10 Stocks To Buy Before They Split Next

5. ASML Holding (NASDAQ:ASML)

Share Price as of October 18: $634.20

Surge in Share Price in 5 Years: 178.16%

Stock Split Confirmed: no

Number of Hedge Fund Holders: 81

ASML Holding (NASDAQ:ASML) is one of the world’s leading manufacturers of chip-making equipment, designing and manufacturing lithography systems used in the semiconductor manufacturing process. These machines are essential for printing the tiny patterns on silicon wafers that form the basis of integrated circuits.

As the exclusive provider of EUV and high NA EUV lithography machines, essential for producing cutting-edge 5nm, 3nm, and 2nm chips, the company enjoys a dominant market position. This technological monopoly provides a significant competitive advantage. Its innovative lithography systems are crucial for the production of advanced microchips, powering the growth of AI and other cutting-edge technologies. While 2024 is a transitional year with no anticipated revenue growth, the company is poised for long-term success given its competitive advantage in EUV lithography systems.

It has a strong track record of 18.42% average annual revenue growth over the past decade, reflected by its 15.66% year-over-year revenue growth in Q3 2024. Net system sales were driven by logic at 64%, with the remaining 36% coming from memory. Net system bookings in the quarter were balanced between memory at 54% and logic at 46%.

The new EUV products continue to make significant progress. The NXE:3800E system is being ramped up this quarter, with EUV customers rapidly adopting it due to its superior performance, including a 37% increase in throughput compared to its predecessor. The company achieved a record overlay of 220 wafers per hour in the factory and is on track to deliver fully specified systems starting next year. As customers transition to the NXE:3800E, the majority of Q4 shipments will be of this model, indicated ASML management. ASML Holding’s (NASDAQ:ASML) strategic focus and technological leadership position it for long-term success.

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.”