The company has delivered strong total returns and compelling dividend growth, but due to its high valuation, shares are not a great buy today. The high valuation is also responsible for the yield being relatively low right now.

Is ASML stock a buy?

The company has delivered strong total returns and compelling dividend growth, but due to its high valuation, shares are not a great buy today. The high valuation is also responsible for the yield being relatively low right now.

Is ASML overvalued?

ASML is the world-leader in the technology of the future when it comes to computer chip manufacturing. ASML stock is trading at the upper end of its historical fair value range, and I estimate it’s about 12% overvalued, but a perfect candidate for a tech correction watchlist.

Is ASML the only EUV company?

Before EUV, chipmakers could buy DUV lithography machines from three companies: ASML, Nikon and Canon. While Nikon, in Japan, is still a competitor in that market, ASML is the only option for EUV.

Who is ASML competitor?

ASML’s top competitors include KLA, Nikon, Canon, Applied Materials and Lam Research. ASML Holding is a manufacturer of chip-making equipment and lithography systems for the semiconductor industry.

Is ASML undervalued?

PB vs Industry: ASML is overvalued based on its PB Ratio (22.3x) compared to the XE Semiconductor industry average (3.6x).

Is ASML a buy Zacks?

See rankings and related performance below. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank….Momentum Scorecard. More Info.

Zacks Rank Definition Annualized Return
1 Strong Buy 24.93%
2 Buy 18.44%
3 Hold 9.99%
4 Sell 5.61%

Does ASML have a monopoly?

While ASML has a monopoly in EUV, it also dominates immersion lithography, with the highest DUV prices and margins.

Who is ASML biggest customer?

Apple
ASML generated 31% of its revenue from TSMC, which in turn generated 25% of its revenue from its largest customer, Apple. Further, TSMC holds more than half of the overall market for contract manufacturing of semiconductor chips and a contract with Intel is in the works.

Does Apple use ASML?

The TSMC chips in the latest Apple Inc (NASDAQ: AAPL) iPhones created with ASML’s EUV machines have around 10 billion transistors on them. The High NA machine has a higher resolution that will enable 1.7x more minor chip features and 2.9x increased chip density.

Is ASML a monopoly?

ASML is arguably chipmaking’s biggest monopoly, with very bright prospects for the next decade. But with little upside potential left under management’s high-demand scenario, a wider margin of safety might be desirable for investors.

Why is ASML stock dropping?

ASML’s stock price has tumbled over the past few months. That decline can be mainly attributed to its overheated valuation instead of any fundamental challenges. ASML’s monopolization of EUV systems gives it unmatched pricing power.

Is ASML a buy Zack?

Who is ASML?

A global leader in advanced lithography (or imaging) systems, and one of the top five manufacturers of sophisticated technology systems for the semiconductor industry, ASML (originally called ASM Lithography Holding) offers an integrated portfolio of lithography, track and thermal systems, primarily for developing complex integrated circuits.

Why did ASM sell ASML to Philips?

Financial pressures created by a mid-1980s chip industry downturn led ASM to sell its 50 percent ownership of ASML to Philips in 1988, the same year ASML entered the Asian market. This opened the door to competition between the two companies.

Why choose ASML thermal technology?

ASML’s Thermal Division builds large-batch and single-wafer thermal processing furnaces, as well as atmospheric pressure chemical-vapor deposition systems. This division creates proven thermal technology and expands new technologies to meet the growing need for highly productive, cost-effective, integrated-thermal systems.

Where does ASML rank on top-ten list of semiconductor equipment manufacturers?

Competing head-to-head with Canon Inc. and Nikon Corporation for domination in the semiconductor lithography equipment arena, ASML has placed fifth two years running on VLSI Research’s top-ten list of semiconductor equipment manufacturers. Nikon finished third place in 2001, while Canon ranked sixth.