8 Stocks That Could 10X Over the Next 3 Years

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

Analyst Upside as of November 18, 2024: 32%

ASML Holding (NASDAQ:ASML) is a semiconductor equipment company headquartered in the Netherlands. Foundries use ASML’s extreme ultraviolet (EUV) lithography machines to manufacture AI chips.

On November 14, the company held its 2024 investor day, where the company unveiled its long-term strategies and focus. ASML (NASDAQ:ASML) expects annual revenue in 2030 to range between EUR 44 billion and EUR 60 billion supported by a gross margin between 56% and 60%. The company’s outlook remains promising, as AI creates a bolstering opportunity for it. Due to rising demand for EUV, the company expects EUV lithography spending to grow in the double-digit range between the forecasted years of 2025 and 2030.

In the third quarter of 2024, ASML (NASDAQ:ASML) generated EUR 7.5 billion in sales and EUR 2.1 billion in net income. Revenue growth came from the demand for DUV and installed base management sales. In Q3, ASML reported net bookings worth EUR 2.6 billion, of which EUR 1.4 billion comprised EUV. For the fiscal fourth quarter of 2024, the company expects net sales to reach between EUR 8.8 billion and EUR 9.2 billion, with full-year revenue reaching EUR 28 billion.

The company has an 83% market share in lithography, explaining why analysts are bullish on the stock and their median price target of $869.22 represents an upside of 32% from current levels. According to the company’s CEO, the company expects EUV demand to grow gradually into the next decade, positioning it as a stock expected to 10x over the next 3 years.