- Applied Materials TSMC Alliance Deepens AI Chip Tools And Growth Story
May 11, 2026
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Applied Materials and TSMC have agreed a new collaboration focused on accelerating AI and high performance computing chip technologies. The partnership will concentrate on next generation materials engineering, equipment development, and advanced process integration. Applied’s EPIC Center will act as a hub for joint work on future AI semiconductor manufacturing capabilities.
For investors tracking NasdaqGS:AMAT, this move adds fresh context to a stock that recently closed at $435.44. The company has posted returns of 11.3% over the past week, 9.0% over the past month, and 62.0% year to date, with a very large 1 year gain and an increase of about 3x over 3 years. These figures highlight how closely the market is associating Applied Materials with the build out of advanced chip capacity.
The new partnership with TSMC indicates a more integrated role for Applied Materials in AI and high performance computing manufacturing workflows. For readers, the key questions now are how quickly joint work at the EPIC Center translates into production ready processes and how central Applied’s tools and materials engineering platforms become within TSMC’s future AI chip roadmaps.
Stay updated on the most important news stories for Applied Materials by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Applied Materials.NasdaqGS:AMAT Earnings & Revenue Growth as at May 2026
3 things going right for Applied Materials that this headline doesn't cover.
This partnership with TSMC puts Applied Materials closer to where next generation AI and high performance computing chips are actually defined, rather than just supplied for. Co development at the EPIC Center gives TSMC early access to Applied’s materials engineering and process tools, while giving Applied direct input into TSMC’s roadmaps for areas such as 3D transistor structures, advanced logic scaling and yield improvement. For you as an investor, that tight feedback loop can influence how sticky Applied’s tools become inside future AI production lines at customers that already set the pace for the industry, alongside peers such as ASML, Lam Research and Tokyo Electron.
How This Fits Into The Applied Materials Narrative
The focus on co development with a leading foundry supports the narrative theme that deep customer collaboration can underpin long term revenue and margin resilience as AI driven chip investments continue. At the same time, concentrating even more closely around a few large customers reinforces the existing concern that customer and regional concentration can magnify the impact of any pullback in capex or export policy changes. The planned US$5b EPIC Center investment and its specific role in moving AI process technologies from research to volume manufacturing is not fully captured in the existing narrative, which focuses more on packaging and installed base effects.
Story Continues
Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Applied Materials to help decide what it's worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Greater reliance on a small group of major customers and regions can leave Applied Materials exposed if capex at TSMC or other leading fabs slows, or if export rules tighten for key tools. ⚠️ The scale of EPIC Center investment raises execution risk, because any delay in customer adoption of new processes could weigh on returns from that spending. 🎁 Close alignment with TSMC on AI focused materials and process technologies can support Applied’s position in future node tools that are harder for competitors to displace. 🎁 If the collaboration helps improve yields and power efficiency on AI chips, Applied may see stronger pull through across its broader equipment and services portfolio as customers standardize on its platforms.
What To Watch Going Forward
From here, keep an eye on concrete milestones from the TSMC partnership, such as references to EPIC Center enabled process nodes on future earnings calls or conference presentations, and any disclosure on how much AI related tools contribute to orders. It also helps to track commentary from other key equipment suppliers like Lam Research and Tokyo Electron, to see whether similar partnerships are forming elsewhere or if Applied is carving out a differentiated role.
To ensure you're always in the loop on how the latest news impacts the investment narrative for Applied Materials, head to the community page for Applied Materials to never miss an update on the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AMAT.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Lam Research Stock Trades Near 52-Week High: Buy More or Book Profits?
May 11, 2026
Lam Research Corporation LRCX shares have been outperformers in the broader semiconductor industry, powered by solid financial health and strong demand for its wafer fabrication equipment and services used for chip manufacturing. The stock closed at $294.05 on May 8, closer to its recently hit 52-week high of $298, reflecting strong investor confidence in LRCX’s prospects.
Lam Research shares have soared 257.5% over the trailing 12 months, outperforming the broader Zacks Electronics – Semiconductor industry’s 105.2% surge. The impressive rally in the share price has placed LRCX among the top performers in the semiconductor space.
The stock has also outpaced the gains of other major semiconductor equipment providers, including Applied Materials, Inc. AMAT, KLA Corporation KLAC and ASML Holding N.V. ASML. Over the trailing 12 months, shares of Applied Materials, KLA Corporation and ASML Holding have surged 159.2%, 145.8% and 112.2%, respectively.
This outperformance shows investors are becoming increasingly confident in Lam Research’s long-term story, even in a volatile market shaped by trade conflicts and geopolitical risks. We believe this momentum is grounded in strong fundamentals, and LRCX’s long-term outlook justifies a buy position for now.
Lam Research One-Year Price Return PerformanceZacks Investment Research
Image Source: Zacks Investment Research
AI Boom Keeps Driving Lam Research’s Prospects
Lam Research is capitalizing on artificial intelligence (AI) trends. It builds the tools chipmakers need to manufacture next-generation semiconductors, including high-bandwidth memory (HBM) and chips used in advanced packaging. These technologies are vital for powering AI and cloud data centers.
Lam Research’s products are not only critical but also innovative. For example, its ALTUS ALD tool uses molybdenum to improve speed and efficiency in chip production. Another product, the Aether platform, helps chipmakers achieve higher performance and density. These are essential capabilities as demand for advanced AI chips continues to increase.
In 2025, Lam Research’s revenues from advanced packaging grew significantly, and management anticipates more than 50% year-over-year growth for 2026. The industry’s migration to backside power distribution and dry-resist processing presents growth opportunities for LRCX’s cutting-edge fabrication solutions.
These trends are aiding Lam Research’s financial performance. The company has demonstrated consistent execution, maintaining quarterly revenues of more than $5 billion for the past four consecutive quarters, reflecting solid demand from leading chipmakers such as Taiwan Semiconductor Manufacturing and Samsung.
Story Continues
Lam Research’s Financial Results Show Real Strength
Despite ongoing macroeconomic challenges, geopolitical issues, and trade and tariff wars, LRCX’s financials remain impressive. In the company’s last reported financial results for the third quarter of fiscal 2026, total revenues rose 24% year over year to $5.84 billion and beat the Zacks Consensus Estimate by 1.3%, primarily driven by continued demand across the Systems and Customer Support Business Group segments.
Lam Research reported third-quarter non-GAAP earnings of $1.47 per share, which topped the consensus mark by 8.1%. The bottom line also increased 41.3% on a year-over-year basis.
Lam Research Corporation Price, Consensus and EPS SurpriseLam Research Corporation Price, Consensus and EPS Surprise
Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote
Expanding its manufacturing operations in Asia has helped the company lower costs and improve margins. In the third quarter, Lam Research’s non-GAAP operating margin rose to 35%, up 220 basis points from the year-ago quarter, which is impressive, considering the challenging macroeconomic environment.
This strong financial performance reinforces Lam Research’s resilience in navigating an evolving semiconductor cycle. As demand grows for advanced nodes, LRCX’s specialized technology in etch and deposition tools for high-aspect-ratio structures positions it well to capitalize on this trend. The company’s third-quarter results also highlight its effective cost management, which has enabled sustained profitability.
With AI-driven investments accelerating, Lam Research’s leading position in etch and deposition makes it a key beneficiary of the ongoing semiconductor spending cycle. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues implies a year-over-year increase of 25% and 29.7%, respectively. The consensus mark for fiscal 2026 and 2027 earnings per share indicates growth of 37% and 36.2%, respectively.
LRCX’s Steady Growth Outlook Justifies Premium Valuation
Valuation-wise, Lam Research is overvalued, as suggested by the Zacks Value Score of F.
In terms of forward 12-month Price/Earnings (P/E), LRCX shares are trading at 39.52X, higher than the sector’s 35.53X. However, we believe that the company’s steady earnings growth and rising AI-linked demand justify the premium valuation.
Lam Research Forward 12-Month P/E RatioZacks Investment Research
Image Source: Zacks Investment Research
Compared with major semiconductor equipment providers, LRCX trades at a higher P/E multiple than KLAC, ASML and AMAT. At present, KLA Corporation, ASML Holding and Applied Materials have forward 12-month P/E multiples of 38.94, 38.85 and 34.29, respectively.
Conclusion: Buy LRCX Stock for Now
Lam Research’s strong technological foundation and strategic focus on high-growth markets like AI and HPC make it a compelling long-term investment. The company’s innovation and operational efficiency provide a solid foundation for future growth. Considering these factors, accumulating LRCX stock appears to be the most prudent strategy for investors.
Lam Research carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- Why Trump’s China Summit Could End the Chip Stocks Rally
May 11, 2026
China’s access to advanced chip manufacturing tools is likely to be on the table when Trump and Xi meet later this week.
Continue Reading
- AI chip stocks surge as investors refocus on growth
May 11, 2026
This article first appeared on GuruFocus.
AI and semiconductor stocks came roaring back Friday, with investors largely brushing aside Middle East tensions and piling back into the names most closely tied to the AI boom.
Micron (NASDAQ:MU) was one of the biggest winners, soaring around 14% as investors continued leaning into the memory chip story powering AI servers and data centers. The stock has now surged roughly 155% this year, making it one of the hottest names in the entire semiconductor space. Advanced Micro Devices (NASDAQ:AMD) also kept its momentum going, jumping nearly 9% after its earnings report earlier this week reinforced the view that AI demand is still accelerating. The stock is now up more than 100% year to date.
Warning! GuruFocus has detected 6 Warning Signs with MU. Is MU fairly valued? Test your thesis with our free DCF calculator.
Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:AVGO) and Intel (NASDAQ:INTC) also traded higher as money flowed back into AI infrastructure plays. Even with headlines around Iran and the Strait of Hormuz still creating uncertainty in broader markets, traders appeared more focused on signs that the AI spending cycle remains extremely strong.
The rally was not limited to chipmakers either. Equipment companies like Applied Materials (NASDAQ:AMAT), KLA (NASDAQ:KLAC) and ASML (NASDAQ:ASML) also moved higher, which suggests investors still expect heavy spending on servers, networking gear and advanced manufacturing capacity over the coming years.
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- Intel stock extends rally as potential Apple chip deal fuels recent gains
May 11, 2026
Investing.com -- Intel shares have risen a further 6.6% in premarket trading on Monday, extending a remarkable run that has seen the chipmaker gain 125.6% over the past month and 230.7% year-to-date.
The latest run higher comes after a Wall Street Journal report said Apple has reached a preliminary agreement with Intel to manufacture chips for Apple devices. The news sent the stock surging 14% on Friday.
The report, citing people familiar with the matter, said the two companies have been in intensive talks for over a year and finalized a formal deal in recent months.
Details about which Apple products Intel would manufacture chips for remain unclear.
Lynx Equity analyst said the Journal report "adds more fire to a stock that has already been on fire this year," reiterating a preference for Intel over AMD and setting a price target of $175.
"With the involvement of two major entities, fears of the sustainability of IFS should decline in the minds of investors," the analyst wrote.
Lynx cautioned that near-term monetization of the potential deal could remain limited given process development requirements, but said investors are unlikely to wait for that.
The firm also flagged a positive read-through for semiconductor capital equipment names, expecting ASML, Lam Research, Applied Materials, and KLA to benefit, though noting a meaningful bump in wafer fab equipment spending is unlikely before 2028.
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- ASML reports transactions under its current share buyback program
May 11, 2026
ASML Netherlands BV
ASML reports transactions under its current share buyback program
VELDHOVEN, the Netherlands – ASML Holding N.V. (ASML) reports the following transactions, conducted under ASML's current share buyback program.
Date Total repurchased shares Weighted average price Total repurchased value 04-May-26 13,181 €1,204.16 €15,872,074 05-May-26 13,045 €1,216.79 €15,872,963 06-May-26 12,392 €1,280.89 €15,872,741 07-May-26 12,078 €1,314.16 €15,872,441 08-May-26 12,129 €1,308.64 €15,872,510
ASML’s current share buyback program was announced on 28 January 2026, and details are available on our website at https://www.asml.com/en/investors/why-invest-in-asml/share-buyback
This regular update of the transactions conducted under the buyback program is to be made public under the Market Abuse Regulation (Nr. 596/2014).
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- Wall Street's Next Blockbuster Stock Split Was Just Announced -- and This Industry Titan Has Skyrocketed Over 51,000% in 32 Years
May 11, 2026
Key Points
Stock-split euphoria has played an important role in lifting the broader market. The newest stock-split stock aims to make its shares more nominally affordable for retail investors without access to fractional-share purchases through their broker. This industry leader has a niche position within the semiconductor manufacturing process and has been foundational to the AI data center infrastructure build-out. 10 stocks we like better than KLA ›
For the better part of the last four years, artificial intelligence (AI) has been Wall Street's hottest trend. But it's not the only trend that has investors flocking to winning stocks. Stock-split euphoria has also played a key role in sending the broader market higher.
In April, online travel leader Booking Holdingskicked things off by completing a 25-for-1 forward split. Then, just last week, online-based used-car retailer Carvanaenacted its first-ever split (5-for-1). Now, we have a timeline to the next blockbuster stock split, which was just announced by semiconductor titan KLA Corp.(NASDAQ: KLAC).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
KLA is prepping for its sixth forward stock split since going public
Following the closing bell on May 7, KLA's board of directors approved a 10-for-1 forward split, which will go into effect after trading ends on June 11. It's the sixth forward split in the company's history (the first since January 2000) and is on track to lower KLA's share price from $1,869.19, based on its closing price on May 8, to around $187.
According to KLA Chief Financial Officer Bren Higgins, "This stock split is intended to improve the accessibility and liquidity of KLA shares, while maintaining consistency with our long-term capital allocation strategy."
Thanks to the proliferation of brokerages allowing fractional-share purchases, the need to enact stock splits has declined noticeably from 10 years ago. Nevertheless, not all brokerages allow retail investors to purchase fractional shares. This means KLA's nearly $1,900 share price may be excluding some retail investors from joining the party. KLA's split will make its shares more nominally affordable.
Including dividends, shares of KLA Corp have skyrocketed by more than 51,100% since the beginning of 1994, and considerably more since its initial public offering in October 1980.
Image source: Getty Images.
KLA's niche market makes it a winner -- but be wary of history
Let's be clear: 51,000%-plus gains don't happen by accident! KLA's outperformance directly reflects its niche position in the semiconductor process control market.
The company's electron-beam inspection systems and optical inspection solutions are used to detect and classify semiconductor chip manufacturing defects. KLA accounts for more than half of the semiconductor process control market, making it an essential pillar in the chip-making process.
Beyond this sustainable moat, the wind in KLA's sails is directly linked to the evolution of artificial intelligence. As advanced chips become smaller, defect detection becomes increasingly more important. KLA Corp finds itself as a critical cog in the AI data center infrastructure build-out.
Most people have heard of $TSM TSMC, $NVDA Nvidia, $ASML ASML.
But fewer know about and/or talk about KLA $KLAC.
Since 2016: FCF/share is up +611%, compounding at +22.9% annually. The stock is up +2,189%.
What does KLA actually do?
They make the inspection and metrology tools... pic.twitter.com/BYyP51jgja -- Quality Equities (@qualityequities) April 9, 2026
It also doesn't hurt that this fast-growing process control company has a generous capital-return program. It's increased its dividend for 17 consecutive years and recently announced a $7 billion share repurchase program.
Although KLA's niche market has it positioned for long-term success, there is one variable for skeptics to consider: history.
Every game-changing technology since the advent and proliferation of the internet in the mid-1990s has endured an early innings bubble-bursting event. These bubbles form because investors consistently overestimate the optimization of new technologies. While AI infrastructure demand is off the charts, it'll likely take years for businesses to optimize the AI solutions they're deploying. If history rhymes yet again, an AI bubble will form and burst, potentially weighing on industry leaders like KLA Corp.
Should you buy stock in KLA right now?
Before you buy stock in KLA, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and KLA wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- IXUS vs. IEMG: One International ETF Covers the World, the Other Focuses on Its Fastest-Growing Corner
May 10, 2026
The iShares Core MSCI Total International Stock ETF(NASDAQ:IXUS) provides broad global exposure, whereas the iShares Core MSCI Emerging Markets ETF(NYSEMKT:IEMG) targets specific growth and volatility within developing economies.
Both funds offer low-cost access to non-U.S. equities, yet they serve different roles in a portfolio. While IXUS covers the entire international landscape, IEMG focuses exclusively on emerging markets, leading to distinct risk profiles and sector concentrations for investors looking to diversify outside domestic borders.
Snapshot (cost & size)
Metric IXUS IEMG Issuer iShares iShares Expense ratio 0.07% 0.09% 1-yr return (as of May 6, 2026) 35.6% 52.1% Dividend yield 2.9% 2.2% Beta 0.77 0.72 AUM $56.5 billion $155.0 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares Core MSCI Total International Stock ETF is slightly more affordable with a 0.07% expense ratio compared to 0.09% for the iShares Core MSCI Emerging Markets ETF. Investors may also find the 2.9% distribution yield of the international fund more attractive than the 2.2% offered by the emerging markets fund.
Performance & risk comparison
Metric IXUS IEMG Max drawdown (5 yr) (30.1%) (37.1%) Growth of $1,000 over 5 years (total return) $1,513 $1,437
What's inside
The iShares Core MSCI Emerging Markets ETF(NYSEMKT:IEMG) focuses on developing economies, with technology representing 23%, financials at 18%, and consumer discretionary at 7% of the portfolio. Its largest positions include Taiwan Semiconductor Manufacturing at 12.56%, Samsung Electronics at 5.39%, and SK Hynix at 3.87%. Launched in 2012, this fund holds 2,661 securities and has a trailing-12-month dividend of $1.85 per share.
In contrast, the iShares Core MSCI Total International Stock ETF(NASDAQ:IXUS) provides broader reach with 4,160 holdings and covers both developed and emerging regions. Its sector mix leans toward financial services at 23%, followed by industrials and technology at 16% each. Its top holdings include Taiwan Semiconductor Manufacturing at 4.11%, Samsung Electronics at 1.77%, and ASML Holding at 1.31%. Also launched in 2012, it has paid $2.74 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
For investors looking beyond U.S. borders, the choice often comes down to how much risk they want to take on. Developed markets such as Japan, the U.K., France, and Germany offer international diversification with relatively familiar regulatory and economic environments. Emerging markets of China, India, Taiwan, and South Korea offer higher growth potential but with greater volatility, currency risk, and political uncertainty.
Story Continues
IXUS captures both worlds in a single fund, holding over 4,000 stocks across developed and emerging markets outside the U.S. About three-quarters of the portfolio sits in developed markets, with emerging markets making up the remainder. IEMG concentrates entirely on the emerging markets portion of that equation, going deeper into countries and companies that IXUS holds only partially.
The fee difference between them is negligible. The real consideration is portfolio fit. Investors who want straightforward, all-in-one international exposure will find IXUS the more balanced choice. Those who already hold developed market exposure and want to tilt specifically toward emerging market growth — accepting the added volatility — will find IEMG the more targeted vehicle.
Should you buy stock in iShares - iShares Core Msci Emerging Markets ETF right now?
Before you buy stock in iShares - iShares Core Msci Emerging Markets ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares - iShares Core Msci Emerging Markets ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
IXUS vs. IEMG: One International ETF Covers the World, the Other Focuses on Its Fastest-Growing Corner was originally published by The Motley Fool
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- IXUS vs. IEMG: One International ETF Covers the World, the Other Focuses on Its Fastest-Growing Corner
May 10, 2026
Key Points
iShares Core MSCI Emerging Markets ETF provides concentrated exposure to developing economies with higher recent returns but also greater historical drawdowns than iShares Core MSCI Total International Stock ETF. iShares Core MSCI Total International Stock ETF offers a lower expense ratio and broader diversification across both developed and emerging markets compared to the more focused iShares Core MSCI Emerging Markets ETF. iShares Core MSCI Total International Stock ETF has provided a higher distribution yield and better risk-adjusted growth over the last five years than iShares Core MSCI Emerging Markets ETF.10 stocks we like better than iShares - iShares Core Msci Emerging Markets ETF ›
The iShares Core MSCI Total International Stock ETF(NASDAQ:IXUS) provides broad global exposure, whereas the iShares Core MSCI Emerging Markets ETF(NYSEMKT:IEMG) targets specific growth and volatility within developing economies.
Both funds offer low-cost access to non-U.S. equities, yet they serve different roles in a portfolio. While IXUS covers the entire international landscape, IEMG focuses exclusively on emerging markets, leading to distinct risk profiles and sector concentrations for investors looking to diversify outside domestic borders.
Snapshot (cost & size) MetricIXUSIEMGIssueriSharesiSharesExpense ratio0.07%0.09%1-yr return (as of May 6, 2026)35.6%52.1%Dividend yield2.9%2.2%Beta0.770.72AUM$56.5 billion$155.0 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares Core MSCI Total International Stock ETF is slightly more affordable with a 0.07% expense ratio compared to 0.09% for the iShares Core MSCI Emerging Markets ETF. Investors may also find the 2.9% distribution yield of the international fund more attractive than the 2.2% offered by the emerging markets fund.
Performance & risk comparison MetricIXUSIEMGMax drawdown (5 yr)(30.1%)(37.1%)Growth of $1,000 over 5 years (total return)$1,513$1,437
What's inside
The iShares Core MSCI Emerging Markets ETF(NYSEMKT:IEMG) focuses on developing economies, with technology representing 23%, financials at 18%, and consumer discretionary at 7% of the portfolio. Its largest positions include Taiwan Semiconductor Manufacturing at 12.56%, Samsung Electronics at 5.39%, and SK Hynix at 3.87%. Launched in 2012, this fund holds 2,661 securities and has a trailing-12-month dividend of $1.85 per share.
In contrast, the iShares Core MSCI Total International Stock ETF(NASDAQ:IXUS) provides broader reach with 4,160 holdings and covers both developed and emerging regions. Its sector mix leans toward financial services at 23%, followed by industrials and technology at 16% each. Its top holdings include Taiwan Semiconductor Manufacturing at 4.11%, Samsung Electronics at 1.77%, and ASML Holding at 1.31%. Also launched in 2012, it has paid $2.74 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
For investors looking beyond U.S. borders, the choice often comes down to how much risk they want to take on. Developed markets such as Japan, the U.K., France, and Germany offer international diversification with relatively familiar regulatory and economic environments. Emerging markets of China, India, Taiwan, and South Korea offer higher growth potential but with greater volatility, currency risk, and political uncertainty.
IXUS captures both worlds in a single fund, holding over 4,000 stocks across developed and emerging markets outside the U.S. About three-quarters of the portfolio sits in developed markets, with emerging markets making up the remainder. IEMG concentrates entirely on the emerging markets portion of that equation, going deeper into countries and companies that IXUS holds only partially.
The fee difference between them is negligible. The real consideration is portfolio fit. Investors who want straightforward, all-in-one international exposure will find IXUS the more balanced choice. Those who already hold developed market exposure and want to tilt specifically toward emerging market growth — accepting the added volatility — will find IEMG the more targeted vehicle.
Should you buy stock in iShares - iShares Core Msci Emerging Markets ETF right now?
Before you buy stock in iShares - iShares Core Msci Emerging Markets ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares - iShares Core Msci Emerging Markets ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Assessing ASML Holding (NasdaqGS:ASML) Valuation After Strong Multi Year Share Price Gains
May 10, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
How ASML Holding (ASML) Has Been Performing Recently
ASML Holding (NasdaqGS:ASML) has drawn attention after a mixed short term share price move, with a 1.8% decline over the past day alongside gains of 5.4% for the week and 16.1% over the past month.
Over the past 3 months, the stock shows a 7.3% total return. Year to date it is up 30.3%. Looking back 1 year, 3 years and 5 years, total returns stand at 115.6%, 138.4% and 153.0% respectively.
See our latest analysis for ASML Holding.
For context, ASML's recent 1 day share price pullback comes after strong upward momentum, with share price returns of 16.1% over the past month and 30.3% year to date, while multi year total shareholder returns remain well into triple digits.
If you are looking beyond ASML and want to see what else is moving around the semiconductor and AI supply chain, it is worth scanning 40 AI infrastructure stocks.
After such strong multi year returns and with ASML trading at $1,516.60 alongside a roughly 13% gap to the average analyst price target, the key question is clear: is there still a buying opportunity here, or is the market already pricing in future growth?
Price-to-Earnings of 50x: Is It Justified?
At a last close of $1,516.60, ASML trades on a P/E of 50x, which sits slightly below both its peer average of 52.3x and the broader US Semiconductor industry average of 59.4x, even though it is above the SWS fair P/E estimate of 42.2x.
The P/E ratio compares the share price to earnings per share and is a common shorthand for how much the market is willing to pay for each dollar of current earnings. For a company supplying critical lithography systems across the semiconductor supply chain, investors often focus on earnings-based measures, because they capture both margins and capital intensity in a single figure.
Here, the numbers send a mixed message. On one hand, ASML screens as good value versus direct peers and the wider US Semiconductor industry, which trade on higher P/E levels. On the other, the SWS fair P/E ratio of 42.2x suggests the current 50x multiple is richer than what that model implies the market could settle toward if expectations normalise around historical relationships.
Compared with the peer average P/E of 52.3x and the US Semiconductor industry average of 59.4x, ASML's 50x sits at a discount to the sector but at a premium to the fair P/E estimate, which points to a trade off between relative appeal within the industry and a higher multiple than the regression-based fair ratio.
Story Continues
Explore the SWS fair ratio for ASML Holding
Result: Price-to-Earnings of 50x (ABOUT RIGHT)
However, investors still face risks, including potential swings in semiconductor equipment demand, as well as regulatory or export controls that could affect ASML's access to key markets.
Find out about the key risks to this ASML Holding narrative.
Another View Using Cash Flows
While the 50x P/E suggests ASML is roughly in line with high growth peers, the SWS DCF model presents a more cautious perspective. On this view, the stock at $1,516.60 sits well above an estimated future cash flow value of $739.54, which indicates limited room for error if expectations soften.
For investors who want to see how this cash flow view is built up line by line, Look into how the SWS DCF model arrives at its fair value.ASML Discounted Cash Flow as at May 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ASML Holding for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If this mix of enthusiasm and caution around ASML leaves you on the fence, use the data to pressure test the story yourself and move quickly to shape your own view, starting with the 3 key rewards.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASML.
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