ASML

Analysis of ASML share price

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The shares of the ASML Group are among the stock market assets that can be bought or sold nowadays through the brokers online. But to do so under the best conditions it is above all necessary to be able to complete pertinent and complete analyses of this asset on the stock markets. To do so, we offer you the opportunity here to expand your knowledge of this group with detailed information on its activities, major competitors and partners as well as the factors that could influence its growth that you should integrate into your fundamental analysis of this group.

Elements that can influence the price of this asset:

Analysis N°1

Initially, it is imperative that you monitor the growth in the semi-conductor industry with its growing demand due to significant technological advances and changes in the consumer requirements.

Analysis N°2

As innovation is at the core of the ASML Company’s activities you should also stay informed on developments related to this company as well as the launch of new products that could differentiate this company from its competitors.

Analysis N°3

The economic cycles and particularly the consumer figures will also exert an indirect influence on the sales of the ASML Company.

Analysis N°4

The foreign exchange market is also a market that should be monitored for your fundamental analysis as the ASML Group is directly impacted by foreign exchange rates with its international activities.

Analysis N°5

We would also follow the increasingly strict environmental regulations that could exert a negative influence on this group’s activities.

Analysis N°6

Finally, it is important to carefully monitor the different competitors of this group, their activities and their major publications and announcements.

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General presentation of ASML

We shall first take a few moments to examine the ASML Company in some detail. It is necessary that you clearly understand the activities of this group as well as its principal sources of income to enable you to best anticipate the group’s future share price movements on the stock market.

ASML Holding NV is a Dutch group specialised in the technological industry. More precisely, this group is one of the global leaders in lithographic materials destined for the semi-conductors sector.

We know for example that the equipment produced by the group is destined for the printing of integrated circuits on extremely fine silicon plates.

To best understand the activities of this group it is possible to divide them into different sectors according to the turnover generated by each and in which way.

  • The sales activities relating to lithographic materials represent the majority of this group’s income producing 73.8% of this group’s turnover. The company also supplies optical lithographic components and products.
  • The remainder of this group’s turnover, which represents 26.2% of the total, is from the provision of services.

It can also be advantageous to know the geographical distribution of this group’s revenue as ASML currently achieves only 3.5% of its turnover in Europe, Africa and the Middle East. Its principal market is Taiwan with 33.8% followed by Korea with 29.7%, China with 16.6%, the United States with 11.9%, Japan with 3.9% and Singapore with 0.6%.

Analysis of ASML share price
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The major competitors of ASML

We shall now take a closer look at the sectarian environment of the ASML Company, and more precisely its major competitors on the market. In fact, other companies may recover parts of this company’s market share so it is important to monitor them.

Texas Instruments

It is also important to follow closely the Texas Instruments Group which is a renowned American company active in the electronics sector and specialised in passive electronic components and semi-conductors. The registered office of the group is in Dallas, Texas and this group currently employs over 30,000 employees for a catalogue of over 80,000 products including micro-controllers, processors, captors, wireless connections and scientific calculators.

Analog Devices

Finally, the Analog Devices Group is another American competitor of ASML, it is based in Cambridge, Massachusetts and is specialised in the production and sale of integrated circuits and digital integrated circuits.

The major partners of ASML

Of course, there are times when the ASML Group has implemented strategic partnerships with other companies, notably with the following example:

Carl Zeiss

In 2019 the group strengthened its existing partnership with the German optic group Carl Zeiss and bought 24.9% of the capital of one of its subsidiaries, Carl Zeiss SMT. The objective of this agreement was to facilitate the development of next generation extreme ultraviolet lithographic systems expected during the beginning of the 2020s. This technology would enable the semiconductor industry to produce higher performance microchips at a lower cost. It should be noted that ASML had already bought a minor shareholding in the Carl Zeiss SMT Company and had not originally planned to buy a larger share at a future date. Carl Zeiss SMT is a critical optical systems supplier for ASML. The two groups have collaborated with each other for over 30 years.

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Frequently Asked Questions

Who does the capital of the ASML Group belong to?

At present, the majority of the ASML Group share capital is owned by a number of large private investors as follows: Capital Research & Management Co World Investors with 5.37%, Capital Research & Management Co Global Investors owns 4.35%, The Vanguard Group holds 2.87%, Baillie Gifford with 2.84%, Norges Bank Investment Management holds 2.22%, ASML Holding NV owns 1.37%, Fidelity Management & Research with 1.20%, Amundi Asset Management SA with 0.94%, BlackRock Investment Management owns 0.93% et BlackRock Advisors with 0.93%.

What are the key dates in the history of the ASML Group?

There are several important dates to remember in the history of the ASML Company such as the year 1984 when the company was first created through a joint venture between ASM International and Philips. In 1988 the company became independent and in July 1999 it acquired the MaskTools Group. In May 2001 it proceeded with the acquisition of the Silicon Valley Group and in March 2007 it was the turn of Briton Technologies Inc. Finally, in 2016 ASML proceeded with the acquisition of Hermes Microvision which is a Taiwanese company specialised in the detection of defective chips.

On which stock markets is ASML quoted?

The share price of the AMSL Group is of course quoted on the Amsterdam stock market and therefore also Euronext Amsterdam, as well as the Nasdaq market in the United States. This double quotation is because this company is one of the major companies in the IT industry worldwide like the other companies quoted on the Nasdaq which are its major competitors.

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