4 ms·
agreed but ASML has been chronically undervalued forever.
by randomcarbloke 2y ago
agreed but ASML has been chronically undervalued forever.
- nejsjsjsbsb 2y agoI went for some Asian index funds to balance things out for this reason.
- api 2y agoThe people who really make the magic generally do not capture the hype.
- PeterStuer 2y agoHave you priced in the extremely limited freedom to operate they have? There is an extreme systemic risk to being a monopoly in a strategic position. It's an extreme beneficial position to be in, until it isn't.
- randomcarbloke 2y agodo you have a model for "short-leash monopolies" would definitely put that in The Book.
- aix1 2y agoWould you mind expanding on what you mean by this? I'm struggling to follow. Thanks.
- PeterStuer 2y agoASML for now has a monopoly on cutting edge EUV. Since this is considered a strategic technology, the US dictates what they can sell to whom. This places ASML in a pincer. The US will develop a competitor as soon as they can if they can't get enough control over ASML, and at that point ASML would still be forbidden to sell to BRICS while losing the 'western' market as well. So they're in a plushy seat, until the US decides they aren't.