ASML Holding N.V.

(NASDAQ Global Select)
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Bullish +65

Stock-Split Watch: Is ASML Next? - Yahoo Finance

Capacity expansion Earnings report Stock split AI-generated analysis

πŸ“‰ ASML shares have underperformed the broader semiconductor sector over the past three years, rising 189% versus a 247% gain in the PHLX Semiconductor Sector index.

πŸ’° The company trades above $1,600 per share, leading to speculation that management might execute a forward stock split to lower the price and attract retail investors.

πŸ“ˆ ASML reported third-quarter revenue of 11.66 billion euros, marking a significant 55% year-over-year increase driven by a surge in machine sales.

πŸ”¬ The company sold 113 new lithography systems last quarter, up from 66 in the prior year, with a focus on EUV machines for AI data centers.

πŸš€ ASML expects current quarter revenue to reach 14.7 billion euros, implying a 51% increase over the same period last year.

🏭 The company plans to increase its advanced chipmaking equipment capacity by 30% in 2027 and is considering similar expansions for 2028 and beyond.

🀝 Customer demand remains robust with orders placed extending into 2029 and 2030, indicating the ability to sustain recent growth acceleration.

πŸ“Š Analyst consensus earnings per share estimates have moved higher, reflecting improved long-term growth prospects for the company.

πŸ’΅ ASML currently trades at a forward multiple of 27 times earnings, which is a discount to its five-year average forward earnings multiple of 33.

Bullish Signals
  • ASML reported third-quarter revenue of 11.66 billion euros, an impressive 55% jump from the year-ago period driven by a significant increase in machine sales.
  • The company sold 113 new lithography systems last quarter, up from 66 in the prior year, specifically targeting advanced chips for AI data centers.
  • ASML expects current quarter revenue to reach 14.7 billion euros, implying a 51% increase over the prior-year period.
  • The company plans to increase its advanced chipmaking equipment capacity by 30% in 2027 and is considering similar increases for 2028 and beyond.
  • Customer interest extends into placing orders for 2029 and 2030, indicating the company can sustain recent acceleration in growth.
  • Analyst consensus earnings per share (EPS) estimates have moved higher, reflecting bullish sentiment on long-term EPS growth prospects.
  • The stock trades at an attractive 27 times forward earnings, which is a discount to its five-year average forward earnings multiple of 33.
Full Analysis
ASML Holding (NASDAQ: ASML) has underperformed the broader semiconductor sector over the past three years, with its share price rising 189% compared to a 247% gain in the PHLX Semiconductor Sector index. Currently trading above $1,600 per share, the high valuation has sparked speculation that management might execute a forward stock split to lower the entry price and attract retail investors, although such a move would not alter the company's fundamental business prospects. The article highlights strong financial performance driven by artificial intelligence demand for advanced chips. ASML reported third-quarter revenue of 11.66 billion euros, a 55% year-over-year increase fueled by a surge in machine sales from 66 to 113 units. The company sold primarily extreme ultraviolet (EUV) lithography systems essential for AI data centers and expects current quarter revenue to reach 14.7 billion euros, representing a 51% increase over the prior year. Looking ahead, ASML plans to expand its advanced chipmaking equipment capacity by 30% in 2027 with potential further increases in subsequent years. Customer interest extends into orders for 2029 and 2030, suggesting sustained growth momentum. Analyst consensus earnings per share estimates have risen, and the stock trades at a forward multiple of 27x earnings, which is below its five-year average of 33x, presenting it as potentially attractive to investors despite recent underperformance relative to peers.