Why I'm Not Selling ASML After a 230% Gain - The Motley Fool

ASML, the world's sole provider of extreme ultraviolet (EUV) lithography systems, holds a dominant position in the global semiconductor supply chain. Despite a 230% gain since early 2021, the author a... Read original →

ASML’s monopoly on EUV lithography has cemented its role as the indispensable gatekeeper of advanced semiconductor manufacturing. With AI-driven demand accelerating 3nm and sub-3nm capacity expansions at TSMC (Taiwan, China) and Samsung, ASML’s order backlog is secured well into 2027. However, tightening U.S. export controls toward China are inflating compliance costs and embedding geopolitical risk premiums into its valuation. Competitors like Nikon and Canon remain confined to mature-node DUV tools, lacking any credible EUV counterplay. Over the next 12–24 months, ASML’s High-NA EUV ramp will widen the technology gap further, locking in a closed-loop advantage across equipment, process integration, and computational lithography. Despite elevated multiples, its position as foundational infrastructure for AI hardware justifies a structural premium.