12 Best Nanotechnology Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 64

ASML Holding N.V. (NASDAQ:ASML), a key player in the semiconductor industry, is deeply involved in nanotechnology advancements. The company specializes in lithographic systems that use light to etch complicated patterns on silicon wafers, a critical step in chip manufacturing. ASML’s groundbreaking contribution lies in its development of extreme ultraviolet (EUV) lithography, a state-of-the-art technology that enables the creation of nanometer-scale features on silicon.

The demand for lithography is anticipated to peak in 2025 but stay robust through 2030, driven by the industry’s shift to Gate-All-Around (GAA) transistor architecture and the gradual rollout of high numerical aperture (high-NA) EUV technology. These advancements are expected to fuel continued demand for ASML’s cutting-edge tools in the years ahead.

On December 3, BNP Paribas Exane resumed coverage of ASML Holding N.V. (NASDAQ:ASML) with an Outperform rating and a price target of €817. The firm highlighted ASML’s dominant position in the semiconductor market and its strong potential for revenue growth through 2030. BNP Paribas Exane expressed confidence that ASML could reach the upper end of its 2030 guidance, projecting a potential 6% upside to consensus revenue estimates for that year. The firm emphasized ASML’s unique position as a cornerstone of the semiconductor ecosystem, describing it as having the “widest moat in semiconductors” and calling it the “brains behind the brains of AI.”

Polen Capital mentioned ASML Holding N.V. (NASDAQ:ASML) in 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.”