5 Cheap AI Stocks to Buy in 2023

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

Number of Hedge Fund Holders: 59

Upside Potential as of March 31: 19.66%

Average Analyst Price Estimate: $809.73

ASML Holding N.V. (NASDAQ:ASML) is an information technology company selling advanced semiconductor equipment systems comprising lithography, among more. Lithography tools are an integral part of AI chip production, making this company a vital part of the AI sector.

On January 26, Credit Suisse’s Adithya Metuku reiterated an Outperform rating on ASML Holding N.V. (NASDAQ:ASML) shares.

ASML Holding N.V. (NASDAQ:ASML) currently dominates the lithography market, claiming over 80% of the market share in the industry. Analysts have placed an average price target of $809.73 on the shares, which were trading at $676.68 on March 31. This gives the stock an upside potential of 19.66%.

In total, 59 hedge funds were long ASML Holding N.V. (NASDAQ:ASML) in the fourth quarter, with a total stake value of $5.1 billion.

ClearBridge Investments, an investment management company, mentioned ASML Holding N.V. (NASDAQ:ASML) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“ASML Holding N.V. (NASDAQ:ASML) makes semiconductor chip manufacturing equipment and is a leading supplier of lithography systems to the semiconductor industry. We expect ASML to grow above expectations as its innovative EUV technology is deployed and industry capacity expands. This in turn should lead to margin expansion and earnings leverage. In addition to more visible growth and profitability drivers relative to Intel, ASML also has a stronger balance sheet and higher returns on capital. As a semiconductor capital equipment provider, ASML directly improves the energy efficiency of semiconductor manufacturing, and governance and diversity initiatives at ASML are best in class.”