Bull of the Day: ASML Holding (ASML)

ASML Holding (ASML), the world’s leading manufacturer of advanced technology systems for the semiconductor industry, has been on a powerful bull run in recent months after a sharp correction between late 2024 and early 2025.As the AI boom continues and demand for advanced semiconductors accelerates, ASML stands at the center of this technological surge. The company maintains a true monopoly in producing extreme ultraviolet (EUV) lithography machines, equipment that is absolutely essential for manufacturing the world’s most advanced chips, making it one of the clearest ways to invest in the ongoing AI-driven semiconductor expansion.Recent earnings estimate upgrades have lifted ASML to a top Zacks Rank, while strong price momentum underscores renewed investor enthusiasm. In this piece, we’ll take a closer look at ASML’s earnings trends, historical valuation, and the technical setup that could fuel its next leg higher.Image Source: Zacks Investment ResearchEarnings Upgrades Lift ASML StockASML currently holds a Zacks Rank #1 (Strong Buy), reflecting a wave of upward revisions to earnings estimates in recent months. Consensus estimates have been raised by 3.8% for the current year and 2.9% for next year, signaling growing analyst confidence in the company’s growth trajectory.Longer term, ASML’s earnings are projected to grow at an impressive 20.9% annually over the next three to five years, an exceptional rate for a company of its size. The company operates within the Semiconductor Equipment – Wafer Fabrication industry, where it is effectively the sole major player, and that group currently ranks #3 out of 243 industries, placing it firmly in the top 1% of all Zacks ranked industries.Importantly, the market has responded decisively to these upgrades. Since estimates began trending higher roughly 60 days ago, ASML shares have surged nearly 40%, underscoring strong investor conviction and the renewed momentum surrounding the semiconductor capital equipment space.Image Source: Zacks Investment ResearchASML Holding Shares Trade in Line with Historical AverageASML Holding currently trades at a forward earnings multiple of 35.5x, a premium to the broader market but consistent with its long history of commanding higher valuations. With its deep competitive moat, strong growth outlook, and leading-edge technology, ASML has long justified this premium as the sole provider of EUV lithography systems essential to advanced chip production.Over the past decade, the company’s median forward P/E has been 31.9x, meaning today’s valuation sits only modestly above its long-term average. Considering the accelerating demand from the AI boom and the global expansion of semiconductor manufacturing capacity, ASML may be better positioned than ever to sustain its growth and support these elevated multiples.Image Source: Zacks Investment ResearchASML Stock Stages Major BreakoutOne of the most compelling bullish catalysts for ASML Holding right now is its technical setup. Following a steep 50% correction between mid-2024 and early 2025, the stock has staged an impressive rebound, yet there may still be considerable upside ahead.Over the last month, the stock has carved out a well-defined bull flag and just this Monday, broke out from the pattern. From a trading perspective, the key level to watch is $1,045, which now serves as a critical area of support.As long as the stock holds above this breakout zone, the technical outlook remains firmly bullish, and the next leg higher could carry shares to a new record high in the near-term.Image Source: TradingViewShould Investors Buy Shares in ASML?ASML’s combination of fundamental strength, earnings momentum, and technical leadership makes it one of the most compelling names in the semiconductor space today. The company’s unrivaled monopoly in EUV lithography technology ensures its systems remain indispensable to every major chip manufacturer, from Nvidia to TSMC, positioning it as a core beneficiary of the AI-driven buildout in advanced semiconductors.Despite its elevated valuation, ASML continues to justify its premium through consistent execution, accelerating earnings growth, and expanding margins.With its critical role in enabling the next generation of chip design and production, ASML stands at the epicenter of the AI hardware revolution. For investors seeking exposure to the long-term growth of the semiconductor industry, ASML remains a premier name to own, and one that could continue leading the market higher in the months ahead.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 ASML Holding N.V. (ASML): 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