ASML (ASML) Stock: High-NA EUV Chips Expected Within Months Despite TSMC Pricing Concerns

Key Highlights

• Christophe Fouquet, ASML’s CEO, announced that chips manufactured using High-NA equipment will debut within months, spanning memory and logic applications.
• Each High-NA system carries a price tag reaching $400 million — a cost TSMC, the company’s largest client, recently criticized as prohibitively expensive.
• Trading commenced at $1,472.39, within a 52-week band of $683.48 to $1,603.49, while the company maintains a $579 billion market capitalization.
• Major institutional stakeholders such as AQR Capital and UBS Asset Management expanded their ASML holdings during the first quarter.
• Analysts maintain a consensus “Moderate Buy” stance with a mean price objective of $1,504.38.

At imec’s conference in Belgium this Tuesday, ASML’s CEO Christophe Fouquet revealed that semiconductor chips manufactured using the company’s cutting-edge High-NA extreme ultraviolet (EUV) systems will emerge within the coming months.

ASML Holding N.V., ASML

This development encompasses applications across both memory and logic chip categories. According to Fouquet, these advanced systems will reduce patterning expenses — the critical procedure that etches intricate circuits onto state-of-the-art semiconductor wafers.

The announcement carries particular significance considering TSMC, which represents ASML’s primary customer, recently expressed reservations about these tools. The Taiwan-based foundry indicated that the systems, priced at approximately $400 million per unit, present a substantial financial burden.

Despite encountering this resistance, ASML remains committed to its roadmap. Delivering initial products from High-NA equipment represents a critical benchmark for validating these premium prices across the semiconductor industry.

ASML shares launched Tuesday’s session at $1,472.39, declining approximately 1.96% during trading. Over the preceding twelve-month period, the equity has fluctuated between $683.48 and $1,603.49.

Major Institutions Expand Their Holdings

Institutional activity remained robust throughout the opening quarter. AQR Capital Management amplified its stake by 141.1%, while UBS Asset Management increased its ownership by 153.1%. Profund Advisors contributed 1,110 additional shares to its portfolio during Q4, representing a 16.1% expansion.

Collectively, institutional stakeholders control 26.07% of ASML’s shares outstanding.

The semiconductor equipment manufacturer disclosed quarterly results on March 30, delivering earnings of $8.28 per share. Quarterly revenue totaled $10.15 billion. The company achieved a net margin of 27.65% alongside a return on equity of 48.69%.

Wall Street forecasts annual earnings of $37.09 per share. The stock currently trades at a price-to-earnings multiple of 52.81 and a PEG ratio of 1.23.

Analyst Opinion Remains Divided

Research analyst perspectives vary considerably. Wall Street Zen revised ASML downward from “buy” to “hold” on May 3. Santander reduced its assessment from “neutral” to “underperform” in January. Zacks lowered its recommendation from “strong-buy” to “hold” during March.

Both Jefferies and DZ Bank preserved “neutral” ratings throughout April.

Nevertheless, the aggregate consensus remains at “Moderate Buy,” with 21 analysts assigning buy ratings and three advocating strong buy recommendations. Six analysts maintain hold positions while two suggest sell ratings.

The mean analyst price target stands at $1,504.38 — exceeding Tuesday’s opening price.

On a constructive note, ASML recently established a partnership with Tata Electronics supporting India’s $11 billion Dholera semiconductor manufacturing facility. This agreement creates opportunities for equipment sales in an emerging market.

ASML continues executing transactions through its share repurchase initiative, demonstrating ongoing capital distribution to shareholders.

The stock’s 50-day moving average registers at $1,416.86. The 200-day moving average stands at $1,285.48.

The post ASML (ASML) Stock: High-NA EUV Chips Expected Within Months Despite TSMC Pricing Concerns appeared first on Blockonomi.