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1 Artificial Intelligence Stock I'm Buying Hand Over First While It's Down 30%
ASMLASML Holding(ASML) The Motley Fool·2025-04-12 12:30

Company Overview - ASML is a global leader in lithography systems essential for semiconductor production, particularly in the manufacturing of AI chips [3][4] - The company holds a technological monopoly in extreme ultraviolet (EUV) lithography systems, which are crucial for producing advanced semiconductor chips [4][10] Market Position and Financial Performance - ASML's share price has decreased by over 30% in the past year, but its competitive advantages position it as a top long-term investment in the tech sector [2] - In 2024, ASML generated 21.8 billion euros in net system sales, with 44 EUV systems sold, accounting for 38% of total sales [5] - The company reported total revenue of 28.3 billion euros in 2024, reflecting a modest increase of 2.6% from 2023 [8] Growth Potential - The global semiconductor market is projected to grow significantly, with sales expected to reach 1trillionby2030,drivenbytheincreasingdemandforAItechnology[7]ASMLanticipatesrevenueprojectionsof7.5billionto8billioneurosforQ12025,representingayearoveryearincreaseof421 trillion by 2030, driven by the increasing demand for AI technology [7] - ASML anticipates revenue projections of 7.5 billion to 8 billion euros for Q1 2025, representing a year-over-year increase of 42% to 51% [9] - Long-term sales projections for ASML suggest potential revenues of 44 billion to 60 billion euros by 2030 [9] Competitive Landscape - ASML faces competition primarily from China's investment of approximately 40 billion in its chip industry, but the complexity of EUV systems makes it challenging for competitors to match ASML's offerings [6] - Despite potential competition, ASML's dominant market position and technological edge provide a strong foundation for future growth [12]