NVDA - ASML: A Breakout Rally Seems Imminent (Upgrade)
2024-06-05 11:30:00 ET
Summary
- ASML stock has recovered most of its April losses, demonstrating incredible resilience.
- The AI gold rush is expected to benefit ASML significantly.
- China's push for chip self-sufficiency should also spur demand for ASML's more mature lithography machines.
- ASML's vital position in the semiconductor value chain cannot be overstated.
- I argue why a breakout in ASML stock toward another rally seems imminent.
ASML Stock Reversed Most Of Its April Losses
ASML Holding ( ASML ) investors still hanging on to their positions likely brushed off the initial post-earnings selloff attributed to weak bookings performance at its recent earnings report in late April 2024. Accordingly, ASML's Q1 earnings release indicated net bookings of €3.6B. Of which, €656M was linked to ASML's EUV lithography systems. However, ASML's net bookings metric fell markedly short of Wall Street estimates of €5.10M. ASML Management acknowledged its bookings weakness , pointing out the "lumpiness of order intake and highlighting the significant orders received in the past six months, totaling €13B."...
ASML: A Breakout Rally Seems Imminent (Upgrade)