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If ASML Is Awesome Again, This ETF Could Surge

BY | ETF Database
6:54 am ET 08/07/26 | 37 VIEWS
Dutch semiconductor equipment giant ASML Holding NV (ASML) is not a value stock in the strictest sense of that term, but like any other growth stock, this artificial intelligence (AI) play delivers periods in which it offers some value relative to the norm.One of those periods may be right now, particularly with the shares down almost 6% over the past month. ASML’s modest value status could open the door to opportunity with the Direxion Daily ASML Bull 2X ETF (ASMU). ASMU debuted in February as part of a four-ETF expansion to Direxion’s suite of leveraged single-stock ETFs. ASMU is designed to deliver 200% of the daily returns of the semiconductor gear stock, confirming that the new ETF packs a punch and it should be extended the latitude investors might grant to traditional value stocks. For traders that can handle the volatility associated with leveraged ETFs, ASMU may be worth near-term examination with shares of ASML being somewhat attractive from a value perspective. “Semiconductor equipment and materials firm ASML dropped 7.16% over the past week, bumping its Morningstar Rating to 4 stars from 3,” noted Bella Albrecht of Morningstar. “The company’s stock is up 13.36% over the past three months and 136.05% over the past year. The stock’s price is 21% below its fair value estimate of $2,050 per share, with an Uncertainty Rating of High. The large-growth stock has a wide economic moat.”More ASMU AnglesAt this point, it’s widely known that ASML isn’t just a wide moat AI play. It’s a near monopoly, and that status could signal occasional event-driven opportunity with the geared ASMU. “ASML’s exclusive control over extreme ultraviolet lithography has evolved from a technological advantage into a structural bottleneck for the entire AI revolution, with pricing power that management explicitly acknowledges is more flexible as customers face a ‘perfect storm’ of demand,” according to EveryTicker. Adding to the allure of ASMU as a short-term vehicle — emphasis on “short-term” — is ASML’s ability to deliver production improvements to clients (semiconductor manufacturers), which in turn provides the company with pricing power, further feeding its wide moat. “The demonstration of a 1,000-watt EUV light source in 2025 will enable 330 wafers per hour by 2031, a 50% increase from current levels. High-NA EUV can reduce mask counts from 3 to 1 and process steps from 100 to 10 for certain layers,” added EveryTicker. “These improvements directly reduce customer cost per wafer, making ASML’s tools more valuable and supporting price increases. Management explicitly states that the current environment provides more flexibility for pricing because the value delivered is so substantial.”For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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