ASML (ASML +3.47%), a leader in semiconductor equipment, reported stronger-than-expected Q1 earnings, raising its full-year revenue outlook despite a slight dip in stock price. Year-to-date, shares are up over 36%, reflecting robust demand for its extreme ultraviolet (EUV) lithography technology, essential for manufacturing advanced chips like GPUs and high-bandwidth memory.
The company’s Q1 revenue rose 13% year-over-year to €8.8 billion ($10.4 billion), aligning with its guidance. Notably, sales of EUV systems surged, now representing 66% of total sales, while service revenue grew by 25%. Looking ahead, ASML projects Q2 revenue between €8.4 billion and €9 billion and expects 2026 revenue to reach between €36 billion and €40 billion, a significant upward revision from prior estimates.
For market professionals, ASML’s strong position in the semiconductor value chain underscores its potential for growth, but with a forward P/E ratio near 40, caution is warranted. Investors may consider waiting for a price dip to capitalize on its long-term prospects.
Source: fool.com