ASML Today
- 52 week range
- $578.51
▼
$1,059.00
- Dividend yield
- 0.62%
- P/E ratio
- 42.14
- Price target
- $1,001.60
ASML Nasdaq: ASML The stock price could reach new highs because it is well positioned for the AI boom, and the chart movement is bullish. The market for this semiconductor equipment maker is up 40% since early September, and is rising strongly amid the AI news cycle and analyst sentiment trends, which are pushing it towards a new all-time high. Based on the movement of stock prices, the new high could be reached before the end of the year It marks the beginning of a much larger movement.
The ASML stock market could advance as much as $300, or 30%, from the critical resistance point relatively quickly. However, investors should be aware of some hurdles that will keep volatility high in the coming months.
ASML: Backlog growing as UV lithography gains traction
ASML had a strong quarter even though its revenue fell short of the analyst consensus. The company’s net revenue rose 0.7%, driven by artificial intelligence and expanding demand from end-market manufacturers, including the DRAM market. Dynamic Random Access Memory (DRAM) is crucial, because it includes the high-bandwidth or HBM solutions needed for AI and will be in high demand in the long term.
Moving further down the report, the margin news is even better, including… Improve playback quality And benefit from the final results. GAAP EPS increased approximately 7.5%, including the impact of share repurchases, bolstering an already stable capital return outlook.
The guidance is adequate, although it also provides a stumbling block for the market. The company expects demand for its UV products to improve and revenues in 2026 to be at least stable compared to 2025.
The stumbling block is that sales in China are expected to slow, which will act as a headwind to growth. The risk here is that the headwinds, with China accounting for nearly 42% of net sales, will not be overcome despite improving demand in all other markets.
Regardless of ASML’s earnings announcement. The company released its interim earnings call alongside its third-quarter earnings report and is on track for its 10th straight year of increased payouts. The company’s buybacks are also expected to continue, and they are significant, as it reduced the number by an average of 1.5% in the third quarter.
There is disagreement between ASML analysts and institutional trends, leading to volatility
The 40% increase in ASML stock prices was due in part to a rapid rise in analyst coverage, which caused ASML stock prices to rise by 40%. Attract new money to the market. Data tracked by MarketBeat shows coverage increased by 50% over the previous four months, reaching a record high of 21, providing a strong support base for this market. The revision trend is a tailwind to price action, but there is a caveat – institutions.
Institutions represent the largest group of traders in the market, and their interest in ASML is tepid. Data shows they own only 26% of the shares, and the group sold the remaining balance in the third quarter, before the report was released.
The price action in ASML shares is favorable for investors following the results, but reflects the inherent risks. Although the market is advancing, resistance remains at critical levels that may limit gains until later in the year. Catalysts that may move this market include improving relations with China, which may not appear soon.
High trading volume since late 2024 and the convergence of the MACD momentum indicator to recent highs are factors favoring a rise in the stock price.
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