ASML, IBD Stock Of The Day, Gets Rock Star Treatment

2026-02-20 18:15:42

			ASML Holding

				ASML Holding

			ASML

$ 1,461.77

IBD Stock Analysis

										*   3-weeks tight has firm support at 21-day line.
										*   Stock actionable on rebound, nears 1493.47 entry.
										*   Chip gear makers on a roll.

Composite Rating

98/99

Industry Group Ranking

3/197

Emerging Pattern

				Three Weeks Tight

Three Weeks Tight

				After a breakout a stock will sometimes consolidate tightly. A three-weeks tight is when a stock closes within 1% to 1.5% of the prior week's close. A four-weeks-tight pattern also is possible Offers entry for existing holders to add shares.

Not real-time data. All data shown was captured at 10:46AM EST on 02/20/2026.

Semiconductor equipment giant ASML (ASML) is the IBD Stock Of The Day as demand remains sky high for its advanced photolithography gear for making cutting-edge, AI-enabled chips. ASML stock is actionable from a short consolidation.

ASML’s equipment allows chipmakers to etch ever-smaller circuits on silicon wafers. That allows chip designers to pack more computing power on the same size chips with each new generation.

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On Jan. 28, ASML posted mixed results for the fourth quarter but provided a strong outlook for the current quarter and full year ahead.

The Netherlands-based company earned the equivalent of $8.78 a share on revenue of $11.61 billion in the December, according to FactSet. ASML reports financial results in euros. Analysts had expected earnings of $8.87 a share on sales of $11.19 billion in Q4. On a year-over-year basis, ASML earnings rose 23% while sales climbed 20%.

For the first quarter, ASML predicted sales of 8.55 billion euros ($10.08 billion), based on the midpoint of its guidance. Analysts were modeling 8.11 billion euros ($9.56 billion).

For 2026, it forecast sales of 36.5 billion euros ($43.03 billion), crushing estimates for 32.5 billion euros ($38.33 billion).

ASML Stock Near Record High

In afternoon trades on the stock market today, U.S. shares of ASML rose 0.6% to 1,467.50. ASML stock hit its all-time high of 1,493.48 on Jan. 28 after its Q4 earnings report.

ASML stock is in a three-weeks tight pattern, according to MarketSurge charts. It already is actionable, having cleared the bulk of the pattern, according to IBD trading guidelines.

ASML is tied for first place out of 28 stocks in IBD’s Semiconductor Equipment industry group, according to IBD Stock Checkup. Its industry group ranks third out of 197 groups that IBD tracks for performance.

The Dutch company is benefiting as chipmakers upgrade their equipment to the latest and greatest and also add new capacity.

ASML Is On Five IBD Lists

“ASML’s record order intake and strong guide for 2026 are the early signs of a strong upcycle, leading to stronger-for-longer growth in 2027 and beyond,” Citi analyst Andrew Gardiner said in a Jan. 29 client note. He rates ASML stock as buy.

Demand for processors for running artificial intelligence applications is driving the need for ASML equipment, analysts say. AI data centers also are fueling demand for memory and connectivity chips.

ASML stock is on five IBD stock lists: Leaderboard, SwingTrader, Big Cap 20, Global Leaders and Tech Leaders.

ASML stock has an IBD Composite Rating of 98 out of 99. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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