ASML
Note: This is a daily stock update and the information stands true as of 02/09/24, 09:00 CEST.
Company Update:
Intel is considering either a spin-off of its foundry business or a disposal of it. Should the foundry be disposed, we believe the likely buyers would be TSMC or Samsung. This could therefore mean that the buyer would be able to increase and optimize its utilization rate of existing machines, which in turn would mean less new orders for companies like ASML (or ASMI). This would therefore be considered a negative, at least on the short term.
Expert Opinion:
While this is probably true, it doesn’t change the long term trend: there is an increasing need for semi-conductors and especially more advanced semi conductors which cannot be manufactured without those extraordinary machines that are manufactured by ASML. The growth profile of the company over the long run remains unchanged, at least until a new technology able to compete with EUV comes in. Until that happens, ASML remains a buy and hold stock for the long run.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
Company Update:
Intel is considering either a spin-off of its foundry business or a disposal of it. Should the foundry be disposed, we believe the likely buyers would be TSMC or Samsung. This could therefore mean that the buyer would be able to increase and optimize its utilization rate of existing machines, which in turn would mean less new orders for companies like ASML (or ASMI). This would therefore be considered a negative, at least on the short term.
Expert Opinion:
While this is probably true, it doesn’t change the long term trend: there is an increasing need for semi-conductors and especially more advanced semi conductors which cannot be manufactured without those extraordinary machines that are manufactured by ASML. The growth profile of the company over the long run remains unchanged, at least until a new technology able to compete with EUV comes in. Until that happens, ASML remains a buy and hold stock for the long run.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
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