ASML Stock Remains a Strong Buy After Earnings
ASML stock rallied after the semiconductor supplier beat fourth-quarter expectations. Here's what you need to know.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
ASML (ASML) stock rallied Wednesday after the world's largest supplier to the semiconductor industry beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for its first quarter.
Investors are paying close attention to semiconductor stocks, including chipmakers Nvidia (NVDA) and Broadcom (AVGO) as well as equipment suppliers such as ASML, following the arrival of DeepSeek, an open-source AI chatbot created by a Chinese technology company, and Alibaba's (BABA) announcement that a new version of its AI model is even better than DeepSeek's.
In the three months ending December 31, the Dutch semiconductor company's revenue increased 27.8% year over year to 9.3 billion euros. Earnings per share (EPS) rose 31.5% from the year-ago period to 6.85 euros per share.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Our fourth quarter was a record in terms of revenue, with total net sales coming in at 9.3 billion euros, and a gross margin of 51.7%, both above our guidance," said ASML CEO Christophe Fouquet in a statement. "This was primarily driven by additional upgrades. We also recognized revenue on two High NA EUV systems. We shipped a third High NA EUV system to a customer in the fourth quarter."
The results topped analysts' expectations. Wall Street was anticipating revenue of 9 billion euros and earnings of 6.68 euros per share, according to Yahoo Finance.
For the first quarter of its new fiscal year, ASML said it expects revenue in the range of 7.5 billion euros to 8 billion euros, which also came in ahead of analysts' expectations of 7.2 billion euros.
"Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry," Fouquet said. "It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range."
Is ASML stock a buy, sell or hold?
ASML has lagged the broader market over the trailing 12 months, generating a negative total return in excess of 20%. Yet Wall Street remains bullish on the tech stock.
According to S&P Global Market Intelligence, the consensus analyst target price for ASML stock is $920.52, representing implied upside of more than 27% from current levels. And the consensus recommendation is Strong Buy.
Financial services firm Bernstein has an Outperform rating (equivalent to a Buy) and an $887 price target on ASML stock.
"While overall a solid set of results, and that strong bookings number should give investors some reassurance on 2025, we believe there is still a lot to play out in AI-demand as DeepSeek impact is better understood," says Bernstein analyst Sara Russo in a note this morning. "Longer-term we remain bullish on the opportunity for ASML, but caution may prevail until we understand the more near-term implications."
Related Content
-
5 Vince Lombardi Quotes Retirees Should Live ByThe iconic football coach's philosophy can help retirees win at the game of life.
-
The $200,000 Olympic 'Pension' is a Retirement Game-Changer for Team USAThe donation by financier Ross Stevens is meant to be a "retirement program" for Team USA Olympic and Paralympic athletes.
-
10 Cheapest Places to Live in ColoradoProperty Tax Looking for a cozy cabin near the slopes? These Colorado counties combine reasonable house prices with the state's lowest property tax bills.
-
Don't Bury Your Kids in Taxes: How to Position Your Investments to Help Create More Wealth for ThemTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Are You 'Too Old' to Benefit From an Annuity?Probably not, even if you're in your 70s or 80s, but it depends on your circumstances and the kind of annuity you're considering.
-
In Your 50s and Seeing Retirement in the Distance? What You Do Now Can Make a Significant ImpactThis is the perfect time to assess whether your retirement planning is on track and determine what steps you need to take if it's not.
-
Your Retirement Isn't Set in Stone, But It Can Be a Work of ArtSetting and forgetting your retirement plan will make it hard to cope with life's challenges. Instead, consider redrawing and refining your plan as you go.
-
The Bear Market Protocol: 3 Strategies to Consider in a Down MarketThe Bear Market Protocol: 3 Strategies for a Down Market From buying the dip to strategic Roth conversions, there are several ways to use a bear market to your advantage — once you get over the fear factor.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
