Is ASML Holding N.V. (ASML) A Good Stock To Buy Now?

<p>Is ASML a good stock to buy? We came across a <a href="https://substack.com/@realvasileios/p-180653543?utm_source=profile&amp;utm_medium=reader2">bullish thesis </a>on ASML Holding N.V. on Vasileios Prassas’s Substack by Vasileios. In this article, we will summarize the bulls’ thesis on ASML. ASML Holding N.V.'s share was trading at $1,357.42 as of March 9th. ASML’s trailing and forward P/E were 44.97 and 37.74, respectively according to Yahoo Finance.</p>
<p>ASML Holding N.V. (ASML) is the world’s most critical supplier of lithography machines used in semiconductor manufacturing, making it a foundational player in the global digital economy. Chips begin as silicon wafers and are built layer by layer through repeated manufacturing steps, with lithography acting as the “pen” that prints microscopic patterns onto each layer.</p>
<p>ASML dominates this step, holding a near-monopoly in advanced lithography and being the sole provider of extreme ultraviolet (EUV) machines, which use 13.5nm wavelength light to produce the smallest features required for modern chips.</p>
<p>These machines are essential for leading semiconductor manufacturers such as TSMC, Intel, Samsung, and SK Hynix, and the company continues pushing the technological frontier with its next-generation High NA EUV systems that further improve precision and transistor density. ASML generates roughly 75% of its revenue from machine sales and 25% from servicing them, creating a hybrid model of transactional and recurring revenue tied to long-term semiconductor fabrication planning cycles.</p>
<p>Over the last twelve months through the third quarter of 2025, ASML reported approximately €32 billion in revenue, gross margins of about 51–52%, and net income of €9.2 billion, reflecting strong profitability supported by an unparalleled technological moat. That moat is reinforced by extreme engineering complexity, deep customer integration, massive capital and time barriers to entry, and a highly specialized supplier ecosystem developed over decades.</p>
<p>The bullish thesis centers on structural growth drivers that are expected to expand lithography demand over the next decade, including the rise of AI computing, the migration of memory chips to EUV, global government investment in semiconductor manufacturing capacity, and increasing chip complexity that requires more layers and more lithography passes per wafer. As chips become larger, more sophisticated, and increasingly stacked in three-dimensional architectures, semiconductor manufacturers will need more lithography capacity, while ASML simultaneously benefits from rising machine prices as the industry transitions from DUV to EUV and High NA systems.</p>