Chip shortage sends ASML pumpingASML, one of the world’s largest suppliers to semiconductor companies, released some electric earnings and hiked its 2021 sales outlook, sending the stock to its highest closing price ever with a jump of 5.4%.
Even though ASML Holding was already one of the giants of the semiconductor industry, the past year has seen the stock absolutely explode as the world-wide chip shortage worsens. The global semiconductor drought has been going on for a while now, disrupting production in a huge range of industries, from automobiles to medical appliances. However, there are some that have benefited from the crazy demand, and Dutch Tech giant ASML has been one of them, thanks to its expertise in developing and building the basic components used by chip systems. The stock has seen gains of over 157% since the beginning of March 2020 when the pandemic hit.
If you don't believe us, the proof is in the pudding, because ASML just just released its second quarter report and it not only beat its earnings target but hiked its guidance. Earnings per share came in at €2.52 per share n €4.02 billion in revenue, compared to expectations of €2.50 in earnings per share on revenue of €4.07. Net profit for the quarter rose 38% to €1.02 billion, and the chip fabricator hiked its 2021 sales growth guidance to 35%. As the cherry on top, ASML will buy back 9 million euros worth of its own stock by the end of 2022.
CEO Peter Wennink said.