Top Tech Stock ASML Holdings Sees No Letup in Demand
One tech stock with an extremely compelling growth runway is European semiconductor-equipment maker ASML Holdings (NASDAQ: ASML). The company is the sole technology provider of extreme ultraviolet lithography technology (EUV), which is key in producing leading-edge semiconductors. In the future, EUV might also be used to produce DRAM memory.
During the coronavirus outbreak, the tech world has been unsure as to how semiconductors, and therefore the producers of semiconductor production equipment, might be affected. On the one hand, lower gross domestic product (GDP) from a recession should cause a downturn in consumer demand. However, the stay-at-home economy has also led to a demand spike in chip-heavy data center, gaming, and PCs.
ASML is one of the first tech companies to report earnings, which it did on Wednesday, April 15. At first glance, ASML's Q1 results came in much worse than it had initially guided for. However, a further look under the hood showed that this was due to supply delays and revenue recognition, not a decrease in demand, which appears to be going full steam ahead. That makes ASML a compelling pick today.
Source Fool.com
