Today, the stock market is a sense of artificial intelligence (AI), but this is not the first time that has happened.
Throughout history, investors have become euphoric because of the perceived opportunities once in a lifetime, at least in the mid-1800s of California’s golden. Ironically, but those who shaken it are rich, mostly were no hope of gold scanners, but companies selling them kits and shovels that they needed to turn their dreams into a reality.
Today, individuals and corporations are urgent to invest in AI, fearing that they can miss another big thing. During the process, one technology company fell by the road – and yet s is unlikely to happen without ASML HOLDING(Nasdaq: ASML); That is why and what is currently doing a potential table purchase.
Image Source: Motley fool.
The technology rotates around the microchip, silicon pieces packed with tons of transistors – small semiconductor devices that manipulate electrical signals. You can think of transistors as cells that make up organic tissue.
To make technology more powerful and efficient, you need to pack a microchip with an increasingly transistor. For example, NvidiaThe Blackwell GPU AI chip is 208 billion of them! This increased from 80 billion transistors in its predecessor H100.
However, it is not easy to install billions of transistors on a piece of silicon you can hold in your hand. This requires a specialized process known as an extreme ultraviolet (EUV) light lithography. The ASML is the only company in the world to develop these EUV machines, making it a critical player of artificial intelligence and other emerging high -tech programs such as autonomous vehicles and humanoid robotics.
Despite the excitement of AI and its potential, the ASML stocks behind. Shares have fallen by more than 15% in the past 12 months Nasdaq Composite increased by more than 20%.
Unfortunately, the Netherlands company faced some anxiety associated with global economic tension. Tariffs increased the cost of equipment, components and accessories imported to the US. It is also reported that the US government continued to press the Netherlands government to limit the Asml business with China.
The company’s management pointed out the ASML Q2 2025 revenue, calling for the disorders to make some customers hesitant, possibly slow down or delaying equipment purchases that have led to the prospect of stock growth in 2026.
ASML also sells at a small customer base. Since there are only a few famous companies producing chips, only three customers make up most of the ASML sales. One of those Intelfought. Naturally, most of their eggs contain only a few baskets that can also weigh the moods of investors.
Given the risk, it is understood that the shares were carried out as they have. However, investors have the opportunity to retreat and evaluate the wider image here.
While rates and other questions can cloud the ASML short -term perspective, the long -term trend is clear: Ah and other programs will require more complex chips. Asml, as a dominant lithographic and EUV lithographic system provider, the situation is likely to increase long -term growth.
In addition, the dominance of ASML helps to relieve the risk of customer concentration, as chip foundry is highly dependent on these machines and cannot easily be purchased elsewhere. As a result, analysts still expect the ASML to increase revenue on average more than 17% per year in the next three to five years.
The shares decreased to 26 prices and income (P/E) ratio. This corresponds to the lowest P/E ratio in the last few years, and the smallest in 2019. In other words, the ASML does not fall to these levels very often, especially given market attention to AI opportunities.
If there were no questions signs, ASML would probably not be so cheap. However, ASML should continue to sell its particularly important EUV systems until the AI gold rush remains. Investors can look back in the back and want to have their shares cheap.
Have you ever felt you missed the boat by buying the most successful promotions? Then you will want to hear it.
In rare cases, our team of expert analysts ask a “Double down” stock Recommendation for companies that they think are going to appear. If you are worried that you have already missed the opportunity to invest, now is the best time to buy before it’s too late. And the numbers speak by themselves:
NVIDIA:If you invested $ 1,000 when we doubled in 2009,You would have $ 455 174!*
Apple: If you invested $ 1,000 when we doubled in 2008, You would have $ 407 in USD!*
Netflix: If you invested $ 1,000 when we doubled in 2004, You would have $ 630 291!*
We are currently providing alerts to “double down” to three incredible companiesPossible when you log inShare advisorAnd at any time, there may be another such option at any time.
See. 3 shares ยป
*The stock advisor returns from 2025. July 29th
Justin Pope has no position in any of the above shares. Motley fool is a position and recommends ASML, Intel and Nvidia. The Motley fool recommends the following options: Short in 2025. August 24 USD calls Intel. The Motley fool has a disclosure policy.
One Tech Company selling Ai Gold Rush sets and shovels
