ASML Stock Soars Amid Booming Chip Demand, But Faces Risks of Overvaluation and Growing Competition
• ASML's stock price has soared over 20% this year due to high demand for its chip-making hardware from AI and semiconductor companies.
• Morgan Stanley research shows ASML is one of Europe's most "over-owned" stocks, suggesting it may be overvalued and due for a correction.
• Some analysts have warned of a bubble in AI stocks, but investor fears seem to have receded as companies like Nvidia keep posting strong results.
• ASML faces challenges like Samsung withdrawing its stake in the company and competition from Canon trying to undercut ASML's prices.
• Despite being "over-owned," past trends indicate ASML could keep outperforming the market index for some time.