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].

Core Viewpoint - The US equity markets, particularly in tech and AI sectors, are experiencing a resurgence after a brief pullback, indicating a renewed AI bull run [1][2]. Group 1: AI Market Dynamics - Artificial intelligence remains the dominant market theme with an accelerating pace of innovation, highlighted by major announcements from tech giants like Microsoft, Alphabet, and Nvidia [2]. - The excitement among investors is returning, with a focus on three key stocks: ASML Holding, Palantir Technologies, and Broadcom, which are pivotal in the AI value chain [2]. Group 2: ASML Holding - ASML Holding is critical in the semiconductor supply chain, holding a near-monopoly on extreme ultraviolet (EUV) lithography machines essential for advanced chip production [3]. - The company has a Zacks Rank 2 (Buy) with an expected EPS growth of 18.9% annually over the next three to five years, while trading at 27x forward earnings, below its 10-year median of 31.8x, presenting an attractive entry point for long-term investors [4]. - Technically, ASML has been consolidating and recently broke out of a bull flag, approaching resistance at $780, with momentum expected to carry it higher as long as it holds above $740 [5]. Group 3: Broadcom - Broadcom has become a significant player in the AI value chain, designing custom chips for hyperscalers, including AI accelerators and ASICs for large-scale data centers [8]. - Analysts project Broadcom's earnings to grow at 19.1% annually over the next three to five years, driven by strong demand for AI-enabling hardware, although it currently holds a Zacks Rank 3 (Hold) due to flat earnings estimate revisions [9]. - The stock is breaking out from a tight bull flag pattern, suggesting a continuation of its rally as long as it trades above the $230 breakout level [10]. Group 4: Palantir Technologies - Palantir Technologies has emerged as a top performer in the market, benefiting from AI adoption and demand for real-time data-driven decision platforms, expanding from government to private sector applications [13]. - Analysts forecast Palantir's earnings to grow at 32% annually over the next three to five years, although it trades at over 200x forward earnings, reflecting its unique market position [14]. - The stock is also breaking out of a bull flag pattern, indicating continued momentum, with potential upside if it holds above the $125 breakout level [15]. Group 5: Investment Outlook - ASML, Broadcom, and Palantir are all positioned to benefit from the expanding AI ecosystem, with strong earnings growth forecasts and compelling technical setups, suggesting they are well-positioned for the next bull run [15].