Latest news with #ASML
Globe and Mail
3 days ago
- Business
- Globe and Mail
KLAC Scales in Advanced Packaging: Is Growth Set to Increase Further?
KLA Corporation KLAC is scaling its advanced packaging business as demand rises for High-Bandwidth Memory (HBM) and advanced logic nodes to support AI workloads. KLAC's inspection and metrology tools support 2.5D and 3D integration, which are critical for improving performance and yield in multi-die architectures. To meet growing complexity, KLAC is expanding its packaging portfolio to address tighter tolerances, process variability and accelerated production ramps. Foundry and memory customers are deepening adoption across high-density nodes, reinforcing momentum in performance-centric packaging flows. The advanced packaging business is included in the Semiconductor Process Control segment, which reported $2.74 billion in revenue for the third quarter of fiscal 2025, up 31% year over year. The figure beat the Zacks Consensus Estimate by 0.76%. Advanced packaging revenues are projected to surpass $850 million in 2025, driven by rising demand from both foundry and memory customers. As AI-centric architectures scale, KLAC's tools are playing a central role in enabling next-generation packaging. With deep domain expertise and an expanding footprint, the company is well-positioned to capture share as advanced packaging becomes a key growth driver across the semiconductor industry. KLA Faces Competitive Pressure KLAC's inspection and metrology leadership in advanced packaging is facing growing competition from Applied Materials AMAT and ASML Holdings ASML, both of which are scaling their roles in enabling complex integration across logic and memory devices. Applied Materials is advancing its position with deposition, etch, and bonding solutions tailored for high-density packaging. AMAT's investments in hybrid integration platforms and packaging-specific workflows support rising demand from AI-driven logic and HBM customers. These capabilities give Applied Materials an expanding footprint in advanced back-end processes. ASML Holdings is gaining relevance through its EUV lithography systems, which are increasingly used in advanced patterning steps that support downstream packaging performance. As customers transition to tighter geometries and 3D structures, ASML Holding's tools play a critical role in enabling pattern fidelity and placement precision, indirectly supporting the adoption of advanced packaging across leading fabs. KLAC's Share Price Performance, Valuation and Estimates KLAC's shares have appreciated 46.2% year to date, while the broader Zacks Computer & Technology sector has increased 5.7% and the Zacks Electronics - Miscellaneous Products industry has jumped 12.9%. KLAC Performance Image Source: Zacks Investment Research KLAC stock is trading at a premium, with a forward 12-month Price/Sales of 10.11X compared with the industry's 3.2X. KLAC has a Value Score of C. KLAC Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings is pegged at $8.53 per share, up by a penny over the past 30 days, indicating 29.24% year-over-year growth. The consensus mark for KLAC's 2025 earnings is pegged at $32.46 per share, which is up by a penny over the past 30 days. The figure indicates a 36.73% increase year over year. KLAC currently carries a Zacks Rank #2 (Buy). 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 #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. 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. Today, See These 5 Potential Home Runs >> 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 KLA Corporation (KLAC): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
ASML Growth Outlook Trimmed by Bernstein Over EUV Concerns
ASML Holding N.V. (NASDAQ:ASML) ranks among the best fundamental stocks to buy according to hedge funds. Bernstein SocGen Group began coverage of ASML Holding N.V. (NASDAQ:ASML) on June 17 with a Market Perform rating and a EUR700 price target, citing issues with the company's extreme ultraviolet (EUV) lithography division. While acknowledging ASML's 'undisputed' superiority in EUV lithography, the company voiced concerns about the declining returns on top-of-the-line logic capital expenditures incurred by EUV lithography. In that regard, Bernstein anticipates a decline in the intensity of EUV capital expenditure. Instead of lithography, the firm predicts that new transistor architectures and advanced packaging would propel further transistor miniaturization. The firm's estimate of EUV revenue for 2030 falls 24% below ASML Holding N.V. (NASDAQ:ASML)'s own guidance. According to Bernstein, ASML's growth will be in line with that of Wafer Fabrication Equipment (WFE) at a compound annual growth rate of 7% from 2024 and 2030. The firm's revenue prediction for 2030 is 18% below the consensus and at the low end of the company's guidance range. A key player in the semiconductor sector, ASML Holding N.V. (NASDAQ:ASML) specializes in lithographic systems, which employ light to etch intricate designs on silicon wafers, a crucial stage in the production of chips. While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Bloomberg
4 days ago
- Business
- Bloomberg
ASML, SAP, Mistral Ask EU to Delay Start of AI Act Rules
European companies including ASML Holding NV, SAP SE, Mistral AI have called on the European Union to suspend the implementation of its landmark artificial intelligence regulation because they say it puts the continent's AI ambitions at risk. In a letter signed by more than 110 organizations, business leaders asked the president of the European Commission, Ursula von der Leyen, to postpone the application of rules hemming in the most powerful AI models, calling for a more 'innovation-friendly regulatory approach.'
Yahoo
4 days ago
- Business
- Yahoo
ASML (ASML) Surpasses Market Returns: Some Facts Worth Knowing
ASML (ASML) ended the recent trading session at $799.59, demonstrating a +1.15% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.94%. Shares of the equipment supplier to semiconductor makers have appreciated by 5.78% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.61%, and outperforming the S&P 500's gain of 5.13%. The investment community will be paying close attention to the earnings performance of ASML in its upcoming release. The company is slated to reveal its earnings on July 16, 2025. The company's upcoming EPS is projected at $5.94, signifying a 37.50% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.55 billion, up 27.19% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.47 per share and a revenue of $37.33 billion, signifying shifts of +31.94% and +22.17%, respectively, from the last year. It's also important for investors to be aware of any recent modifications to analyst estimates for ASML. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.13% increase. At present, ASML boasts a Zacks Rank of #3 (Hold). Looking at valuation, ASML is presently trading at a Forward P/E ratio of 28.78. This denotes a premium relative to the industry average Forward P/E of 27.35. One should further note that ASML currently holds a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 1.24. The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 11, positioning it in the top 5% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. 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 ASML Holding N.V. (ASML) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
ASML vs. LRCX: Which Semiconductor Equipment Stock Is the Better Buy?
ASML Holding ASML and Lam Research LRCX are both essential players in the semiconductor equipment industry. ASML leads in lithography technology, while LRCX focuses on etching and deposition systems, making them integral to the chipmaking process. In simple terms, ASML prints the chip patterns on silicon wafers. After that, Lam Research comes in with tools to build out and refine the chip's structure. That means they don't compete, but they complement each other. However, from an investment point of view, one stock offers more upside potential than the other right now. Let's see which one is a better investment option for now. ASML: Core Technology With Global Demand Amid Rising Risks ASML Holding has a clear advantage in the chip equipment market. It is the only company capable of producing extreme ultraviolet (EUV) lithography machines at scale. These machines are needed to make chips at 5nm, 3nm and soon 2nm levels — key to powering artificial intelligence (AI) processors, mobile devices and data centers. The company is already rolling out its next-generation High-NA EUV machines, which will be used for even smaller chips. As demand for faster and more efficient chips rises, especially with the growth of AI, ASML Holding stands to benefit. Its machines are a necessary part of the chip supply chain, and its customers, including TSMC, Intel and Samsung, will rely on ASML's technology for years to come. Financially, ASML Holding is performing well. In the first quarter of 2025, it reported revenue growth of 46% and a 93% jump in earnings per share. For the full year, it expects revenues to increase 15%, which shows continued demand, even in a challenging global environment. However, one concern is the company's exposure to China. In 2024, China made up 41% of ASML's shipments. U.S. pressure on the Dutch government has led to export restrictions on some of ASML's most advanced equipment, which could limit future sales in that market. Still, strong demand from other regions may offset that risk. Lam Research: Targeted Execution With Margin Momentum Lam Research is capitalizing on the AI trends. It builds the tools chipmakers need to manufacture next-generation semiconductors, including high-bandwidth memory and chips used in advanced packaging. These technologies are vital for powering AI and cloud data centers. Lam Research's products are not only critical but also innovative. For example, its ALTUS ALD tool uses molybdenum to improve speed and efficiency in chip production. Another product, the Aether platform, helps chipmakers achieve higher performance and density. These are essential capabilities as demand for advanced AI chips increases. In 2024, Lam Research's shipments for gate-all-around nodes and advanced packaging exceeded $1 billion, and management expects this figure to triple to more than $3 billion in 2025. Additionally, the industry's migration to backside power distribution and dry-resist processing presents further growth opportunities for LRCX's cutting-edge fabrication solutions. These trends are aiding Lam Research's financial performance. In the third quarter of fiscal 2025, the company reported revenues of $4.72 billion, up 24.5% year over year, and non-GAAP EPS of $1.04, highlighting a 33.3% increase (adjusting for stock split). The most impressive was Lam Research's margin performance. The non-GAAP gross margin expanded 150 basis points sequentially to 49% in the third quarter, and the company's guidance of 49.5% in the fourth quarter reflects further expansion. Similarly, the non-GAAP operating margin improved 210 basis points to 32.8%, and the fourth-quarter guidance indicates a further expansion of 70 basis points sequentially. Lam Research's improving margins indicate that the company continues to manage supply-chain risks effectively, even amid geopolitical tensions and new tariff threats. ASML vs. LRCX: Price Performance and Valuation Year to date, shares of ASML Holding and Lam Research have risen 14.1% and 33.9%, respectively. On the valuation front, ASML is trading at a forward earnings multiple of 27.34X, higher than LRCX's 24.17X. While both companies are of high quality, Lam Research looks more reasonably priced, especially considering its stronger near-term momentum. Conclusion: LRCX Is the Better Buy for Now Both ASML Holding and Lam Research are critical to the chipmaking process and have strong positions in the AI-driven semiconductor cycle. However, from an investment standpoint, Lam Research is currently the better pick. LRCX has better recent stock performance, improving margins, strong product demand and a lower valuation. While ASML is a long-term winner in lithography, the near-term upside and financial execution at Lam Research make it a more attractive investment choice right now. LRCX carries a Zacks Rank #2 (Buy), making it a clear winner over ASML, which has a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up 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 ASML Holding N.V. (ASML): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report This article originally published on Zacks Investment Research (
