A Leader in Semiconductor Manufacturing
ASML Holding NV (ASML) has experienced a significant rise in its stock price since Monday's opening, with shares climbing 5.4% to $717.41. This surge comes amidst the U.S. unveiling new export controls targeting China's semiconductor sector.
These measures, which restrict advanced chipmaking tools and AI-related technologies, could have a major impact on global supply chains. ASML, as the exclusive supplier of extreme ultraviolet (EUV) lithography systems, is poised to benefit from this realignment. The company has stated that it does not expect the latest sanctions to affect its business in 2024.
ASML's Dominant Position in the Semiconductor Industry
ASML is a Dutch company that holds a unique position in the semiconductor industry. It is the sole supplier of EUV lithography systems, which are essential for manufacturing the most advanced chips used in artificial intelligence, high-performance computing, and 5G. The company also dominates the market for deep ultraviolet (DUV) lithography systems, which are crucial for producing mature and mid-range chips.
With China unable to access the most advanced lithography systems due to the new sanctions, demand for ASML's equipment among non-Chinese manufacturers is expected to grow. This is especially true as the U.S. and its allies ramp up their domestic chipmaking capacities.
Investing in ASML
Investors can gain exposure to ASML through various investment vehicles, including the Invesco QQQ Trust, Series 1 (QQQ) and the VanEck Semiconductor ETF (SMH).
Capital Allocation Programs
ASML pays a dividend, which currently yields 0.85% per year. The company also engages in share buyback programs, which can support share prices by increasing demand.
Financial Performance
ASML's stock has a 52-week high of $1,110.09 and a 52-week low of $645.45. The company's strong financial performance and its dominant position in the semiconductor industry make it an attractive investment for many investors.