Analyst talks semiconductor outlook: 'There is absolutely no lack of demand'

Shares of ASML Holding (ASML) are under pressure on Wednesday after the company reported that its net sales fell 21.6% year-over-year. To discuss the situation, Insinger Gilissen Senior Equity Analyst Jos Versteeg joins the Morning Brief.
Versteeg explains that the demand for ASML's products is not lacking, but rather, the order flow is "lumpy." He points to 2023 order inflows as an example, with the second half of the year witnessing order inflows of $13 billion - $9 billion of which was in the last quarter alone. Versteeg cautions investors not to read too much into these order inflow numbers, as they do not necessarily "express that the market is weak."
Furthermore, Versteeg notes that for the past two months, semiconductor sales have been declining, suggesting that the market could be "hesitating." Coupled with the order inflows reported by ASML, Versteeg understands why investors may be "shocked." However, he emphasizes that order inflow numbers do not accurately reflect the company's performance. Despite these short-term fluctuations, Versteeg remains "positive" on ASML's long-term prospects and has "no worries" about the company's future demand and profit success.
"There's a very strong long-term demand for semiconductors and ASML is in the right spot," Versteeg tells Yahoo Finance.
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[@TuyenHuynh-cl7ec]

Yeah. They'll sign and pay for that equipment next quarter.
Next quarter: we'll pay it next quarter.

[@AdvantestInc]

What are the anticipated trends in demand for lithography systems within the AI and electric vehicle markets over the next few years?

[@thetradersam6157]

ASML is a monopoly, temporary drop, this one is a long hold play...

[@Larryake]

He has a huge bias

[@jakejoyride]

Ai bubble already bursting

[@thenotoriousgoob]

Not likely. Perhaps short term it goes down that just means it’s all on sale. Continue to buy