ASML: Thankful That This Stock Is So Cheap

Victor Dergunov profile picture
Victor Dergunov
Investing Group Leader
(9min)

Summary

  • ASML Holding holds a near monopoly in EUV lithography machines, essential for advanced semiconductors and AI data centers, driving its stock up 215% from late 2022 to July 2023.
  • The stock recently corrected by 40%, presenting a potential buying opportunity as technical indicators show oversold conditions, and the stock appears to have stabilized.
  • ASML's decline is attributed to rapid appreciation, weaker-than-expected sales guidance, geopolitical tensions, and potential China tariffs.
  • Despite the drop, ASML remains in a solid market position with strong sales and profitability growth prospects, making it fundamentally cheap now.
  • Looking for a portfolio of ideas like this one? Members of The Financial Prophet get exclusive access to our subscriber-only portfolios. Learn More »

ASML logo sign on the building in Veldhoven

Pixelbizz

I've monitored ASML Holding N.V. (NASDAQ:ASML) stock for a while now. The bottom line is that it appeared highly valued until recently. ASML declined by over 40% due to temporary overvaluation factors and other transitory issues, and now may be the

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This article was written by

Victor Dergunov profile picture
Victor Dergunov
50.05K Followers

Victor Dergunov is an independent investor and author with 20 years experience. He preaches diversification and shares investment ideas across all market sectors. Victor aims to help readers build portfolios that perform well in all economic conditions.

He runs the investing group The Financial Prophet where he covers all market sectors and shares strategies for well-diversified investing. Features include: the All-Weather portfolio, trade alerts, technical analysis, daily reports with his latest updates, covered call strategies, and direct access in chat. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ASML either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long a diversified portfolio with hedges.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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