8 Best European Stocks To Buy According to Hedge Funds

3. ASML Holding N.V. (NASDAQ:ASML)  

Number of Hedge Fund Investors: 81  

ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that stands as a pivotal player in the semiconductor industry, specializing in the manufacturing of highly advanced lithography equipment essential for chip production. As the exclusive provider of extreme ultraviolet (EUV) lithography machines, ASML Holding N.V. (NASDAQ:ASML) holds a unique position in enabling the creation of smaller, more efficient, and powerful chips. These chips are integral to a wide array of modern electronics, including smartphones, computers, and numerous other devices, where high performance and compact design are increasingly vital.

On October 15, ASML Holding N.V. (NASDAQ:ASML) disclosed its financial performance for the third quarter, reporting total net sales of $8.18 billion. The company achieved an impressive gross margin of 50.8%, while net income reached $2.29 billion for the quarter. Furthermore, ASML Holding N.V. (NASDAQ:ASML) posted quarterly net bookings totaling $2.83 billion, with $1.53 billion of this amount specifically attributed to its EUV lithography systems—a key segment that underscores ASML Holding N.V.’s (NASDAQ:ASML) market dominance in cutting-edge semiconductor technology.

Looking ahead to the fourth quarter of 2024, ASML Holding N.V. (NASDAQ:ASML) forecasts total net sales in the range of $9.59 billion to $10.03 billion, projecting a gross margin between 49% and 50%. For the entire fiscal year of 2024, ASML Holding N.V. (NASDAQ:ASML) anticipates achieving net sales close to $30.52 billion. These estimates reflect ASML Holding N.V.’s (NASDAQ:ASML) solid growth trajectory, supported by robust demand for its innovative lithography solutions.

ASML Holding N.V.’s (NASDAQ:ASML) proprietary EUV technology is instrumental in advancing Moore’s Law, enabling continuous miniaturization and performance improvement of semiconductors. This technological leadership, coupled with its monopoly in EUV lithography, has fueled ASML Holding N.V.’s (NASDAQ:ASML) sustained growth and market influence. As the world experiences an accelerated AI-driven technological shift, demand for ASML Holding N.V.’s (NASDAQ:ASML) lithography equipment is expected to remain high, positioning the company well for long-term outperformance in the semiconductor industry.