ASML: Defendable Growth In A Volatile Market With Upside Still Underestimated

LY Insights62 FollowersFollow5ShareSavePlay(15min)CommentsSummaryASML is rated Buy with a $1,680 target, driven by robust AI-fueled semiconductor equipment demand and a dominant EUV lithography position.Strong order pipeline from memory and logic chipmakers is expected to keep ASML at full capacity through 2027, with EUV sales surpassing 50% of the mix post-2026.ASML's financials remain resilient: guided gross margin of 51–53% in 2026, high sales visibility, and accelerating earnings growth as product mix shifts to higher-margin EUV systems.Key risks include inflation across the AI supply chain diluting real capex growth and potential technological disruption threatening ASML’s premium valuation.Sundry Photography/iStock Editorial via Getty Images Investment Thesis We believe ASML (ASML) is a key beneficiary of the strong AI-driven capex cycle. Continued advancement of process nodes and the rapid expansion in memory demand are extending the upcycle for semiconductorThis article was written byLY Insights62 FollowersFollowI have a long experience researching public equities covering various sectors as a sell-side analyst. My research involves intensive reading of companies' updates, business models, experts' interview and financials, etc.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. 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.