From Morningstar: 2024-10-18 07:05:00

1)ASML’s share price is undervalued based on current metrics, presenting a buying opportunity. Revenue growth in the future will come from higher volumes, selling prices, and service revenue. Intel’s cost-cutting affects ASML, with TSMC likely to become a bigger customer. ASML’s High-NA EUV equipment is expected to drive growth, with TSMC and Intel already ordering tools.

2)Intel’s problems may affect ASML in the short term, but TSMC is expected to become a larger customer. ASML’s productivity improvements help offset the risk of price pressure from TSMC. High-NA EUV technology is crucial for advanced chips, with TSMC and Intel already ordering these tools, anticipating high volume production in 2028.

3)China’s tariffs and the future relationship with TSMC are important factors to consider. ASML’s current valuation is deemed undervalued, providing a buying opportunity. Intel’s cost-cutting plans may impact ASML, but the company’s focus on productivity improvements helps offset risks. High-NA EUV equipment plays a crucial role in advancing chip production.



Read more at Morningstar: After the Selloff, ASML Shares Now Undervalued