Prediction: This AI Growth Stock Will Continue to Crush the S&P 500 in 2026

Core Insights - ASML has fully recovered from a sell-off in April, showing a year-to-date increase of 45.7%, significantly outperforming the S&P 500's 13.4% [1] Financial Performance - In Q3 2025, ASML reported net sales of 7.5 billion euros and provided guidance for Q4 sales between 9.2 billion and 9.8 billion euros, projecting around 32.5 billion euros for the full year, aligning with initial forecasts [3] - The company expects a gross margin slightly above 52% for the full year and reaffirmed its 2030 revenue goals of 44 billion to 60 billion euros with a gross margin target of 56% to 60% [4] Product Innovation - ASML's next-generation extreme ultraviolet (EUV) systems are increasingly contributing to revenue, with sales of 9 EUV machines in the latest quarter, including a high-numerical aperture system [5][6] - The average price for the 9 EUV machines sold was approximately 400 million euros each, indicating their significant impact on ASML's sales and business transformation [6] Industry Impact - EUV technology is revolutionizing chip manufacturing, enabling the production of complex designs for AI applications by using shorter wavelengths for smaller features and higher transistor density [7] - EUV is essential for producing chips with nodes below 3 nanometers, supporting the advanced chip architectures required by companies like Nvidia, Broadcom, and AMD [8] - ASML's EUV machines are critical for manufacturing sophisticated AI chips, which are becoming a larger portion of its sales, expected to enhance profit margins over time [9]