ASML (NasdaqGS:ASML) Stock May Be Pricey After Its 193% Run - simplywall.st

ASML (NasdaqGS:ASML) has delivered exceptional returns over recent years, with a cumulative gain of 192.9%, but current valuations suggest the stock is trading at a premium rather than offering clear ... Read original →

ASML’s current valuation already reflects strong market confidence in its photolithography dominance, yet its 58.1x P/E ratio far exceeds industry (51.4x) and peer (55.1x) averages, signaling a premium priced in. Technologically, this reinforces the bottleneck in semiconductor manufacturing, benefiting upstream suppliers like Applied Materials and Lam Research, though at higher input costs. Geopolitical tensions, especially U.S. export controls on China, increase supply chain risks, potentially undermining ASML’s long-term profitability. Competitors may accelerate R&D in EUV to close the gap. In the next 12–24 months, any slowdown in chip demand or escalation of tech restrictions could severely erode its valuation premium, making current investment highly risky.