ASML is the world-leader in the technology of the future when it comes to computer chip manufacturing. ASML stock is trading at the upper end of its historical fair value range, and I estimate it’s about 12% overvalued, but a perfect candidate for a tech correction watchlist.
Similarly Why is ASML stock dropping? ASML’s stock price has tumbled over the past few months. That decline can be mainly attributed to its overheated valuation instead of any fundamental challenges. ASML’s monopolization of EUV systems gives it unmatched pricing power.
Will ASML continue to rise? ASML also guided for a long-term « annual revenue growth rate of around 11% for the period 2020-2030, based on third party research and our assumptions, » which is roughly in line with its +9.8% FY 2021-2025 revenue CAGR. ASML also points to an expected +14% earnings per share CAGR for the next decade.
Additionally, Who is ASML biggest customer?
Intel (US), Samsung Electronics (South Korea) and TSMC (Taiwan) are the world’s largest semiconductor companies and are ASML’s biggest customers. Intel and Samsung are integrated device manufacturers (IDMs), which design and manufacture their own chips.
Does ASML have competition?
ASML’s top competitors include KLA, Nikon, Canon, Applied Materials and Lam Research. ASML Holding is a manufacturer of chip-making equipment and lithography systems for the semiconductor industry.
Can ASML sell to China? ASML’s most advanced lithography systems, known as extreme ultraviolet (EUV) machines, are banned from being sold to China’s top chip makers under US trade sanctions.
Is ASML a monopoly? ASML is arguably chipmaking’s biggest monopoly, with very bright prospects for the next decade. But with little upside potential left under management’s high-demand scenario, a wider margin of safety might be desirable for investors.
What company makes the machines that make microchips? Integrated device manufacturers (IDMs) such as Intel and Samsung both design and manufacture chips. Foundries, on the other hand, are companies that manufacture chips under contract for other companies. TSMC, GLOBALFOUNDRIES and UMC are examples of this type of chipmaker.
Does Nvidia use ASML?
Nvidia, the American chipmaker that dominates the gaming and data center GPU markets, outsources its chip production to TSMC and Samsung’s foundries. In other words, Nvidia can’t produce its newest GPUs without ASML’s EUV systems. Image source: Getty Images.
Who buys ASML? ASML is the only firm in the world capable of making the highly-complex machines that are needed to manufacture the most advanced chips. These EUV machines, which cost approximately $140 million each, are sold to a handful chipmakers giants including TSMC, Samsung and Intel.
Does ASML have a monopoly?
While ASML has a monopoly in EUV, it also dominates immersion lithography, with the highest DUV prices and margins.
Who is TSMC competitor? From a technology perspective, Samsung is the nearest rival. Yet a comparison is skewed by the fact that the South Korean company also makes display screens and puts most of its semiconductor spending toward commodity memory chips that TSMC doesn’t even bother to make.
Is ASML a monopoly?
ASML sold 69 new lithography devices, which is what semiconductor companies use in advanced semiconductor manufacturing. In the space, no other machines can achieve what ASML’s machines do, so the company operates as a legal monopoly in that regard.
Does Apple use ASML?
The TSMC chips in the latest Apple Inc (NASDAQ: AAPL) iPhones created with ASML’s EUV machines have around 10 billion transistors on them. The High NA machine has a higher resolution that will enable 1.7x more minor chip features and 2.9x increased chip density.
Is ASML the only EUV company? Before EUV, chipmakers could buy DUV lithography machines from three companies: ASML, Nikon and Canon. While Nikon, in Japan, is still a competitor in that market, ASML is the only option for EUV.
Who are ASML’s customers? Customers of ASML include Samsung and Taiwan Semiconductor Manufacturing Co., which makes chips for the likes of Apple. Reuters reported last year that the Trump administration pressured the Netherlands government to stop the sale of the machine to Chinese customers.
Does ASML supply Intel?
Today, ASML sells the machines to only five chipmakers. The biggest three — Taiwan Semiconductor Manufacturing Co., Samsung and Intel — made up nearly 84% of its business in 2021.
Is ASML the only EUV company? ASML is the only firm in the world capable of making the highly-complex machines that are needed to manufacture the most advanced chips. These EUV machines, which cost approximately $140 million each, are sold to a handful chipmakers giants including TSMC, Samsung and Intel.
Does TSMC buy from ASML?
TSMC is paying 838 million euro (about $1.04 billion) to acquire its stake in ASML and has committed to contribute 276 million euro (about $340 million), spread over 5 years, to ASML’s research and development programs.
Who are ASML’s clients? Customers of ASML include Samsung and Taiwan Semiconductor Manufacturing Co., which makes chips for the likes of Apple. Reuters reported last year that the Trump administration pressured the Netherlands government to stop the sale of the machine to Chinese customers.
