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# ASML: Why It's Too Early To Buy (Archive)
- URL: https://www.huntingalphas.com/asml-why-its-too-early-to-buy-archive-copy/
- Published: 2025-03-11T09:27:00.000Z
- Updated: 2026-02-28T14:49:48.000Z
- Description: ASML’s growth hinges on services as weakening system demand and bookings temper upside.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, Tech, ASML

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Service revenue streams on the installed base seem to be ASML's incremental growth driver, whereas system sales have been falling, casting doubt on demand health.
- More particularly, unit sales volume declines are concerning and reflective of sluggish demand. An increased mix of used unit sales also indicates increasing price-sensitivity among customers.
- TTM net bookings have also started to tick down, leading to another signal of longer-term demand risks. Unfortunately, management intends to stop disclosing this metric in FY25.
- On the other hand, valuations are at a lower than usual premium vs semiconductor equipment peers. And the relative technicals show a balanced fight between the bulls and the bears.
- Gross margins are a key monitorable; Q1 FY25 guidance beat expectations, but H2 FY25 outlook is flagged to be weaker.

Read the full article [here](https://seekingalpha.com/article/4766396-asml-why-its-too-early-to-buy?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*