Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineASML is still a core holding for investors despite big share price rally
ASML (ASML:AMS) €634.90
Gain to date: 139.9%
Original entry point: Buy at €264.60, 23 April 2020
Regulators might not like them but investors love a monopoly and Dutch microchip tech firm ASML remains the only company in the world with the extreme ultraviolet lithography machines that chip giants like TSMC, Intel and Samsung need to make the smallest and most sophisticated microprocessors.
In the 18 months since we said to buy the stock has more than doubled. Experts believe substantially more value will be created for investors over the next year or two.
Last month the €262 billion business raised forecasts and said it can see revenue growth of around 11% annually through to 2030 amid booming demand for its products.
That would imply nearly €30 billion of sales, having done €14 billion revenue last year. Gross margins will climb from 46% to 55% this decade, the company believes.
According to Morningstar data, a £10,000 investment five years ago would today be worth close to £65,000. That shows the exceptional value-creation capability of the stock and why we firmly see ASML as a core holding for investors.
SHARES SAYS: ASML remains a great long-run value creator. Keep buying the shares.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Education
Feature
Great Ideas
- A costly TeamViewer error: hands up, we called this stock wrong
- ASML is still a core holding for investors despite big share price rally
- Bank of England prediction for rising insolvencies good for FRP
- Right time to own Ruffer as inflation pressures mount
- EasyJet shares are underpricing the airline’s recovery potential
- The fund that seeks to defend against inflation
Investment Trusts
Money Matters
News
- Entain’s silence on DraftKings takeover approach is puzzling
- IPOs still coming thick and fast despite some cancellations
- Knock-on effects from higher gas prices are wider than many think
- ASOS shareholders hope new CEO can revive share price growth
- Chubb’s $5.7bn Asian deal has positive read-across to Prudential
