ASML: Strengthening Competitive Advantages in Critical Global Industry

Rodrigo Lopez Buenrostro of KUE Capital presented his investment thesis on ASML (Netherlands: ASML, NYSE: ASML) at Wide-Moat Investing Summit 2025.

Thesis summary:

ASML, the dominant supplier in the semiconductor lithography equipment industry, recently traded at €680 per share, reflecting a market capitalization of approximately €270 billion and an enterprise value of €260 billion. ASML has a monopoly on EUV (Extreme Ultraviolet) lithography machines, a critical technology required for manufacturing advanced semiconductor chips. The company’s market position is reinforced by high entry barriers and proprietary technologies, effectively insulating it from competitive threats.

The core investment thesis revolves around the structural growth of global semiconductor demand, propelled by advancements in computing, data centers, AI technologies, and an expanding global internet infrastructure. ASML’s lithography machines are central to enabling ongoing progress in chip miniaturization, directly underpinning Moore’s Law. The company’s unique technological leadership, particularly in EUV and DUV machines, positions it strategically to capture disproportionate economic benefits as the industry continues its upward trajectory.

ASML’s strong competitive moat is amplified through its installed base management, leveraging a high-margin service and upgrade business driven by continuous innovation and customer lock-in. Additionally, ASML strategically reinvests about 100% of its net income into its business, maintaining a robust R\&D pipeline aimed at further technological advances, such as the development of Hyper-NA machines, which solidify its competitive edge and growth trajectory.

Despite its robust competitive positioning and substantial reinvestment in growth initiatives, ASML faces risks including the potential slowing of Moore’s Law, the concentrated customer base for high-NA technology, possible technological disruptions, and geopolitical tensions affecting supply chains and trade dynamics. However, the company’s prudent risk management and strategic patience in the face of uncertainties provide a strong buffer. With high returns on new investments (approximately 20% RONE) and a compelling valuation, ASML represents a high-quality investment, though investors may prefer to wait for a more favorable entry price closer to €600 per share.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

First name:

Last name:

Email address:

City / state / country:

Company:

How did you hear about MOI Global? Select Member referral Staff This website Media / Internet Other

If referral, please provide member's name:

Which of the following applies most closely to you? Select Investment Firm - Head Investment Firm - Analyst or PM Institutional Allocator - Firm C-Level Executive Institutional Allocator - Firm Employee Family Office - Head or Co-Owner Family Office - Employee Non-Investment Firm - C-Level Executive Non-Investment Firm - Employee Other

How do you hope to add value to the community?

Leave this field empty if you're human:

About the instructor:

Rodrigo Lopez Buenrostro is a Partner at Kue Capital where he invests to preserve capital over time. He currently leads the asset management division within the firm and divides his time between equity research and manager selection with a global mandate. Previously, Rodrigo worked as a summer equity analyst at SW Investments, a value-focused hedge fund in Chicago. He began his professional career as an Investment Banker at BBVA. Rodrigo is an MBA graduate from Chicago Booth Class of 2015 where he earned a concentration in Analytic Finance and was actively involved in the Investment Management community. He studied Business and Accounting at ITAM for undergraduate where he wrote his graduating thesis on hedge funds and started to invest personally. Rodrigo has always had an interest in finding the real value of assets, reading, and volunteering to teach basic concepts related to investing.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.