What's Going On With Taiwan Semi Supplier ASML Stock On Wednesday?

ASML Holding NV ASML stock is trading higher Wednesday amid reports of the company planning to deliver its latest high-NA extreme ultraviolet chipmaking machines to Taiwan Semiconductor Manufacturing Co TSM and Samsung Electronics Co in 2024.

By year-end, all three major clients, including Intel Corp INTC, will receive these advanced machines.

Intel already received its first shipment in December for its Oregon factory, Bloomberg cites ASML CFO Roger Dassen.

ASML’s new machines, capable of imprinting semiconductor lines just 8 nanometers thick, will support AI applications and advanced electronics. Despite TSMC’s concerns about the roughly $381 million (350 million euros) price, demand remains strong.

Jefferies analysts predict ASML’s orders will average $6.21 billion (5.7 billion euros) per quarter for the rest of the year, potentially boosting 2025 sales to 40 billion euros. They expect TSMC to use high-NA at the A14 node in 2028.

ASML expects a more robust recovery in demand in the second half of the fiscal year.

It expects the U.S. chip embargo to impact up to 15% of its sales to China in 2024.

Also, TSMC’s plan to hike the prices of its chip production services sent the broader sector down on Tuesday.

ASML stock gained 35% in the last 12 months. Investors can gain exposure to the stock via VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX.

Price Actions: ASML shares traded higher by 6.58% at $1,013.41 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via ASML