ASML (NASDAQ:ASML) Stock Price Up 2.1% – Still a Buy?

ASML Holding N.V. (NASDAQ:ASML) shares were up 2.1% during mid-day trading on Thursday . The company traded as high as $1,051.81 and last traded at $1,036.31. Approximately 1,615,437 shares were traded during trading, a decline of 3% from the average daily volume of 1,659,552 shares. The stock had previously closed at $1,015.43.

Key ASML News

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Analysts and commentators argue ASML’s market dominance and high barriers to entry remain intact, helping defend pricing and long-term margins. ASML’s Market Dominance Remains Unshaken by Workaround Attempts
• Positive Sentiment: Bloomberg profiles ASML’s rising public role and geopolitical importance, which can strengthen its negotiating position with customers and governments. Europe’s Indispensable Chipmaking Company Finds Its Voice
• Positive Sentiment: Intel installed the industry’s first commercial High-NA EUV tool (ASML Twinscan EXE:5200B), signaling early customer adoption of ASML’s highest-end systems — a direct revenue and backlog catalyst if others follow. Intel installs industry’s first commercial High-NA EUV lithography tool
• Positive Sentiment: Industry analysis notes that greater EUV adoption in logic and DRAM should lift ASML’s ASPs and services mix over time, supporting margins. Will EUV Adoption in Logic and DRAM Lift ASML’s Margins Over Time?
• Positive Sentiment: ASML shares recently outperformed the broader market, reflecting investor optimism about demand and durable competitive advantages. ASML (ASML) Outperforms Broader Market
• Neutral Sentiment: Barclays issued a “Neutral” rating — a reminder that some sell-side views expect more moderation in shares despite the long-term story. ASML Earns “Neutral” Rating from Barclays
• Neutral Sentiment: Elevated investor search interest signals attention but not a directional catalyst by itself. Investors Heavily Search ASML
• Negative Sentiment: Multiple reports claim Chinese teams have reverse-engineered or built prototype EUV/EUV-like machines and upgraded older ASML tools to boost AI-chip production — a direct threat to ASML’s long-term exclusivity and to export-control effectiveness. China reverse-engineers the most advanced chip-making machine
• Negative Sentiment: Coverage details Chinese workarounds — upgrading legacy ASML kits and using ex-ASML engineers to create domestic prototypes — which could reduce future demand for ASML systems in that market and pressure geopolitical tensions. China upgrades ASML kit to get around US controls
• Negative Sentiment: Financial Times and other outlets report China boosting AI-chip output by retrofitting older ASML machines — a nearer-term challenge to ASML’s addressable market in China. China boosts AI chip output by upgrading older ASML machines
• Negative Sentiment: Deep dives describe a secret “Manhattan Project” effort in China to build EUV-capable systems, and multiple outlets cite prototypes assembled by former ASML employees — a structural IP and geopolitical risk. Inside China’s ‘Manhattan Project’: China Moves Closer to Chip Self-Reliance
• Negative Sentiment: Further reporting on prototypes and ex-ASML engineers highlights enforcement and export-control limits, raising uncertainty about ASML’s China exposure over time. China reportedly has a prototype EUV machine built by ex-ASML employees

Analyst Ratings Changes

Several research analysts have commented on ASML shares. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of ASML in a report on Wednesday, December 10th. UBS Group reissued a “buy” rating on shares of ASML in a research note on Thursday, December 11th. Erste Group Bank upgraded ASML from a “hold” rating to a “buy” rating in a report on Monday, September 22nd. Bank of America upped their price objective on ASML from $1,092.00 to $1,331.00 and gave the stock a “buy” rating in a report on Wednesday, December 3rd. Finally, Wells Fargo & Company increased their target price on ASML from $1,105.00 to $1,140.00 and gave the company an “overweight” rating in a research report on Thursday, October 16th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,171.83.

ASML Price Performance

The company has a current ratio of 1.31, a quick ratio of 0.70 and a debt-to-equity ratio of 0.14. The stock’s 50-day moving average is $1,046.35 and its two-hundred day moving average is $886.63. The company has a market capitalization of $415.29 billion, a PE ratio of 42.98, a price-to-earnings-growth ratio of 1.61 and a beta of 1.87.

ASML (NASDAQ:ASML) last posted its quarterly earnings data on Wednesday, October 15th. The semiconductor company reported $6.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.27 by $0.14. ASML had a return on equity of 47.74% and a net margin of 27.08%.The company had revenue of $8.80 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the previous year, the business earned $5.28 EPS. ASML’s revenue was up .7% compared to the same quarter last year. On average, equities analysts predict that ASML Holding N.V. will post 25.17 EPS for the current year.

ASML Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, November 6th. Investors of record on Wednesday, October 29th were paid a $1.857 dividend. This represents a $7.43 annualized dividend and a yield of 0.7%. This is an increase from ASML’s previous quarterly dividend of $1.86. The ex-dividend date of this dividend was Wednesday, October 29th. ASML’s payout ratio is currently 25.80%.

Hedge Funds Weigh In On ASML

Several institutional investors have recently made changes to their positions in the company. Capital International Investors increased its position in ASML by 17.3% during the 3rd quarter. Capital International Investors now owns 3,919,154 shares of the semiconductor company’s stock valued at $3,791,982,000 after purchasing an additional 577,448 shares during the period. Arrowstreet Capital Limited Partnership bought a new position in ASML in the third quarter worth approximately $505,510,000. Regents of The University of California purchased a new stake in ASML during the third quarter worth $413,335,000. WCM Investment Management LLC grew its stake in ASML by 24.9% in the third quarter. WCM Investment Management LLC now owns 1,933,748 shares of the semiconductor company’s stock valued at $1,861,445,000 after purchasing an additional 385,502 shares during the last quarter. Finally, Alliancebernstein L.P. raised its stake in shares of ASML by 75.6% during the 3rd quarter. Alliancebernstein L.P. now owns 790,869 shares of the semiconductor company’s stock worth $765,632,000 after acquiring an additional 340,518 shares in the last quarter. Hedge funds and other institutional investors own 26.07% of the company’s stock.

About ASML

ASML Holding N.V. (NASDAQ: ASML) is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML’s product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.