Is It Time to Buy ASML Stock Yet? Insights on the Semiconductor Market
Is It Time to Buy ASML Stock Yet?
One of the 'most important companies in the world' just got smashed on semiconductor manufacturing concerns. Shares of top lithography equipment maker ASML Holding (NASDAQ: ASML) took a steep tumble after earnings in mid-April, halving what was a heady 30% run-up in the first few months of 2024. ASML is still sporting big gains so far during the new bull market, but some investors are nevertheless suddenly concerned about the company's financial outlook.
The march toward even more high-performance chips
In the final weeks of 2023 and the first quarter of 2024, all eyes had turned to ASML and the delivery of its newest and greatest EUV lithography machine to Intel (NASDAQ: INTC). There's a great deal of optimism that ASML will be a huge winner from the manufacturing supremacy race heating up between Intel, Taiwan Semiconductor Manufacturing (NYSE: TSM), Samsung, and other chipmakers.
When is ASML stock a buy?
Though ASML faces a transition year with flat revenue growth in 2024, its long-term revenue forecast remains strong. ASML's position as the sole provider of EUV lithography equipment for advanced semiconductor manufacturing gives it a competitive edge. Investors should consider the potential for growth in the semiconductor market and evaluate the current stock valuation before investing.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.