10 Best Automation Stocks to Buy Now

3) ASML Holding N.V. (NASDAQ:ASML)

Average Upside Potential: 39.68%

ASML Holding N.V. (NASDAQ:ASML) is engaged in developing, producing, and marketing manufacturing equipment, mainly machines for the production of chips through lithography. The company has introduced robotic systems which play a critical role in improving semiconductor manufacturing efficiency. It deploys cutting-edge robotic lithography systems in semiconductor fabrication, possessing magnetically levitating wafer tables which accelerate at enormous speeds of 7g without vibration or heating issues. This allows rapid loading, printing, and unloading of wafers.

The company made a breakthrough with the newly launched chip-printing system. This was established in collaboration with a European nanoelectronics organization named imec. ASML Holding N.V. (NASDAQ:ASML) is the only producer of high-end extreme ultraviolet (EUV) systems for manufacturing the smallest and densest chips.

Both companies plan to intensify collaboration over the next phase of developing the state-of-the-art high-numerical aperture (High-NA) extreme ultraviolet lithography pilot line at imec.

As a result of this innovation, Wall Street analysts believe that current levels offer a great entry point. Considering that it trades at ~32.2x forward price-to-earnings and its monopolization of crucial chipmaking technology, the company offers a great bargain. While the company continues to steer through tighter restrictions on exports to Chinese markets, experts opine that expansion of the AI market should offset these problems.

Analysts at Wells Fargo & Company assumed coverage on the shares of ASML Holding N.V. (NASDAQ:ASML) and raised their price objective from $1,150.00 to $1,185.00. They gave an “Overweight” rating on 17^th June.

As per Insider Monkey’s database of 920 hedge funds, 75 hedge funds reported owning stakes in ASML Holding N.V. (NASDAQ:ASML).