Abdul Rahman
2 min read
In This Article:
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 17, Bernstein initiated coverage of ASML’s shares. The firm rated the stock as “Market Perform” and set a €700.00 ($806) price target, nearly 6% upside from the stock’s current trading price ($761 as of June 20).
A semiconductor production line, showing the complex procedures of chip manufacture.
The analysts justified their position, saying that ASML’s extreme ultraviolet (EUV) lithography business is not doing well. They noted that EUV lithography is gobbling up a massive portion of the company’s leading-edge logic capital expenditure (capex), but with diminishing returns. Though, Bernstein analysts expect EUV capex intensity to decline starting at the 3 nm logic node and D1d DRAM node.
Bernstein acknowledges ASML’s “undisputed” dominance in EUV lithography despite these concerns. The analysts say the company holds a near-monopoly in this technology. Furthermore, ASML’s fundamentals are solid. For instance, the company reported a 52% gross profit margin and 17.7% revenue growth in the last twelve months.
ASML Holding N.V. (NASDAQ:ASML) is a Dutch semiconductor equipment company. It designs and sells advanced photolithography machines used to make microchips, focusing on extreme ultraviolet (EUV) and deep ultraviolet (DUV) systems. Its major products include EUV scanners, DUV immersion tools, and metrology and inspection systems like YieldStar and HMI e-beam tools.
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Disclosure: None.
