From The Motley Fool · The Motley Fool Team · · 40s
ASML: 3 Key Takeaways for Long-Term Investors
ASML's chipmaking tools drive record sales as demand outpaces supply through 2028.
In brief
ASML's chipmaking tools drive record sales as demand outpaces supply through 2028. ASML's chipprinting tools will boost revenue and gross margins through 2028 as semiconductor demand outpaces supply. Originally reported by The Motley Fool.
Chipmakers Securing Equipment Capacity
Semiconductor manufacturers are lengthening purchasing windows to 2030 to guarantee equipment deliveries for factory expansions.
“Customers are lengthening their purchasing windows to 2030 to guarantee equipment deliveries for long-term factory expansions”
Production Capacity Expansion Accelerating
Management is expanding output targets for extreme ultraviolet systems and deep ultraviolet immersion tools beyond initial growth rates.
“And with that goal in mind, are now looking into expanding our 2028 capacity even above the 30% year on year growth target”
Value-Based Pricing Increases
Pricing increases for critical chipmaking machinery will boost gross margins starting in 2027 with full impact in 2028.
“Conversations have been completed and, you know, have indeed led to pricing increases for what we call the most critical products”
What matters most
ASML's chipprinting tools will boost revenue and gross margins through 2028 as semiconductor demand outpaces supply.
