DCF Conclusion Study on ASML (ASML)

Key Chipmaker within the SOXX ETF.

Hi Everyone,

TSM’s strong June sales figures and robust outlook is sparking another very strong Semiconductor rally today ahead of U.S. inflation data tomorrow (CPI Thurs/PPI Fri). This is not necessarily a surprise given that our DCF’s conclusion on TSM was that it was one of the higher potential ideas within SOXX ETF.

Today’s DCF Conclusion Study will be on ASML. Technically speaking, ASML isn’t a top 10 weighted stock in SOXX ETF (this ETF isn’t market cap weighted). However, I rate ASML as substantially more important within the SOXX due to its role in the semiconductor ecosystem compared to smaller peers like Marvell and Monolithic Power Group.

ASML is also one of the largest and most important stocks within Europe’s main stock market index, the Euro STOXX 50.

When ASML moves higher, this company has the ability to spark a simultaneous global risk on rally in both Euro and U.S. indices because of its close supply chain relationship with TSM (which in turn has a very close supply chain relationship with U.S. Big Tech).

We’ll discuss below.