ASML Holdings NV (ASML 0.60%), a provider of lithography machines needed to manufacture semiconductor chips, and Micron Technology (MU -0.29%), a manufacturer of memory needed in all types of technology from cellphones to automobiles, recently announced some significant updates. Today's video focuses on recent news affecting ASML and Micron, current valuations for both companies, and an update on the current semiconductor market. Here are some highlights from the video:
- On Sept. 29, during its investors day presentation, ASML provided an update to its investors. Based on the strength in numerous markets in the semiconductor industry, ASML expects to reach annual revenue of 24 billion euros to 30 billion euros, with gross margins of 55% at the midpoint by 2025.
- ASML expects to provide significant returns to investors in the form of share buybacks and growing dividends. Between Sept. 20 and Sept. 24, ASML reported buying back over 50,000 shares each day. ASML's stock price on Wednesday, Sept. 29, is lower than the price ASML paid the week before.
- On Tuesday, Sept. 28, Micron Technologies reported its fourth-quarter earnings after the market closed. Unfortunately, investors were not happy with the upcoming quarter's guidance, which was lower than what analysts expected, causing the stock price to drop. Micron informed investors that a significant hit to the guidance was its PC customers' slowing demand for memory. Still, it is essential to note that the slowdown was caused not by consumer demand but by other chip shortages, which are stalling the production of computers.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Sept. 29, 2021. The video was published on Sept. 29, 2021.