Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, Citi analyst Andrew Gardiner maintained a Buy rating with a price target of EUR930.00 on ASML Holding NV (AS:ASML:NA) (NASDAQ: ASML), a prominent player in the Semiconductors & Semiconductor Equipment industry. Gardiner focused on the company’s orders, which fell short of expectations, coming in at EUR3.9 billion compared to the anticipated EUR4.0 to EUR5.5 billion. Despite the lower orders and the growing uncertainty due to tariffs, ASML reaffirmed its 2025 revenue forecast of between EUR30-35 billion and anticipates further growth in 2026. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating.
ASML has made significant strides in technology development, including the EUV Low NA 3800E performance and upgrades, as well as the shipment of High NA and initial customer progress. These advancements are expected to lead to higher average selling prices and profit margins, supported by the company’s impressive gross profit margin of 51.28%. According to Gardiner, if ASML’s customers maintain their current plans, the company could reach the higher end of its revenue forecast at approximately EUR35 billion. However, if market uncertainty prevails, revenue may lean towards the lower end at around EUR30 billion. The analyst also noted that the impact of tariff changes is only beginning to be understood.
The report further highlighted ASML’s valuation metrics, with the stock currently trading at a P/E ratio of 29.82x. Gardiner sees potential upside, considering the company’s projected 15% revenue growth for FY2025 and strong cash flows. This assessment comes amid a backdrop of increasing lithography intensity, which is a positive sign for the company’s future technological progress. Despite the near-term challenges, Citi’s stance reflects confidence in ASML’s long-term prospects. For deeper insights into ASML’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis and 11 additional ProTips in the detailed Pro Research Report.
In other recent news, ASML Holding NV’s annual report revealed a decrease in customer demand in 2024, attributed partly to export control uncertainties impacting the company’s sales, especially in China. The report highlighted the U.S. export restrictions to China, which significantly affect ASML, as 36% of its sales in the previous year were to Chinese entities. Meanwhile, TD Cowen and BofA Securities both reiterated Buy ratings on ASML, with price targets of EUR825 and EUR859, respectively. TD Cowen emphasized ASML’s leading position in lithography equipment, while BofA Securities adjusted its forecast for ASML’s 2025 shipments of Extreme Ultraviolet lithography systems.
Lam Research Corp (NASDAQ:LRCX) introduced two new tools, ALTUS Halo and Akara, aimed at enhancing AI chip production, reflecting the growing demand for semiconductors driven by AI applications. These tools position Lam Research in competition with other major equipment suppliers like ASML and Applied Materials (NASDAQ:AMAT). Lam Research’s recent product launches align with its earlier revenue projections that exceeded market expectations, indicating a positive outlook for the company’s role in the semiconductor equipment market. The strategic move to capitalize on AI-driven demand underscores the ongoing innovation in the semiconductor industry.
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