ASML stock has a outstanding track record for the past 20 years in the global stock market. The company of semiconductor, with its state of the art photolithography technology has become the backbone of this industry.
ASML is a company that produces devices, which cooperate with different organizations to fabricate tiny chips for electronic applications. In the industry, their tech is a must-have for the development of high-performance semiconductors that are used in smartphones, and computers, among other devices.
At the time of its initial public offering (IPO) in the late ’90s, few people knew about the ASML stock. However, with the innovation and advanced technology it has become the giant in the semiconductor industry.
The company has been inventing the technology that was used in the creation of the most advanced chipsets for smartphones, data centers, and AI systems, thus placing it at an irreplaceable position in the largest electronic companies in the world.
ASML’s Journey to Dominance in the Semiconductor Market
ASML’s prestigious status today, first and foremost, had been set in motion by the heavy injection of EUV in the early 2000s. Despite the fact that Nikon and Canon also focused on photolithography, ASML’s technology innovation made it a breakthrough. The chips made by ASML’s machines were such that they were more nimble and powerful, consequently, the demand for the company’s products was very high.
Throughout its journey, ASML has established its presence in the domain of semiconductor technology quite well through cooperation, which were carried out with the greats such as Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, Intel. Such foreseen partnerships turned ASML from just another player in the semiconductor industry to the top of the industry chain and supply contributor.
The Remarkable Rise of ASML Stock
Those who were able to detect the ability of ASML at the initial stage have been well paid. In the prior 20 years, ASML stock has obviously surpassed the entire market by an extensive margin. A $500 worth of ASML stocks, if purchased twenty years ago, would have turned out to be $12,500 at present. In contrast, an identical investment in the S&P 500 index would have grown by approximately $2,500 during the same interval.
The stock of ASML has produced an 18% compounded annual growth rate, which is more than double the 10.5% of the S&P 500 over the same period. This continual and outstanding success story is proof that ASML holds a powerful position in the semiconductor market and has the capability to maintain excellent performance for their investors.
Can the Rally of ASML Continue?
The coming days hold much more promise for ASML, largely because of the increasing demand for advanced semiconductors, that is, driven heavily by the artificial intelligence, 5G, and electric vehicle realms. ASML’s EUV technology is the key element that should be a facilitator in the growth of their capability to meet the challenge. The company has all the necessary requirements to prosper in these areas and the same time keep their position in the industry of semiconductors.
ASML is now driving the growth. Featuring in numerous analysts’ forecasts, the company’s standing as a leader in the industry is ever-growing. Serving as the most critical innovative section and the vital part of the chip production process, ASML is indeed the best place for those who want to invest in future technology.
ASML’s staggering 20-year gain has been attributed to its creativity and dominance in the market. If back in 2003, you had purchased $500 of ASML stock, it would have undoubtedly been a much larger investment by now, excellent evidence that long-term investing in a company with a strong growth potential can be very powerful. ASML’s continuous headship in semiconductors makes it the favorite among persons looking forward to an investment in technological progress.
If you are interested in tech stocks, check out the story of NVDIA, “What If You Invested $500 In NVIDIA Stock 20 Years Ago?“
