ASML (NASDAQ:ASML) Shares Down 7.3% – Time to Sell?

ASML Holding N.V. (NASDAQ:ASML)’s stock price dropped 7.3% during trading on Monday . The stock traded as low as $1,572.84 and last traded at $1,575.15. 1,942,688 shares traded hands during trading, an increase of 9% from the average daily volume of 1,788,095 shares. The stock had previously closed at $1,698.30.

Trending Headlines about ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: ASML is exploring ways to produce more than 110 extreme-ultraviolet (EUV) lithography systems in 2028, up from a planned minimum of 80 in 2027. JPMorgan analysts said AI-related demand remains very strong, and ASML is nearly sold out of its 2027 capacity. Higher production could translate into significant revenue growth and reinforce the company’s critical role in the AI semiconductor supply chain. ASML examining ways it can make more than 110 EUV tools in 2028
• Positive Sentiment: Customer adoption of ASML’s next-generation high-NA EUV technology is strengthening its technology roadmap and extending its effective monopoly over the equipment required for leading-edge chips. TSMC’s participation in the high-NA ecosystem further supports expectations of continued demand from major chipmakers. Analysis-ASML extends chipmaking dominance as customers embrace high-NA
• Positive Sentiment: Commentary comparing ASML with Taiwan Semiconductor Manufacturing and other semiconductor-equipment companies emphasizes ASML’s “picks-and-shovels” advantage: it can benefit regardless of which chipmaker wins the AI race. Its proprietary EUV systems are viewed as indispensable to advanced-node production. ASML vs. Taiwan Semiconductor Manufacturing
• Neutral Sentiment: ASML’s shares have shown resilience despite a recent semiconductor-sector selloff. The company’s elevated valuation—about 50 times earnings—leaves the stock sensitive to changes in AI spending expectations, interest rates and execution of its capacity expansion plans. ASML Gains As Market Dips
• Negative Sentiment: ASML’s high-NA EUV machines cost roughly $400 million each, and chipmakers must justify the substantially larger equipment expense. A physical limitation in current lithography technology also forces customers to use costly workarounds that can pressure margins, while geopolitical exposure remains a risk. There Is One Thing ASML’s $400 Million Machine Still Cannot Do

Analyst Ratings Changes

Several equities research analysts recently issued reports on ASML shares. The Goldman Sachs Group reissued a “buy” rating on shares of ASML in a research note on Thursday, June 11th. Zacks Research downgraded shares of ASML from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. Weiss Ratings raised shares of ASML from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, July 17th. Wells Fargo & Company increased their target price on shares of ASML from $2,200.00 to $2,500.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of ASML in a research report on Friday, July 10th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, ASML presently has a consensus rating of “Moderate Buy” and an average price target of $1,970.33.

ASML Trading Up 1.0%

The company has a market capitalization of $625.90 billion, a PE ratio of 49.52, a P/E/G ratio of 0.78 and a beta of 1.79. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.33 and a quick ratio of 0.80. The firm’s 50 day moving average is $1,729.70 and its 200 day moving average is $1,612.30.

ASML (NASDAQ:ASML) last posted its earnings results on Sunday, June 28th. The semiconductor company reported $8.65 earnings per share (EPS) for the quarter. ASML had a return on equity of 52.71% and a net margin of 30.11%.The firm had revenue of $10.62 billion for the quarter. As a group, equities analysts predict that ASML Holding N.V. will post 44.97 EPS for the current year.

ASML Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Shareholders of record on Tuesday, July 28th were paid a dividend of $2.1507 per share. The ex-dividend date was Tuesday, July 28th. This represents a $8.60 dividend on an annualized basis and a yield of 0.5%. ASML’s payout ratio is presently 22.62%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Fisher Asset Management LLC boosted its stake in shares of ASML by 3.0% during the 4th quarter. Fisher Asset Management LLC now owns 4,484,949 shares of the semiconductor company’s stock worth $4,798,268,000 after acquiring an additional 132,353 shares during the last quarter. Van ECK Associates Corp lifted its position in ASML by 31.7% during the second quarter. Van ECK Associates Corp now owns 2,459,420 shares of the semiconductor company’s stock valued at $4,892,869,000 after purchasing an additional 592,125 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in ASML by 6.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,641,565 shares of the semiconductor company’s stock valued at $2,168,227,000 after purchasing an additional 96,860 shares during the period. Bank of America Corp DE grew its holdings in ASML by 1.2% during the first quarter. Bank of America Corp DE now owns 1,560,256 shares of the semiconductor company’s stock valued at $2,060,833,000 after purchasing an additional 19,051 shares during the period. Finally, BlackRock Inc. increased its position in ASML by 4.9% in the second quarter. BlackRock Inc. now owns 1,282,190 shares of the semiconductor company’s stock worth $2,550,840,000 after buying an additional 59,888 shares in the last quarter. Institutional investors own 26.07% of the company’s stock.

ASML Company Profile

ASML Holding N.V. is a Netherlands-based technology company that develops and manufactures lithography systems used by semiconductor manufacturers to produce integrated circuits. Its equipment uses light to project intricate circuit patterns onto silicon wafers, an essential step in the production of chips for computers, smartphones, automobiles, data centers and other electronic devices.

The company’s product portfolio includes extreme ultraviolet (EUV) lithography systems, deep ultraviolet (DUV) lithography systems and advanced metrology and inspection technologies.