ASML On The Verge Of Losing EUV Monopoly

Zoltan Ban
8.1K Followers
(12min)

Summary

  • Despite about 40% decline in ASML's stock, rising Chinese competition and trade barriers pose significant risks, making it a hold for now.
  • ASML's revenue growth is slowing, and 2024 net income was slightly down, compared with 2023.  This might be the last year where ASML will continue to enjoy its EUV monopoly.
  • Chinese advancements in EUV lithography could end ASML's monopoly, impacting future sales and profit margins, especially in the crucial Chinese market.
  • I am waiting for ASML's P/E ratio to drop below 20 before buying, considering the significant risks from Chinese competition and global trade issues.
ASML headquarters in Silicon Valley

Sundry Photography

Investment thesis: Given the significant recent tech sector selloff, I have been looking at potential bargains, some of which I identified and already acted on. Despite a significant decline of roughly 40% from all-time highs, ASML (NASDAQ:ASML) is

This article was written by

8.1K Followers
My name is Zoltan Ban,  I have a BA in economics. I am a personal investor with over a decade and a half of active trading experience.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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