13 Best Semiconductor Equipment Stocks to Buy According to Hedge Funds 

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

Number of Hedge Fund Holders In Q2 2025: 78

ASML Holding N.V. (NASDAQ:ASML) is indispensable when it comes to the semiconductor manufacturing equipment industry. As we discussed in the introduction to this piece, the firm is the sole global supplier for high-end extreme ultraviolet (EUV) lithography scanners. These scanners are responsible for ensuring that chip manufacturers can reduce transistor sizes on chips for performance and power efficiency enhancements.

ASML Holding N.V. (NASDAQ:ASML)’s shares have gained more than 45% year-to-date as they have benefited from tailwinds stemming from AI chip enthusiasm. Rothschild Redburn upgraded the shares to Buy from Neutral and raised the share price target to €1,200 from €900, as it cited the firm’s High NA EUV machines. These machines are the most advanced lithography machines in the world, and their demand is central to ASML Holding N.V. (NASDAQ:ASML)’s performance.

Rothschild noted that stitching and packaging advances have removed some of the uncertainty surrounding the machines. Since High NA scanners increase the resolution of the circuits printed, the surface area of the wafer they can target is lower than simple EUV scanners. As a result, chip manufacturers have to combine the exposure fields to make chips.