10 Stocks Set to Explode in 2025

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

Street High Upside as of October 27, 2024: 61%

Number of Hedge Fund Holders: 81

ASML Holding (NASDAQ:ASML) is a semiconductor equipment company headquartered in the Netherlands. Foundries use ASML’s extreme ultraviolet (EUV) lithography machines to manufacture AI chips.

In the third quarter of 2024, ASML Holding (NASDAQ:ASML) generated EUR 7.5 billion in sales and EUR 2.1 billion in net income. Revenue growth came from the demand for DUV and installed base management sales. In Q3, ASML reported net bookings worth EUR 2.6 billion, of which EUR 1.4 billion comprised EUV. For the fiscal fourth quarter of 2024, the company expects net sales to reach between EUR 8.8 billion and EUR 9.2 billion, with full-year revenue reaching EUR 28 billion.

ASML Holding (NASDAQ:ASML) expects to increase its capacity and improve its technology to meet the surging demand for chips in 2025, expecting sales to range between EUR 30 billion and EUR 35 billion. The company has an 83% market share in lithography, explaining why 81 hedge funds were bullish on the stock at the end of Q2 2024.

According to the company’s CEO, semiconductor inventory and litho tool utilization levels have consistently improved over the past few months for both logic and memory customers, however, the company expects EUV demand to grow rather gradually.

Polen Capital Polen International Growth Strategy stated the following regarding ASML Holding (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.”