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.
Get 10% Off The TipRanks Ultimate Plan Here - Affiliate Link:
https://www.tipranks.com/verify-purchase?sku=3256820&custom2=affiliate&custom3=TomNash&utm_source=TomNash&utm_medium=affiliate&coupon=TOMNASH&affiliates=TomNash
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I have no position in ASML
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
Get 10% Off The TipRanks Ultimate Plan Here - Affiliate Link:
https://www.tipranks.com/verify-purchase?sku=3256820&custom2=affiliate&custom3=TomNash&utm_source=TomNash&utm_medium=affiliate&coupon=TOMNASH&affiliates=TomNash
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I have no position in ASML
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
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.
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
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
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
Help ! How do you come up the Terminal Value in 2026 in cell D36 and DCF value in cell D39 ? Thanks
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
Can anyone advise the differences between the 3 ticker symbols for ASML ? Which of the 3 should be chosen ?
When everyday is a honest day with this guy vodka on me t.n always keeping it real
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?
Totally agree bro. Strong company ! But overvalued compared to other semicon company
Tom, there is no TSMC without ASML. They are so far ahead of everyone else that you can say they have no competition.
Always like your analysis on companies. Awesome video! Thanks Tom, looking forward to more!
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!
I work for ASML as a engineer, have been working at customer sites all over the world, ask me anything if you like 🙂
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.
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!
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?
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.
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:)
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.
As a new trader/ investor, I truly appreciate all the effort you put into giving us such amazing content!
You're the man Tom.
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.
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.
Good video Tom. I thought you preferred MU tho after your video on MU, don't you?
So many great semiconductor stocks to pick from. Nvda. TSM. Mu. Amd. Amat. I feel like my portfolio has too much semiconductor!!! Lol
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.
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
@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 😉