#4 - ASML Holding (NASDAQ:ASML)
As I mentioned in the introduction, semiconductors are a notoriously cyclical business. ASML Holding (NASDAQ:ASML) has been on the leading edge of this surge in demand. 2018 was a bad year for chip stocks, but demand began to resurge in 2019. And with the onset of the pandemic, whispers began about a potential chip shortage.
ASML Holding builds equipment that fabricates semiconductors. Taiwan Semiconductor Manufacturing is one of ASML Holding’s largest customers. Additionally, ASML has a near-monopoly in the sub-sector of chip lithography. This is the printing of patterns onto silicon.
It stands to reason that the company is likely to have a strong catalyst as demand for chips continues throughout 2021. Investors seem to agree. ASML stock is up over 100% in the last 12 months and is up 15% in 2021. The company’s fourth-quarter earnings came in above expectations, and the company also announced a 15% increase in its dividend.
About ASML
ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies.
Read More - Current Price
- $672.88
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $970.60 (44.2% Upside)
