11 Best Foreign Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 80

ASML Holding N.V. (NASDAQ:ASML) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On July 1, Bank of America reduced its price target for ASML Holding N.V. (NASDAQ:ASML) from €795 to €759 while keeping a “Buy” rating.

The firm highlighted several risks affecting Foundry and Logic demand, especially in 2026. Despite that, BofA analysts believe that the stock is attractively valued at about 19.6 times estimated 2026 EV/EBITDA, which is below its 10-year median of 22x.

BofA also reduced its earnings per share (EPS) estimates for ASML Holding N.V. (NASDAQ:ASML) for calendar years 2026 and 2027 by 4% to 5%, citing several downside risks. These include slightly lower revenues from China and uncertainty about demand from major chipmakers.

The analysts highlighted multiple challenges such as ongoing issues at Intel ahead of its 18A ramp-up, an unclear situation at Samsung in DRAM, and additional export controls on China that could hurt demand from existing clients.

The firm’s analysts also pointed out that ASML Holding N.V. (NASDAQ:ASML) could see near-term demand for its extreme ultraviolet (EUV) weaken due to slow adoption of high-NA technology by key customers like TSMC and Samsung, and SK Hynix possibly shifting toward 3D DRAM

On the positive side, BofA analysts noted strong demand for 2nm at TSMC and potential growth from Samsung as it plans to start production on its 2nm process in the US in early 2026. There could also be benefits if production capacity moves from China to Korea and Taiwan, if US export waivers are revoked.

Despite the lower estimates for 2026, BofA remains bullish on ASML Holding N.V. (NASDAQ:ASML) in the long term. Even with export bans, the firm believes that ASML’s earnings per share could reach €40 by 2030, with a possible upside to €50. This optimism is based on the growing demand for AI chips.

ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that designs and develops advanced semiconductor equipment systems, including photolithography machines, which are used to produce chips.

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