ASML Stock Drops 30%: Is This a Strategic Buy for AI-Focused Traders?

ASML Stock Plummet, by 30%. Should AI-centric Traders Consider Investing at This Point?

ASML shares have seen a decrease of 30% in the year and closed at $667.41 on April 11 after a daily decline of 2.75%. This decline reflects the strain on technology-focused indexes to global economic changes and evolving trade strategies. However, there are reasons behind these figures beyond fluctuations in the market.

This company from the Netherlands, which specializes in lithography tools, has a position in providing EUV machines. An element in producing the latest cutting-edge semiconductors that leading industry giants such as TSMC and Intel use for manufacturing advanced AI chips exclusively with ASMLs technology, at the core of AI hardware production.

In 2024, the company managed to sell 44 EUV machines, making up 38% of its net system sales of €21.8. The overall revenue for the year amounted to €28.3. There was an increase of 2.6%. Compared to the year due to issues with supplies and increasing tensions, on a scale.

The broader perspective indicates a shift in focus is occurring. The worldwide need for AI chips is swiftly increasing. In 2024, the semiconductor sector saw a growth of 19.1%, hitting $627.6 billion. Predictions indicate it may exceed $1 trillion by 2030. For Q1 of 2025 onward, ASML expects revenue between €7 .5and €8 billion—a possible increase of around 40%.

This ongoing progress is why I have my eye on ASML now. While a drop in price might seem concerning at glance, the solid foundation and industry prominence could lead to gains in the long run, particularly for individuals interested in AI-driven investments.

Make sure to stay alert with your watchlist for ASMLs decline isn’t due to issues. Rather a result of market strain.