ASML Stock Falls on News of a Huawei Patent Application. Time to Sell?
After a strong rally from multiyear lows in early October, shares of leading chip equipment maker ASML (NASDAQ: ASML) are falling once again. While tech stocks have been selling off in general in the final days of 2022, ASML shareholders have extra reason for worry: Chinese tech giant Huawei just filed for a patent on the same type of advanced chipmaking equipment ASML has a monopoly on.
For years, it's been a closely held belief among chip industry insiders, tech researchers, and Wall Street analysts that ASML's lead is so great that no competitors will be able to catch up. On the surface, Huawei's patent in China suggests ASML could lose its privileged status, but not so fast. There's a lot more to this story.
According to a report from Taiwanese media outlet UDN, Huawei has filed a patent on extreme ultraviolet (EUV) lithography equipment in China. Currently, actual working EUV technology is ASML's realm to rule, though its predecessor technology, which involves deep ultraviolet (DUV), has some competition.
Source Fool.com
