ASML vs. Lam Research: How Much Protection Does Service Revenue Really Provide?

What happened: A comparison of ASML (NASDAQ:ASML) and Lam Research (NASDAQ:LRCX) support revenue found that both have large businesses servicing equipment already in chip factories, but their reported categories mix service with Why it matters: The article states the disclosures do not establish how much purely recurring service revenue either company has, and that calling all support revenue recurring would give investors too much confidence. It says investors should favor evidence of resilient service collections and profitable upgrades over the largest reported support percentage. Market: +1.1% today ($1,659.01), +43.1% YTD, 0.6x vol — as of 19:47 UTC

A comparison of ASML (NASDAQ:ASML) and Lam Research (NASDAQ:LRCX) support revenue found that both have large businesses servicing equipment already in chip factories, but their reported categories mix service with

The article states the disclosures do not establish how much purely recurring service revenue either company has, and that calling all support revenue recurring would give investors too much confidence. It says investors should favor evidence of resilient service collections and profitable upgrades over the largest reported support percentage. Market: +1.1% today ($1,659.01), +43.1% YTD, 0.6x vol — as of 19:47 UTC