Why one analyst still likes EUV after a big drop
The article argues that the investment case for EUV is still intact after a steep price decline. It maintains a buy recommendation despite the recent pullback.
The fund focuses on lithography and semiconductor photonics, with Taiwan Semiconductor Manufacturing, ASML, and Lam Research among its largest holdings. The analyst cites 2-nanometer production, advanced lithography, and chip-fab automation as demand drivers.
Since May 2026, the ETF has fallen 17%, but the article says its fundamentals remain solid, pointing to a 26.13x forward P/E and a lower expense ratio than peers. It also warns that concentration and semiconductor/AI volatility are risks.
This call may matter most to investors whose retirement or brokerage accounts hold semiconductor- and AI-focused funds, because a concentrated ETF can magnify both gains and losses. If the buy case encourages dip-buying, some savers could add exposure while others remain vulnerable to volatility. The broader public may experience indirect effects through chip supply chains and technology prices, though one analyst’s recommendation is unlikely to reshape society on its own.