UBS Group released a report stating that Dutch semiconductor company ASML (ASML.US) had steady quarterly results, but news of possible new trade restrictions in the United States dragged its stock price. After the market sell-off, it was believed that there was room for its stock price to rise, but the risk-return was not as attractive as before the fourth quarter of last year. ASML's strong orders are primarily driven by DUV lithography equipment, and it is estimated that orders for EUV lithography equipment in the second half of this year will be healthy, and next year's revenue is expected to reach the upper limit of guidance.
The bank predicts that ASML will obtain an additional 8 to 10 EUV equipment orders from Taiwan Semiconductor (TSM.US) in the second half of the year, while it is estimated to be 8 units this quarter, and the market demand for memory will drive an increase in EUV equipment orders.
UBS Group believes that the Chinese market, which accounts for 49% of revenue, continues to be the main growth driver for ASML. Due to the recovery of demand in other regions, it is estimated that the proportion of business in China will return to the normal level of 20% to 25% next year. Even in the face of the risk of trade restrictions, the company's orders can still remain strong, and the bank's profit forecast for ASML for the next two years remains roughly unchanged. (cy/w)
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