China chipmaking stocks surge on EUV lithography tech progress By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2025
0mins
Should l Buy ASML?
Source: Investing.com
Chinese Chipmaking Stocks Surge: Chinese chipmaking stocks, particularly in the foundry sector, experienced significant gains due to reports of advancements in domestic lithography technology that could help them avoid U.S. sanctions.
Breakthrough in EUV Technology: Scientists from the Harbin Institute of Technology announced a development in extreme ultraviolet (EUV) lithography, which could enable local manufacturers to produce advanced chips without relying on U.S. technology, amidst increasing government support for local sourcing.
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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: 1518.300
Low
1385
Averages
1583
High
1911
Current: 1518.300
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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- Dividend Announcement: ASML plans to pay a total dividend of €7.50 per share for 2025, with €2.70 yet to be distributed, demonstrating its commitment to shareholder returns and stable cash flow.
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See More
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- Earnings Beat: ASML reported a Q1 GAAP EPS of €7.15, surpassing expectations by €0.54, indicating strong performance in the semiconductor equipment market and reinforcing its industry leadership.
- Significant Revenue Growth: The company achieved revenue of €8.77 billion, a 13.3% year-over-year increase, exceeding market expectations by €110 million, reflecting sustained demand for advanced lithography machines that drove overall performance.
- Optimistic Future Outlook: ASML expects Q2 2026 total net sales between €8.4 billion and €9.0 billion, with a gross margin between 51% and 52%, showcasing confidence in future market conditions and ongoing growth potential.
- Increased Dividend: ASML intends to declare a total dividend of €7.50 per ordinary share for 2025, a 17% increase from 2024, which not only reflects enhanced profitability but also provides higher returns for shareholders, boosting investor confidence.
See More
Trump's Comments Impact Stock Market Volatility
- Market Fluctuation: The Dow Jones index slipped in mixed trading on Wednesday, reflecting investor reactions to President Trump's latest comments on U.S.-Iran peace talks, indicating market sensitivity to political factors.
- Investor Sentiment: Trump's remarks triggered uncertainty in the market, leading investors to adopt a cautious approach in trading, which could impact short-term investment decisions and market liquidity.
- Economic Outlook Concerns: The uncertainty surrounding political situations may affect market expectations for future economic growth, particularly in the context of strained international relations, prompting investors to reassess risks.
- Volume Changes: Following Trump's statements, market trading volumes experienced fluctuations, indicating a heightened investor focus on future policy directions, which could influence subsequent market trends.
See More
ASML Q1 2026 Earnings Call Insights
- Strong Sales Performance: In Q1 2026, ASML reported total net sales of EUR 8.8 billion and net income of EUR 2.8 billion, resulting in earnings per share of EUR 7.15, showcasing the company's robust performance and profitability in the semiconductor sector.
- Cash Flow Pressure: Despite a negative free cash flow of EUR 2.6 billion in Q1, primarily due to the timing of down payments, the company maintained EUR 8.4 billion in cash and short-term investments, ensuring operational flexibility for future endeavors.
- Optimistic Industry Outlook: Management highlighted that the growth outlook for the semiconductor industry continues to solidify, driven by AI-related infrastructure investments, with demand expected to outpace supply as customers aggressively expand capacity, indicating strong market demand.
- Guidance Upgrade for 2026: ASML raised its revenue guidance for 2026 to a range of EUR 36 billion to EUR 40 billion while maintaining a gross margin expectation of 51% to 53%, reflecting the company's confidence in future market conditions and strong demand for deep ultraviolet (DUV) systems.
See More
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- Stock Price Plunge: BRP shares fell 36% on Wednesday following the company's announcement on Tuesday to suspend its fiscal 2027 guidance, leading to a sharp decline in investor confidence and a pessimistic outlook on future performance.
- Impact of Guidance Suspension: The suspension of fiscal guidance indicates that BRP is unable to provide clear expectations for future earnings, which may affect its financing capabilities and investor trust, posing challenges for the company's long-term growth.
- Severe Market Reaction: The market's reaction to this news was intense, as the sharp drop in stock price reflects investor anxiety regarding the company's future profitability, potentially leading to further sell-offs and exacerbating the decline.
- Need for Strategic Reevaluation: In the current uncertain market environment, BRP must reassess its strategic direction to restore investor confidence and ensure sustainable growth in the face of intense competition.
See More
US Stocks Show Mixed Movement Amid Optimism Over Middle East Peace Talks
- Market Performance: The S&P 500 Index rose by 0.36%, reaching a two-month high, while the Nasdaq 100 increased by 0.63%, marking a 2.5-month high, reflecting investor optimism surrounding potential peace talks in the Middle East.
- Economic Data: The April Empire Manufacturing Survey reported a rise of 11.2 in the general business conditions index to 11.0, surpassing expectations, indicating a robust manufacturing recovery; however, the April NAHB housing market index fell to 34, signaling weakness in the housing sector that could dampen investor confidence.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% due to the U.S. naval blockade in the Strait of Hormuz, which could exacerbate global oil and fuel shortages, impacting profitability in related sectors.
- Earnings Season: Q1 earnings for the S&P 500 are projected to grow by 12% year-over-year, but excluding the technology sector, growth is only expected to be around 3%, indicating a slowdown in overall earnings growth that may affect market sentiment.
See More
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- Strong Performance: ASML reported Q1 earnings of €7.15 per share and sales of €8.77 billion, surpassing Wall Street's expectations of €6.61 and €8.66 billion, indicating robust performance in the semiconductor equipment sector.
- Upgraded Outlook: The company raised its 2023 sales forecast to between €36 billion and €40 billion, up from the previous guidance of €34 billion to €39 billion, reflecting optimism about future market demand.
- Dividend Announcement: ASML plans to pay a total dividend of €7.50 per share for 2025, with €2.70 yet to be distributed, demonstrating its commitment to shareholder returns and stable cash flow.
- Market Reaction: Despite strong results, ASML's stock fell by 4.76%, indicating market reactions to high expectations and the ongoing strong demand in the semiconductor industry.
See More
