Core Viewpoint - ASML Holding is positioned as a foundational growth stock benefiting from the increasing demand for AI applications, particularly through its advanced lithography machines essential for semiconductor manufacturing [2][22]. Company Overview - ASML specializes in lithography systems that print circuit designs onto silicon wafers, a critical step in semiconductor manufacturing [5][10]. - The company holds a monopoly in producing extreme ultraviolet (EUV) lithography machines, which are vital for creating chips used in AI applications [6][10]. Market Dynamics - ASML's product mix is shifting towards logic applications, with 84% of net system bookings in the latest quarter allocated for logic end-use cases, highlighting the growing demand for GPUs and CPUs essential for AI workflows [7][8]. - The company anticipates steady growth through 2030, projecting revenue to double from 2024 levels, with a forecast of 15% revenue growth and a 52% gross margin for 2025 [8][19]. Financial Performance - In the latest quarter, ASML reported sales of 7.7 billion euros ($8.92 billion) and a net income of 2.3 billion euros ($2.66 billion), resulting in a profit margin of 29.8% [19]. - The average selling price of ASML's lithography machines was approximately $85.5 million per unit, with 76 new units sold generating 5.596 billion euros ($6.5 billion) in revenue [12][19]. Long-term Growth Potential - ASML's long-term growth is tied to the increasing demand for computing power driven by AI, with projections indicating a need for a compound annual growth rate (CAGR) of 7.8% to reach the low end of its 2030 revenue goal of 44 billion euros ($51.16 billion) [18][22]. - The company is trading at a price-to-earnings ratio of approximately 12.4 to 18.9 times its 2030 earnings estimates, suggesting it is undervalued based on its growth potential [20][21]. Investment Considerations - ASML's business model is characterized by high margins and a unique sales cycle influenced by the demand from fabrication companies, making it a compelling long-term investment for exposure to AI growth [10][22]. - The company acknowledges potential short-term volatility due to macroeconomic factors and trade tensions, but emphasizes the importance of focusing on long-term growth prospects [9][16].