ASML Holding, a semiconductor equipment company, experienced strong order momentum in Q4. The stock is up over 30% in January and has doubled in the past year. Revenue in Q4 rose 5% to 9.7 billion euros, with equipment sales up 7% to 7.6 billion euros and service revenue down 1% to 2.1 billion euros.
ASML has a monopoly on EUV lithography technology used in advanced chip manufacturing. It sold 94 new lithography systems during the quarter. Net bookings surged from 5.4 billion euros in Q3 to 13.2 billion euros in Q4, exceeding analyst expectations.
Looking ahead, ASML forecasts Q1 revenue between 8.2 billion to 8.9 billion euros and 2026 revenue between 34 billion to 39 billion euros, representing growth of 4% to 19%. Despite strong orders and growth prospects, revenue growth has not been as robust due to a slowdown in China revenue.
While ASML is positioned well in the market, its recent surge and moderate revenue growth suggest a cautious approach. The Motley Fool Stock Advisor team did not identify ASML as one of the 10 best stocks to buy now. Consider long-term investment strategy before buying ASML stock.
Read more at Yahoo Finance: Is It Time to Buy ASML as Orders Surge?
