SK Hynix said Tuesday it will purchase $7.97 billion worth of extreme ultraviolet (EUV) lithography tools from ASML Holding NV (NASDAQ:ASML), marking the largest single order publicly disclosed by an ASML customer.
Reuters reported on Tuesday that SK Hynix said it would purchase the tools by December 31, 2027 for use in the mass production of next-generation memory, including AI-focused high-bandwidth memory (HBM) and advanced DRAM.
Analysts said the tools will support production at the company’s Yongin and Cheongju plants. Bernstein estimates the deal covers about 30 EUV machines over two years.
ASML reported a 38.8 billion euro order backlog at the end of 2025.
Technical Analysis
ASML is trading 1.3% below its 20-day simple moving average (SMA) and 11.4% above its 100-day SMA, a setup that says the longer-term uptrend is still intact even as the near-term trend cools. Shares are up 88.18% over the past 12 months and are positioned closer to their 52-week highs than lows.
The RSI is at 49.52, which sits in neutral territory and suggests momentum is no longer stretched after the late-February peak. Meanwhile, MACD is at -10.5869, below its signal line at -4.7646, reinforcing that bearish pressure is still in control in the short run.
The combination of neutral RSI (49.52) and bearish MACD suggests mixed momentum.
- Key Resistance: $1407.50
- Key Support: $1316.00
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the April 15, 2026 (confirmed) earnings report.
- EPS Estimate: $7.61 (Up from $6.31 YoY)
- Revenue Estimate: $10.21 Billion (Up from $8.14 Billion YoY)
- Valuation: P/E of 47.8x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock has a strong buy rating and an average price target of $1333.11. Recent analyst moves include:
- RBC Capital: Outperform (Raises Target to $1625.00) (Jan. 29)
- Wells Fargo: Overweight (Raises Target to $1650.00) (Jan. 29)
- Barclays: Upgraded to Overweight (Jan. 29)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for ASML, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 93.84) — The stock is still acting like a leader on a multi-month basis despite the current pullback.
- Quality: Bullish (Score: 96.18) — The score points to strong underlying business quality versus the broader market.
- Value: Weak (Score: 6.45) — The market is pricing ASML at a steep premium, leaving less room for error if growth expectations cool.
- Growth: Bullish (Score: 89.27) — Expectations for continued expansion remain a key pillar supporting the longer-term trend.
The Verdict: ASML’s Benzinga Edge signal reveals a classic High-Flyer setup, with strong Momentum, Growth, and Quality paired with a weak Value score. That mix tends to work best when the stock can reclaim short-term trend levels; if it can’t, the premium valuation can amplify downside toward support.
Top ETF Exposure
- First Trust NASDAQ-100-Technology Sector Index Fund (NASDAQ:QTEC): 3.12% Weight
- First Trust BuyWrite Income ETF (NASDAQ:FTHI): 2.32% Weight
- First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ:QQEW): 2.79% Weight
Significance: Because ASML carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
ASML Stock Price Activity: ASML shares were down 0.05% at $1369.00 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
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