ASMLA key company in the supply chain of biggest chipmakers.
Earnings coming up this month - price could potentially drop prior to earnings.
However, chips have seen a large tailwind in the recent weeks about AI spurring chip demand for 2025, that resulted in a lift for all chip maker stocks.
Micron recently outperformed their quarterly targets and saw an increase in stock of 17% intraday, coming down a bit lower to end the day.
Similarly, the AI tailwind could result in a similar uplift for ASML, as it is one of select companies offering a unique service that will be in increasing demand in the years to come.
The chart technical indicated a pennant, albeit slightly downward facing, indicating a risk of further downward movement. That being said, the industry news at large is overwhelmingly positive and slated for a rise in 2025 and with this risk reward ratio, it is a good hand to play while limiting downside risk.
