13 Best Technology Stocks to Buy for Long-Term Investment

7. ASML Holding (NASDAQ:ASML)

3-Year Revenue CAGR: 19.98%

Number of Hedge Fund Holders: 86

ASML Holding (NASDAQ:ASML) provides lithography solutions to develop, produce, market, sell, upgrade, and service advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems. It also offers hardware, software, and services to chipmakers to produce the patterns of ICs.

ASML’s EUV/Extreme Ultraviolet system sales contributed EUR3.2 billion to the total net system sales of EUR5.7 billion in Q1 2025. This segment benefited from a favorable product mix with a higher proportion of NXE:3800E systems. Higher average selling prices and the achievement of customer productivity milestones on already installed EUV systems also drove the company’s growth. These factors together pushed the gross margin above guidance to 54%.

ASML Holding (NASDAQ:ASML) is continuing the ramp-up of leading-edge logic nodes by customers utilizing the NXE:3800E system. Furthermore, the progress in High NA EUV technology, with the shipment of the fifth NXE:5000 system and the upcoming shipments of the NXE:5200, indicates a longer-term growth trajectory for the company. However, Morgan Stanley analyst Lee Simpson lowered the price target on ASML to EUR640 from EUR 680 while keeping an Equal Weight rating.

Baron Fifth Avenue Growth Fund is optimistic about ASML Holding (NASDAQ:ASML) due to its monopoly in critical lithography and stated the following in its Q4 2024 investor letter:

“ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that designs and manufactures photolithography equipment for semiconductor manufacturing. While ASML is the leader across all types of lithography, most importantly, it is the only manufacturer of extreme ultra-violet lithography tools, which are critical for the manufacturing of leading-edge chips. Shares fell 16.6% during the fourth quarter (finishing the year down 7.7%) on reduced guidance for 2025 as well as growing investor concerns about the potential impact of U.S. government restrictions on Chinese demand and the possibility of peaking lithography intensity. Despite near-term noise, we believe that the growing demand for chips in general and AI chips in particular will continue to support long-term growth for the wafer fab equipment industry with ASML’s competitive positioning remaining unassailable. While lithography as a percentage of capital expenditure may decrease from current levels, the chip layer count requiring lithography will continue to increase, in our view, as chips continue to become more complex. As a monopoly on critical lithography tools supporting an industry with growing demand fueled by the proliferation of AI, we see strong long-term upside for ASML.”