ASML Holding N.V. (ASML): A Bull Case Theory

We came across a bullish thesis on ASML Holding N.V. on Value investing subreddit by West-Chard-1474. In this article, we will summarize the bulls’ thesis on ASML. ASML Holding N.V.’s share was trading at $1,002.30 as of October 7th. ASML’s trailing and forward P/E were 36.49 and 34.01 respectively according to Yahoo Finance.

ASML has made a strategic €1.3 billion investment in Mistral AI, becoming its largest shareholder, signaling a move far beyond a passive stake. This positions ASML not only as a leading lithography company but also as a central player in Europe’s emerging AI ecosystem. The investment ties ASML directly to one of Europe’s most prominent AI ventures, adding a compelling AI growth narrative to the company’s traditional semiconductor cycle story. Beyond financial returns, this move reflects Europe’s ambition to cultivate homegrown AI capabilities, with ASML playing a pivotal role in that effort.

The deal also opens the potential for meaningful intersections between AI and semiconductor technologies, creating real-world applications beyond market hype. For investors, this strategic pivot could redefine ASML’s stock story, shifting it from the cyclical “chip cycle fear” trade toward a sustainable growth trajectory linked to AI innovation. This development could catalyze a rerating of ASML’s valuation as the market recognizes its dual role as both a semiconductor leader and a key enabler of Europe’s AI ambitions.

By embedding itself in the AI landscape, ASML may unlock new revenue streams, reinforce its technological moat, and gain a first-mover advantage in bridging semiconductors and AI applications. While the traditional chip market remains important, the Mistral AI investment introduces a long-term strategic angle that could transform investor perception and create multiple catalysts for upside in ASML’s shares. Overall, the move represents a calculated step toward securing a leadership role in Europe’s AI future while maintaining its core semiconductor dominance.

Previously we covered a bullish thesis on ASML Holding N.V. (ASML) by Monopolistic Investor in May 2025, highlighting its leadership in EUV lithography, strong gross margins, and government backing. The stock has appreciated around 34% since our coverage as ASML maintained its technological edge. West-Chard-1474 shares a similar view but emphasizes ASML’s €1.3B Mistral AI investment, adding an AI growth angle.

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Disclosure: None.