15 Best European AI Stocks According to Morgan Stanley

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

Number of Hedge Fund Holders: 75

ASML Holding N.V. (NASDAQ:ASML) is a Netherlands-based firm that makes and sells advanced semiconductor equipment systems. The business derives a competitive edge in the AI space through the marketing of extreme ultraviolet (EUV) lithography tools. These tools are used by key AI firms like NVIDIA and Taiwan Semiconductor Manufacturing Company to print design features at a very small scale on the leading edge chips. The chips of NVIDIA and TSM are then used in consumer electronics and data centers around the world who offer AI services. Orders of EUV for the manufacture of the N2 tech node, expected to be used in new iPhones, have surged in the past few months. Latest updates from the firm reveal that bookings for EUV accounted for €2.5 billion out of total net bookings of €5.6 billion in the second quarter.

Investment advisory Morgan Stanley has a bullish view of ASML Holding N.V. (NASDAQ: ASML) stock. The advisory recently named the firm among a basket of equities that comprise the European AI shopping list. Morgan Stanley has a $1,092 price target on the stock, implying upside potential of an impressive 27%. Analyst Lee Simpson has highlighted that ASML has a monopoly in leading edge lithography equipment.

While we acknowledge the potential of ASML Holding N.V. (NASDAQ: ASML) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

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