BCV Bulletin - Recent Trading Activity - May 22, 2025
Sell: Micron Technology (NASDAQ: MU)
BCV exited its position in Micron Technology, Inc. (MU), a leading global provider of DRAM (Dynamic Random Access Memory) and NAND flash memory solutions essential for devices ranging from smartphones to data centers. While the semiconductor memory industry, including Micron, has demonstrated improved discipline in pricing and capital expenditure compared to its past, the sector remains inherently exposed to commodity-like economics. Following recent positive share price performance, partly influenced by factors such as potential tariff relief from the US administration, we now find Micron's probability-adjusted return profile less attractive. Consequently, and in alignment with our commitment to capital preservation, we are reallocating client capital towards prospects that we believe offer comparable opportunities for sustained capital growth and lower anticipated volatility over the medium-term horizon.
Buy: ASML Holding N.V. (NASDAQ: ASML)
We added ASML Holding N.V. (ASML) to our U.S. equity portfolio. ASML is a manufacturer of complex lithography systems that are vital for semiconductor manufacturing. With unparalleled technology leadership in EUV and DUV lithography and a strong culture of innovation, ASML has a strong moat. Secular trends such as reshoring of semiconductor manufacturing in the U.S., and above average growth in end markets including servers, data centers, and storage, ASML could benefit from a constructive equipment demand over the course of the next five years. The company anticipates sales to reach between €44-60 billion euros by 2030, off of a 2024 base of €28 billion euros. ASML’s share price has moderated over the course of the last six months, providing an opportunity to build a position at a reasonable valuation in an attractive business.
This BCV Bulletin is intended for residents of the provinces and territories in which we are registered, is not meant to be a solicitation to any persons not resident in those jurisdictions and does not constitute an offer to buy or sell our products or services. Any opinions expressed are just that and are subject to change. Information is provided on a best-effort basis and its accuracy cannot be guaranteed. Information may also be provided from third party sources which are believed to be reliable, but we do not guarantee its accuracy or completeness. Certain statements may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This BCV Bulletin has been prepared for general informational purposes only, is not intended as investment and/or financial advice on any subject matter and the securities mentioned should not be construed as a recommendation for any specific securities. ©BCV Asset Management Inc. 2025.
