11 Best Innovative Stocks to Buy According to Analysts

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

Average analysts’ upside: 38.40%

Number of Hedge Fund Holders: 86

​ASML Holding N.V. (NASDAQ:ASML) is a Dutch multinational corporation and one of the most underrated companies. As a leading innovator in the semiconductor industry, ASML provides chipmakers with comprehensive lithography solutions, including hardware, software, and services, enabling the mass production of microchip patterns, which are subsequently used in virtually all electronic products. ASML’s commitment to innovation is evident in its development of advanced lithography technologies, such as extreme ultraviolet (EUV) lithography, which allows for the production of smaller, more powerful, and energy-efficient microchips. The company effectively holds a technological monopoly, which arose from decades of extensive R&D.

ASML Holding N.V. (NASDAQ:ASML) delivered strong Q4 2024 results, with total net sales exceeding guidance primarily due to higher installed base revenue and revenue recognition on 2 High-NA systems. The company concluded the year with a substantial net systems backlog of around EUR 36 billion, which represents 127% of annualized revenue, highlighting substantial demand for its lithography systems. The company demonstrated significant technological achievements, including the successful demonstration of the NXE:3800E with 220 wafers per hour throughput and the completion of customer acceptance on two High-NA systems, with customers reporting positive feedback on major performance benefits in imaging, overlay, and contrast.

Looking ahead to 2025, ASML Holding N.V. (NASDAQ:ASML) projects revenue growth between 6% and 24%, driven primarily by AI becoming a key growth driver in the industry. The company expects Logic segment to be up versus 2024 with the ramp of leading-edge nodes, while Memory is expected to remain strong, similar to 2024 levels. For the longer term, ASML anticipates increased demand for its products and services due to the shift in market dynamics, projecting a 2030 revenue opportunity between EUR 44 billion and EUR 60 billion, which implies a double-digit potential CAGR. ASML holds a technological monopoly on the most advanced EUV machines, which makes it one of the best innovative companies in the world.