Time To Look At ASML And Other Chip Equipment Companies? (ASML, INTC, AMAT, KLAC)

ASML Holding N.V. (ADR) ASML has continued to see buying interest, with calls being actively purchased on the name, and perhaps that may be a sign for you to look at shares. Intel INTC is getting set to report earnings on April 19, and given that ASML provides semiconductor equipment for the semiconductor fabrication companies, ASML may indeed benefit from Intel's earnings report. Intel said last quarter it was going to spend around $9 billion on capital expenditures, and a significant portion of that could go to ASML. As Intel continues to increase its capital expenditures, this should benefit the suppliers, like ASML and perhaps Applied Materials AMAT, and KLA Tencor KLAC. As the tools for semiconductor fabrication continues to get more complex, the supply costs go up, which benefits the suppliers of the equipment. ASML shares aren't expensive at these levels either, trading below 11 times 2011 earnings, and it sports a 1.1% dividend yield to boot. The company sports a 45% return on equity, and has significantly more cash than debt on its books. Perhaps the option traders are trying to tell you something about Intel's quarter. Maybe you should pick your head up and listen, especially if you believe what Intel had to say in its last quarterly results. ASML Holding N.V., through its subsidiaries, engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits