10 High Growth Semiconductor Stocks That Are Profitable Heading into 2025

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

5-year Sales Growth: ~19.15%

TTM net income: $7,733.7 Million

Number of Hedge Fund Holders: 64

ASML Holding N.V. (NASDAQ:ASML) is engaged in developing, producing, marketing, selling, and servicing advanced semiconductor equipment systems for chipmakers. The semiconductor industry continues to experience a period of significant transformation, courtesy of healthy demand for AI capabilities and the push towards more advanced manufacturing nodes. The company is expected to benefit from these trends, mainly via the growing demand for High Bandwidth Memory (HBM) used in AI chips. This is primarily because manufacturing HBM chips needs leading-edge processes, often at smaller nodes, which require advanced lithography equipment like ASML Holding N.V. (NASDAQ:ASML)’s machines.

Wells Fargo & Company increased the target price on the company’s shares from $790.00 to $860.00, giving an “Overweight” rating on 13^th January. ASML Holding N.V. (NASDAQ:ASML)’s strong position in EUV lithography, together with continued investment in R&D, offers healthy potential for market expansion. Its work on high-NA EUV technology reflects the next frontier in semiconductor manufacturing, which assures even finer resolution and improved chip performance. As this technology matures and sees adoption by renowned chipmakers, ASML Holding N.V. (NASDAQ:ASML) is expected to see a new wave of high-value system sales.

Polen Capital, an investment management company, released 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.”