World Leaders in Their Fields: ASML, Albemarle and Almonty Industries in Focus

ASML: Europe’s Champion Without Europe

ASML is Europe’s most valuable technology company. The Dutch firm currently boasts a market capitalization of an impressive EUR 686 billion. No one on the continent can keep up. However, the manufacturer of lithography machines for chip production generates no revenue in Europe, as Executive Vice President Frank Heemskerk recently explained during a panel discussion in the Netherlands. Europe’s share of sales, at least, stands at 0%. However, there are good reasons for this. Multi-billion-dollar factory projects are currently being built primarily in the United States, Taiwan, South Korea, and China, and they require new machines. Europe’s semiconductor industry, with companies such as Infineon, STMicroelectronics, and NXP, is, by contrast, heavily focused on the automotive industry and industrial automation. And in these sectors, chips in older process nodes are required.

But this fact is of no concern to ASML. The boom is taking place in North America and East Asia, driven by new AI data centres. And there, high-performance processors are needed, which is why new chip factories are being built. ASML’s financial results for the first half of the year show clear growth. Revenue rose by a robust 17.2% to EUR 18.09 billion, with Q2 outperforming Q1 once again. Bottom line, the Dutch company reported a net profit of EUR 5.68 billion. The company slightly improved its gross margin again to 54%.

Shareholders are benefiting primarily from ASML’s extensive share buyback program. Shares worth EUR 12 billion are set to be repurchased by December 31, 2028. This year alone, EUR 2.2 billion worth of shares have already been repurchased. So far this summer, the stock has traded in a fairly volatile sideways range, reacting sensitively to a more challenging market environment. However, its market dominance is unlikely to be shaken in the foreseeable future. ASML holds a 100% market share in modern lithography machines. Not a single high-performance semiconductor product in the world, from ordinary smartphones to state-of-the-art AI chips, can be manufactured without ASML’s products; at least not yet!

Almonty Industries: Market Leader in the West by 2028?

China has dominated nearly all markets for specialty metals for decades. With the onset of the US trade war against Beijing (and others), the US and its allies are now reaching their limits. Many metals are no longer available on the global market, or are available only in limited quantities. China has apparently had no desire to supply Western defence contractors, at least since the start of the US trade war and the attacks on Iran. When it comes to tungsten, however, activity has increased significantly since spring. In March, Almonty Industries began ramping up production at the historic Sangdong Mine in South Korea. This makes the North American company the first Western producer with significant output. Once the mine is fully operational, it is expected to produce approximately 230,000 metric ton units (MTUs) of premium tungsten trioxide concentrate in its first year.

This puts the company in a strong position. It will likely be some time before additional Western mines enter the market. Nevertheless, Washington is serious about reducing dependence on China. For example, the US government has agreed to a USD 450 million investment package with The Elmet Group Co. to expand the American tungsten supply chain. However, it is well known in the industry that mine construction, in particular, often takes many years. In a brand-new study, analysts at Stifel predict that Almonty will remain the market leader in the Western world until at least 2028. The report states that the company is expected to benefit significantly from rising tungsten prices. According to Stifel, Almonty has also already pre-sold over 90% of its annual production through a long-term offtake agreement. The research firm is correspondingly optimistic. The price target is USD 25. The Nasdaq-listed stock is currently trading below USD 14.

Almonty Industries’ stock has been correcting since April following its strong run in recent years. Its current market capitalization stands at around USD 4 billion. Given its strong cash position of approximately USD 1.2 billion, the company has approved a USD 300 million share buyback program. This represents about 5% of all outstanding shares. This initiative, along with the release of its half-year results, could give the stock another boost.

Albemarle: Market Leader with Cost Control

Market power is a valuable asset for any company. But for profits to grow, market prices must also be right. And that is rather difficult when it comes to lithium. Albemarle benefited greatly from the rebound in lithium prices just last year. But now it is back to square one, and the market has calmed down significantly.

The US company is therefore hitting the brakes and closely monitoring operational discipline and cost control. And that was necessary. The company reported revenue of approximately USD 2.82 billion in the first half of the year—about 13% less than in the previous year. Nevertheless, the bottom line shows a solid performance. With a net loss of about USD 100 million, the company should be able to weather these times.

However, Albemarle is unlikely to lose its market leadership anytime soon. The company controls low-cost mining sites such as the Salar de Atacama in Chile. It also holds a 50% stake in the world’s largest hard-rock lithium mine in Australia. With the current surge in demand for electric vehicles, Albemarle should soon be focusing not only on costs but also on generating real profits again.

By investing in Albemarle, investors are backing a global market leader that is currently focused primarily on costs. Almonty Industries, on the other hand, is generating high margins in the tungsten market and, according to analysts, is expected to dominate the market in the Western world by 2028. ASML is Europe’s champion, scoring big with its technology—especially outside its home continent. Its massive share buyback program is a major plus.

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