10 High Growth NASDAQ Stocks That Are Profitable in 2024

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

5-Year Net Income Growth: 24.01%

5-Year Revenue Growth: 18.88%

TTM Net Income: $6.74 Billion

Number of Hedge Fund Holders: 81

ASML Holding N.V. (NASDAQ:ASML) is a leading company in the semiconductor industry, primarily known for producing advanced equipment used to manufacture microchips. It designs and manufactures machines called lithography systems, which are crucial for creating the tiny patterns on silicon wafers that form microchips. These machines are essential for any chipmaker thereby giving the company an indispensable position in the AI market.

It operates internationally with operations in The Netherlands, the United States, South Korea, Taiwan, and Japan. ASML Holding N.V. (NASDAQ:ASML) is about to have a stock split, however, a stock split isn’t necessarily a catalyst for growth but a sign of management’s confidence that the shares will continue to grow.

What’s more important are the strong fundamentals of the company which ASML Holding N.V. (NASDAQ:ASML) demonstrates through its market-leading position. It is the only supplier of extreme ultraviolet lithography (EUV) machinery, which is essential for printing advanced chips. It also generates significant revenue from servicing already installed devices. The company has grown its servicing revenue faster than new system installations.

These machines installed by the company have a lifespan of 25 to 30 years thereby ensuring long-term and steady growth for the years to come. The current year for ASML Holding N.V. (NASDAQ:ASML) is a transition year where the company does not expect any revenue growth as it is gearing up for a record next year. Management is expecting revenue to be between 30 billion and 40 billion euros ($33.17 billion to $44.2 billion) in 2025. Stated that the company has grown its top line by around 19% and bottom line by around 24% during the past 5 years, the projections do not sound far-fetched.

Baird Chautauqua International and Global Growth Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q3 2024 investor letter:

“ASML Holding N.V. (NASDAQ:ASML): After a 35% price appreciation in 1H24 and a beat in 2Q24 numbers, investors are apprehensive about Intel capex cuts, potential memory weakness, and a less clear cyclical recovery pace in 3Q24 and potentially 2025. We remain positive on long-term demand for ASML’s products due to industry supply/demand factors for computing power.”