Resilient by Design
In this edition of the Smart Investor newsletter, we examine the stock of the largest independent broker-dealer in the U.S. But first, let’s dive into the latest Portfolio news and updates.
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Portfolio Updates
❖ Market & Portfolio Update: At the close of their worst quarter since 2022, stock indexes are logging heavy losses year-to-date, and the market doesn’t seem anywhere near the end of the turbulence. We have warned in previous newsletters about a market correction and the possibility of a bear market in the coming months. While this is not our base-case scenario, we take the risk of further downside seriously when assessing our portfolio holdings. However, we know that eventually, markets will rally again, and we therefore view current declines as an opportunity to pick great stocks at attractive prices.
At Smart Investor, we don’t base our “buy” and “sell” decisions on short-term market swings, except when price considerations come into play. Still, macro conditions affect all corners of the market, and some portfolio adjustments may be necessary, depending on how current developments reshape the economic backdrop – and, in turn, corporate earnings.
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❖ Jefferies recently lowered price targets across its U.S. software coverage, citing continued valuation multiple compression and early signs of macroeconomic softness affecting tech-sector deal activity. The firm said 2025 may shape up to be “another mullet year,” with a choppy first half followed by smoother momentum in the second, provided of course that macro conditions stabilize. Jefferies has not cut earnings estimates yet and remains in wait-and-see mode pending Q1 results and channel checks. As part of the move, price targets were trimmed across the large-cap software landscape, including Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), IBM (IBM), Oracle (ORCL), Salesforce (CRM), and others. Importantly, the revised targets still imply meaningful upside, reflecting continued long-term confidence despite near-term caution.
❖ Amazon (AMZN) has introduced Nova Act, an advanced AI agent designed to autonomously perform tasks within a web browser, such as making purchases, booking reservations, and filling out forms. This development positions Amazon to compete directly with similar AI agents like OpenAI’s Operator, which offers comparable web-based task automation. Nova Act represents a significant advancement in AI-driven automation, aiming to enhance user productivity by handling complex, multi-step tasks. The introduction of Nova Act reflects the growing emphasis on AI agents capable of autonomous web interactions.
❖ According to media reports, Hong Kong billionaire Li Ka-Shing’s conglomerate, CK Hutchison, is considering delaying the signing of a $22.8 billion deal to sell its Panama Canal port assets to a consortium led by BlackRock (BLK). While sources emphasize that the postponement doesn’t necessarily signal the collapse of the deal, it is increasingly vulnerable to geopolitical headwinds, particularly due to Beijing’s escalating opposition. The Chinese government has reportedly instructed state-owned enterprises to suspend new dealings with Li-linked entities and has ordered regulators to investigate the transaction for potential national security and antitrust violations.
❖ Lockheed Martin (LMT) has secured a series of high-profile U.S. and international defense contracts, reinforcing its leadership across both missile systems and military aviation.
The U.S. Army awarded Lockheed a $4.94 billion firm-fixed-price contract to produce the Precision Strike Missile (PrSM) Increment One, which will replace the aging ATACMS system. The deal runs through March 2030 and solidifies Lockheed’s status as the sole certified PrSM producer. Only one bid was received, further underscoring the company’s entrenched position in this critical niche.
Separately, Lockheed received a $208.12 million contract modification for continued development, testing, and integration of the air-launched AGM-158D JASSM-ER missile. That work will continue through December 2027, with $10.5 million in FY25 R&D funds obligated at award.
In another award, the U.S. Air Force increased the ceiling on an existing indefinite-delivery/indefinite-quantity (IDIQ) contract covering JASSM, JASSM-ER, future variants, LRASM, and future LRASM variants. The ceiling rose from $450 million to $600 million, providing Lockheed additional capacity to deliver long-term sustainment and life-cycle support across its long-range strike portfolio.
Internationally, Israel signed a major deal with Lockheed’s Sikorsky unit to upgrade and modernize its Air Force helicopters. According to media reports, the contract is worth hundreds of millions of dollars, and is part of Israel’s multi-year strategic investment in U.S.-aligned aviation platforms.
Together, these awards expand Lockheed’s exposure to both ground- and air-based modernization efforts, enhance backlog visibility, and position the company for continued U.S. and allied procurement. They also highlight the growing demand for integrated missile and aviation capabilities amid heightened global security tensions.
In other company news, Lockheed Martin and Alphabet’s (GOOGL) Google Public Sector announced plans to integrate Google’s generative AI into Lockheed’s AI Factory ecosystem, enhancing model deployment and accelerating AI-driven defense, aerospace, and scientific applications.
❖ GE Aerospace (GE) announced that Korean Air has placed a significant order for GEnx and GE9X engines to power its newly acquired Boeing 787-10s and 777-9s. This deal extends the long-standing partnership between the two companies and includes a comprehensive agreement for engine maintenance, repair, and overhaul (MRO) services. Notably, Korean Air becomes the first South Korean airline to select the GE9X, currently the world’s most powerful and fuel-efficient commercial aircraft engine.
The contract strengthens GE Aerospace’s presence in the strategically important Asian aviation market and represents a meaningful win in the highly competitive commercial engine space. The inclusion of long-term services further enhances the deal’s financial value by securing recurring revenue through ongoing MRO support.
This order not only increases GE’s installed engine base but also signals continued airline confidence in GE’s next-generation propulsion technology. GE Aerospace’s ability to land this deal with a global flag carrier like Korean Air highlights its technological edge and service reliability, both of which are critical competitive differentiators in the aerospace sector.
❖ According to media reports, Microsoft (MSFT) has closed its IoT & AI Insider Lab in Shanghai’s Zhangjiang Hi-Tech Park. The facility, opened in May 2019, was one of Microsoft’s largest AI and IoT labs globally. Zhangjiang Hi-Tech Park, established in 1992, is a major technology hub that hosts numerous multinational and Chinese tech companies.
While Microsoft has not formally explained the closure, analysts view it as another step in the escalating U.S.-China tech decoupling, pressuring American firms to scale back operations in the country. In 2024, Microsoft reportedly offered relocation packages to hundreds of China-based AI engineers and initiated large-scale layoffs. It also shut down its remaining physical retail stores in mainland China.
For Microsoft, whose revenue exposure to China remains under 2%, the move is more symbolic than material, signaling continued alignment with evolving U.S. policy on tech restrictions and national security concerns.
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Portfolio Stocks Under Review
❖ We are removing Salesforce (CRM) from “under review” status. While the stock has seen several price target reductions in recent weeks, most of these reflect broader market conditions rather than CRM-specific issues. Despite some concerns about the pace of returns on its AI investments, analyst sentiment remains broadly bullish.
D.A. Davidson has cautioned that Salesforce’s aggressive AI pivot, particularly the rapid rollout of Agentforce, may be diverting focus from its decelerating core business. They argue that Agentforce, while promising, is unlikely to materially impact revenue in the near term. Others take a more optimistic view, pointing to Agentforce’s early traction: over 3,000 paid deals since its October 2024 launch suggest meaningful momentum.
At its TrailblazerDX 2025 event in early March, Salesforce unveiled Agentforce 2dx – its most significant AI platform update since Einstein. The update enables low-code agent development and supports multilingual functionality. Citi and Wedbush analysts praised the platform as a potential monetization engine, and Barron’s noted it could contribute “billions in incremental ARR” over time. Goldman Sachs added that the update may accelerate AI monetization ahead of Salesforce’s original calendar 2026 timeline.
Most recently, Evercore ISI reiterated its “Buy” rating on Salesforce with a price target that implies more than 50% upside from current levels. The firm expressed confidence in CRM’s long-term growth trajectory and cited Agentforce’s early momentum as a key upside driver. While acknowledging that the company’s latest guidance fell short of some expectations, Evercore believes Salesforce’s strategic positioning in AI and its improving margin profile warrant continued optimism. They encouraged investors to view recent weakness as a buying opportunity. Finally, Salesforce raised its quarterly dividend from $0.40 to $0.42 – a signal of confidence in both its financial strength and long-term growth outlook.
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Portfolio Earnings and Dividend Calendar
❖ The Q4 2024 earnings season for the Smart Portfolio companies is over, with the next reports – from companies whose fiscal years are shaped differently – scheduled for mid-April.
❖ The ex-dividend date for Cisco Systems (CSCO) and Progressive (PGR) is April 3.
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New Buy: LPL Financial (LPLA)
LPL Financial Holdings Inc. is the largest independent broker-dealer in the U.S., providing investment and advisory services to financial professionals and institutions. Through its platform, LPLA supports independent advisors with technology, compliance, custody, and research, enabling them to serve retail investors across all stages of wealth. The firm plays a central role in the shift away from traditional wirehouses, offering a flexible, advisor-centric model that empowers personalized client relationships. With a growing footprint in wealth management and retirement planning, LPL combines scale, service, and autonomy to meet the evolving needs of advisors and investors in a dynamic financial landscape.
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Rise of the Platform
Founded in 1989, LPL Financial steadily grew into the largest independent broker-dealer in the U.S. by capitalizing on the secular shift away from traditional wirehouses – legacy brokerage giants with in-house advisors – toward advisor autonomy. Its early edge came from offering a platform model that combined back-office support with advisor independence, attracting thousands of breakaway brokers and RIAs.
The real inflection began post-2018, as LPL accelerated investments in technology, M&A, and scale. In 2019, LPL acquired the wealth management business of Allen & Company, expanding its presence in the Southeast. This was followed by several key tuck-in deals, including E.K. Riley, Lucia Securities, and M&T Bank’s retail brokerage unit, each helping LPL deepen regional footprints and broaden its advisor base. These acquisitions brought in billions in assets, expanding the firm’s total advisory and brokerage AUM (assets under management).
More recently, in March 2025, LPL announced an agreement to acquire Commonwealth Financial Network for $2.7 billion in cash, with the deal expected to close by year’s end. This acquisition – one of LPL’s largest ever – will add around 2,900 advisors and $285 billion in assets, further solidifying its market dominance.
LPL also expanded organically by partnering with large institutions like BMO Harris and CUNA Brokerage Services, which moved their entire brokerage operations – including advisors and client assets – onto LPL’s platform. These partnerships showed that LPL’s model appeals not only to independent advisors, but also to banks and credit unions seeking to outsource the complexity of running in-house brokerage operations. These wins demonstrated the platform’s appeal not just to independents but also to banks and credit unions looking to outsource brokerage infrastructure.
In parallel, LPL ramped up its digital transformation. The firm invested heavily in advisor-facing tools, automation, and AI-based compliance workflows to reduce friction and boost advisor productivity. By 2023, it launched Business Solutions – a suite of outsourced services covering marketing, CFO support, and virtual admin capabilities, further deepening advisor loyalty and wallet share.
The 2021-2024 rate cycle also structurally improved LPL’s economics. Rising interest rates dramatically boosted cash sweep revenue, solidifying its balance sheet strength. Even as rates began trending lower in 2024 – expected to be cut twice more this year – LPL continues to thrive by retaining elevated yields on cash balances, while leveraging its expanded scale and advisor base to drive recurring, fee-based growth.
In early 2025, LPL extended its custody capabilities, positioning itself as a direct competitor to Schwab and Fidelity among large RIAs (Registered Investment Advisers). That same year, it also partnered with Envestnet to expand portfolio management and data integration options across platforms.
Today, LPL supports nearly 29,000 financial professionals and continues gaining market share from wirehouses by combining scale, flexibility, and tech-driven operating leverage. Its multi-year transformation from a back-office enabler into a full-stack wealth infrastructure platform has firmly positioned it as a growth engine in the U.S. financial advisory field. With a market cap of nearly $26 billion and annual revenues of $12.4 billion, LPL is ranked #392 on the Fortune 500 list, reflecting its continued growth and increased revenue.
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Built for Uncertainty
LPL Financial stands out as a resilient play in a volatile market, combining structural defensiveness with upside optionality. As an asset-light, fee-driven wealth infrastructure platform, LPL carries no credit or underwriting risk – insulating it from the balance sheet shocks that often ripple through traditional banks and insurers. Its business model is rooted in recurring advisory fees, cash sweep economics, and outsourced brokerage services, all of which scale predictably across market cycles.
In times of volatility or market corrections, LPL benefits from heightened advisor engagement and increased demand for rebalancing, financial planning, and risk management. Market swings tend to push clients toward professional advice, and with tens of thousands of financial professionals on its platform, LPL captures that flow. Its model also includes interest income on client cash balances, which – despite moderating as rates trend lower – remains structurally higher than pre-2021 levels and continues to provide a meaningful earnings tailwind.
In more acute scenarios – such as a trade war, stagflation, or consumer retrenchment – LPL remains well positioned. The firm is entirely U.S.-based with its revenue streams derived from domestic activities, avoiding geopolitical spillover risks that could hit multinational banks or asset managers. Its diverse advisor base, spanning independents, RIAs, and financial institutions, gives it exposure to a broad swath of the U.S. wealth market without relying on any single client channel or asset class.
On the upside, LPL is strongly leveraged to a market recovery. Rising asset values lift advisory fees, and growing wallet share per advisor drives operating leverage. Its investments in tech, outsourced business services, and custody expansion provide long-term tailwinds independent of short-term conditions.
In short, LPL is not just avoiding trouble – it is positioned to gain market share because of it. In a market searching for clarity, LPL delivers scale, stability, and structural growth embedded in the future of U.S. wealth management.
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Strength in the Statements
As of year-end 2024, LPL Financial managed $1.7 trillion in total client assets, up 29% year-over-year – the strongest AUM growth in its history. The firm further solidified its position as the largest independent broker-dealer in the United States, a title it has held for over two decades.
In 2024, LPL generated $141 billion in total organic net new assets, representing a 10% annualized growth rate, up from 9% in 2023. In the fourth quarter alone, organic net new assets reached $68 billion, equating to a 17% annualized growth rate – highlighting continued advisor and client momentum.
Over the past five years, LPL’s asset base has grown at a 17.5% CAGR, fueled by steady net inflows, favorable market conditions, and strategic platform expansions. The firm’s client growth – measured by the number of financial professionals it supports – surged by 75% over the same period, reflecting successful recruiting and enterprise partnerships.
Revenue rose to $12.39 billion in 2024, up 23.2% year-over-year and more than double the $5.77 billion posted in 2020. This equates to a five-year revenue CAGR of 19.5%, driven by an expanding advisor base, rising cash sweep revenue, and broader wallet share via business services. Approximately 47% of total revenue comes from advisory and brokerage fees, while 34% now stems from interest-based revenue tied to client cash balances – creating a durable earnings stream even as rates begin to trend lower. The remainder comes from transaction-based revenue and sponsor payments.
Earnings growth has kept pace, scaling along with top-line growth. In 2024, adjusted EPS rose 21% year-over-year to $16.97. Over the past five years, EPS has compounded at 22.8% annually, underscoring consistent operating leverage and effective cost management. In Q4 2024, adjusted EBITDA rose 22% to $585 million, while gross profit grew 22% to $1.23 billion.
Balance sheet quality remains strong, with no material credit exposure and a capital-light operating model. LPL holds investment-grade ratings of “Baa3” from Moody’s and “BBB–” from S&P, reflecting its financial discipline and scale. Operating margins continue to expand, supported by disciplined reinvestment in technology, recruiting, and infrastructure – alongside regular buybacks and dividends.
In short, LPL’s financial profile reflects a high-growth, high-visibility platform with durable economics, expanding scale, and no reliance on credit risk – a rare combination in today’s financial sector.
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Growth at a Fair Price
LPL’s stock has risen over 25% in the past 12 months, far outpacing the S&P 500 as well industry peers like Raymond James and Ameriprise. Like many U.S. large caps, the stock hit an all-time high in February before pulling back about 13% during a period of market turbulence and shaken investor sentiment. As investors reassessed LPL’s fundamentals and its resilient, volatility-resistant model, the stock rebounded swiftly – gaining over 8% in just two weeks.
Despite the bounce, the earlier drawdown leaves LPL’s valuation far more attractive than just a few months ago. While LPL trades at a premium to the broader Financial sector average, that premium is justified by its non-cyclical revenue mix, high-margin growth, and absence of credit risk. Relative to direct peers, LPL sits near the middle of the valuation range. Discounted cash flow models suggest the stock is undervalued by roughly 30%, and top Wall Street analysts rate LPL a “Strong Buy,” with consensus price targets implying an additional 23% upside over the next 12 months.
In addition to capital appreciation, LPL rewards shareholders through consistent dividends and disciplined buybacks. It began paying dividends in 2015 and has issued quarterly payouts ever since. While its current dividend yield of 0.3% is modest, the combination of financial strength and a low payout ratio leaves room for meaningful dividend growth in coming years.
After pausing share repurchases to fund strategic acquisitions, LPL resumed buybacks in Q4 2024, repurchasing approximately $100 million during the quarter. The company currently has $282 million remaining under its active authorization. While no specific 2025 buyback target has been disclosed, the firm’s Q4 earnings release confirmed that future plans include “capital deployment, including share repurchase activity and dividends” – signaling that buybacks will remain a core part of LPL’s capital return strategy.
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Investing Takeaway
LPL Financial is the leading independent wealth management platform in the U.S., built to scale with market demand while withstanding economic uncertainty. Its advisor-centric model supports tens of thousands of financial professionals through custody, compliance, and outsourced services, positioning it at the center of a long-term shift away from traditional brokerage firms. A capital-light structure, recurring revenue streams, and no exposure to credit or underwriting risk make it structurally resilient across cycles. Ongoing investments in technology, business services, and custody expansion deepen advisor loyalty and unlock operating leverage. With a stable U.S. footprint, a growing advisor base, and a clear path to long-term margin expansion, LPL is positioned as a durable growth platform in modern wealth management, making it a compelling holding for long-term investors.
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New Sell 1: Autodesk (ADSK)
Autodesk has come under renewed pressure after activist investor Starboard Value escalated a proxy battle aimed at boosting margin growth and operational performance. Starboard, which holds a stake worth over $500 million, first disclosed its intent to nominate a minority slate of directors for Autodesk’s 2025 annual meeting on March 19.
That pressure intensified over the past week. On March 26, Starboard issued a letter to shareholders accusing Autodesk’s management and board of “poor governance and oversight.” The firm wrote: “We invested in Autodesk based upon our belief that the company is among the highest-quality subscription-based software businesses in the world, but one that has severely underperformed its true underlying potential.”
The same letter confirmed Starboard’s nomination of three directors for election at the upcoming shareholder meeting: Jeff Smith, Starboard’s CEO and founder; Geoff Ribar, former CFO of Cadence Design Systems and a board member at Starboard-backed Acacia Research; and Christie Simons, a senior partner at Deloitte who recently joined Micron’s board. The nominations mark a transition to full-scale activist engagement.
Autodesk responded immediately on March 26, defending its strategic direction and citing strong performance metrics, including 16% annual revenue growth since FY 2019 and over 2,400 basis points of non-GAAP operating margin expansion over that period. The company projects a further 200-300 basis point improvement in FY 2026. Autodesk also pointed to a recently announced restructuring plan, which includes a 9% workforce reduction and increased focus on AI and cloud initiatives – moves designed to address investor concerns around efficiency and innovation.
In its response, Autodesk accused Starboard of making misrepresentations and pursuing self-serving tactics, specifically referencing the activist’s decision to sell nearly half its stake mid-campaign. Still, the company said it remains open to evaluating Starboard’s nominees, with its board expected to review them in due course.
These developments highlight intensifying tensions between Autodesk and Starboard, with each side offering a starkly different vision for the company’s governance and trajectory. The proxy fight now brewing ahead of the 2025 annual meeting promises to be contentious.
Some investors and analysts view Starboard’s pressure as a possible catalyst for value creation, potentially accelerating Autodesk’s cost discipline and focus on high-growth segments like AI and cloud. Still, a successful outcome for Starboard is far from guaranteed – and with technology stocks already facing macro-driven volatility, the added uncertainty surrounding Autodesk is unwelcome. While we may revisit ADSK if clarity improves, we currently believe it is prudent to exit the position.
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New Sell 2: Hewlett Packard Enterprise (HPE)
On March 12, we placed Hewlett Packard Enterprise (HPE) under review following its unexpectedly weak FQ2 guidance, which triggered a staggering 25% plunge in its stock price. At the time, we noted that while the outlook warranted consideration of a sale under typical conditions, the broader market’s volatility and exaggerated sell-off suggested a potential opportunity to recoup some losses. We hoped that a stabilizing market – buoyed by optimism over more measured tariffs and a dovish Federal Reserve – might allow HPE to claw back some of these losses. Unfortunately, the landscape has shifted, and it’s now clear that holding this position no longer aligns with our strategy.
Since our last update, fresh developments have reinforced our concerns. Analyst downgrades have piled up, with several Wall Street brokerages dropping HPE from “Buy” to “Hold,” alongside reductions in price targets. These moves reflect a growing consensus that HPE’s challenges – tariffs squeezing margins, competitive pressures in the server business, and execution missteps – are not temporary setbacks but rather structural issues. The company’s recent decision to cut 2,500 jobs highlights its defensive pivot, signaling cost containment rather than confidence in growth.
Additionally, the uncertainty surrounding HPE’s $14 billion acquisition of Juniper Networks, now facing a DOJ challenge, adds another layer of risk just as management needs to rebuild market trust. With strategic clarity lacking and investor sentiment weakening, this added variable only compounds the downside risk.
The market atmosphere, while briefly lifted by macro and Fed tailwinds, has failed to provide HPE with meaningful recovery. The stock remains pinned near its 52-week low, and with no clear catalyst in sight, the window for a rebound appears to have closed. Holding now simply risks deeper erosion of value, at a time when capital could be redirected to more compelling opportunities. Our initial optimism about reversing some of the losses was reasonable, but the data now points to a different conclusion.
Thus, we are executing a sale of HPE from the portfolio. This decision locks in our current position, avoids deeper losses, and frees us to pursue opportunities with stronger fundamentals. We remain committed to navigating these turbulent waters with discipline and foresight, ensuring your investments are positioned for long-term success.
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New Sell 3: ASML Holding (ASML)
ASML is one of the world’s most important companies. It is the sole supplier of extreme ultraviolet (EUV) lithography machines used in the production of all advanced semiconductors globally. No high-end chip foundry can expand production without acquiring these systems, each of which costs over $150 million. Although the AI chip boom is directly dependent on ASML’s tools, the key question now is how fast that expansion will continue in the near term, given softening macro conditions and mounting trade pressures.
ASML is the backbone of the global AI trade. Its monopoly on EUV systems cements its role at the center of the semiconductor value chain, ensuring continued demand from TSMC, Intel, Samsung, and others. The company ended 2024 with a ~$41 billion order backlog, a reflection of strong long-term confidence in AI and high-performance computing growth. It shipped 44 EUV systems last year, up from 40 in 2023, supporting revenue resilience despite worsening short-term sentiment.
But despite its dominance, near-term risks are weighing on the outlook. Rising rates, persistent inflation, and geopolitical tensions have triggered more conservative spending across the chip industry. Major customers are slowing down: Intel delayed its $20 billion Ohio fab expansion to 2027, while Samsung has pushed back its Texas facility. These delays have contributed to weaker EUV bookings, pressuring ASML’s near-term sales trajectory. For 2025, ASML has guided for near-flat revenue year-over-year, a notable deceleration given its previous growth pace.
The situation with TSMC (TSM), ASML’s largest customer – responsible for over 25% of its revenues – is more constructive, but still not immune to turbulence. TSMC is set to begin accepting 2nm orders from April 1, targeting 50,000 wafers monthly by year-end, with Apple, AMD, Intel, Broadcom, and AWS lined up as initial customers. Its AI-driven 2nm ramp-up supports ASML’s order flow, yet not all signs are pointing up: February revenue dipped from January, likely due to seasonal and inventory factors, while TSMC’s decision to slow its Japan expansion citing “weak demand” and “tariff uncertainty” in non-AI segments like smartphones and autos signals broader caution that could soften ASML’s near-term bookings.
Geopolitics remain the wild card. The Dutch government’s export restrictions – imposed under U.S. pressure – have blocked ASML from shipping certain advanced tools to China, which accounted for about 40% of system revenue in 2024. With ASML’s 2025 guidance projecting that figure to drop to 20%, the market risk is very real. Any further retaliatory moves or expanded bans could slam the company’s growth in one of its largest regions.
Recent analyst actions mirror the short-term concerns. Most rate ASML a “Buy” due to its unmatched technology and critical position in the AI supply chain. But a number of leading analysts have lowered price targets in recent months, citing the convergence of macro headwinds, export risk, chip cycle slowdown, and capex deferrals. That’s translating into reduced near-term upside even for a company with stellar fundamentals and long-term dominance.
ASML shares are down over 30% from their July highs and still trade at a premium – which is more than justified long-term given its monopoly status, though it increases the stock’s vulnerability in the near-term. In a tech market this twitchy, with capital rotation intensifying, the risk is that ASML stagnates or slides further before the next upcycle kicks in. With uncertainty outweighing AI trade in the short term, holding ASML risks locking capital in a stock that may underperform until clarity emerges regarding the pace of semiconductor expansion. With capital better deployed elsewhere in this volatile market, we’re selling ASML now, poised to return when the semiconductor cycle rebounds.
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Smart Investor’s Winners Club
The 30% Winners Club includes stocks from the Smart Investor Portfolio that have risen at least 30% since their purchase dates.
The markets are in the red for the quarter, but our Winners’ ranks have remained unchanged, still including 12 stocks: GE, AVGO, TPL, ANET, HWM, EME, TSM, ORCL, PH, APH, IBKR, and ITT.
The first contender is still BRK.B with a gain of 26.29% since purchase. Will it close the gap, or will another stock outrun it to the finish line?
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Disclaimer
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