ASML's growth outlook trimmed by Bernstein due to concerns over EUV technology.

From Yahoo Finance: 2025-06-29 12:53:00

ASML Holding N.V. (NASDAQ:ASML) is highlighted as one of the best fundamental stocks to buy by hedge funds. Bernstein began coverage on June 17, expressing concerns over the company’s EUV lithography division, leading to a Market Perform rating and a EUR700 price target.

Despite ASML’s dominance in EUV lithography, Bernstein predicts a decrease in returns and capital expenditure intensity. The firm forecasts a decline in EUV capital expenditure, with a 24% revenue gap in ASML’s 2030 guidance.

Bernstein anticipates ASML’s growth aligning with Wafer Fabrication Equipment (WFE) at a 7% compound annual growth rate from 2024 to 2030. Revenue projections for 2030 fall 18% below consensus and at the lower end of the company’s guidance range.

Specializing in lithographic systems for semiconductor production, ASML is a key player in the industry. While ASML shows investment potential, AI stocks may offer greater upside potential with less downside risk, especially amid current economic trends.

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Read more at Yahoo Finance: ASML Growth Outlook Trimmed by Bernstein Over EUV Concerns