The sell off was purely geo political. Valuations are still rich looking at just the x30 you mention. But one can argue that in a persistent higher inflation world and the turmoil around chips the US needs their own Chip production excellence. Just like they have an energy advantage today, they need a technological advantage for the future, this can not be done by simply restricting china’s use of ASML (or any other machine from other manufacturers). So whether china will buy them, or someone else, the US is going to need to buy these machines. So I reckon ASML is pretty well suited to run up to 1300 per share in the not so distant future. If the Dutch government doesn't clunk up the tech sector that is.
The sell off was purely geo political. Valuations are still rich looking at just the x30 you mention. But one can argue that in a persistent higher inflation world and the turmoil around chips the US needs their own Chip production excellence. Just like they have an energy advantage today, they need a technological advantage for the future, this can not be done by simply restricting china’s use of ASML (or any other machine from other manufacturers). So whether china will buy them, or someone else, the US is going to need to buy these machines. So I reckon ASML is pretty well suited to run up to 1300 per share in the not so distant future. If the Dutch government doesn't clunk up the tech sector that is.
Still priced at a premium, but much deserved indeed. Fully agree with your views.
Thanks for the comment and sharing your thoughts!
https://open.substack.com/pub/emilyalexandraguglielmo/p/my-first-public-blogpost?r=2mtps5&utm_medium=ios
Thanks!