ASML: A Top AI Stock to Consider Buying Now

Published Date : 26/08/2025 

Since the launch of ChatGPT in 2022, artificial intelligence (AI) has been a driving force in the tech market. ASML, a Netherlands-based company, is positioned as one of the best AI stocks due to its dominant market share in EUV lithography systems. 

Since the launch of ChatGPT in 2022, artificial intelligence (AI) has been the driving force in the tech market. Most major tech companies are incorporating AI into their products, and the AI market is projected to grow to $4.8 trillion annually by 2033, according to a United Nations Trade and Development report.

There are plenty of companies looking to tap into that growth. For my money, Netherlands-based ASML (NASDAQ: ASML) is one of the AI stocks best positioned for long-term success. Here's why.

AI is a highly competitive space, but a few companies have carved out dominant shares of certain markets. For example, Nvidia is the top semiconductor chip design company and has capitalized on the exponential growth in chip sales to become the largest company by market cap.

ASML is a semiconductor equipment company that manufactures lithography systems that produce those chips. Semiconductor companies use lithography systems during the chip production process. For mass production of the most advanced chips, including AI chips, they use extreme ultraviolet (EUV) lithography systems.

ASML doesn't have much competition in this arena. Estimates in 2024 put its share of the lithography market at over 90%. It's also the only company in the world supplying EUV lithography equipment, and this would be an extremely difficult market for a competitor to enter. ASML's EUV machines are highly complex, containing about 700,000 components. For comparison, a typical car has about 30,000 components. In all likelihood, ASML will continue to be the only game in town.

Many of the major chipmakers, including Taiwan Semiconductor Manufacturing, Intel, and Samsung, rely on ASML's equipment. With its wide moat, ASML is a strong AI company that should deliver strong growth over the next decade.

Trading at 27 times forward earnings, ASML is reasonably valued compared to other AI stocks. I've been picking up shares throughout the year, and if you're looking for quality AI companies to add to your portfolio, it's one to check out. 

Frequently Asked Questions (FAQS): 

Q: What is ASML and what does it do?

A: ASML is a Netherlands-based company that manufactures lithography systems used in the production of semiconductor chips, including advanced AI chips. It is the only supplier of extreme ultraviolet (EUV) lithography systems, which are crucial for producing the most advanced chips.

Q: Why is ASML considered a strong AI stock?

A: ASML is considered a strong AI stock because it has a dominant market share in EUV lithography systems, which are essential for producing advanced AI chips. Its unique position and lack of competition make it well-positioned for long-term growth in the AI market.

Q: What are the key components of ASML's EUV lithography systems?

A: ASML's EUV lithography systems are highly complex and contain about 700,000 components. These systems are used by major chipmakers like Taiwan Semiconductor Manufacturing, Intel, and Samsung to produce the most advanced semiconductor chips, including those for AI applications.

Q: How is ASML's market position in the lithography industry?

A: ASML holds over 90% of the lithography market share and is the only company in the world supplying EUV lithography equipment. This dominant position makes it a key player in the semiconductor industry and a strong candidate for long-term investment.

Q: What is the projected growth of the AI market?

A: The AI market is projected to grow to $4.8 trillion annually by 2033, according to a United Nations Trade and Development report. This significant growth potential makes companies like ASML, which are crucial to the production of AI chips, highly attractive investments. 

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