ASML Holdings will release earnings shortly. Ponder this Bear Case Scenario
ASML depends on the deeply cyclical semiconductor industry for demand. Essentially they are hostage.
ASML depends on a handful of powerful customers and will sell only several hundred systems each year.
Dependence on a limited number of suppliers for key components exposes ASML to pricing power and possible disruptions to its supply chain.
This firm is beholden to others for its raison d’etre. Not a good way to take on risk.
George Gutowski writes from a caveat emptor perspective.