TSMC (NYSE:TSM) CEO said in a letter to customers that the company’s fabs have been running at over 100% utilization over the past year, but demand still exceeds supply so the company will spend 100 billion USD to increase production capacity. Thus, a big chunk of that spending will go towards semiconductor manufacturing equipment which gets more expensive. ASML is a company that is well positioned to benefit from that and will be the topic of today's video.
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By Stock Chat

where the coffee is hot and so is the chat

28 thoughts on “Asml – the best semiconductor stock for 2021 (but there is a catch…)”
  1. Avataaar/Circle Created with python_avatars Userme says:

    Time just proved that your analysis is none sense. It is not only numbers, paper work and theories etc. This company has something unique and on demand. So the demand for this stock will only get higher and higher and hence the price. Time to change your job.

  2. Avataaar/Circle Created with python_avatars misteratoz says:

    Semi Conducters will explode in the next decade. There is no competition. The only question is will the stock double in a few years? I think so

  3. Avataaar/Circle Created with python_avatars Nick Figueroa says:

    I literally bought Stock in this company it just keeps making me money I always buy on the dip great company and also AMD I bought when it was at 75.00 now it's at 105 I'm still considering intel. I'm new to investing so dont even take this as advice I literally just started investing at the beginning of the year

  4. Avataaar/Circle Created with python_avatars BlueHen123 says:

    I rode my bike past all the major tech companies here in SV and most have empty parking lots due to WFM allowances….but ASML has a full staff hard at work in their offices here. I think it shows the commitment and drive of great company! While Apple employees beg to stay home, ASML employees go to the office everyday. I know where I am investing

  5. Avataaar/Circle Created with python_avatars binh pham says:

    Help ! How do you come up the Terminal Value in 2026 in cell D36 and DCF value in cell D39 ? Thanks

  6. Avataaar/Circle Created with python_avatars Karl says:

    As somebody with some knowledge in this sector: there is a reason why 2 of the top 3 analysts rate ASML as undervalued. The chip shortage won't end anytime soon – 2025 at the earliest. And even then – the income potential of service and spare parts of EUV machines is insane! Actually this could be the main revenue driver in the future.

    Fair price of shares is 800-1000 $ imo

  7. Avataaar/Circle Created with python_avatars Clare Lee says:

    Can anyone advise the differences between the 3 ticker symbols for ASML ? Which of the 3 should be chosen ?

  8. Avataaar/Circle Created with python_avatars Vapor Citizen says:

    When everyday is a honest day with this guy vodka on me t.n always keeping it real

  9. Avataaar/Circle Created with python_avatars Shray says:

    now that is the best breakdown and price estimation i have seen. good work Tom. love the content.

    Not sure if it makes sense to do, but as you are a tesla bull, and there are so many tesla bears and with the recent news in tesla shorts. would you think that making such a detailed breakdown about tesla would be worth your time and effort?

  10. Avataaar/Circle Created with python_avatars augustinez87 says:

    Totally agree bro. Strong company ! But overvalued compared to other semicon company

  11. Avataaar/Circle Created with python_avatars vic S says:

    Tom, there is no TSMC without ASML. They are so far ahead of everyone else that you can say they have no competition.

  12. Avataaar/Circle Created with python_avatars Johnson Yen says:

    Always like your analysis on companies. Awesome video! Thanks Tom, looking forward to more!

  13. Avataaar/Circle Created with python_avatars cashdinero0 says:

    A lot of it is priced in? You are mistaken. ASML has 100% market share in EUV there is A LOT of growth left for this company. TSMC will build 3 or 4 new factories in Arizona and Samsung to build an extra factory in Austin as well. Europe also wants to get into the “chip race” as well as it currenty produces 8% of global chips and wants to increase this number to about 20% and if you want to make the most advances chips in the world you will need EUV machines. And oh, in case you are wondering about the sugre in stock price ASML currently has a buyback program worth up to 6billion euros untill 2022. ASML is also expanding in veldhoven to keep up on demand! (I work at ASML btw) Cheers!

  14. Avataaar/Circle Created with python_avatars Sam Doms says:

    I work for ASML as a engineer, have been working at customer sites all over the world, ask me anything if you like 🙂

  15. Avataaar/Circle Created with python_avatars Chris Ross says:

    Tom, consider that Intel is building 2 more fabs in AZ along with TSMC. And the Micron fab in Utah is getting sold to a new customer. All the fabs use ASML tools. Just FYI.

  16. Avataaar/Circle Created with python_avatars Rami Khandakji says:

    Hi Tom! What do you say about the new stimulus package in the US? What's that expected to do to the stock market? What's your advice? Thx!

  17. Avataaar/Circle Created with python_avatars Adin Gear says:

    I stopped watching your channel because you were huge on HYLN but all of a sudden completely stopped talking about it meanwhile I’m down 50%. I have no idea what to do with it because you haven’t mentioned it in 4 months. Are you still bullish on it?

  18. Avataaar/Circle Created with python_avatars San says:

    ASML basically has a monopoly. Chip shortage or not, makes no difference. They own the market. And they got there by investing massively into R&D and it is paying off big time.

  19. Avataaar/Circle Created with python_avatars elcapitan711 says:

    One of my fave stocks. Amazing company with crazy numbers. Always wondered how little it gets talked about. Speaks for you Tom! Props mate, good job:)

  20. Avataaar/Circle Created with python_avatars German Arellano Campos says:

    The question that I would have as along term investor. For those companies we are investing in on long term, that debt will be a burden when interest start to go up. Touch on this next time Tom.

  21. Avataaar/Circle Created with python_avatars Skanky Franky says:

    As a new trader/ investor, I truly appreciate all the effort you put into giving us such amazing content!
    You're the man Tom.

  22. Avataaar/Circle Created with python_avatars Bike-Cave-Man says:

    Dont underestimate where we will need to put processors into in the upcoming decades. Also the 5nm, 3nm and 2nm EUV technologies will be ASML's money maker.

  23. Avataaar/Circle Created with python_avatars Chris Loy says:

    Thanks Tom for calling Goodwill BS. For the longest time I thought it was worthless as well, never understood why it was found on a balance sheet. Glad to see someone from the industry acknowledging and agreeing with that notion.

  24. Avataaar/Circle Created with python_avatars sagig72 says:

    Good video Tom. I thought you preferred MU tho after your video on MU, don't you?

  25. Avataaar/Circle Created with python_avatars Wey Cool says:

    So many great semiconductor stocks to pick from. Nvda. TSM. Mu. Amd. Amat. I feel like my portfolio has too much semiconductor!!! Lol

  26. Avataaar/Circle Created with python_avatars Marco Nierop says:

    Thanks Tom!

    As a Dutch guy this company makes me proud, and I have looked into them a few times to invest, but glad I see my concerns confirmed in your video… The stock has grown way more than the company itself..

    But good to know the actual valuation is about 445, so when it goes into some kind of correction that may be a good entry point.. but not right now.

    ASML has more or less a monopoly, because it has a pile of pattents and a lot of knowledge within the company (The CEO is not the only one working 20+ years with ASML), so the competition cannot make what ASML can make… Guys like Samsung and TSMC HAVE TO buy these machines from ASML, which are technological marvels that is virtually impossible to copy by others… Its super high tech.

  27. Avataaar/Circle Created with python_avatars crimiss1 says:

    ASML been on my radar for a while now but too expensive for me, also waiting for Carl Zeiss (one of their major suppliers) to come down in price as well. Great content as usual Tom

  28. Avataaar/Circle Created with python_avatars Rutger Ockhorst says:

    @Tom Nash The biggest risk for ASML is the USA – China trade war. USA is trying to prevent ASML selling their newest chip machines to China. If succesful that's shooting the USA and Europe in the foot. China will start developing their own tech. Sure, they're lagging but they will catch up in about 5 years if forced.

    Fun fact: it's difficult to get enough tech employees in the Netherlands for ASML. They are recruiting lots of people from India. Around ASML, some traditional Dutch schools now have almost 100% Indian kids. The employees from India are granted a 5 year (I believe, subject to change) tax exemption from the Dutch government to make ASML an attractive employer.

    Some extra info from a local 😉

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