ASML Holding - leader on the semiconductor's market

Jul 20, 2022

High inflation has led to a global rise in prime interest rates. The tightening cycle is creating an environment that is driving investors away from tech stocks. For this reason, since the beginning of this year, Nvidia shares have fallen significantly. Despite the decline, for the past 10 years, Nvidia still delivers a total return of nearly 4,500%. Analysts expect its growth to slow down for some period of time. This creates a need for a substitute for those investors, who are looking for opportunities in the semiconductor world. One such alternative could be ASML Holding, a Dutch company that trades at roughly half of Nvidia's market cap.

ASML (part of the MF Compass Global Trends’ portfolio) is the world's largest manufacturer of photolithographic systems which are used to etch circuits on silicon wafers. It is also the only manufacturer of extreme ultraviolet (EUV) lithography systems, which are necessary to produce the smallest and densest semiconductors. ASML's EUV systems cost about $200 million each and are delivered by multiple aircraft. Among Its biggest customers are Taiwan Semiconductor Manufacturing, Samsung and Intel. These companies are caught up in the race to produce the world's most advanced chips. Each of them must secure an increasing number of EUV systems produced by ASML in order to stay ahead of the "race".

ASML is gradually rolling out its next-generation 'high NA' EUV systems. The cost of such a system amounts to about $300 million. Thanks to this system, manufacturers will be able to create even smaller chips – beyond 2nm. This technology practically turns ASML into an indispensable basis for the semiconductor market and currently does not face any significant competition. Thanks to its monopoly, the company's gross profits are constantly increasing. ASML's earnings are expected to grow at an average rate of 11% between 2020 and 2030. Revenues could reach 50 billion euros – almost three times the revenue in 2021. The company expects most of this growth to be driven by EUV and high-NA systems.

If you want to take advantage of this tendency….
Take a look at how you can buy shares from the mutual fund “Compass Global Trends”: https://bit.ly/compass-global-trends
Choose our solution - Savings plan through investments in mutual fund “Compass Global Trends”: https://bit.ly/compassinvest-savings-plan

This information is marketing material and does not present investment consultation, advice, investment research, or investment recommendation. The information is valid as of the issue date of the marketing material and may alter in the future. The value of the units in the collective investment schemes changes over time and it could be higher or lower from the value at the time of the investment. No profits are guaranteed and risk exists for the investors to not receive the full amount of their investments. Investments are not guaranteed by a guarantee fund which is created by the country or another form of guarantee. Information on the performance of the financial instruments in the past is not a reliable indicator for future performance. Therefore, it is recommended for investors to acquaint themselves with the Prospectus and the Document with key information for investors before making a final investment decision. You can find these documents in Bulgarian on the website of Compass Invest - www.compass-invest.eu, and you can request and get a free paper copy at the office of the management company at: Sofia, 19 George Washington Str, floor 2, during every business day from 9 am to 5 pm. Future results are subject to taxation, which depends on the personal situation of each investor and may change in the future. A summary of the rights of the investors is available at the following hyperlink in Bulgarian: here. The mutual funds, which are managed by Compass Invest, are actively managed without following an index. We would like to inform you that Management Company Compass Invest can make a decision to terminate the offering of funds on the territory of the Republic of Bulgaria. The investment in units of mutual funds, in addition to benefits, carries certain risks like: liquid, operational, interest, currency, and political risk, as well as macroeconomical risk, currency risk, concentration risk, etc. The full information about risks can be found in the Prospectus of the respective fund.

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Additional information for the risks can be found in the Prospectus of the respective fund, which is available here: www.compass-invest.eu

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