2024-07-21 08:30:48 ET
Summary
- ASML as expected is on track to 2024 as a flat year before growth in 2025, due to catalysts like semiconductor industry growth and new lithography tools.
- The stock valuation has remained reflective of a growth stock, with financial performance in line with expectations, guiding for strong Q4 revenue after a subpar first half.
- While the thesis of a strong revenue through 2024 remains on track, the steep valuation yields a neutral rating in the near-term.
- However, the fundamental growth warrants a buy rating for the long-term, based on both semiconductor industry growth as well increased litho intensity.
Investment thesis
ASML ( ASML ) had from the start projected 2024 to be a flat year, before growth would resume in 2025, based on several catalysts such as higher semiconductor industry growth, fab buildouts, and the introduction of new, pricier low- as well as high-NA EUV lithography tools....
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ASML: On Track For Q4 Ramp