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Benzinga
Benzinga
Business
Henry Khederian

Why ASML Holding Stock Is Seeing Blue Skies

Shares of ASML Holding NV (NASDAQ:ASML) edged higher by 3.3% to $709.10 Monday afternoon as the U.S. government announced stringent new export controls targeting China's semiconductor sector.

The measures, which restrict advanced chipmaking tools, memory technologies, and AI-related software, could reshape global supply chains, further solidifying ASML's dominant position in advanced lithography systems.

What To Know: ASML, based in the Netherlands, is the world's only supplier of extreme ultraviolet (EUV) lithography machines— equipment essential for manufacturing semiconductors used in applications such as artificial intelligence, high-performance computing and 5G technologies.

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While the sanctions block shipments to 140 Chinese entities, including semiconductor toolmakers and chip manufacturers, ASML remains largely insulated due to its geographical and operational alignment with allied nations like the U.S., Japan and the Netherlands, which agreed to comply with the restrictions.

The export controls, however, could amplify demand from non-Chinese chipmakers such as Taiwan Semiconductor Manufacturing Co., Samsung and Intel, all of which rely on ASML's EUV systems to maintain their technological edge.

The restrictions also expand foreign direct product rules, potentially increasing ASML's relevance in supplying markets shifting away from reliance on China.

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Investors can gain exposure to ASML by investing in the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ).

How To Buy ASML Stock

By now you're likely curious about how to participate in the market for ASML Holding – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, ASML has a 52-week high of $1,110.09 and a 52-week low of $645.45.

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