ASML's Q2 2024: Orders, China, and High-NA EUV
Hi reader and welcome back to another post,
ASML reported its Q2 earnings this week on Wednesday and they were good despite the market’s reaction…
The truth is that the stock probably reacted the way it did due to reasons different than earnings, namely due to rumours of more export restrictions to China. The entire industry was down on this news, which I will discuss later.
What’s interesting is that the stock drop made many people react negatively to earnings, in some cases making things up like for example that orders were weak and that they were not enough to meet the 2025 guidance. None of these is true, but people either…
Have not read the earnings in detail
Want to find a justification for any stock price movement (note that in many cases no fundamental justification exists for short term movements)
I don’t know what moved ASML’s stock the way it did, but a high valuation coupled with more export restrictions makes much more sense to me than the “weak orders” argument.
As most of you know, I am not particularly keen on analysing ASML’s quarterly numbers because I think the company’s nature and fast shipments make these pretty misleading. For this reason I will go over the numbers briefly and will focus on the qualitative highlights.
Without further ado, let’s get on with the article.