ASML calls itself "the most important tech company you've never heard of." As investors learn more about the company's role in making the world's most advanced semiconductors, that label may become less accurate. That revelation may have helped raise its stock price to $1,000 per share, making it the 20th most expensive U.S. stock. Investors wonder if ASML will split its stock this year at such a low price.
ASML stock and situation Stock splits this year or at any other time are guesswork. The corporation has not announced a stock split. No splits have been allowed by ASML in years. After three dot-com bubble stock splits, its last was an 8-for-9 reverse split in 2007.
The company has altered since then. Since 2007, it has led EUV machine production. The corporation has an apparently insurmountable competitive advantage. Thus, Lam Research and Applied Materials equipment can only compete in less sophisticated semiconductor markets.
Thus, Taiwan Semiconductor and Samsung's fabrication plants need ASML's EUV machines to make the world's most advanced semiconductors, which power AI.
ASML is crucial in the semiconductor supply chain. Moreover, manufacturers have received tens of billions in subsidies to create such chips outside Taiwan, where two-thirds of the world's third-party production capacity is. ASML will likely be crucial to this move.
Why ASML may split its stock Whether or whether ASML permits a stock split, its technical lead makes it a buy. Also, stock splits do not directly affect valuations or ownership positions. One $1,000 share equals 10 $100 shares.
Some investors feel a separation will improve ASML interest. The company's 17-year history of stock splits and adjustments is one explanation. Since the reverse split, the stock has surged 28-fold, setting a record high nominal price
Moreover, a lower nominal share price encourages smaller investors to buy ASML shares. These investors can buy fractional shares, but they may incur costs (if they are available) and limit their appeal.
Share splits are also psychologically bullish. The corporation signals to investors that the stock price will rise. The rising demand for AI chips and initiatives to build more fabs worldwide should keep ASML shares rising for years. The corporation may split again in the near future.
ASML stock splits Although ASML has not announced a share split, it has compelling reasons to. The semiconductor stock should have a secular bull market due to its position as the leading equipment producer and expanding demand.
True, the company's nominal share price doesn't influence that pattern. However, a psychological boost and increased small investor interest would encourage investors to contemplate such a move.
stay turned for development