, high-bandwidth memory and AI accelerators, the demand for smaller and more powerful chips is rising. This trend plays directly into ASML's hands, as its EUV and High-NA EUV machines are vital for manufacturing these advanced chips. As cloud providers, data centers and tech giants expand their AI infrastructure, ASML Holding's lithography tools will be in greater demand. This AI-driven semiconductor expansion ensures long-term growth tailwinds for ASML. ASML Trades at a Reasonable Price Compared to Peers ASML stock currently trades in line with the sector. Its forward 12-month price-to-earnings (P/E) ratio of 25.70 is slightly lower than the Zacks Computer and Technology sector's average of 27.67. Image Source: Zacks Investment Research ASML Holding also trades at lower P/E multiples compared with other semiconductor players, including Intel INTC, NVIDIA NVDA and Advanced Micro Devices AMD. Currently, Intel, NVIDIA and Advanced Micro Devices trade at P/E multiples of 43.82X, 35.60X and 33.68X, respectively. Shares of ASML have risen 7.6% year to date (YTD), underperforming the sector's gain of 8.6%. Shares of semiconductor giants Intel, NVIDIA and Advanced Micro Devices have soared 13.7%, 28.9% and 32.5%, respectively, YTD. YTD Price Return Performance Image Source: Zacks Investment Research Final Thoughts: Hold ASML for the Long Term The recent dip in ASML Holding stock is more about short-term uncertainty than a breakdown in fundamentals. The company still leads in one of the most critical technologies for advanced semiconductor production. Its tools are essential for enabling AI, next-gen computing and high-performance memory. Despite near-term caution around 2026 and geopolitical risks, ASML's market position, tech advantage and long-term demand drivers remain intact, making the stock worth retaining at the moment. ASML Holding carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
4 days ago
- Business
- Globe and Mail
ASML Stock Declines 9% After Q2 Earnings: Should You Hold or Fold?
ASML Holding ASML shares have dropped 9.5% since the company reported its second-quarter 2025 results on July 16. ASML net sales grew 23.2% year over year to €7.69 billion, while EPS surged 47.1% to €5.90. Converted to the U.S. dollar, ASML Holding's second-quarter revenues and EPS were $8.7 billion and $6.70, respectively, both surpassing analysts' expectations. The top line beat the Zacks Consensus Estimate by 1.8%, while the bottom line surpassed it by 12.8%. Despite strong quarterly results, the market reaction was negative, largely because of what the company said about 2026 uncertainty and weaker-than-expected third-quarter guidance. ASML Turns Cautious About 2026 Outlook Management backed away from earlier confidence about growth in 2026. Previously, ASML Holding had expected demand to keep rising, especially with AI fueling more chip production. However, on the second-quarter call, the company said that it 'cannot confirm growth in 2026,' pointing to customer hesitation and ongoing market uncertainty. During the call, ASML Holding acknowledged that ongoing U.S.-China tariff discussions, including the Section 232 tariff review, are negatively impacting customer capital spending timelines. This hesitation may delay orders and revenue recognition in late 2025 and into 2026, casting doubt on near-term growth continuity. Additionally, ASML Holding issued disappointing guidance for the third quarter. The company expects third-quarter revenues between €7.4 billion and €7.9 billion. As per the Euro/USD currency exchange rate as of July 16, the top-line guidance ranges from $8.6 billion to $9.2 billion, significantly lower than the Zacks Consensus Estimate of $9.81 billion. ASML expects the third-quarter gross margin in the 50-52% range, depicting a significant decline from 53.7% in the second quarter. This sequential decline is expected mainly due to margin-dilutive High NA system revenues and fewer upgrade orders. All these factors have caused near-term uncertainty about ASML Holding's prospects. However, considering the growing AI-driven demand for advanced chip-making tools, the company's long-term prospects seem bright, making the stock worth holding. EUV Technology Keeps ASML in a Strong Position ASML Holding's dominance in the semiconductor manufacturing sector is unchallenged. The company maintains a near-monopoly on extreme ultraviolet (EUV) lithography, which is essential for producing advanced chips at 3nm and below. Its EUV systems are crucial for leading chipmakers such as TSMC, Samsung and Intel, positioning ASML as a key enabler of cutting-edge semiconductor manufacturing. ASML Holding's High-NA EUV technology represents the next frontier in chip manufacturing. Designed for sub-2nm nodes, these advanced systems will be critical for the industry's future. While the adoption of High-NA EUV has been slower than expected, the long-term potential remains enormous. As chipmakers ramp up production of smaller, more powerful chips, ASML's High-NA EUV tools will play a pivotal role, driving sustained demand. Additionally, ASML Holding made substantial progress in High NA EUV during the second quarter with the shipment and installation of the first EXE:5200B system. This platform is critical for enabling the 1.4nm node and beyond. Customers are validating the performance, and ASML sees High NA insertion into high-volume manufacturing beginning in 2026-2027, offering a major long-term revenue and margin driver. The company's technological superiority ensures high barriers to entry, giving it a competitive moat. With EUV technology being essential for advanced semiconductor fabrication, ASML Holding's dominance remains intact, supporting its long-term growth outlook. ASML Holding projects 30% growth in EUV revenues this year. Customers are increasing EUV layers in DRAM nodes, using ASML's tools to reduce multi-patterning complexity. AI Growth Continues to Support ASML's Future ASML Holding is well-positioned to capitalize on the artificial intelligence (AI) revolution, which is driving massive demand for advanced semiconductors. With AI workloads requiring cutting-edge GPUs, high-bandwidth memory and AI accelerators, the demand for smaller and more powerful chips is rising. This trend plays directly into ASML's hands, as its EUV and High-NA EUV machines are vital for manufacturing these advanced chips. As cloud providers, data centers and tech giants expand their AI infrastructure, ASML Holding's lithography tools will be in greater demand. This AI-driven semiconductor expansion ensures long-term growth tailwinds for ASML. ASML Trades at a Reasonable Price Compared to Peers ASML stock currently trades in line with the sector. Its forward 12-month price-to-earnings (P/E) ratio of 25.70 is slightly lower than the Zacks Computer and Technology sector's average of 27.67. ASML Holding also trades at lower P/E multiples compared with other semiconductor players, including Intel INTC, NVIDIA NVDA and Advanced Micro Devices AMD. Currently, Intel, NVIDIA and Advanced Micro Devices trade at P/E multiples of 43.82X, 35.60X and 33.68X, respectively. Shares of ASML have risen 7.6% year to date (YTD), underperforming the sector's gain of 8.6%. Shares of semiconductor giants Intel, NVIDIA and Advanced Micro Devices have soared 13.7%, 28.9% and 32.5%, respectively, YTD. YTD Price Return Performance Final Thoughts: Hold ASML for the Long Term The recent dip in ASML Holding stock is more about short-term uncertainty than a breakdown in fundamentals. The company still leads in one of the most critical technologies for advanced semiconductor production. Its tools are essential for enabling AI, next-gen computing and high-performance memory. Despite near-term caution around 2026 and geopolitical risks, ASML's market position, tech advantage and long-term demand drivers remain intact, making the stock worth retaining at the moment. ASML Holding carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
ASML Holding NV (ASML) Q2 2025 Earnings Call Highlights: Strong Sales and Margin Performance ...
Total Net Sales: EUR7.7 billion, at the upper end of guidance. Net System Sales: EUR5.6 billion, with EUR2.7 billion from EUV sales and EUR2.9 billion from non-EUV sales. Installed Base Management Sales: EUR2.1 billion, above guidance. Gross Margin: 53.7%, above guidance. R&D Expenses: EUR1.2 billion. SG&A Expenses: EUR299 million. Net Income: EUR2.3 billion, representing 29.8% of total net sales. Earnings Per Share: EUR5.90. Cash, Cash Equivalents, and Short-term Investments: EUR7.2 billion. Net System Bookings: EUR5.5 billion, with EUR2.3 billion from EUV and EUR3.2 billion from non-EUV. Backlog: Approximately EUR33 billion. Final Dividend Paid: EUR1.84 per ordinary share. First Quarterly Interim Dividend for 2025: EUR1.60 per ordinary share. Share Buyback: EUR1.4 billion in Q2 2025, totaling EUR5.8 billion for the 2022-2025 program. Full Year 2025 Revenue Growth Guidance: Around 15% increase with a gross margin of around 52%. Q3 2025 Revenue Guidance: EUR7.4 billion to EUR7.9 billion. Q3 2025 Gross Margin Guidance: 50% to 52%. Q3 2025 R&D Expenses Guidance: Around EUR1.2 billion. Q3 2025 SG&A Expenses Guidance: Around EUR310 million. Warning! GuruFocus has detected 6 Warning Sign with FHN. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q2 2025, reaching the upper end of their guidance. The company's gross margin for the quarter was above guidance at 53.7%, driven by increased upgrade business and lower-than-expected tariff impacts. Net income for Q2 was EUR2.3 billion, representing 29.8% of total net sales, with earnings per share of EUR5.90. ASML Holding NV (NASDAQ:ASML) expects a 30% increase in EUV capacity in 2025 compared to 2024, driven by higher productivity of the NXE:3800E systems. The company anticipates a 15% revenue increase for the full year 2025, with a gross margin of around 52%. Negative Points ASML Holding NV (NASDAQ:ASML) faces increasing uncertainties due to macroeconomic and geopolitical developments, impacting customer capital expenditure timing. The gross margin in the second half of 2025 is expected to be lower than the first half, primarily due to the margin dilutive effect of High NA systems. There is a EUR1.4 billion adjustment in the backlog related to customer responses to export restrictions, affecting Deep UV and application business. The company has not confirmed growth for 2026 due to ongoing uncertainties, despite preparing for potential growth. ASML Holding NV (NASDAQ:ASML) is experiencing a shift in demand dynamics, with China accounting for over 25% of total revenue, raising concerns about potential pull-forwards. Q & A Highlights Q: Why is the EUV revenue growth lower than expected, and how does it relate to the installed base business? A: Roger Dassen, CFO, explained that the expected EUV growth for the year is about 30%, down from an initial higher estimate. The difference is due to a shift in revenue from system sales to the upgrade business, as many tools shipped at lower configurations are being upgraded to full capacity, which is accounted for in the installed base business rather than system sales. Q: How does ASML price its tools, and is there a difference in value between multi-patterning Low NA and single High NA EUV? A: Christophe Fouquet, CEO, confirmed that ASML prices its tools based on the value provided to customers, including productivity and performance improvements. High NA EUV offers significant value by simplifying processes and enabling further node advancements, which can justify higher pricing compared to multi-patterning Low NA EUV. Q: What impact does the potential removal of export bans on AI chips to China have on ASML? A: Roger Dassen noted that while it may not directly result in a significant increase in tool sales, the removal of export bans is positive for the broader ecosystem, potentially strengthening global reach and benefiting ASML indirectly. Q: How does ASML view the current uncertainty around tariffs and its impact on 2026 growth projections? A: Christophe Fouquet and Roger Dassen highlighted that ongoing tariff discussions create uncertainty, affecting customer investment decisions. This uncertainty has led ASML to be more cautious about confirming growth for 2026, despite strong underlying demand driven by AI. Q: What are the key milestones for High NA EUV adoption, and how is the program progressing? A: Christophe Fouquet stated that the current focus is on qualifying the technology with the EXE:5000 system. The next phase involves ensuring tool maturity for high-volume manufacturing, with the EXE:5200 system being a critical step. The program is progressing well, with positive customer feedback on performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Globe and Mail
5 days ago
- Business
- Globe and Mail
ASML Reports Strong Q2 2025 Results with €7.7 Billion in Sales
Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. ASML Holding ( (ASML)) just unveiled an update. On July 16, 2025, ASML Holding reported its financial results for the second quarter of 2025, achieving €7.7 billion in total net sales and a net income of €2.3 billion. The company anticipates a 15% growth in total net sales for the full year 2025, with a gross margin of around 52%. ASML's Q2 performance was bolstered by advancements in lithography technology and increased EUV adoption, which are crucial for its market positioning. The company also announced an interim dividend and continued its share buyback program, reflecting confidence in its financial health and commitment to shareholder returns. The most recent analyst rating on (ASML) stock is a Buy with a $910.00 price target. To see the full list of analyst forecasts on ASML Holding stock, see the ASML Stock Forecast page. Spark's Take on ASML Stock According to Spark, TipRanks' AI Analyst, ASML is a Outperform. ASML's overall stock score reflects strong financial performance and positive earnings call sentiment. The technical analysis supports a bullish outlook, although valuation concerns and macroeconomic challenges like tariffs and order book volatility temper the score slightly. To see Spark's full report on ASML stock, click here. More about ASML Holding ASML Holding N.V. is a leading supplier to the semiconductor industry, providing chipmakers with hardware, software, and services to mass-produce integrated circuits. The company is headquartered in Veldhoven, the Netherlands, and operates globally with offices across EMEA, the US, and Asia. ASML is known for its innovative technology that advances the production of more affordable, powerful, and energy-efficient microchips, addressing challenges in healthcare, energy, mobility, and agriculture. Average Trading Volume: 1,350,173 Technical Sentiment Signal: Strong Buy Current Market Cap: $309.4B See more insights into ASML stock on TipRanks' Stock Analysis page.
Globe and Mail
5 days ago
- Business
- Globe and Mail
ASML Holding NV (0QB8): New Buy Recommendation for This Technology Giant
J.P. Morgan analyst Sandeep Deshpande maintained a Buy rating on ASML Holding NV today and set a price target of €970.00. The company's shares closed yesterday at €705.37. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Deshpande is a 4-star analyst with an average return of 8.0% and a 52.46% success rate. Deshpande covers the Technology sector, focusing on stocks such as Infineon Technologies AG, ASML Holding NV, and Nokia. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for ASML Holding NV with a €746.71 average price target, which is a 5.86% upside from current levels. In a report released on July 9, Deutsche Bank also maintained a Buy rating on the stock with a €750.00 price target. Based on ASML Holding NV's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of €7.74 billion and a net profit of €2.36 billion. In comparison, last year the company earned a revenue of €5.29 billion and had a net profit of €1.22 billion
