ASML Earnings: Continued 2023 Strength and a Positive Long-Term Outlook Help Maintain Our $750 FVE

We maintain our $750 fair value estimate for shares of wide-moat ASML after the firm's third-quarter results met our expectations. ASML continues to enjoy strong growth in 2023 despite a soft chip market, in large part due to immense demand out of China for trailing-edge systems. We expect this demand to moderate going forward, both organically and due to recently updated U.S. export restrictions. Nonetheless, we believe ASML will make up for it with demand in other geographies. We like management's longer-term commentary for a robust year in 2025, with rebounds in both the logic and memory markets. We continue to see ASML as a blue-chip firm with a strong grip on the lithography market that will enable durable long-term growth. We see shares as nicely undervalued.