20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

13) ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 64

Average Upside Potential: 30.4%

ASML Holding N.V. (NASDAQ:ASML) provides lithography technology that enables the production of high-performance CPUs, GPUs, TPUs, and AI accelerators. The company remains well-positioned to capitalize on the burgeoning demand for AI chips that need the most advanced semiconductor manufacturing processes. ASML Holding N.V. (NASDAQ:ASML)’s EUV lithography systems are critical for producing high-performance chips powering AI applications, from data centers to edge devices. With AI spreading across industries, the demand for such sophisticated chips can grow substantially, leading to increased orders for the company’s advanced lithography tools.

ASML Holding N.V. (NASDAQ:ASML)’s technology remains critical for manufacturing High Bandwidth Memory (HBM), which is a critical component in AI accelerators and high-performance computing systems. Amidst the current optimism about HBM demand, the company is expected to see a steady stream of business. Furthermore, with AI capabilities spanning across consumer devices like smartphones and PCs, there appears to be strong potential for improved demand for ASML Holding N.V. (NASDAQ:ASML)’s equipment from several chip manufacturers.

Sandeep Deshpande, an analyst at JPMorgan, gave an “Outperform” rating on the shares of the company, with a price objective of $1,148. Polen Capital, an investment management company, released 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.”