Elon Musk's “Oppenheimer Moment”
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Elon Musk, the man who never stops pushing boundaries just did something astonishing… He just unleashed this new project… One that an ex-google engineer says is more powerful than the atomic bomb… And now… he's having his own “Oppenheimer moment”… Because, just like J. Robert Oppenheimer when he created the atomic bomb…Musk is realizing the gravity of what he's unleashed upon the world. Yes, a lot of people will get rich from this new project… But I believe those who don't prepare could soon be trapped in an economic death spiral. I believe they'll fall behind and might never be able to catch up. Goldman Sachs economists are already warning that 300 million jobs could simply disappear. One industry insider even warned that “Nobody is safe.” Millions of Americans will end up on the losing side of this paradigm shift… But you do NOT have to be one of them. Click here and learn how to prepare.
ASML Holdings, the Dutch technology giant, has recently experienced a sell-off following its Q2 earnings report and the subsequent report of its largest customer, Taiwan Semiconductor Manufacturing. Despite a cautious outlook for 2024, we believe that ASML presents a compelling investment opportunity, particularly in light of the company's prospects for 2025.
Monopoly in Key Technology
ASML holds a monopoly in extreme ultraviolet lithography (EUV), a critical technology in the production of advanced semiconductors and DRAM memory. In the era of artificial intelligence, the demand for leading-edge semiconductors and DRAM is expected to remain robust. While the broader semiconductor industry is currently in a slump, ASML's unique position in the market and its technological advantage make it a strong contender for long-term growth.
Strong Backlog and Growth Projections
ASML has a significant backlog and has projected stronger-than-expected growth of around 30% this year, primarily driven by a surge in demand for DUV machines for trailing-edge chips used in EVs, IoT applications, and other industrial end-markets, particularly in China. While management has expressed caution for 2024 due to global economic uncertainties, the company's strong backlog and growth projections provide a solid foundation for future performance.
Promising Outlook for 2025
Despite the uncertainty surrounding 2024, ASML is poised for a strong performance in 2025. This is due to several factors:
New Fabs Coming Online: A number of leading-edge fabs for the 2nm node are set to come online in 2025. These are likely to proceed regardless of the global economic situation due to competitive and strategic reasons, with Samsung making a significant push to catch up to TSMC on the 2nm.
Demand for New EUV Machine: The 2nm node will likely require ASML's NXE:3800E EUV machine, the next generation from the current NXE:3600D model. This new machine is priced above 200 million Euros, a significant increase from the current model, which is priced around 150 million Euros. This price uplift is expected to lead to a rise in gross margins.
Potential Up-Cycle in Mature Industry Segments: By 2025, the smartphones and PCs bought during the pandemic may be reaching the end of their useful lives, potentially triggering an up-cycle in the mature parts of the industry.
Investment Consideration
ASML's stock may experience further declines due to fears of a soft year in 2024. However, we believe that any such decline would present a buying opportunity. The company's likely revenue and profit acceleration in 2025, driven by the factors outlined above, make it a compelling investment for those with a long-term perspective.
In conclusion, while short-term uncertainties exist, ASML's monopoly in key technology, strong backlog, and promising outlook for 2025 position it as a potentially rewarding investment opportunity. As always, investors should carefully consider their own risk tolerance and investment objectives before making investment decisions.
Elon Musk just Triggered a BOOM in These Stocks
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Something strange is happening in the stock market…
This select group of stocks are going absolutely bananas.
We're talking gains of 230%, 379%, even a mind-boggling 865%…in mere months…
This isn't normal.
But it's happening.
And it's all because of Elon Musk.
You see, the Tesla founder just flipped the switch on a new technology…
One that's creating ripple effects across a small corner of the stock market…
Sending stocks flying one after the other.
But here's the catch… only a handful of investors have caught on to this.
Which means there's still time for you to get in.
