Unlocking Growth: How ASML Holding’s Robust Financials and Cutting-Edge EUV Technology Are Transforming the Semiconductor and AI Industries

We’ve put together a list of the 30 key AI stocks by Blackrock. Let’s see how ASML Holding N.V. (NASDAQ:ASML) compares to other AI-focused companies.

In Q3 2024, Blackrock shared insights on the AI market. They noted investor caution about AI spending from tech companies, leading to a shift in investments towards energy, utilities, and real estate. In September 2024, Blackrock, alongside Microsoft and others, formed a partnership aimed at boosting investments in data centers and power infrastructure. This move aligns with their goal to enhance American competitiveness in AI while addressing the need for energy support as economies grow.

By October 2024, Blackrock launched two exchange-traded funds (ETFs) focused on the AI market. These funds aim to meet the rising interest in AI investment opportunities. This strategy seems effective; Blackrock reported a net profit of $6.37 billion last year, a 16% rise from the year before. Their assets under management reached $11.55 trillion, partly due to advancements in AI technology, which they believe will significantly impact U.S. economic growth in 2025.

The Blackrock Investment Institute predicts that AI innovations will progress faster in the U.S. than in Europe, with private markets key for funding AI infrastructure. Their 2025 outlook emphasizes that the global economy is shifting due to mega forces like AI technology and green initiatives. They argue that massive investments, similar to those during the Industrial Revolution, are necessary, especially in AI-related infrastructure. Their views align with insights from JPMorgan.

JPMorgan advises investors to focus on various opportunities within the AI value chain rather than just the obvious picks. They note that while major tech companies are seeing heavy investment, cheaper valuations and lower earnings expectations elsewhere indicate broader potential in 2025. The report underscores that a small number of mega-cap stocks significantly influence the market’s AI narrative.

In their analysis, JPMorgan breaks down the AI field into five main areas: AI hardware, hyperscalers, developers, integrators, and essentials. They caution that revenue expectations for hardware firms may not align with growth potential across the AI ecosystem, leading to volatility. As of now, investor interest is heavily focused on AI hardware and hyperscalers.

We determined our focus on AI stocks based on insights from BlackRock’s investor notes. These stocks are favored by hedge funds, which typically perform well. Our research shows that mimicking top hedge fund strategies can yield solid returns. Our newsletter, with a track record of 275% return since mid-2014, selects stocks aiming for ongoing market success.

A technician works on a semiconductor device in a clean room, surrounded by advanced machinery.

Number of Hedge Fund Holders: 64

ASML Holding N.V. (NASDAQ:ASML) produces state-of-the-art semiconductor equipment. In Q3 2024, they reported total net sales of €7.5 billion with a gross margin of 50.8%. Their net income was €2.1 billion, with quarterly net bookings at €2.6 billion. ASML stands to gain from the growing demand for AI technology, with expected sales growth of 8%-14% over the next five years. Their edge in EUV lithography technology plays a significant role in their competitive advantage, aiding customers in manufacturing advanced microchips. This trend is projected to help increase global semiconductor sales to over $1 trillion by 2030, with an annual growth rate of about 9% from 2025 to 2030.

Overall, ASML ranks 17th among Blackrock’s top AI stocks. While we see potential in ASML, we believe there are other AI stocks that may deliver higher returns more quickly. For a more attractive AI stock trading under five times its earnings, take a look at our findings on the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.