Morgan Stanley’s 15 Best European AI Stocks

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

Number of Hedge Fund Holders: 64

ASML Holding N.V. (NASDAQ:ASML) is a Netherlands-based firm that makes and sells advanced semiconductor equipment systems. Back in August, Morgan Stanley named the firm among a basket of equities that comprise the European AI shopping list. Morgan Stanley had a $1,092 price target on the stock, implying upside potential of an impressive 27%. Analyst Lee Simpson highlighted that ASML had a monopoly in leading-edge lithography equipment. However, despite this monopoly, or maybe because of it, the company has come under increased governmental scrutiny. In the past six months, the US and Dutch governments have placed additional curbs on the sale of lithography equipment to China. ASML stock has declined by more than 17% since early August and is presently trading at around $712.

While we acknowledge the potential of ASML Holding N.V. (NASDAQ:ASML) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than ASML Holding N.V. (NASDAQ:ASML) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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