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ASML Holding Soars 45% YTD: Is the Stock Still Worth Buying?
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Key Takeaways
ASML shares have jumped 44.9% YTD, outpacing the broader tech sector and several semiconductor peers.
ASML's leadership in EUV and progress in High-NA systems underpin long-term demand and customer adoption.
ASML posted higher margins and Q4 revenue guidance of 9.2B-9.8B euros, with 2025 sales growth near 15%.
ASML Holding (ASML - Free Report) shares have been highly volatile in 2025 so far amid the ongoing macroeconomic challenges and geopolitical issues. Despite massive fluctuations, ASML stock has soared 44.9% year to date (YTD), far outpacing the Zacks Computer and Technology sector’s 23% gain.
ASML stock has also outperformed several semiconductor peers, including MKS Inc. (MKSI - Free Report) , Cirrus Logic (CRUS - Free Report) and FormFactor (FORM - Free Report) . YTD, shares of MKS, Cirrus Logic and FormFactor have risen 34.5%, 16.1% and 11%, respectively.
ASML Holding YTD Price Return Performance
Image Source: Zacks Investment Research
This outperformance has left investors wondering if ASML Holding still has room to climb or if it’s time to wait for a pullback. Let’s find out.
EUV Technology: ASML’s Core Competitive Advantage
ASML Holding’s leadership in extreme ultraviolet (EUV) lithography continues to set it apart from every other chip equipment maker. It holds a near-monopoly on this technology, which is critical for manufacturing the world’s most advanced chips at 3nm and below. Major customers like TSMC, Samsung and Intel rely on ASML’s systems to stay ahead in chip innovation, giving ASML extraordinary pricing power and strategic importance.
The next phase of growth lies in ASML Holding’s High Numerical Aperture (High-NA) EUV systems. These tools are designed for sub-2nm production, representing the next technological leap for chipmakers. While adoption has taken longer than initially expected, the long-term potential is significant. As the industry moves toward denser and more efficient chips, ASML’s High-NA machines will be central to that shift.
ASML Holding is already making progress in this area. On its third-quarter 2025 earnings call, management confirmed that SK hynix received its first High-NA EXE:5200 system. This follows ASML’s first shipment and installation of the EXE:5200 system in the second quarter of 2025. These systems will support manufacturing at the 1.4nm node and beyond. ASML expects commercial adoption to begin in late 2026 or early 2027, creating a strong, multi-year growth driver.
Additionally, the accelerating demand for artificial intelligence (AI) is giving ASML Holding another powerful growth tailwind. AI workloads need cutting-edge chips with massive processing power and efficiency. This indicates more demand for advanced graphics processing units, AI accelerators and high-bandwidth memory, all of which depend on the kind of precision lithography ASML’s EUV machines deliver.
Because EUV technology is so complex and expensive to replicate, ASML Holding enjoys deep competitive protection. There’s no realistic rival in sight capable of challenging its dominance. This gives ASML not just pricing flexibility but a level of business stability rare in the semiconductor sector. As AI adoption continues across industries, ASML’s technology will remain indispensable in powering this new wave of computing.
ASML’s Strong Financial Performance
ASML Holding’s last reported third-quarter 2025 results reinforced the company’s financial strength. Earnings grew 3.8% year over year to €5.48 per share. In U.S. dollar terms, earnings came at $6.41 per share, beating the Zacks Consensus Estimate by 2.2%. Revenues rose 0.7% to €7.52 billion, supported by a robust 27% increase in the services and field operations segment.
ASML Holding N.V. Price, Consensus and EPS Surprise
Although system sales slipped 6.3% due to a shift in product mix, the gross margin expanded to 51.6%, up 80 basis points. During the third-quarter earnings call, CFO Roger Dassen noted that higher volumes of low-NA EUV tools and upgrades helped margins.
For the fourth quarter, ASML Holding expects revenues to be between €9.2 billion and €9.8 billion, a significant sequential increase. The company also anticipates gross margins of 51-53%, indicating a 40-basis-point sequential improvement at the midpoint. For the full-year 2025, management projects sales to grow around 15%, with margins of nearly 52%, showing sustained demand for ASML’s products.
ASML’s Fundamentals Justify Premium Valuation
ASML stock isn’t cheap. It trades at a forward 12-month price-to-earnings (P/E) of 33.45X compared with the sector average of 28.15X. However, that valuation looks more reasonable when viewed through the lens of ASML Holding’s market position. The company’s monopoly in EUV lithography, expanding role in advanced chip production and consistent margin performance justify a premium multiple.
ASML Holding Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared to other semiconductor peers, ASML Holding has a higher P/E multiple than FormFactor, MKS and Cirrus Logic. Currently, FormFactor, MKS and Cirrus Logic trade at P/E of 33.41X, 16.91X and 15.63X, respectively. ASML’s higher multiple not only reflects its technology leadership but also the longer visibility of its growth cycle.
Conclusion: Buy ASML Stock for Now
ASML Holding’s unmatched dominance in EUV and emerging High-NA lithography, combined with surging AI-related chip demand, is likely to continue aiding its financial performance over the long run. With strong revenue visibility, improving margins and expanding customer adoption, ASML’s fundamentals justify adding the stock at current levels for long-term investors.
Image: Bigstock
ASML Holding Soars 45% YTD: Is the Stock Still Worth Buying?
Key Takeaways
ASML Holding (ASML - Free Report) shares have been highly volatile in 2025 so far amid the ongoing macroeconomic challenges and geopolitical issues. Despite massive fluctuations, ASML stock has soared 44.9% year to date (YTD), far outpacing the Zacks Computer and Technology sector’s 23% gain.
ASML stock has also outperformed several semiconductor peers, including MKS Inc. (MKSI - Free Report) , Cirrus Logic (CRUS - Free Report) and FormFactor (FORM - Free Report) . YTD, shares of MKS, Cirrus Logic and FormFactor have risen 34.5%, 16.1% and 11%, respectively.
ASML Holding YTD Price Return Performance
Image Source: Zacks Investment Research
This outperformance has left investors wondering if ASML Holding still has room to climb or if it’s time to wait for a pullback. Let’s find out.
EUV Technology: ASML’s Core Competitive Advantage
ASML Holding’s leadership in extreme ultraviolet (EUV) lithography continues to set it apart from every other chip equipment maker. It holds a near-monopoly on this technology, which is critical for manufacturing the world’s most advanced chips at 3nm and below. Major customers like TSMC, Samsung and Intel rely on ASML’s systems to stay ahead in chip innovation, giving ASML extraordinary pricing power and strategic importance.
The next phase of growth lies in ASML Holding’s High Numerical Aperture (High-NA) EUV systems. These tools are designed for sub-2nm production, representing the next technological leap for chipmakers. While adoption has taken longer than initially expected, the long-term potential is significant. As the industry moves toward denser and more efficient chips, ASML’s High-NA machines will be central to that shift.
ASML Holding is already making progress in this area. On its third-quarter 2025 earnings call, management confirmed that SK hynix received its first High-NA EXE:5200 system. This follows ASML’s first shipment and installation of the EXE:5200 system in the second quarter of 2025. These systems will support manufacturing at the 1.4nm node and beyond. ASML expects commercial adoption to begin in late 2026 or early 2027, creating a strong, multi-year growth driver.
Additionally, the accelerating demand for artificial intelligence (AI) is giving ASML Holding another powerful growth tailwind. AI workloads need cutting-edge chips with massive processing power and efficiency. This indicates more demand for advanced graphics processing units, AI accelerators and high-bandwidth memory, all of which depend on the kind of precision lithography ASML’s EUV machines deliver.
Because EUV technology is so complex and expensive to replicate, ASML Holding enjoys deep competitive protection. There’s no realistic rival in sight capable of challenging its dominance. This gives ASML not just pricing flexibility but a level of business stability rare in the semiconductor sector. As AI adoption continues across industries, ASML’s technology will remain indispensable in powering this new wave of computing.
ASML’s Strong Financial Performance
ASML Holding’s last reported third-quarter 2025 results reinforced the company’s financial strength. Earnings grew 3.8% year over year to €5.48 per share. In U.S. dollar terms, earnings came at $6.41 per share, beating the Zacks Consensus Estimate by 2.2%. Revenues rose 0.7% to €7.52 billion, supported by a robust 27% increase in the services and field operations segment.
ASML Holding N.V. Price, Consensus and EPS Surprise
ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote
Although system sales slipped 6.3% due to a shift in product mix, the gross margin expanded to 51.6%, up 80 basis points. During the third-quarter earnings call, CFO Roger Dassen noted that higher volumes of low-NA EUV tools and upgrades helped margins.
For the fourth quarter, ASML Holding expects revenues to be between €9.2 billion and €9.8 billion, a significant sequential increase. The company also anticipates gross margins of 51-53%, indicating a 40-basis-point sequential improvement at the midpoint. For the full-year 2025, management projects sales to grow around 15%, with margins of nearly 52%, showing sustained demand for ASML’s products.
ASML’s Fundamentals Justify Premium Valuation
ASML stock isn’t cheap. It trades at a forward 12-month price-to-earnings (P/E) of 33.45X compared with the sector average of 28.15X. However, that valuation looks more reasonable when viewed through the lens of ASML Holding’s market position. The company’s monopoly in EUV lithography, expanding role in advanced chip production and consistent margin performance justify a premium multiple.
ASML Holding Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared to other semiconductor peers, ASML Holding has a higher P/E multiple than FormFactor, MKS and Cirrus Logic. Currently, FormFactor, MKS and Cirrus Logic trade at P/E of 33.41X, 16.91X and 15.63X, respectively. ASML’s higher multiple not only reflects its technology leadership but also the longer visibility of its growth cycle.
Conclusion: Buy ASML Stock for Now
ASML Holding’s unmatched dominance in EUV and emerging High-NA lithography, combined with surging AI-related chip demand, is likely to continue aiding its financial performance over the long run. With strong revenue visibility, improving margins and expanding customer adoption, ASML’s fundamentals justify adding the stock at current levels for long-term investors.
Currently, ASML Holding carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.