1 Artificial Intelligence (AI) Stock I'd Buy on Every Dip and Never Sell

Core Viewpoint - ASML is recognized as a pivotal player in the semiconductor industry, particularly for its role in producing extreme ultraviolet (EUV) lithography machines, which are essential for high-volume semiconductor production and AI applications [2][8]. Company Overview - ASML is the only company capable of manufacturing EUV machines, providing it with a unique competitive advantage in the semiconductor market [8]. - The company has a market capitalization of $416 billion and a current stock price of $1,072.62, with a day’s range between $1,063.21 and $1,076.03 [6][7]. Financial Performance - ASML reported free cash flow of $7 billion in 2024 and $6.9 billion in 2023, showcasing strong cash generation capabilities [10]. - The company has consistently generated more free cash flow per share over the past decade, particularly benefiting from the growth of the AI industry [12]. - ASML maintains a conservative debt-to-equity ratio of 0.14, indicating a strong balance sheet and sound financial health [12]. Investment Rationale - The technological monopoly that ASML holds in the EUV lithography niche makes it an attractive long-term investment as the AI sector continues to develop [9]. - The company’s gross margin stands at 52.70%, and it offers a dividend yield of 0.69%, further enhancing its appeal to investors [7].