𝐆𝐥𝐨𝐛𝐚𝐥 𝐬𝐞𝐦𝐢𝐜𝐨𝐧𝐝𝐮𝐜𝐭𝐨𝐫 𝐬𝐡𝐨𝐫𝐭𝐚𝐠𝐞𝐬: 𝐢𝐧𝐬𝐭𝐞𝐚𝐝 𝐨𝐟 𝐬𝐩𝐞𝐜𝐮𝐥𝐚𝐭𝐢𝐧𝐠 𝐨𝐧 𝐫𝐢𝐬𝐢𝐧𝐠 𝐬𝐞𝐦𝐢𝐜𝐨𝐧𝐝𝐮𝐜𝐭𝐨𝐫 𝐩𝐫𝐢𝐜𝐞𝐬, 𝐰𝐡𝐲 𝐧𝐨𝐭 𝐢𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐭𝐡𝐞 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐥𝐞𝐚𝐝𝐞𝐫 𝐟𝐨𝐫 𝐜𝐡𝐢𝐩 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐞𝐪𝐮𝐢𝐩𝐦𝐞𝐧𝐭 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐫𝐬 $ASML (ASML Holding NV)$ASML.NV (ASML Holding NV) ?
ASML Holding N.V. is a Dutch company and the world's largest supplier of lithography systems for the semiconductor industry. Its exceedingly complex machines play an important role in the production of integrated circuits (microchips). 80% of all chip manufacturers (foundries and IDMs) worldwide are ASML customers and the global market share is 65%.
Thanks in part to strong demand for new production machinery and software upgrades, management 𝐞𝐱𝐩𝐞𝐜𝐭𝐬 𝐀𝐒𝐌𝐋'𝐬 𝟐𝟎𝟐𝟏 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐭𝐨 𝐠𝐫𝐨𝐰 𝐭𝐨𝐰𝐚𝐫𝐝 𝟑𝟎% 𝐩𝐞𝐫𝐜𝐞𝐧𝐭. Previously, CEO Wennink had assumed low double-digit percentage growth.
Since the turn of the year, the stock has already made decent gains. In fact, its value has more than tripled in the last three years. With a market capitalization of more than €220 billion, ASML is the second most valuable company in the $VGK , far ahead of the German leader $SAP.DE (SAP SE) , which most recently had a market value of around €136 billion.
𝐈𝐧 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐪𝐮𝐚𝐫𝐭𝐞𝐫, 𝐀𝐒𝐌𝐋'𝐬 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐝𝐢𝐝 𝐬𝐮𝐫𝐩𝐫𝐢𝐬𝐢𝐧𝐠𝐥𝐲 𝐰𝐞𝐥𝐥.𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐠𝐫𝐞𝐰 𝟐.𝟔% 𝐭𝐨 𝐧𝐞𝐚𝐫𝐥𝐲 €𝟒.𝟒 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐜𝐨𝐦𝐩𝐚𝐫𝐞𝐝 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐟𝐨𝐮𝐫𝐭𝐡 𝐪𝐮𝐚𝐫𝐭𝐞𝐫 𝐨𝐟 𝟐𝟎𝟐𝟎. 𝐆𝐫𝐨𝐬𝐬 𝐦𝐚𝐫𝐠𝐢𝐧 𝐫𝐨𝐬𝐞 𝐟𝐫𝐨𝐦 𝟓𝟐% 𝐭𝐨 𝟓𝟑.𝟗%. 𝐀𝐧𝐚𝐥𝐲𝐬𝐭𝐬 𝐡𝐚𝐝 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐝𝐞𝐜𝐥𝐢𝐧𝐞𝐬 𝐢𝐧 𝐛𝐨𝐭𝐡 𝐟𝐢𝐠𝐮𝐫𝐞𝐬. 𝐍𝐞𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 𝐟𝐞𝐥𝐥 𝐛𝐲 𝟏.𝟓% 𝐭𝐨 𝐣𝐮𝐬𝐭 𝐨𝐯𝐞𝐫 €𝟏.𝟑 𝐛𝐢𝐥𝐥𝐢𝐨𝐧. 𝐇𝐨𝐰𝐞𝐯𝐞𝐫, 𝐨𝐫𝐝𝐞𝐫 𝐢𝐧𝐭𝐚𝐤𝐞 𝐣𝐮𝐦𝐩𝐞𝐝 𝐛𝐲 𝐚𝐥𝐦𝐨𝐬𝐭 𝟏𝟐% 𝐭𝐨 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 €𝟒.𝟕 𝐛𝐢𝐥𝐥𝐢𝐨𝐧. 𝐅𝐨𝐫 𝐭𝐡𝐞 𝐬𝐞𝐜𝐨𝐧𝐝 𝐪𝐮𝐚𝐫𝐭𝐞𝐫, 𝐀𝐒𝐌𝐋 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐞𝐱𝐩𝐞𝐜𝐭𝐬 𝐬𝐚𝐥𝐞𝐬 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 €𝟒 𝐚𝐧𝐝 €𝟒.𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐚𝐧𝐝 𝐚 𝐠𝐫𝐨𝐬𝐬 𝐦𝐚𝐫𝐠𝐢𝐧 𝐨𝐟 𝐚𝐫𝐨𝐮𝐧𝐝 𝟒𝟗%.
We can thank the chip shortage for this reforecast. The rollout of super-fast mobile networks with the 5G standard, the rise of artificial intelligence systems and new high-performance computers are also driving demand for ASML's latest machines. They can be used to produce faster, cheaper and more efficient computer chips.
The global shortage of computer chips is especially hitting automakers such as $TSLA (Tesla Motors, Inc.), $NIO (Nio Inc.), $VOW3.DE (Volkswagen AG) who are having to cut back or even stop production of some types of vehicles. A number of other industries, such as telecommunications companies, are also suffering. Last week, Taiwanese chipmaker $TSM (Taiwan Semiconductor Manufacturing Co Ltd - ADR) therefore increased its investment plans for the current year. For TSMC and $SMSN.L (Samsung Electronics Co Ltd) , ASML is an important supplier. According to TSMC, the global chip shortage could continue into 2022.
𝐓𝐡𝐢𝐬 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐰𝐢𝐥𝐥 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞:𝐀𝐜𝐜𝐨𝐫𝐝𝐢𝐧𝐠 𝐭𝐨 𝐚 𝐬𝐭𝐮𝐝𝐲 𝐛𝐲 𝐑𝐨𝐥𝐚𝐧𝐝 𝐁𝐞𝐫𝐠𝐞𝐫, 𝐬𝐞𝐦𝐢𝐜𝐨𝐧𝐝𝐮𝐜𝐭𝐨𝐫𝐬 𝐜𝐨𝐬𝐭 $𝟑𝟎𝟎𝟎 𝐢𝐧 𝐚 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐜𝐚𝐫 𝐰𝐢𝐭𝐡 𝐚𝐧 𝐢𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐜𝐨𝐦𝐛𝐮𝐬𝐭𝐢𝐨𝐧 𝐞𝐧𝐠𝐢𝐧𝐞 𝐭𝐨𝐝𝐚𝐲. 𝐅𝐨𝐫 𝐚 𝐬𝐞𝐦𝐢-𝐚𝐮𝐭𝐨𝐧𝐨𝐦𝐨𝐮𝐬 𝐞𝐥𝐞𝐜𝐭𝐫𝐢𝐜 𝐜𝐚𝐫, 𝐭𝐡𝐢𝐬 𝐯𝐚𝐥𝐮𝐞 𝐰𝐢𝐥𝐥 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐝𝐨𝐮𝐛𝐥𝐞 𝐭𝐨 𝐨𝐯𝐞𝐫 $𝟕𝟎𝟎𝟎 𝐩𝐞𝐫 𝐯𝐞𝐡𝐢𝐜𝐥𝐞 𝐛𝐲 𝟐𝟎𝟐𝟓
𝐌𝐲 𝐯𝐞𝐫𝐝𝐢𝐜𝐭: 𝐁𝐮𝐲
What do you think? Happy to hear your thoughts!