From Yahoo Finance: 2025-03-31 09:07:00

ASML Holding N.V. (ASML)’s share price is $674.58 as of March 28th, with a trailing P/E of 32.64 and forward P/E of 25.91. ASML is a key player in semiconductor manufacturing, with a near-monopoly on EUV lithography, positioning it for long-term growth despite geopolitical and regulatory challenges.

Financially, ASML is strong, with 2024 revenue at €28.26 billion, projected to grow to €30.84 billion in 2025. EBIT margins are expected to expand to 43.6% by 2029. ASML’s technological superiority, especially in EUV lithography, gives it a 90% market share in lithography systems, with high customer dependency from top chipmakers.

ASML’s business model has high switching costs, ensuring long-term revenue stability. Geopolitical risks, particularly regarding China, remain a concern, but ASML has effectively navigated these challenges. With a focus on sustainability and ESG factors, ASML remains an attractive long-term investment opportunity.

Valuation-wise, ASML trades at a P/E of 32x for 2024 earnings, justified by projected growth and high ROIC. A DCF model estimates fair value around €770 per share, with potential for significant upside. With multiple tailwinds, including the High-NA EUV rollout, ASML is poised to deliver substantial shareholder value in the future.

Despite not being among the 30 Most Popular Stocks Among Hedge Funds, ASML is still a strong investment opportunity. While AI stocks may offer higher returns in a shorter timeframe, ASML’s dominance in semiconductor manufacturing, financial strength, and technological moat make it a compelling long-term investment choice.

Read more: ASML Holding N.V. (ASML): A Bull Case Theory