Market reaction and impacts on stocks
Morning trading showed that ASML's share price is up more than 10%, but it is still down around 30% from its absolute peak.* Based on the fundamental strength of this company combined with a favorable valuation, I am thinking about strengthening my position in this company.
ASML Holding's share price performance over the past five years*
The question remains how the market will accept the possibility of the fact that running the latest AI models will not require as much computing power as originally expected. This is evidenced by the latest information about the model of the Chinese company DeepSeek. This model, which requires less computing power compared to competitors, has brought a new wave of risks about whether tech giants such as Google, Microsoft, Meta and Amazon will continue their planned massive investments in AI chips. But I'm not going to sell my positions yet, I rather see this situation as an opportunity.
The Importance of AI for Industry Growth
In terms of more detailed financial results, ASML achieved a net profit of €2.7 billion in the fourth quarter on revenues of €9.3 billion, which also exceeded expectations. Christophe Fouquet, CEO of ASML, confirmed that growth in AI is a key growth factor in their industry. This reinforces my belief that my investments in the chip sector are in the right place, especially when it comes to companies that are at the forefront of innovation and development in AI technologies.
Conclusion and prospects for the future
Given these factors, I plan to maintain my current positions in ASML, while also keeping an eye on developments in the AI chip industry for a potential purchase. With ASML repeating its 2025 revenue forecast of €30-35 billion, I think the company has a strong foundation for future growth. [1]
* Past performance is no guarantee of future results
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
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