That annoys me a lot that ASML that is quite a good stock with a good business dilute themselves with that.
Mistral might or might not be a good business in the future but that puts ASML subject to the potential AI bubble.
If they have too much cash at hand, and they wouldn't see any good use to invest on staying ahead in the technological race, it would be better to give back the money to shareholders. Then individual shareholders could decide if they want to put their extra money in Mistral or not.
Behind this, you can easily guess that some politician pressured the company to support the European AI unicorn. That is the European way, ruining what works well...
swores · 7m ago
Maybe the thinking is that if by investing in AI companies they can either increase the size/duration of the bubble (if it's a bubble), or speed up the growth of the industry (if it's not a bubble), that can lead to more investment in chips not just from companies they've directly invested in but from the wider scene, leading to enough extra profit for ASML to make the investments indirectly profitable?
If the company who sells the machines for making shovels to the shovel companies can invest in a single gold digging company to help convince twenty other gold diggers to buy more shovels...
Mistral might or might not be a good business in the future but that puts ASML subject to the potential AI bubble.
If they have too much cash at hand, and they wouldn't see any good use to invest on staying ahead in the technological race, it would be better to give back the money to shareholders. Then individual shareholders could decide if they want to put their extra money in Mistral or not.
Behind this, you can easily guess that some politician pressured the company to support the European AI unicorn. That is the European way, ruining what works well...
If the company who sells the machines for making shovels to the shovel companies can invest in a single gold digging company to help convince twenty other gold diggers to buy more shovels...