ASML

It is too early to get over-excited about how Dutch semiconductor-equipment maker ASML Holding could benefit from artificial intelligence, Bernstein analysts write in a research note. AI is already a key growth driver for Nvidia, whose sales more than tripled and earnings surged more than eightfold in its fiscal fourth quarter as it scrambles to meet demand for AI-powered chips. The analysts expect to hear how the AI opportunity could develop for ASML in the longer-term at the company’s investor day on Nov. 14. ASML shares trade flat at EUR909.50.

Front-end semiconductor stocks–those focused on wafer fabrication–deserve to trade at a premium, Jefferies analysts write in a research note. The U.S. bank expects ASML Holding, ASM and VAT Group to see significant growth in the next 12 to 15 months driven by the structural growth outlook from rising capital-expenditure intensity, a lack of meaningful competition, strong cyclical drivers into 2025 and healthy cash returns. “While investors are concerned on the sharp rerating that has already occurred for many front-end semicap equipment names, we predict all three stocks to trade above the previous peak multiples and–for the reasoning above–expect further rerating to occur,” Jefferies says. ASML shares are up 1.8% at EUR915.30; VAT shares are up 0.1% at CHF484.70; ASM shares are up 2.1% at EUR588.0.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target price by $99 to $1,033, 32x our ’25 EPS view, above peers on ASML’s leading competitive position and sizeable backlog (EUR39B) and above its 3-year average (~29x) on accelerating demand for advanced equipment to support AI applications. We raise our ’24 EPS view by EUR0.36 to EUR18.76 and raise ’25’s by EUR0.35 to EUR29.90 as our outlook for the semiconductor industry continues to broadly improve across key memory and logic applications. Our downgrade is valuation-based, as shares are up ~15% since the publishing of our previous note (Jan. 24) and up ~30% year-to-date. We believe shares have risen largely on a better-than-expected backlog position entering ’24, with further support coming from strong peer earnings performance and positive industry commentary. Still, we think much

ASML’s (ASML.AS,ASML.US) earnings growth is set to accelerate further in the next few years, reflecting the strong recovery of its order book amid better tool utilization and a new product cycle, Morgan Stanley said Tuesday. As such, analysts reiterated their overweight rating on the stock and raised the price target to 1,000 euros from 875 euros. From 2023 to 2026, analysts expect an earnings compound annual growth rate of 23%, resulting in sales of over 39 billion euros at the end of the forecast period. Morgan Stanley views ASML as the “clear winner” among European semiconductor companies, citing its new product cycle, current capex rebound and improved installed base dynamics despite slowing sales growth and diminishing margins in 2024. Analysts noted that the ongoing artificial intelligence boom is contributing to the attractiveness of the semiconductor sector, resulting in a capacity build-out among companies. As a result, the Dutch semiconductor equipment

ASML Holding (NASDAQ: ASML) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/14/2024 14.21% Wells Fargo $950 → $1050 Maintains Overweight 01/26/2024 19.65% Susquehanna $830 → $1100 Maintains Positive 01/25/2024 8.77% Raymond James $850 → $1000 Maintains Strong Buy 01/19/2024 -7.55% Raymond James $725 → $850 Maintains Strong Buy 11/30/2023 -4.5% JP Morgan $726 → $878 Maintains Overweight 10/19/2023 -21.03% JP Morgan $732 → $726 Maintains Overweight 10/12/2023 -11.9% Susquehanna $850 → $810 Maintains Positive 10/11/2023 -20.38% JP Morgan $772 → $732 Maintains Overweight 07/28/2023 — Bernstein Downgrades Outperform → Market Perform 07/20/2023 -12.99% Wells Fargo $775 → $800 Maintains Overweight 06/16/2023 — New Street Research Downgrades Buy → Neutral 01/26/2023 -15.7% Argus Research $590 → $775 Maintains Buy 01/26/2023 -18.21% JP Morgan $710 → $752 Maintains Overweight 11/14/2022 — Susquehanna Upgrades Neutral → Positive 11/14/2022 -27.67% Wells Fargo $510 → $665

ASML Holding (NASDAQ: ASML) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/26/2024 26.44% Susquehanna $830 → $1100 Maintains Positive 01/25/2024 14.94% Raymond James $850 → $1000 Maintains Strong Buy 01/19/2024 -2.3% Raymond James $725 → $850 Maintains Strong Buy 11/30/2023 0.92% JP Morgan $726 → $878 Maintains Overweight 10/19/2023 -16.55% JP Morgan $732 → $726 Maintains Overweight 10/12/2023 -6.9% Susquehanna $850 → $810 Maintains Positive 10/11/2023 -15.86% JP Morgan $772 → $732 Maintains Overweight 07/28/2023 — Bernstein Downgrades Outperform → Market Perform 07/20/2023 -8.05% Wells Fargo $775 → $800 Maintains Overweight 06/16/2023 — New Street Research Downgrades Buy → Neutral 01/26/2023 -10.92% Argus Research $590 → $775 Maintains Buy 01/26/2023 -13.56% JP Morgan $710 → $752 Maintains Overweight 11/14/2022 — Susquehanna Upgrades Neutral → Positive 11/14/2022 -23.56% Wells Fargo $510 → $665 Maintains Overweight 11/08/2022 — Morgan Stanley Initiates Coverage On

ASML Holding (NASDAQ: ASML) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/25/2024 17.44% Raymond James $850 → $1000 Maintains Strong Buy 01/19/2024 -0.18% Raymond James $725 → $850 Maintains Strong Buy 11/30/2023 3.11% JP Morgan $726 → $878 Maintains Overweight 10/19/2023 -14.74% JP Morgan $732 → $726 Maintains Overweight 10/12/2023 -4.87% Susquehanna $850 → $810 Maintains Positive 10/11/2023 -14.03% JP Morgan $772 → $732 Maintains Overweight 07/28/2023 — Bernstein Downgrades Outperform → Market Perform 07/20/2023 -6.05% Wells Fargo $775 → $800 Maintains Overweight 06/16/2023 — New Street Research Downgrades Buy → Neutral 01/26/2023 -8.98% Argus Research $590 → $775 Maintains Buy 01/26/2023 -11.69% JP Morgan $710 → $752 Maintains Overweight 11/14/2022 — Susquehanna Upgrades Neutral → Positive 11/14/2022 -21.9% Wells Fargo $510 → $665 Maintains Overweight 11/08/2022 — Morgan Stanley Initiates Coverage On → Overweight 10/21/2022 — New Street Research Upgrades

The following is a summary of the ASML Holding N.V. (ASML) Q2 2024 Earnings Call Transcript: Financial Performance: ASML reported Q4 2023 net sales of €7.2 billion, fueled by business in installed base and EUV systems. Net system sales of €5.7 billion were largely spearheaded by Logic (63%) and Memory (37%). Gross margin for the quarter was 51.4%, majorly driven by installed base business. The net income in Q4 was €2 billion (28.3% of net sales), resulting in an EPS of €5.21. ASML’s total net sales for the year 2023 grew 30% to €27.6 billion, with a gross margin of 51.3%. Net income for 2023 was €7.8 billion (28.4% of net sales) yielding an EPS of €19.91. ASML concluded 2023 with free cash flow generation of €3.2 billion and returned €3.3 billion to shareholders via dividends and share buybacks. Looking forward to Q1 2024, ASML anticipates net sales between €5

ASML Holding NV (NASDAQ:ASML) will be reporting its fourth-quarter earnings on Jan. 24. Wall Street expects $5.27 in EPS and $7.53 billion in revenues as the company reports before market hours. ASML is a semiconductor production equipment (SPE) manufacturer. It is known for being a leading supplier of photolithography equipment used in the semiconductor industry. The company specializes in producing advanced lithography machines. These play a crucial role in the production of integrated circuits (ICs) and other semiconductor devices. The stock has gained just 14.60% over the past year. It has vastly underperforming SPE peers such as Applied Materials Inc (NASDAQ:AMAT) at 46.02%, Lam Research Corporation (NASDAQ:LRCX) a 69.07% and KLA Corp (NASDAQ:KLAC) at 45.64%. The ASML Analyst: Cantor Fitzgerald analyst C.J. Muse has an Overweight rating on the stock with a price target of €900 (~$977.23) a share. At the time of review, the stock traded at €745 (~$808.93), representing a 21% upside potential. The ASML Thesis: ASML faced significant underperformance in 2023.

2024 expected to be a transition year with sales similar to 2023 VELDHOVEN, the Netherlands, January 24, 2024 — Today, ASML Holding NV (ASML) has published its 2023 fourth-quarter and full-year results.   — Q4 net sales of EUR7.2 billion, gross margin of 51.4%, net income of      EUR2.0 billion   — Quarterly net bookings in Q4 of EUR9.2 billion2 of which EUR5.6 billion      is EUV   — 2023 net sales of EUR27.6 billion, gross margin of 51.3%, net income of      EUR7.8 billion   — ASML expects 2024 net sales to be similar to 2023   — ASML expects Q1 2024 net sales between EUR5.0 billion and EUR5.5 billion      and a gross margin between 48% and 49% (Figures in millions of euros unless otherwise indicated)    Q3 2023       Q4 2023       FY 2022       FY 2023

“We expect first-quarter net sales between €5.0 billion and €5.5 billion with a gross margin between 48% and 49%. ASML expects R&D costs of around €1,070 million and SG&A costs of around €300 million. In spite of the positive signs as described above, we maintain our conservative view for the total year and expect 2024 revenue to be similar to 2023. We also expect 2024 to be an important year to prepare for significant growth that we expect for 2025,” said ASML President and Chief Executive Officer Peter Wennink.

ASML Holding (ASML) reported Q4 earnings Wednesday of 5.20 euros ($5.65) per diluted share, up from 4.60 per share a year earlier. Analysts surveyed by Capital IQ expected 4.76 euros per share. Net sales for the quarter ended Dec. 31 were 7.24 billion euros, up from 6.43 billion euros a year earlier. Analysts polled by Capital IQ expected 6.89 billion euros. Looking ahead, the company expects Q1 sales to range from 5 billion euros to 5.5 billion euros and full-year 2024 net sales to be similar to 2023. Analysts polled by Capital IQ are expecting sales of 5.92 billion euros and 27.27 billion euros for Q1 and 2024, respectively.