ASML

ASML Holding faces a few months without a positive share price catalyst as newsflow in the near term is unlikely to improve for the Dutch semiconductor-equipment maker, Stifel’s Juergen Wagner writes in a research note. ASML shed more than $60 billion in market value this week after the company warned the recovery for some areas of the industry could extend well into the next year.Wagner says near-term visibility is more limited at the moment, likely prompting a change in investor sentiment more toward shorter-term newsflow. ASML shares trade 0.6% lower at 630.00 euros.

ASML Holding’s cut to its expectations for next year on weak order intake means the company’s trajectory from 2025 into 2026 and beyond is now key for its shares, Citi analysts say in a research note. The Dutch company, which supplies semiconductor-manufacturing machinery to chip makers, expects between 30 billion and 35 billion euros in sales next year, below a previous forecast of up to 40 billion euros. The company had reiterated as recently as September that the low end of its 2025 sales guidance was conservative despite negative newsflow over the summer, including cuts to spending plans by key customer Intel, Citi says. “Estimates had been declining for 2025, including our own, but consensus at 36 billion euros is now high,” the analysts say.

ASML Holding is in a position to upgrade its financial targets for the end of the decade when the Dutch semiconductor-equipment maker holds an investor day on Nov. 14, Citi analysts write in a note to clients after hosting ASML CEO Christophe Fouquet at Citi’s Global TMT Conference. “Fouquet explained clearly that the primary driver of their long-term model is the addressable market, where there is clear upside for artificial intelligence relative to the model provided in 2022,” the analysts say. ASML is currently forecasting sales of approximately 44 billion to 60 billion euros in 2030, with a gross margin of roughly 56% to 60%.

The market focus on ASML Holding will likely shift away from the short term to 2026 and 2027 when the Dutch semiconductor-equipment maker hosts an investor day on Nov. 14, UBS analysts write in a note to clients. The analysts say ASML’s earnings on Oct. 16 should provide a near-term boost for the stock as they expect to see solid orders from Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, but the market will likely focus more on the investor day the following month. ASML shares trade 3.6% higher at 696.60 euros.

ASML Holding (ASML) needs export licenses to send China software updates for microchip production equipment that are not under restriction, Reuters reported Tuesday, citing a statement from the foreign ministry. The move was meant to align Dutch policy with that of the US.

The market focus on ASML Holding will likely shift away from the short term to 2026 and 2027 when the Dutch semiconductor-equipment maker hosts an investor day on Nov. 14, UBS analysts write in a note to clients. The analysts say ASML’s earnings on Oct. 16 should provide a near-term boost for the stock as they expect to see solid orders from Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, but the market will likely focus more on the investor day the following month. ASML shares trade 3.6% higher at 696.60 euros.

ASML reports EUR5.3 billion total net sales and EUR1.2 billion net income in Q1 2024 2024 outlook unchanged VELDHOVEN, the Netherlands, April 17, 2024 — Today, ASML Holding NV (ASML) has published its 2024 first-quarter results. — Q1 total net sales of EUR5.3 billion, gross margin of 51.0%, net income of EUR1.2 billion — Quarterly net bookings in Q1 of EUR3.6 billion2 of which EUR656 million is EUV — ASML expects Q2 2024 total net sales between EUR5.7 billion and EUR6.2 billion, and a gross margin between 50% and 51% — ASML expects 2024 total net sales to be similar to 2023 (Figures in millions of euros unless otherwise indicated) Q4 2023 Q1 2024 ————————————– ——- ——- Total net sales 7,237 5,290 …of which Installed Base Management sales(1) 1,555 1,324 New lithography systems sold (units) 113 66 Used lithography systems sold (units) 11 4 Net bookings(2) 9,186 3,611 Gross profit

ASML Holding (NASDAQ:ASML) reported quarterly earnings of $3.38 per share which missed the analyst consensus estimate of $3.43 by 1.55 percent. This is a 36.4 percent decrease over earnings of $5.31 per share from the same period last year. The company reported quarterly sales of $5.75 billion which missed the analyst consensus estimate of $6.13 billion by 6.28 percent. This is a 20.65 percent decrease over sales of $7.24 billion the same period last year.

ASML Holding posted orders and sales below expectations for the first quarter, but the Dutch semiconductor-equipment maker should benefit from a stronger second half and looks set to grow strongly next year, Bernstein analysts write in a note to investors. “We don’t see any change to the fundamental investment case for ASML,” the analysts say. First-quarter orders slipped to EUR3.61 billion from EUR3.75 billion a year earlier against a Visible Alpha forecast of nearly EUR5.10 billion. The analysts say they would view any pullback in the share price that might result from lower orders as a buying opportunity for investors.

ASML Holding’s orders were the main focus in the run-up to first-quarter results amid expectations of demand picking up from customers like TSMC and Intel, but the lower-than-expected figure shows that a recovery will take time, Citi analysts write in a research note. The Dutch semiconductor-equipment maker’s 1Q orders slipped to EUR3.61 billion from EUR3.75 billion a year earlier against a Visible Alpha forecast of nearly EUR5.10 billion. The analysts advise investors to take advantage of any weakness in shares after the lower-than-expected orders as they expect ASML’s growth prospects to remain strong in the longer term.

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.