5 Semiconductor Stocks With Growth Potential

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

Number of Hedge Fund Holders: 41

ASML Holding N.V. (NASDAQ:ASML) is one of the, if not the most, important firms in the semiconductor industry. Its lithography machines, which use light to fabricate semiconductors, are used by all of the leading chip manufacturers globally since it is the only company capable of manufacturing them.

ASML Holding (NASDAQ:ASML) is one of Morgan Stanley’s top picks in the European semiconductor and tech hardware spaces for 2022 as the firm believes the company is benefitting from the chip shortage.

Morgan Stanley also thinks that ASML (ASML) could generate $34.05 billion in revenue, or 30.2 billion euros, in 2022.

In its Q2 2021 investor letter, Polen Capital mentioned ASML Holding N.V. (NASDAQ:ASML), stating that:

“Dutch technology company ASML is the world’s only supplier of photolithography systems to leading-edge semiconductor manufacturers. It is a gross simplification and a valid point to note that ASML’s technology enables the computing technology we use today. For years, ASML engineers bent the laws of physics and enabled Moore’s Law—which states that computer chips will become faster and cost less—to progress.

Incremental innovation gains mushroomed with the rollout of Extreme Ultraviolet (EUV) technology. We were impressed by management’s recent acknowledgment that demand for ASML’s lithography systems is exceeding their prior expectations. Recent announcements by management and major customers for ASML give us even more confidence in the sustainability of growth. We believe ASML could grow its earnings at a high-teens rate over the coming five years.”