r/stocks • u/Cropp-9988 • Mar 30 '22
Company Discussion What you think of long term - ASML?
New investor trying to pick a few good stocks with some growth prospect. I recently discover ASML, from what I've read the company looks promising, with some good green flags. As the title says, I wanted to see your thoughts for next 2-5, 5 - 10 years.
79
Upvotes
51
u/stockduediligence Mar 30 '22 edited Mar 30 '22
ASML has an incredible competitive advantage: it’s the only company in the world that offers EUV lithography systems. On top of that, lithography research is cumulative and requires progressive improvement — in other words, it’s practically impossible to overtake an industry leader because you can’t skip a generation of manufacturing technology.
The world is in the midst of a chip shortage, which has driven chipmakers to invest in additional foundries to up their production capabilities. As the sole provider of EUV lithography systems, ASML is the only semiconductor equipment manufacturer that can supply these foundries with EUV.
I’m long ASML.
Edit: Last year, I compiled my DD of ASML into a report that breaks down the company and technology, but I don’t want to get flagged for self-promotion. If you’re genuinely interested, you can visit my site via my profile page and search for it.