1 Brilliant Artificial Intelligence (AI) Stock Down 30% From Its All-Time High That's a No-Brainer Buy

Core Insights - ASML is a critical player in the global technology infrastructure, providing essential chipmaking equipment that underpins much of the modern world's innovative technology [1] - The stock has seen a decline of over 30% from its all-time high in July 2024, presenting a potential buying opportunity for investors [2] - Government policies and export restrictions have significantly impacted ASML's sales, particularly to China, leading to a bearish market sentiment [4][5] Financial Performance - In Q2 2025, ASML reported sales of 7.7 billion euros, at the high end of its guidance range of 7.2 billion to 7.7 billion euros [6] - For Q3 2025, ASML expects sales between 7.4 billion and 7.9 billion euros, with potential risks from tariffs affecting forecasts [6] Market Outlook - Despite a conservative guidance approach, ASML is expected to benefit from increased spending on chip production capacity driven by AI demand [7] - The company's valuation is at a historically low price-to-earnings (P/E) ratio, suggesting potential for recovery as market expectations improve [8] - If management becomes more optimistic about demand, ASML's valuation could rise back into the mid-30s range, reflecting its growth potential [10] Investment Perspective - ASML is considered a strong buy for long-term investment, with expectations of benefiting from chipmakers' increased production capacity [11] - Current market sentiment may not reflect future performance, making it an opportune time for investors to acquire shares [11]