ASML shares could rally with chip demand -Barron's
NEW YORK Dec 14 (Reuters) - Shares of Dutch chip equipment maker ASML Holdings (ASML.AS) (ASML.O) could eventually double if chip demand returns to pre-recession levels in 2010, according to a report in Barron's Dec. 15 edition.
With semi-conductor makers such as Advanced Micro Devices (AMD.N), losing money, shares of their suppliers such as ASML and Applied Materials (AMAT.O), have flagged, Barron's wrote, adding that ASML was the cheapest stock in that group.
ASML shares closed at $16.44 on Friday on the Nasdaq.
But the chip makers will need ASML's lithography scanners for the memories and processors required for the next generation of cellphones and Apple's (AAPL.O) iPod, Barron's wrote.
ASML's cash and cost structure will help it weather the recession. If demand for chips recovers after the downturn, ASML's sales could rise 20 percent in 2010, which would make it a good bet for investors willing to wait out the downturn, Barron's wrote. (Reporting by Phil Wahba; Editing by Leslie Adler)
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