10 Best Semiconductor Equipment Stocks to Buy Now

2. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders In Q3 2024: 64

ASML Holding N.V. (NASDAQ:ASML) is one of the most important companies in the semiconductor industry. This is because the industry cannot function without its machines as it is the only firm in the world capable of making high-end EUV chip manufacturing machines that can easily manufacture chips with feature sizes smaller than 7-nanometer. However, the third quarter hedge fund filing season hasn’t been kind to ASML Holding N.V. (NASDAQ:ASML) as Insider Monkey’s data shows that while 81 funds had owned a stake in the firm in Q2, this dropped to 64 in the previous quarter. Part of the bearishness could be due to ASML Holding N.V. (NASDAQ:ASML)’s third-quarter earnings report led to a 21.6% share price drop as it warned about weak spending by chip manufacturers. However, for its 2025 sales, ASML Holding N.V. (NASDAQ:ASML) sees the figure ranging between €30 billion to €35 billion despite new US sanctions against China in December. Its moat also places the firm well for the broader recovery in the chip sector.

Polen Capital mentioned ASML Holding N.V. (NASDAQ:ASML) in its Q3 2024 investor letter. Here is what the fund said:

“During the period, we added to our ASML Holding N.V. (NASDAQ:ASML) position in the face of recent volatility across the semiconductor sector broadly. As readers may recall, we trimmed the position in 4Q 2023 as we expected stagnating business trends to set in during 2024. Stagnation did occur, as did Al hysteria. We now foresee robust growth and believe ASML will see a significant ramp in business trends in 2025 and beyond. ASML’s business backlog and its customers’ persistent development of leading-edge chip sizes drive our expectation of rapid growth for the company in the coming years. In our view, shares trade at a very reasonable valuation for one of the world’s most competitively advantaged growth companies, particularly considering the accelerated growth we expect.”