So, there's a company called ASML that makes special machines to help make computer chips. They had a really good three months where they made a lot of money because many people wanted these chips. The company expects to make about the same amount of money this year as last year, but they think next year will be even better. They are also sending some new machines to another big company called Intel and selling a lot of machines to China, where they didn't sell much before. But there might be some problems in China because of some rules that other countries made about these machines. Read from source...
- The title is misleading and exaggerated. A lucrative quarter does not necessarily imply rising demand for chips, as there could be other factors influencing the earnings. Moreover, the word "reveal" suggests a surprising or novel insight, which is not the case here since ASML's earnings are publicly available and expected.
- The article focuses too much on specific numbers and forecasts, such as net sales, gross margin, revenue, and dividend, without providing sufficient context, explanation, or analysis of what they mean for ASML's performance, competitive advantage, or future prospects. These figures are important, but they need to be interpreted in relation to the industry trends, market conditions, technological innovations, and strategic decisions that affect ASML's business model and outlook.
- The article does not address any of the challenges, risks, or uncertainties that ASML faces, such as: - The potential impact of U.S.-China trade tensions on ASML's ability to sell its products to China and other markets. - The competition from other chipmakers and equipment suppliers, such as Nikon, Samsung, or TSMC, that may offer more advanced, efficient, or affordable solutions than ASML's lithography machines. - The dependence on a few key customers, such as Intel and Samsung, that account for a large share of ASML's sales and may demand lower prices, better terms, or higher quality standards in exchange for their loyalty or preferential treatment. - The need to invest heavily in research and development, innovation, and expansion to maintain its leadership position and capture new opportunities in the rapidly evolving chip industry.
One possible way to invest in ASML is to buy its American depositary receipts (ADRs) traded on the NASDAQ under the symbol ASML. The ADRs represent 10 ordinary shares of ASML with a nominal value of €0.06 each, so one ADR represents $5.34 worth of shares as of February 8, 2024. The ADRs have a dividend yield of about 2.7% based on the current share price of $192.89 and the projected annual dividend of $5.34 per ADR for 2023. The dividend is expected to grow by 5.2% in 2024, which reflects ASML's strong profitability and cash flow generation.