ASML Holding Stock Trades Near 52-Week High: Is It Still Worth Buying?

ASML Holding ASML has had a remarkable run so far this year, with its shares soaring 55.9% year to date (YTD). At the closing price of $1,080.85 as of Dec. 12, ASML stock trades just 5.3% below the 52-week high of $1,141.72.Shares of the company have outperformed the Zacks Computer and Technology sector’s YTD gain of 25.5%. ASML Holding is also among the top-performing semiconductor stocks, including Broadcom AVGO, NVIDIA NVDA and Marvell Technology MRVL. YTD, shares of Broadcom and NVIDIA have soared 55.2% and 30.3%, respectively, while Marvell Technology declined 23.6%.ASML Holding YTD Price Return PerformanceImage Source: Zacks Investment ResearchThis outperformance shows investors are becoming increasingly confident in ASML Holding’s long-term prospects, even in a volatile market shaped by trade conflicts and geopolitical risks. However, as the stock trades near its 52-week high, investors might be wondering whether to buy more ASML shares or exit the investment.Considering ASML Holding’s strong fundamentals and near-monopoly on essential semiconductor manufacturing equipment, the stock seems to be worth buying right now.EUV Technology: ASML’s Key Growth TailwindASML Holding’s leadership in extreme ultraviolet (EUV) lithography continues to set it apart from every other chip equipment maker. It holds a near-monopoly on this technology, which is critical for manufacturing the world’s most advanced chips at 3nm and below. Major customers like TSMC, Samsung and Intel rely on ASML’s systems to stay ahead in chip innovation, giving ASML extraordinary pricing power and strategic importance.The next phase of growth lies in ASML Holding’s High Numerical Aperture (High-NA) EUV systems. These tools are designed for sub-2nm production, representing the next technological leap for chipmakers. While adoption has taken longer than initially expected, the long-term potential is significant. As the industry moves toward denser and more efficient chips, ASML’s High-NA machines will be central to that shift.ASML Holding is already making progress in this area. On its third-quarter 2025 earnings call, management confirmed that SK hynix received its first High-NA EXE:5200 system. This follows ASML’s first shipment and installation of the EXE:5200 system in the second quarter of 2025. These systems will support manufacturing at the 1.4nm node and beyond. ASML expects commercial adoption to begin in late 2026 or early 2027, creating a strong, multi-year growth driver.Additionally, the accelerating demand for artificial intelligence (AI) is giving ASML Holding another powerful growth tailwind. AI workloads need cutting-edge chips with massive processing power and efficiency. This indicates more demand for advanced graphics processing units, AI accelerators and high-bandwidth memory, all of which depend on the kind of precision lithography ASML’s EUV machines deliver.Because EUV technology is so complex and expensive to replicate, ASML Holding enjoys deep competitive protection. There’s no realistic rival in sight capable of challenging its dominance. This gives ASML not just pricing flexibility but a level of business stability rare in the semiconductor sector. As AI adoption continues across industries, ASML’s technology will remain indispensable in powering this new wave of computing.ASML Holding’s Resilient Financial PerformanceASML Holding’s last reported third-quarter 2025 results reinforced the company’s financial strength. Earnings grew 3.8% year over year to €5.48 per share. In U.S. dollar terms, earnings came in at $6.41 per share, beating the Zacks Consensus Estimate by 2.2%. Revenues rose 0.7% to €7.52 billion, supported by a robust 27% increase in the services and field operations segment.ASML Holding N.V. Price, Consensus and EPS Surprise ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. QuoteAlthough system sales slipped 6.3% due to a shift in product mix, the gross margin expanded to 51.6%, up 80 basis points. During the third-quarter earnings call, CFO Roger Dassen noted that higher volumes of low-NA EUV tools and upgrades helped margins.For the fourth quarter, ASML Holding expects revenues to be between €9.2 billion and €9.8 billion, a significant sequential increase. The company also anticipates gross margins of 51-53%, indicating a 40-basis-point sequential improvement at the midpoint. For full-year 2025, management projects sales to grow around 15%, with margins of nearly 52%, showing sustained demand for ASML’s products.ASML’s Fundamentals Justify Premium ValuationASML stock isn’t cheap. It trades at a forward 12-month price-to-earnings (P/E) of 35.95X compared with the sector average of 28.16X. However, that valuation looks more reasonable when viewed through the lens of ASML Holding’s market position. The company’s monopoly in EUV lithography, expanding role in advanced chip production and consistent margin performance justify a premium multiple.ASML Holding Forward 12-Month P/E RatioImage Source: Zacks Investment ResearchCompared to other semiconductor players, ASML Holding has a higher P/E multiple than NVIDIA and MRVL but a lower multiple than Broadcom. Currently, Broadcom, NVIDIA and Marvell Technology trade at P/E multiples of 37.83, 25.84 and 24.31, respectively.Final Thoughts: Buy ASML Stock for NowASML Holding’s unmatched dominance in EUV and emerging High-NA lithography, combined with surging AI-related chip demand, is likely to continue supporting its financial performance over the long run. With strong revenue visibility, improving margins and expanding customer adoption, ASML’s fundamentals justify adding the stock at current levels for long-term investors.Currently, ASML Holding carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks