Buying This Top Artificial Intelligence (AI) Stock Looks Like a No-Brainer Right Now

Core Viewpoint - The recent development of a cost-effective large language model by Chinese start-up DeepSeek has raised questions about the substantial investments in AI infrastructure, yet the tech sector's robust spending environment is expected to persist [1][2]. Group 1: AI Ecosystem and Demand - CEOs of Meta Platforms and Microsoft emphasized the necessity of heavy capital expenditures to meet the anticipated increase in AI application demand, despite DeepSeek's lower investment model [2]. - The concept of Jevons Paradox suggests that DeepSeek's cost-effective AI model could actually increase overall demand for AI applications [2]. Group 2: ASML's Performance and Outlook - ASML's CEO, Christophe Fouquet, indicated that the low-cost AI model could enhance demand for AI applications, subsequently increasing the need for processing power [3]. - ASML reported strong demand for its chipmaking equipment, with Q4 bookings reaching 7.1 billion euros, a 170% increase from Q3, surpassing analyst expectations of 3.5 billion euros [7]. - The company received 3 billion euros in orders for extreme ultraviolet (EUV) machines, indicating sustained demand for advanced AI chips [8]. Group 3: Financial Projections - ASML anticipates a revenue forecast range of 30 billion to 35 billion euros for 2025, with the higher end representing a 24% revenue increase [9]. - The expected gross margin for ASML in 2025 is between 51% and 53%, which would be a slight improvement over 2024 [10]. - Analysts project a 24% increase in ASML's earnings per share to 23.92 euros in 2025, potentially leading to an 11% rise in stock price to $819 [11].