You won't find many AI stocks with such a wide moat.Since the launch of ChatGPT in 2022, artificial intelligence (AI) has been the driving force in the tech market. Most of the major tech companies are incorporating AI into their products, and the AI market is projected to grow to $4.8 trillion annually by 2033, according to a United Nations Trade and Development report.There are plenty of companies looking to tap into that growth. For my money, Netherlands-based ASML (ASML 0.71%) is one of the AI stocks be ...

ASML reports €7.7 billion total net sales and €2.3 billion net income in Q2 2025 Agenda July 16, 2025 Page 2 Public • Investor key messages • Business summary • Outlook • Financial statements Full-year 2025 expected total net sales growth of around 15% with gross margin around 52% ASML 2025 Second-Quarter Veldhoven, the Netherlands July 16, 2025 Investor key messages July 16, 2025 Page 3 Investor key messages July 16, 2025 Page 4 Public • The semiconductor industry remains strong, driven by artificial intel ...

Core Concept - The article discusses the concept of "wide moat" companies, which possess strong competitive advantages that protect them from rivals, ensuring long-term profitability and stability [1][3][4]. Group 1: Characteristics of Wide Moat Companies - Wide moat companies benefit from brand strength, network effects, high customer switching costs, regulatory protections, and economies of scale, making it difficult for competitors to erode their market share [3]. - These companies typically enjoy strong pricing power, stable profit margins, and the ability to reinvest in their businesses, further reinforcing their competitive advantages [3]. Group 2: Investment Rationale - Investing in wide moat businesses is seen as a strategy for building long-term wealth, as they tend to produce steady cash flows and navigate market volatility effectively [5]. - Wide moat companies are more resilient during economic downturns due to their solid market positions and robust balance sheets [4]. Group 3: Examples of Wide Moat Companies - Pfizer Inc. is highlighted for its robust patent portfolio and strong R&D capabilities, which protect its position in the pharmaceutical industry [7][8]. - ASML Holding is noted for its technological leadership in lithography equipment, maintaining a near-monopoly on extreme ultraviolet (EUV) lithography essential for advanced chip production [10][11]. - Lam Research Corporation benefits from its leadership in wafer fabrication equipment, with significant capital requirements creating high barriers to entry [14]. - The Coca-Cola Company exemplifies a wide moat with its brand recognition and extensive distribution network, maintaining a leading position in the non-alcoholic beverage market [17]. Group 4: Market Trends and Future Outlook - ASML is well-positioned to capitalize on the AI revolution, driving demand for advanced semiconductors [13]. - Lam Research is at the center of the AI revolution, with its tools crucial for high-performance computing and memory efficiency [16]. - Coca-Cola's innovation strategy focuses on expanding its portfolio to meet evolving consumer preferences, emphasizing healthier options and energy drinks [19].

ASML 2024 Investor Day Summary Company Overview - **Company**: ASML - **Event**: 2024 Investor Day - **Date**: November 14, 2024 - **Location**: Veldhoven, Netherlands Key Industry Insights - The semiconductor industry is projected to remain strong, with a market size of €1 trillion in 2022 and expected to maintain this size in 2024, but with a shift towards advanced logic and DRAM due to AI advancements [14][15] - AI is expected to significantly boost the semiconductor industry, with approximately 40% of the semiconductor business projected to revolve around AI by 2030 [32][33] - The industry requires major innovations to improve cost and energy consumption, particularly in logic and DRAM sectors [20][21] Technology and Product Developments - ASML emphasizes the importance of lithography in driving down costs and energy consumption, asserting that it will remain central to innovation in the semiconductor industry [22] - The company is focusing on EUV (Extreme Ultraviolet) technology, which is maturing and will be scalable for many years, providing customers with cost and energy efficiency [23][24] - Holistic lithography is highlighted as a key solution for improving product quality, flexibility, and time to market [17][18] - ASML plans to reduce the cost of EUV exposure by 30% by 2030 while also cutting emissions by 50% [60][62] Market Trends and Customer Focus - The demand for computing power is accelerating, particularly driven by AI, with a projected increase of 16 times every two years, compared to Moore's Law [40][41] - DRAM is identified as a bottleneck for AI, leading to a shift towards high bandwidth memory (HBM) and potential processing in memory architectures [51][52] - ASML's installed base is growing, leading to increased opportunities for service and upgrades, which are becoming a larger part of the business [26] ESG Commitments - ASML is committed to achieving greenhouse gas neutrality for scope 1 and scope 2 emissions by 2025 and is on track to meet this goal [104] Financial Outlook - The semiconductor industry is expected to remain profitable, with an EBIT of €865 billion in 2023, despite being a downturn year [35][36] - More than €500 billion is projected to be spent on R&D in 2024 to foster innovation within the industry [37] Conclusion - ASML is optimistic about the future, with a strong focus on innovation, customer partnerships, and sustainability initiatives, positioning itself to capitalize on the evolving semiconductor landscape driven by AI and advanced technologies [19][27]