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Introduction

The stock of ASML Holding N.V. (ASML), one of 5 constituents in our AI Hardware (Semiconductor) Equipment and Material Suppliers Portfolio, fell 8.4% last week spooked by a mix of cautious guidance, macro concerns, and investor disappointment:

About ASML

ASML, a Dutch semiconductor company, remains one of the most important semiconductor supply chain companies in the world. It makes extreme ultraviolet lithography (EUV) machines that are necessary to manufacture the most advanced microchips. It has a current market capitalization of $286.5B.

Reasons For Stock Decline

1. Weak Q3 Guidance: ASML's revenue growth in Q2 (which ended June 29th) was virtually flat (-0.6%) and its Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) - which depicts the company's core operating performance - were down 1.7%, but its Q2 report included a weaker-than-expected Q3 guidance.
2. Uncertain Growth In 2026: Its CEO, Peter Wennink, stated that the Company “cannot confirm” growth for 2026, citing macroeconomic and geopolitical uncertainty—a comment that spooked investors.
3. Profit Taking: After a strong rally (+19%) from its low at the end of April, the tempered outlook triggered profit-taking last week.

Our AI Hardware (Semiconductor) Equipment and Material Suppliers Portfolio

Below is how ASML's stock performed last week (w/e July 18th) compared to its peers, in descending order, and MTD: 

1. Entegris (ENTG): UP 3.6% w/e July 18th; UP 10.2% MTD
2. KLAC Corp. (KLAC): UP 0.7% w/e July 18th; UP 4.6% MTD
3. Lam Research (LRCX): DOWN 1.1% w/e July 18th; UP 3.6% MTD
4. Applied Materials (AMAT): DOWN 3.8% w/e July 18th; UP 3.9% MTD
5. ASML Holding (ASML): DOWN 8.4% w/e July 18th; DOWN 7.7% MTD  

Summary

On average, the 5 constituents went DOWN 3.1% w/e July 18th and are now DOWN 0.05% MTD (but UP 23.6% YTD).

Conclusion

Despite the dip, ASML remains a strategic leader in EUV lithography and AI chip infrastructure. The 8 analysts that cover ASML Holding stock have:

• a consensus rating of "Buy" (meaning that analysts believe this stock is likely to outperform the market over the next twelve months) and
• an average price target of $914.40, which forecasts a 25.9% increase in the stock price over the next year. The lowest target is $767 and the highest is $1100.

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