10 Hot AI Stocks to Keep on Your Radar

8. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 78

ASML Holding N.V. (NASDAQ:ASML) is one of the 10 Hot AI Stocks to Keep on Your Radar. On September 9, UBS analyst Francois-Xavier Bouvignies reiterated a Buy rating on the stock with a EUR750.00 price target. The firm believes that ASML is heading toward an inflection point.

Bouvignies is bullish on the chipmaker’s lithography business considering that it is the only company in the world that makes extreme ultraviolet, or EUV, lithography machines that the most advanced semiconductors require.

The analyst believes that the demand for lithography intensity, i.e. the number of exposures needed per wafer, will ramp with the upcoming production of the TSMC A14 logic node. TSMC is ASML’s largest customer of EUV machines.

“Following a year of underperformance with the stock down c20%, we see the declining lithography intensity thesis and overhang from the Chinese market as well understood by the market.”

The analyst further explains that some investors may question why buy the stock when it is primarily a 2027 story and near-term headwinds prevail, but argues that downside risks seem limited and the long-term outlook remains attractive.

“The main pushback to our call is why buy a 2027 story, when there are still near-term headwinds. With buyside expectations now between LSD% decline to flat revenue in 2026 (UBSe -3% yoy and cons +3% yoy), we see the likelihood of material downgrades as unlikely, despite potentially weak orders in coming quarters. Recent developments in memory should also protect from further downside, with UBSe expecting +24% yoy for DRAM WFE in 2026 vs a decline of -2% yoy previously. We expect the market to shift focus to 2027 post Q3 results, where we expect a directional 2026 guide. This will mark a renewal of the litho intensity story, where ASML will again start outperforming WFE with the advent of A14 and the introduction of high NA, in our view.”

ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.