ASML, a leading high-tech company known for its critical role in the semiconductor manufacturing industry, has recently highlighted several risks in its business operations. Despite experiencing a surge in demand due to the AI boom and achieving a record stock price with a market value of 500 billion euros, the company's revenue is concentrated in small volumes with a significant dependency on a few key customers. Notably, one major customer accounts for nearly a quarter of its business, raising concerns about potential vulnerabilities in its revenue streams.

Additionally, ASML's operations are closely tied to German supplier Zeiss, creating risks associated with supply chain disruptions. The company’s financial resilience hinges on maintaining strong relationships with its customers while navigating these concentrated risks. The focus on a select few clients could lead to significant revenue loss should any one of them decide to reduce orders or face operational challenges of their own.

Investors are urged to take note of these factors as they weigh the high valuation of ASML against the potential for volatility in its business. While the current financial results are robust and suggest a rosy outlook for the semiconductor market, the concentrated revenue model introduces critical risks that could affect ASML's long-term stability and growth prospects.