Key Stats for ASML Stock
- Price change for ASML stock in last 6 months: 33%
- $ASML Stock Price as of Jul. 14: $1776
- 52-Week High: $2000
- $ASML Stock Price Target: $1895
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What Happened?
ASML (ASML) stock climbed on Wednesday after the company reported a Q2 that beat its own guidance on both sales and margins.
Net sales came in at €9.3 billion against €8.8 billion of expectation Net income landed at €2.9 billion against €2.6 billion of expectation
The biggest surprise came from ASML’s installed base business, which covers upgrades and service work on machines already out in the field. That segment brought in €2.8 billion, about €300 million more than expected.
CFO Roger explained customers are eager for productivity upgrades right now, and many of those upgrades are software-based, meaning they can be delivered quickly without tying up machine time on the factory floor.
Looking ahead, ASML raised its guidance across the board.
- For the Q3, the company expects sales between €11 billion and €12 billion,
- Gross margin between 55% and 57%.
- For the full year, ASML now guides to €43 billion to €45 billion in sales and
- Gross margin of 54% to 56%.
- Management pointed to strong growth drivers behind that guidance: EUV business growing about 45%, memory revenue up roughly 75%, and the installed base and upgrade business growing more than 30%.
CEO Christophe said demand remains strong across both logic and memory customers, driven by continued AI-related chip investment.
Logic customers are adding capacity at 5-, 4-, and 3-nanometer nodes while accelerating the ramp to 2-nanometer. Memory customers are expanding capacity too, pushed by tight supply and rising prices.
ASML also highlighted a milestone for its newest technology. Intel is now using its High-NA EUV machines in production on its most advanced chips, which Christophe called “a very important milestone” for proving the platform’s maturity.
Looking further out, ASML said it’s already close to securing all the orders it needs for 2027 and has already received a large number of orders for 2028.
The company plans to raise EUV capacity by 30% in 2027 and is looking at another 30% increase in 2028, with similar increases planned for its immersion tools.
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What the Market Is Telling Us About ASML Stock
Investors clearly liked what they saw. ASML stock is now trading near the top of its 52-week range, and shares have delivered a 120% return over the past year. That kind of move suggests the market sees ASML as one of the best-positioned companies in the chipmaking supply chain right now.
Still, there are risks worth watching.
- China makes up about 20% of ASML’s sales, which leaves the company exposed to any shifts in regional demand or policy.
- Tech and IT transformation costs are also weighing on net income.
- While demand looks strong today, semiconductor spending has a history of cyclical swings, so any slowdown in AI-related investment could eventually cool order growth.
For now, though, ASML stock is benefiting from a simple story: AI chip demand keeps rising, and ASML makes the tools that enable it.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
