ASML (NASDAQ:ASML) Trading 1% Higher - Still a Buy?

Key Points

• ASML’s long-term demand outlook remains strong: JPMorgan analysts say the company is nearly sold out of EUV systems for 2027 and is exploring production of more than 110 systems in 2028, supported by AI-related chip demand. TSMC’s adoption of next-generation high-NA EUV technology further reinforces ASML’s competitive position.
• Analysts are broadly bullish: ASML has a consensus “Moderate Buy” rating and an average price target of $1,970.33, well above its recent trading level near $1,591.48. However, some analysts remain neutral.
• Valuation and industry risks remain significant: Shares trade at roughly 50 times earnings and face sensitivity to semiconductor cycles, geopolitical restrictions, high-NA system costs, and any slowdown in AI or data-center spending.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report) shares shot up 1% on Tuesday . The stock traded as high as $1,616.55 and last traded at $1,591.48. Approximately 1,570,420 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 1,786,992 shares. The stock had previously closed at $1,575.15.

Trending Headlines about ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: ASML is exploring ways to produce more than 110 extreme-ultraviolet (EUV) lithography systems in 2028, according to JPMorgan analysts after meeting CFO Roger Dassen. The company is nearly sold out for 2027 and expects to build at least 80 EUV systems that year, suggesting strong long-term demand and potential upside to revenue expectations. ASML Eyes 110+ EUV Tools in 2028 as AI Chip Demand Accelerates
• Positive Sentiment: TSMC has joined the group of leading chipmakers adopting ASML’s next-generation high-NA EUV technology. The new Eindhoven campus and broader customer support strengthen ASML’s technology roadmap and competitive position as chipmakers move to smaller process nodes. ASML extends chipmaking dominance as customers embrace High NA
• Positive Sentiment: Several market commentaries argue that the recent decline may offer a long-term entry point, citing ASML’s unique position as the only supplier of EUV equipment needed to manufacture leading-edge chips and the potential for AI-driven capacity expansion. ASML’s Current Share Price Shouldn’t Scare You
• Neutral Sentiment: High-NA EUV systems could cost customers roughly $400 million each. Adoption supports ASML’s long-term dominance, but customer return-on-investment requirements could affect the timing of orders and installations. ASML Drops as Customers Prepare for $400 Million Machines
• Negative Sentiment: ASML remains exposed to semiconductor-sector volatility and geopolitical restrictions. Shares recently traded below their 50-day moving average, while a high valuation—approximately 50 times earnings—leaves the stock vulnerable if AI spending or chip demand slows.
• Negative Sentiment: The latest selloff was triggered partly by concerns that calls from AI leaders to slow frontier-model development could moderate future data-center and chip-equipment spending, weighing on ASML and other semiconductor-equipment companies. Why ASML Stock Is Falling

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Jefferies Financial Group reiterated a "neutral" rating on shares of ASML in a research report on Monday, June 1st. Morgan Stanley restated an "overweight" rating on shares of ASML in a report on Tuesday, July 7th. UBS Group restated a "buy" rating on shares of ASML in a research report on Wednesday, July 1st. Wells Fargo & Company increased their price target on shares of ASML from $2,200.00 to $2,500.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Finally, DZ Bank raised shares of ASML from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,970.33.

ASML Price Performance

The firm has a market cap of $625.90 billion, a P/E ratio of 49.52, a PEG ratio of 0.84 and a beta of 1.79. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.33 and a quick ratio of 0.80. The stock's 50-day simple moving average is $1,732.82 and its two-hundred day simple moving average is $1,611.84.

ASML (NASDAQ:ASML - Get Free Report) last released its earnings results on Sunday, June 28th. The semiconductor company reported $8.65 earnings per share (EPS) for the quarter. The firm had revenue of $10.62 billion during the quarter. ASML had a net margin of 30.11% and a return on equity of 52.71%. Equities research analysts forecast that ASML Holding N.V. will post 44.97 earnings per share for the current fiscal year.

ASML Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 5th. Shareholders of record on Tuesday, July 28th were given a dividend of $2.1507 per share. This represents a $8.60 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Tuesday, July 28th. ASML's payout ratio is 22.59%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ASML. Fisher Asset Management LLC boosted its position in shares of ASML by 3.0% in the 4th quarter. Fisher Asset Management LLC now owns 4,484,949 shares of the semiconductor company's stock valued at $4,798,268,000 after purchasing an additional 132,353 shares during the period. Van ECK Associates Corp increased its position in ASML by 31.7% during the second quarter. Van ECK Associates Corp now owns 2,459,420 shares of the semiconductor company's stock worth $4,892,869,000 after buying an additional 592,125 shares during the period. Arrowstreet Capital Limited Partnership increased its position in ASML by 6.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,641,565 shares of the semiconductor company's stock worth $2,168,227,000 after buying an additional 96,860 shares during the period. Bank of America Corp DE lifted its stake in ASML by 1.2% in the first quarter. Bank of America Corp DE now owns 1,560,256 shares of the semiconductor company's stock valued at $2,060,833,000 after buying an additional 19,051 shares during the last quarter. Finally, BlackRock Inc. lifted its stake in ASML by 4.9% in the second quarter. BlackRock Inc. now owns 1,282,190 shares of the semiconductor company's stock valued at $2,550,840,000 after buying an additional 59,888 shares during the last quarter. Institutional investors own 26.07% of the company's stock.

About ASML

ASML Holding N.V. is a Netherlands-based technology company that develops and manufactures lithography systems used by semiconductor manufacturers to produce integrated circuits. Its equipment uses light to project intricate circuit patterns onto silicon wafers, an essential step in the production of chips for computers, smartphones, automobiles, data centers and other electronic devices.

The company's product portfolio includes extreme ultraviolet (EUV) lithography systems, deep ultraviolet (DUV) lithography systems and advanced metrology and inspection technologies.

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