ASML Plans to Increase Stock Position in Coming Weeks with $7 Billion Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Leadership: ASML holds a unique position as the only manufacturer of extreme ultraviolet (EUV) lithography machines, providing it with an unparalleled competitive advantage in the semiconductor industry, particularly in the production of AI application chips.
- Strong Cash Flow: According to Morningstar, ASML reported free cash flows of $6.9 billion and $7 billion for 2023 and 2024 respectively, showcasing its financial robustness in the semiconductor equipment sector, especially amid the booming AI industry.
- Solid Financial Health: With a debt-to-equity ratio of 0.14, ASML demonstrates strong financial health, which supports its long-term investment case, particularly in a rapidly evolving technological landscape.
- Investment Strategy: The author plans to increase their position in ASML stock over the coming weeks and gradually build their stake during price dips, reflecting confidence in the company's growth potential, especially as the AI sector continues to expand.
ASML
$1072.75+Infinity%1D
Analyst Views on ASML
Wall Street analysts forecast ASML stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASML is 1048 USD with a low forecast of 864.94 USD and a high forecast of 1175 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 1065.520
Low
864.94
Averages
1048
High
1175
Current: 1065.520
Low
864.94
Averages
1048
High
1175
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
