ASML – You have it in your pocket!

ASML is a leading supplier to the semiconductor lithography segment. Lithography-related capex is expected to increase in the next few quarters given the rising silicon content in smart devices and the migration to advanced products. The business of ASML is relatively unique, and therefore it has a high industry barrier. The company enjoys high pricing power, meaning margins can expand. Longer term, ASML is also positioned to benefit from the extreme ultraviolet lithography product cycle, given its dominant position and a likely significant increase in pricing for these products.