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 Holding Trades Above 50-Day SMA: What Should Investors Know?
Read MoreHide Full Article
Key Takeaways
ASML is trading above its 50-day SMA, a bullish technical marker for support and resistance.
ASML cites strong demand for EUV/DUV systems as AI data centers drive advanced Logic and Memory chips.
ASML forecasts 2026 sales of Euro 36B -Euro 40B, with a 51%-53% gross margin.
ASML Holding (ASML - Free Report) is trading above its 50-day simple moving average (SMA), signaling a bullish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.
Shares of ASML Holding have gained 11% in the past three months, outperforming the industry and the Zacks S&P 500 composite. The stock has, however, underperformed its sector in the same time frame. ASML shares are trading at a discount to their 52-week high.
Image Source: Zacks Investment Research
ASML Holding is one of the most strategically important companies in the global semiconductor ecosystem. It has a solid dominance in extreme ultraviolet (EUV) lithography systems. The outlook for the semiconductor industry continues to gain strength, driven primarily by AI-related infrastructure investment. These investments are increasing demand for advanced Logic and Memorychips in many areas. With a compelling portfolio, management believes demand remains strong for the entire product portfolio.
Shares of KLA Corporation (KLAC - Free Report) and Applied Materials (AMAT - Free Report) have rallied 25.7% and 22.2% in the past three months, respectively, in the same time frame.
ASML Shares Are Not Expensive
The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings multiple of 37.04, lower than the industry average of 37.12 and the median of 37.27 over the past three years. It has a Value Score of F.
Image Source: Zacks Investment Research
ASML shares are more expensive than those of Applied Materials but cheap when compared with KLA Corporation.
The Case for ASML Stock
ASML continues to benefit from strong demand for its wafer fabrication equipment, fueled by the growing adoption of advanced chips across AI data centers and hyperscalers. Management expects end-market trends to drive a richer product mix, with increasing demand for advanced lithography systems and higher lithography intensity.
The company believes its flexible and comprehensive portfolio is well-positioned to meet evolving customer requirements. By extending holistic lithography capabilities, supporting 3D integration, enhancing the performance and cost efficiency of both deep ultraviolet (DUV) and extreme ultraviolet (EUV) systems, and scaling EUV technology well into the next decade, ASML aims to maintain its technological edge.
Artificial intelligence remains a significant long-term growth driver for ASML. AI applications require increasingly powerful semiconductors, including advanced GPUs and high-bandwidth memory chips, whose production relies heavily on EUV lithography. This trend is expected to sustain strong demand for ASML’s systems over time.
From a financial standpoint, ASML combines strong profitability with resilient cash generation. Its high-value systems, recurring service revenues and large installed base support stable margins and earnings visibility. In addition, the company’s substantial backlog provides strong visibility into future revenue growth.
ASML also remains committed to delivering shareholder value through steadily growing dividends and ongoing share repurchase programs. However, risk remains. Several companies have now started offering etching tools and are securing contracts according to their expertise.
ASML’s Growth Prospects Solid
The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a 23.6% and 20.1% increase year over year, respectively.
The consensus estimate for fiscal 2026 and 2027 earnings implies a 32.7% and 29.5% year-over-year increase, respectively.
ASML expects second-quarter 2026 total net sales between €8.4 billion and €9.0 billion, and a gross margin between 51% and 52%.
ASML estimates 2026 total net sales to be between €36 billion and €40 billion, with a gross margin between 51% and 53%.
Over the long run, ASML envisions achieving 2030 annual revenues between approximately €44 billion and €60 billion, with a gross margin between approximately 56% and 60%.
Northbound Analyst Sentiment on ASML
The consensus estimate for 2026 and 2027 earnings has moved 7.6% and 7.3% north in the last 30 days.
Image Source: Zacks Investment Research
The consensus estimates for KLA Corporation’s and Applied Materials’ 2026 and 2027 earnings have moved north in the last 30 days.
Parting Thoughts on ASML Shares
ASML is well-positioned for growth, supported by its leadership in EUV technology and a strong order backlog. Long-term tailwinds from AI, cloud computing, and advanced semiconductor manufacturing continue to reinforce its outlook, while positive analyst sentiment further strengthens confidence in the company’s growth trajectory.
View the Zacks #1 Rank List
Image: Bigstock
ASML Holding Trades Above 50-Day SMA: What Should Investors Know?
Key Takeaways
ASML Holding (ASML - Free Report) is trading above its 50-day simple moving average (SMA), signaling a bullish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.
Shares of ASML Holding have gained 11% in the past three months, outperforming the industry and the Zacks S&P 500 composite. The stock has, however, underperformed its sector in the same time frame. ASML shares are trading at a discount to their 52-week high.
Image Source: Zacks Investment Research
ASML Holding is one of the most strategically important companies in the global semiconductor ecosystem. It has a solid dominance in extreme ultraviolet (EUV) lithography systems. The outlook for the semiconductor industry continues to gain strength, driven primarily by AI-related infrastructure investment. These investments are increasing demand for advanced Logic and Memorychips in many areas. With a compelling portfolio, management believes demand remains strong for the entire product portfolio.
Shares of KLA Corporation (KLAC - Free Report) and Applied Materials (AMAT - Free Report) have rallied 25.7% and 22.2% in the past three months, respectively, in the same time frame.
ASML Shares Are Not Expensive
The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings multiple of 37.04, lower than the industry average of 37.12 and the median of 37.27 over the past three years. It has a Value Score of F.
Image Source: Zacks Investment Research
ASML shares are more expensive than those of Applied Materials but cheap when compared with KLA Corporation.
The Case for ASML Stock
ASML continues to benefit from strong demand for its wafer fabrication equipment, fueled by the growing adoption of advanced chips across AI data centers and hyperscalers. Management expects end-market trends to drive a richer product mix, with increasing demand for advanced lithography systems and higher lithography intensity.
The company believes its flexible and comprehensive portfolio is well-positioned to meet evolving customer requirements. By extending holistic lithography capabilities, supporting 3D integration, enhancing the performance and cost efficiency of both deep ultraviolet (DUV) and extreme ultraviolet (EUV) systems, and scaling EUV technology well into the next decade, ASML aims to maintain its technological edge.
Artificial intelligence remains a significant long-term growth driver for ASML. AI applications require increasingly powerful semiconductors, including advanced GPUs and high-bandwidth memory chips, whose production relies heavily on EUV lithography. This trend is expected to sustain strong demand for ASML’s systems over time.
From a financial standpoint, ASML combines strong profitability with resilient cash generation. Its high-value systems, recurring service revenues and large installed base support stable margins and earnings visibility. In addition, the company’s substantial backlog provides strong visibility into future revenue growth.
ASML also remains committed to delivering shareholder value through steadily growing dividends and ongoing share repurchase programs.
However, risk remains. Several companies have now started offering etching tools and are securing contracts according to their expertise.
ASML’s Growth Prospects Solid
The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a 23.6% and 20.1% increase year over year, respectively.
The consensus estimate for fiscal 2026 and 2027 earnings implies a 32.7% and 29.5% year-over-year increase, respectively.
ASML expects second-quarter 2026 total net sales between €8.4 billion and €9.0 billion, and a gross margin between 51% and 52%.
ASML estimates 2026 total net sales to be between €36 billion and €40 billion, with a gross margin between 51% and 53%.
Over the long run, ASML envisions achieving 2030 annual revenues between approximately €44 billion and €60 billion, with a gross margin between approximately 56% and 60%.
Northbound Analyst Sentiment on ASML
The consensus estimate for 2026 and 2027 earnings has moved 7.6% and 7.3% north in the last 30 days.
Image Source: Zacks Investment Research
The consensus estimates for KLA Corporation’s and Applied Materials’ 2026 and 2027 earnings have moved north in the last 30 days.
Parting Thoughts on ASML Shares
ASML is well-positioned for growth, supported by its leadership in EUV technology and a strong order backlog. Long-term tailwinds from AI, cloud computing, and advanced semiconductor manufacturing continue to reinforce its outlook, while positive analyst sentiment further strengthens confidence in the company’s growth trajectory.
Given a discounted valuation, it is better to add this Zacks Rank #2 (Buy) stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.