Timm Schulze-Melander, Redburn Atlantic’s most critical ASML analyst, predicts tough times ahead for the Dutch manufacturer of chip-making machines in 2024. According to the analyst, it is possible that sales will drop by four percent.
Redburn Atlantic analyst Timm Schulze-Melander labelled the most critical ASML analyst, tells Bloomberg that he sees a difficult 2024 ahead for ASML. In his view, the Dutch manufacturer of chip machines is going to face more capacity problems than its competitors.
Lurking problems
ASML is going to suffer from a glut of lithography machines in China and limited production capacity itself, according to the analyst. Other factors that are going to come into play include “technical and commercial” hurdles that will be raised and are not agreed upon. It is unclear whether the analyst is referring to the U.S. government’s various export restrictions on supplying high-end machinery to China.
Further, there could possibly be turmoil over the succession of current CEO Peter Wennink. Wennink’s term ends in 2024.
Decline in ASML sales
More specifically, all these obstacles on the way for ASML in 2024 are going to lead to a four percent drop in sales, the critical analyst expects. This is remarkable because sales of European and American competitors of the Dutch tech giant are expected to increase by five percent next year.
Consequently, in its stock market recommendations, Redburn Atlantic has been giving a “sell” recommendation for ASML lately. Competitors such as Applied Materials and the Dutch ASM International, however, receive a “buy” recommendation.
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