1. ASML Holding (NASDAQ:ASML)
Short interest: 0.2%
Think of ASML Holding (NASDAQ:ASML) as the company selling the only ultra-advanced “mining machines” in the AI gold rush. It makes extreme ultraviolet (EUV) lithography machines, which are used to etch incredibly small circuit patterns onto silicon wafers. These patterns are what allow companies like Nvidia, AMD, and Apple to build advanced AI chips. Its customers include leading chipmakers such as Taiwan Semiconductor Manufacturing Company, Intel, and Samsung.
No other company can realistically replace ASML Holding (NASDAQ:ASML) in the near future because EUV lithography depends on extremely complex technologies that took decades to develop, including atomic-level precision mirrors, ultra-high vacuum systems, and light sources so advanced they required billions of dollars in R&D and a tightly integrated global supply chain.
ASML Holding (NASDAQ:ASML) extreme ultraviolet (EUV) systems are already fully booked, underscoring strong demand for advanced chip manufacturing tools. It also raised its full-year revenue outlook to €36 billion–€40 billion, up from a previous range of €34 billion–€39 billion, reflecting continued strength in demand tied to AI infrastructure and advanced semiconductors.
Polen International Growth Strategy stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its fourth quarter 2025 investor letter:
“Finally, ASML Holding N.V. (NASDAQ:ASML) delivered another solid quarter as semiconductor capital equipment (“semi-cap”) companies continue to benefit from investor optimism around AI. Simply stated, advanced chips sit at the epicenter of everything AI related and ASML’s equipment is essential to printing advanced logic and volatile memory chips. Concerns about a slowdown in the memory chip industry and about Intel’s business waned in the quarter, which helped ignite semi-cap stocks.”
While we acknowledge the potential of ASML to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ASML and that has 100x upside potential, check out our report about the cheapest AI stock.
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