Reddit’s Top AI Stocks: Why Traders Are Backing IBM and ASML Over other AI Plays

Core Insights - Retail trader enthusiasm is driving strong bullish sentiment for ASML and IBM, with ASML up 58% year to date and IBM climbing 49% from its 52-week low [2][3] IBM's Strategic Moves - IBM's $11 billion acquisition of Confluent at a 34% premium positions the company to dominate real-time data streaming for AI applications, generating significant retail trader activity [3][5] - IBM's AI book of business reached $9.5 billion in Q3, with infrastructure revenue increasing 17% year over year, reflecting strong growth in AI-related services [6] ASML's Market Position - ASML holds a monopoly in extreme ultraviolet lithography technology, crucial for advanced AI chip manufacturing, reporting $7.52 billion in Q3 revenue with a 29.4% profit margin [4][5] - Retail traders view ASML's 58% year-to-date gain as justified due to its essential role in AI chip production, with analyst targets averaging $1,064 [4]