ASML is the closest thing to a monopoly you're likely to find today, and it is absolutely vital to the semiconductor industry. I just covered ASML (ASML +1.29%) recently, but the company released its Q4 2025 earnings a few days after I wrote that piece, and, well, they were pretty great, to say the very least. They've solidified my prediction that this company might be the best semiconductor play ...
ASML is the closest thing to a monopoly you're likely to find today, and it is absolutely vital to the semiconductor industry. I just covered ASML (ASML +1.29%) recently, but the company released its Q4 2025 earnings a few days after I wrote that piece, and, well, they were pretty great, to say the very least. They've solidified my prediction that this company might be the best semiconductor play for 2026. ASML is a unique company for many reasons, but most notably is its monopoly on extreme ultraviolet (EUV) lithography machines, of which it is the only provider. Those lithography machines are absolutely essential for producing advanced semiconductors (anything 3 nanometer or smaller). Each machine is about the size of a bus and costs almost half a billion dollars. The company's latest earnings report show that ASML's monopoly is extremely lucrative, and as it still has no competitors, it's one that's likely to continue for the foreseeable future. Let's take a deeper look at its incredible end to 2025. Banner year for ASML I'll start with the most staggering number. In Q4 2024, the company received 7 billion euros' worth of new bookings. For Q4 2025, ASML received 13.15 billion euros' worth of bookings. That's an almost 88% increase year over year, and it shows that demand for ASML's products is growing at a blistering pace. Sales of EUV lithography machines grew 39% and totaled 11.6 billion euros, or just over one-third of the company's entire revenue for the year. On top of that, ASML recorded net sales of 32.6 billion euros for 2025, a 15.5% increase over 2024. Net income topped 9.6 billion euros on the back of that, a 27% increase over 2024. And the company's earnings per share (EPS) shot up 28%. To highlight how critical ASML's EUV machines are, both to its business and the global semiconductor market, it saw a 6% decrease in sales of its older deep ultraviolet (DUV) lithography machines to 12 billion euros for 2025. Yet despite that decrease, ASML still saw g...
Susumu Yoshioka/DigitalVision via Getty Images Introduction & Financials Lamb Weston ( LW ) offers a compelling turnaround opportunity following their significant investment cycle, with the stock already reflecting conservative expectations while currently trading not far from the level they were at when they spun off from Conagra Brands ( CAG ) almost a decade ago. Lamb Weston IR The stock fell b...
Susumu Yoshioka/DigitalVision via Getty Images Introduction & Financials Lamb Weston ( LW ) offers a compelling turnaround opportunity following their significant investment cycle, with the stock already reflecting conservative expectations while currently trading not far from the level they were at when they spun off from Conagra Brands ( CAG ) almost a decade ago. Lamb Weston IR The stock fell by about 25% on the day of their Q3 release , as even though the company advanced on their Focus to Win strategy to regain market share in North America and other key international markets, that came at the cost of prices, recording an 8% increase in volume and maintaining a $1 billion to $1.2 billion EBITDA outlook, but also seeing an 8% decline in their price/mix, which they say is the result of the support for their customers in a competitive market, although it can also highlight the pressure seen in the macroenvironment, which I’ll mention below. In their defense, we should also think about the long-term benefits of “locking in” these contracts, as they can likely do small increases over time and secure clients that might’ve otherwise went to their competition, which could’ve then expanded into even bigger issues. Lamb Weston IR As we can see, the company’s CAPEX has been very significant in recent years as they’ve been adding significant capacity to their global network, while FY26 and FY27 should be pivotal, with the company potentially proving their “true” potential. This may also be a reason why they crashed significantly, as the market was likely not expecting such a major price cut as part of their turnaround. Lamb Weston IR We can already see a massive drop in CAPEX over the first half of FY26 while the net cash from operations grew very well, which could be a sign that their expansion is indeed working and they’re able to see the benefits of this massive investment cycle and cost savings program. Lamb Weston IR As they show, the CAPEX should reach ~$500 million ...
Credit investors should guard against potential downside risks tied to “AI exuberance” after optimism around the technology helped yield premiums drop to their lowest in decades, according to HSBC Bank strategists. “In the US, a significant share of recent US GDP growth is tied to AI, whether directly through investment spending or indirectly through the wealth effect from AI-related stocks,” said...
Credit investors should guard against potential downside risks tied to “AI exuberance” after optimism around the technology helped yield premiums drop to their lowest in decades, according to HSBC Bank strategists. “In the US, a significant share of recent US GDP growth is tied to AI, whether directly through investment spending or indirectly through the wealth effect from AI-related stocks,” said Song Jin Lee and Tom Russell in a report. “Any disappointment could reverberate through credit markets through several channels.” Corporate bond spreads are near their tightest levels since the run-up to the 2007 global financial crisis, as investors look past geopolitical gyrations and chase yields that remain elevated by historical standards. Even with a strong macroeconomic backdrop, the upside for bond investors appears limited, especially as technology giants sell tens of billions of dollars of debt, putting pressure on credit spreads to potentially widen. Pricing has already “fully reflected” a benign outlook for the debt class, supported by mostly healthy fundamentals for corporate borrowers in developed markets, the strategists wrote. However, the moves in premiums have failed to reflect the “narrow base on which the current optimism is built.” The bank is urging investors to consider diversification strategies that keep some distance from US tech bonds, pointing to parts of the euro credit, which are less exposed to the AI cycle. Most of the gains from further upside for the US economy and AI will go to equity holders, not creditors, according to the strategists. Even with upside surprises in AI, US private credit has significant exposure to high-yield software companies whose business models may be challenged. Asian investment-grade credit may provide protection against a downturn in risk sentiment and fiscal-induced volatility, the note added. HSBC isn’t the only one pointing to skewed risks for credit at current spreads. Christian Mueller-Glissmann , head of as...
U.S. President Donald Trump said late Monday that his administration is seeking $1 billion in damages from Harvard University. “We are now seeking One Billion Dollars in damages, and want nothing further to do, into the future, with Harvard University,” Trump said in a Truth Social post. Dear Readers: We recognize that politics often intersect with the financial news of the day, so we invite you t...
U.S. President Donald Trump said late Monday that his administration is seeking $1 billion in damages from Harvard University. “We are now seeking One Billion Dollars in damages, and want nothing further to do, into the future, with Harvard University,” Trump said in a Truth Social post. Dear Readers: We recognize that politics often intersect with the financial news of the day, so we invite you to click here to join the separate political discussion. More on news and analysis Berkshire Hathaway: I'm More Bullish Than Ever Halozyme Therapeutics: Key Acquisitions To Help Drive Long-Term Growth Mont Royal Resources Limited (MRZL:CA) Shareholder/Analyst Call Transcript CION Investment prices $125M unsecured notes due 2031 Ashland reports mixed Q1 results; narrows FY26 outlook