We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ASML Aims 60B Euros in Sales by 2030: Can High NA Tools Lead the Way?
Read MoreHide Full Article
Key Takeaways
ASML aims for 44B to 60B euros in annual sales by 2030, led by High NA EUV lithography adoption.
The EXE:5200B system offers higher wafer productivity and lower costs for chipmakers.
Macro challenges may slow adoption, but AI and DRAM demand support long-term growth.
ASML Holding N.V. (ASML - Free Report) has set an ambitious long-term target of attaining annual revenues between €44 billion and €60 billion by 2030. To reach this target, the company is betting heavily on High Numerical Aperture (High NA) Extreme Ultraviolet (“EUV”) lithography, the next generation of chipmaking technology.
High NA systems promise sharper imaging and higher productivity, allowing chipmakers to push toward smaller nodes and more efficient design while improving performance at lower costs. ASML Holding has already shipped its first High NA system, EXE:5200B, which is designed for high-volume chip manufacturing and offers significant productivity improvements over earlier models.
The EXE:5200B system is capable of much higher wafer productivity compared to earlier prototypes, which could reduce costs and accelerate adoption for customers building chips for artificial intelligence and high-performance computing. If broadly adopted, High NA could extend ASML Holding’s technology leadership and boost its revenues in the long run.
While ASML’s backlog and customer interest suggest strong long-term demand, near-term adoption might be negatively impacted by the ongoing macroeconomic challenges. During the second-quarter 2025 earnings call, management acknowledged that ongoing U.S.-China tariff discussions, including the Section 232 tariff review, are negatively impacting customer capital spending timelines.
While the ongoing macroeconomic issues may hurt ASML Holding’s near-term prospects, the long-term demand drivers for EUV technology remain encouraging. AI adoption is accelerating, and DRAM manufacturers are increasing the number of EUV layers in their latest nodes. High NA EUV systems, currently being qualified, are expected to expand the company’s market opportunity eventually.
All these factors, along with ASML’s monopoly in the EUV lithography technology, make us optimistic about the company reaching the high end of its long-term revenue target. The Zacks Consensus Estimate for 2025 revenues indicates a year-over-year increase of 23.8%.
ASML’s Rivals in Advanced Chipmaking Equipment Space
Although ASML is the only company providing EUV lithography tools, it operates in a broader ecosystem of semiconductor equipment makers. Its notable peers in the chipmaking equipment space are Applied Materials (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) .
Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. As chips become more complex with AI and high-performance workloads, Applied Materials’ tools aid in designing and making efficient and smaller node chips.
KLA Corporation specializes in process control, inspection and metrology systems. KLA Corporation’s equipment helps chipmakers monitor and improve yield during manufacturing.
ASML’s Share Price Performance, Valuation and Estimates
Shares of ASML Holding have risen 12.8% year to date compared with the Zacks Computer and Technology sector’s gain of 15.4%.
ASML YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 8.18, significantly higher than the sector’s average of 6.73.
ASML Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ASML Holding’s 2025 and 2026 earnings implies a year-over-year increase of approximately 35.3% and 0.7%, respectively. Estimates for 2025 earnings have been revised upward in the past seven days, while those for 2026 have moved south over the last seven days.
Image: Bigstock
ASML Aims 60B Euros in Sales by 2030: Can High NA Tools Lead the Way?
Key Takeaways
ASML Holding N.V. (ASML - Free Report) has set an ambitious long-term target of attaining annual revenues between €44 billion and €60 billion by 2030. To reach this target, the company is betting heavily on High Numerical Aperture (High NA) Extreme Ultraviolet (“EUV”) lithography, the next generation of chipmaking technology.
High NA systems promise sharper imaging and higher productivity, allowing chipmakers to push toward smaller nodes and more efficient design while improving performance at lower costs. ASML Holding has already shipped its first High NA system, EXE:5200B, which is designed for high-volume chip manufacturing and offers significant productivity improvements over earlier models.
The EXE:5200B system is capable of much higher wafer productivity compared to earlier prototypes, which could reduce costs and accelerate adoption for customers building chips for artificial intelligence and high-performance computing. If broadly adopted, High NA could extend ASML Holding’s technology leadership and boost its revenues in the long run.
While ASML’s backlog and customer interest suggest strong long-term demand, near-term adoption might be negatively impacted by the ongoing macroeconomic challenges. During the second-quarter 2025 earnings call, management acknowledged that ongoing U.S.-China tariff discussions, including the Section 232 tariff review, are negatively impacting customer capital spending timelines.
While the ongoing macroeconomic issues may hurt ASML Holding’s near-term prospects, the long-term demand drivers for EUV technology remain encouraging. AI adoption is accelerating, and DRAM manufacturers are increasing the number of EUV layers in their latest nodes. High NA EUV systems, currently being qualified, are expected to expand the company’s market opportunity eventually.
All these factors, along with ASML’s monopoly in the EUV lithography technology, make us optimistic about the company reaching the high end of its long-term revenue target. The Zacks Consensus Estimate for 2025 revenues indicates a year-over-year increase of 23.8%.
ASML’s Rivals in Advanced Chipmaking Equipment Space
Although ASML is the only company providing EUV lithography tools, it operates in a broader ecosystem of semiconductor equipment makers. Its notable peers in the chipmaking equipment space are Applied Materials (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) .
Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. As chips become more complex with AI and high-performance workloads, Applied Materials’ tools aid in designing and making efficient and smaller node chips.
KLA Corporation specializes in process control, inspection and metrology systems. KLA Corporation’s equipment helps chipmakers monitor and improve yield during manufacturing.
ASML’s Share Price Performance, Valuation and Estimates
Shares of ASML Holding have risen 12.8% year to date compared with the Zacks Computer and Technology sector’s gain of 15.4%.
ASML YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 8.18, significantly higher than the sector’s average of 6.73.
ASML Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ASML Holding’s 2025 and 2026 earnings implies a year-over-year increase of approximately 35.3% and 0.7%, respectively. Estimates for 2025 earnings have been revised upward in the past seven days, while those for 2026 have moved south over the last seven days.
Image Source: Zacks Investment Research
ASML Holding currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.