ASML Today
As of 10/17/2025 at 04:00 PM ET
- 52 week range
- $578.51
▼
$1,059.00
- Dividend yield
- 0.61%
- P/E ratio
- 41.89
- Price target
- $1,051.60
As extreme ultraviolet (EUV) demand begins to enter the artificial intelligence (AI) trade cycle, investors can stop worrying about whether this will be a short-term rally in technology trading. shares ASML Holdings Nasdaq: ASML Its shares rose just over 2% after its latest quarterly earnings report, signaling growing confidence in the technology sector’s long-term upside.
She also likes companies Nvidia company Nasdaq: NVDA Expanding distribution methods for chips and semiconductors, Partnering with players like OpenAI and Advanced Micro Devices Company Nasdaq: AMDInvestors’ focus remains squarely on AI-powered final products. However, these developments rely heavily on lithography equipment that enables the production of next-generation chips – an ASML specialty.
While ASML does not attract the same attention as front-line technology names, it supports the entire semiconductor value chain. For patient investors with a longer time horizon, the setup offers compelling potential.
Why ASML’s Premium Valuation Signals Opportunity
Most investors are taught to be wary of “expensive” names. However, in some cases, A The premium price reflects future growth that is not yet visible in the headline numbers. In ASML’s case, its price-to-book ratio of 19.8 times, compared to the computer sector average of 7.8 times today, indicates a clear premium.
The reason for this premium can be found in the company Second quarter earningswhich shows strong forward-looking metrics. Despite revenue growth of less than 1% this quarter — a number that might raise concerns at first — ASML took in 5.4 billion euros (about $6.3 billion) in net bookings, including 3.6 billion euros (about $4.2 billion) from UV machines alone.
As demand for AI chips rises, lithography equipment that enables the production of advanced nodes will become increasingly necessary. A significant portion of this backlog will likely convert to revenue in the next quarter, indicating that the tipping point is near.
Relieving margin pressure can boost earnings per share
ASML recorded a gross profit margin of 51.6% compared to 53.7% during the previous quarter. This came with a decrease in capital expenditures, which amounted to 295.9 million euros (about 345 million dollars) compared to 415 million euros (about 484 million dollars) for the same quarter of last year. What this means for investors is a potential expansion in earnings per share (EPS) for next quarter.
The semiconductor equipment industry typically consists of two phases: heavy capital expenditures before demand is met, followed by revenue booking and margin recovery. ASML appears to be moving into this second phase, meaning margins could recover above the previous 53.7% mark on gross and move to net earnings.
A word of caution from management: tempered outlook for Chinese demand in 2026. However, with China’s technology names continuing to rise this quarter on the back of AI and chipmaking activity, these forecasts may be a conservative view from management to put ASML in an outpace position.
Analyst targets and market sentiment show an upward trend ahead
ASML stock forecast today
$1,051.60
2.17% upModerate purchase
Based on 24 analyst ratings
| Current price | $1,029.27 |
|---|---|
| High expectations | $1,175.00 |
| Average expectations | $1,051.60 |
| Low expectations | $858.00 |
ASML stock forecast details
The consensus price target among analysts has been set at $1,052 for ASML stock, which represents fair value.
However, there are some outliers, like Susquehanna’s Mehdi Hosseini, who issued a $1,150 price target, calling for an additional 14% upside — two days before ASML’s earnings call. This means that the target price may soon be adjusted in response to new findings, whether from this analyst or others.
Finally, the positive market reaction to the stock has been accompanied by some signs of bearish capitulation, as short interest in ASML has declined by 16.7% over the past month, suggesting potential buyers are gaining more power over the bears.
The bottom line is that with no signs of chip demand flagging, ASML may still have room to run. It’s possible the company could hit a new 52-week high — as long as investors have the patience to hold on to more extreme UV energy demand, which is likely to emerge in a quarter or two.
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