Driven by growing chip demand in 2025, analysts at Jefferies predict ASML Holding ( ASML) will likely enjoy a boom in orders in the next quarters.
Projected to reach 3.6 billion in the fourth quarter of 2024 and then accelerate to between 5 billion and 6 billion in the first quarter of 2025, the tech giant is likely to see a healthy bump in orders. Two important consumers connected to this expected increase are Samsung (SSNLF) and Taiwan Semiconductor Manufacturing (TSM).
Should Samsung be able to provide high-bandwidth memory chips to Nvidia (NVDA), Jefferies analysts are of the opinion that Samsung's orders might rise dramatically, directly benefiting ASML's revenue base. As demand for advanced chipmaking equipment drives recovery from recent slowdowns, the forecasted order shows that there's plenty in the tank for ASML.
Still a major supplier to the worldwide chip market, ASML is positioned to profit from the rising investment in innovative technologies ahead.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.