10 Most Promising AI Stocks According to Analysts

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

Analyst Upside as of October 9, 2024: 29%

Number of Hedge Fund Holders: 81

ASML Holding N.V. (NASDAQ:ASML) is a semiconductor equipment company headquartered in the Netherlands. Companies use ASML’s extreme ultraviolet (EUV) lithography machines to develop AI chips. EUV bookings for ASML increased by 56% year-over-year and total bookings increased by 24% year-over-year.

ASML Holding N.V. (NASDAQ:ASML) believes 2024 is a transition year and will continue to invest in increasing its capacity and improving its technology to meet the surging demand for AI in 2025. In June, the company partnered with Imec, a leading research and innovation hub in nanoelectronics and digital technologies, to launch a new High NA EUV lithography lab in Veldhoven, built to develop equipment for developers of edge logic and AI chips from across the globe.

For its 2030 guidance, ASML Holding N.V. (NASDAQ:ASML) projected between EUR 44 billion and EUR 60 billion in revenue, in its investor day meeting in November 2022. The company has an 83% market share in lithography, explaining why 81 hedge funds were long on the stock at the end of Q2 2024. Of those, Fisher Asset Management was the largest shareholder with a position worth $3.23 billion. Analysts’ median price target has an upside of 28% from its current level.

Polen Capital Polen International Growth Strategy stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its fourth quarter 2023 investor letter:

“Netherlands-based ASML Holding N.V. (NASDAQ:ASML) and Japan-based Lasertec play dominant roles within different segments of the global semiconductor industry. In both cases, shares rallied significantly in the fourth quarter of 2023, prompting our positions to grow as a percentage of the overall portfolio. We believe both companies will see demand for their products as extreme ultraviolet (EUV) lithography and soon high-numerical aperture lithography must be utilized to manufacture the world’s smallest chips. However, in our estimation, 2024 could deliver a year of less exciting growth for the semiconductor industry, which prompted us to trim these positions back.”