ASML’s Amazing Earnings ✨

If you haven’t heard about the semi shortage by now, well… it’s bad. Without semiconductors, carmakers can’t build cars, tech companies won’t produce phones or laptops, and your smart fridge isn’t very smart. 🤖 💔

Uh-oh is right. 

Now, chipmakers are building new foundries to keep up with demand—Intel will invest $20B to expand its foundry business. World-leader TSMC will spend $100B to keep its market lead. 

But if chipmakers make the chips, who makes the equipment that makes the chips? ASML is one of the biggest producers of semiconductor equipment. The company reported Q2 earnings today, and absolutely crushed it. 🥊 💰 

EPS: $3.04 vs. $3.00 est (+41% YoY*)
Rev: $4.84B vs. $4.93B est (+21% YoY*)
* ASML reports in Euros, which we have converted to $USD for convenience.

The company also raised its earnings consensus today, forecasting 35% sales growth in 2021 (up from 30% estimated in the previous quarter). 

In the coming months, ASML could be a major demand indicator for the semiconductor industry. It’s unlikely it’ll fall off anytime soon given the robust demand that chipmakers have yet to meet. 📈

$ASML accelerated 5.4% today. It’s up 44.2% YTD.

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