Jim Cramer’s Game Plan: 15 Stocks to Watch

7.  ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 86

Cramer highlighted ASML Holding N.V. (NASDAQ:ASML) during the episode as he said:

“ASML Holding, that’s a Dutch company, is a crucial semiconductor capital equipment business. It also reports and I fear that it will miss as it did last time, causing all the high-end semiconductor stocks to roll over. And by the way, AMAT was up big today. That would go down big if ASML misses. Talk about opaque. I don’t even know if these guys know how they’re doing right now. It is such a complicated company.”

ASML Holding (NASDAQ:ASML) develops high-tech semiconductor equipment such as lithography, metrology, and inspection systems. It supports chip manufacturers in producing different semiconductor technologies and provides system upgrades and technical assistance.

Generation Investment Management stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q4 2024 investor letter:

“ASML Holding N.V. (NASDAQ:ASML), a Dutch company and a recent addition to our portfolio, is a critical enabler of the semiconductor industry. They provide advanced lithography equipment, which is essential for producing semiconductors. As demand for chips accelerates – driven by AI, electrification, and broader applications across the economy – ASML stands to benefit significantly.

ASML operates in a near-monopolistic position in lithography machines, thanks to decades of engineering expertise and innovation. Over the past five years, the company has grown revenues at 20% annually. We expect the company’s revenue growth to moderate but continue to grow strongly, in line with the semiconductor industry. Margins are likely to expand over time, underscoring ASML’s high quality and earnings potential.

There are risks. Short-term volatility in orders, and geopolitical trade restrictions, could affect growth. Over the long term, disruptive innovation outside of lithography poses a challenge, though we believe ASML’s position is secure. We therefore find the valuation of the company attractive. We are confident in its ability to compound value over the coming years.”