ASML Holding Share: Already -10% Over the Week, Stock Falls Another 5%
The Dutch manufacturer of lithography machines is losing ground during the session, following quarterly results in line with expectations. European semiconductor stocks are trading in the red, while the CAC 40 is advancing.
A Correction in Technology Stocks Affecting the Entire Semiconductor Sector
The ASML Holding share is down 5.13% to €1,449.80, compared to €1,528.20 at the previous close. It has fallen below its 20-day moving average (€1,555.36) and its 50-day moving average (€1,519.46), but remains 6.07% above its 200-day moving average, a decline that adds to a 9.96% drop over the week. The movement is part of a correction in European semiconductor stocks, in the wake of global technology shares.
The acceleration of American inflation is reviving concerns about interest rates. Investors are also questioning the financing of artificial intelligence infrastructure and the rise of Chinese competition in memory chips. The CAC 40, however, is gaining 0.28% mid-session.
Price Targets Maintained at Buy Following Third Quarter Results
This decline follows the release on October 14: €11.7 billion in revenue and €5.0 billion in net income, sales in line with analyst expectations. The group had raised its annual revenue forecast in July to a range of €43 to €45 billion. On the analyst ratings side, UBS raised its price target from €2,350 to €2,400 while maintaining a buy rating.
BofA Securities lowered its target from €2,557 to €2,507, still at buy. According to the consensus of surveyed analysts, the stock is trading at approximately 37.7 times current fiscal year earnings and 27.8 times next fiscal year earnings. The support level at €1,378.80 is the nearest technical level below the current price.
