ASML shatters earnings expectations while chip stocks are beaten down — long the
Thesis
The broader technology sector just went through a massive sell-off driven by panic that the AI chip rally had gone too far, setting a gloomy backdrop coming into earnings season. Despite this massive fear, ASML completely crushed expectations and raised their full-year outlook, proving that demand for AI chips from the biggest players is actually accelerating, not slowing down. With Nvidia's massive valuation confirming the overarching trend, ASML's blockbuster report acts as a major turning point that relieves the sector's pressure. This makes ASML a strong buy to ride the rebound, as their machines are the absolute bottleneck for the entire AI hardware market.
Strategy approach
Build a rule-based strategy that enters long ASML on the D1 timeframe when the stock gaps up >3% on earnings volume and closes in the top half of its daily range. Require RSI to be below 60 to ensure the stock is not extremely overbought after the recent chip rout. Exit on a 4% trailing stop or a 21-day max hold. ADVANCED ANALYSIS RESEARCH EVIDENCE {"fundamentals_xbrl":{"coverage":{"reasons":{},"requested":[],"with_series":[]},"etf_profiles":[{"expense_ratio":null,"fetched_at":"2026-07-14T14:06:32.775934+00:00","look_through":{"gross_margin":{"constituent_count":10,"covered_weight":0.6991304009999999,"value":0.5713524580363322},"net_margin":{"constituent_count":10,"covered_weight":0.6991304009999999,"value":0.346812827943762},"revenue_growth_yoy":{"constituent_count":8,"covered_weight":0.5…