ASML: The Hidden Giant of the Semiconductor Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Should l Buy ASML?
Source: Fool
- Market Monopoly: ASML stands as the sole manufacturer of extreme ultraviolet (EUV) lithography machines, essential for producing advanced semiconductor chips, making it a critical player in the technology sector where all modern products rely on its technology.
- Strong Financial Performance: Despite a slight dip in sales for Q3 2025, ASML's stock has surged 97% since August 2025 and over 30% this year, reflecting robust market demand and sustained profitability.
- Consistent Growth Potential: Over the past decade, ASML has achieved a compound annual growth rate of 17.6% in revenue, with a gross margin of 52.7% and a net margin of 29.38%, indicating strong profitability amid increasing technological demand.
- Stable Dividend Growth: With cash reserves exceeding €6 billion, significantly higher than its €3.16 billion debt, ASML maintains a low dividend yield of 0.54% but has consistently raised dividends for 10 years, with a 22.92% growth rate over the past five years, demonstrating a commitment to shareholder returns.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1359.760
Low
1385
Averages
1583
High
1911
Current: 1359.760
Low
1385
Averages
1583
High
1911
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.
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