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After rallying to a 1-1/2 year high earlier this month, shares of ASML Holding NV (ASML), Europe’s most valuable technology company, have come under pressure on signs that the slump in demand for global electronics is persisting. Demand concerns intensified after Taiwan Semiconductor Manufacturing Co (TSM), the main chipmaker for Apple and Nvidia, cut its annual outlook and projected a 10% fall in sales, versus previous guidance for a single-digit decline.
ASML Holding NV is the world’s only maker of machines needed to produce the most advanced semiconductor chips used in everything from cars and smartphones to computers and airplanes. Some analysts remain confident that any decline in ASML’s share price will provide a buying opportunity. Jeffries said, “There is no competition for the company at all,” and sees the chip sector soon entering an upcycle, which will peak sometime in 2025 and fuel margin expansion for ASML for the next 12 to 18 months.
