5 Semiconductor Stocks To Buy Today According To Peter Rathjens, Bruce Clark and John Campbell’s Arrowstreet Capital

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

Arrowstreet Capital’s Stake Value: $1.1 billion

Percentage of Arrowstreet Capital’s 13F Portfolio: 1.34%

Number of Hedge Fund Holders: 41

ASML Holding N.V. (NASDAQ:ASML) is a chip manufacturing equipment provider. It is the only company in the world that is capable of making these machines; a fact that has let it gain a crucial place in the semiconductor industry. Its importance is compounded by the fact that due to their complexity, these machines take a long time to be built, which results in a scarce number available for sale each year.

ASML Holding N.V. (NASDAQ:ASML)’s fiscal Q4 results revealed that it had brought in €4.98 billion in revenue and €4.27 in GAAP EPS. The company is currently developing advanced chipmaking machines that are dubbed as High-NA EUV. These use extreme ultraviolet light with a larger lens to print crisper designs on a silicon wafer.

Arrowstreet Capital owned 1.3 million ASML Holding N.V. (NASDAQ:ASML) shares during the fourth quarter of 2021, which enabled it to hold a $1.1 billion stake which represented 1.34% of its portfolio. At the same time, 41 out of the 924 hedge funds polled by Insider Monkey had also owned the company’s shares.

ASML Holding N.V. (NASDAQ:ASML)’s largest investor is Ken Fisher’s Fisher Asset Management. It owns a $3.4 billion stake that comes through 4.2 million shares.

Polen Capital mentioned ASML Holding N.V. (NASDAQ:ASML) in its Q2 2021 investor letter. Here is what the firm said:

“Dutch technology company ASML is the world’s only supplier of photolithography systems to leading-edge semiconductor manufacturers. It is a gross simplification and a valid point to note that ASML’s technology enables the computing technology we use today. For years, ASML engineers bent the laws of physics and enabled Moore’s Law—which states that computer chips will become faster and cost less—to progress.

Incremental innovation gains mushroomed with the rollout of Extreme Ultraviolet (EUV) technology. We were impressed by management’s recent acknowledgment that demand for ASML’s lithography systems is exceeding their prior expectations. Recent announcements by management and major customers for ASML give us even more confidence in the sustainability of growth. We believe ASML could grow its earnings at a high-teens rate over the coming five years.”