ASML - ASML: CHIPs Act Funding Boosts Its Long-Term Prospects
2024-04-13 10:00:00 ET
Summary
- ASML is set to report the FQ1'24 earnings on April 17, 2024, with it unknown if it may continue the consecutive earnings beat since 2010, barring once in 2021.
- With the ultimate aim of boosting domestic production of semiconductors, it goes without saying that ASML will be the main beneficiary of the CHIPs Act.
- This also explains why the management has reported accelerating growth in net bookings in FQ4'23, further aided by the recovering memory market.
- Combined with its 20Y moat and impressive multi-year backlog, ASML remains a long-term winner as we enter the next cloud super cycle.
- However, given the stock's eye-watering premium and extreme rally over the past few months, readers may want to wait for a moderate retracement for an improved margin of safety.
We previously covered ASML Holding N.V. (NASDAQ: ASML ) ( OTCPK:ASMLF ) in January 2024, discussing why we believe that its 2024 commentary had been on the cautious side, with multiple Big Tech companies and data center REITs still reporting growing appetite for cloud computing/ generative AI services and infrastructure related spending.
However, with the stock already recording massive recoveries since the recent October 2023 bottom, we had also recommended interested investors to wait for a more attractive entry point for an improved upside potential....
ASML: CHIPs Act Funding Boosts Its Long-Term Prospects