ASML Should I Buy
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ASML is a strong buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. Despite short-term price fluctuations, the company's robust financial performance, strong analyst ratings, and positive long-term growth outlook make it a compelling investment opportunity.
The MACD is negatively expanding (-18.517), indicating bearish momentum. RSI is at 33.618, close to oversold levels, suggesting potential for a rebound. The stock is trading near its support level (S1: 1356.95), which could provide a good entry point for long-term investors. Moving averages are converging, showing no clear trend.
Analysts have raised price targets significantly, with multiple firms maintaining Buy or Outperform ratings.
ASML reported record bookings and strong revenue growth, driven by AI demand and advanced logic.
The company forecasts double-digit revenue growth into FY
ASML's dominance in the EUV lithography market and integration of AI into operations position it well for future growth.
Share buyback program enhances shareholder value.
Concerns over capacity and margins have led to short-term profit-taking.
Slowing China business could pose a risk, although offset by AI demand.
The MACD and recent price action indicate bearish momentum in the short term.
In Q4 2025, ASML achieved a 14.51% YoY revenue increase to €11.31 billion, a 15.07% YoY net income increase to €3.31 billion, and a 16.99% YoY EPS growth to €8.54. Gross margin improved slightly to 52.16%. The company forecasts 14% revenue growth for 2026, with revenues between €34 billion and €39 billion.
Analysts are overwhelmingly positive on ASML, with multiple firms raising price targets significantly. The highest target is $1,911, and the consensus is that ASML's strong AI-driven demand and record order intake signal a strong upcycle. Barclays upgraded the stock to Overweight, citing conservative guidance and potential upside.
