We recently published a list of Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other billionaire Mario Gabelli’s large-cap stock picks with huge upside potential.
Mario Gabelli needs no introduction, having risen to become one of the most successful money managers on Wall Street, backed by a research-driven equity investment style. Having founded Gamco Investors, formerly Gabelli Asset Management Company, in 1977, the investment firm has grown to over $32 billion in assets under management with a portfolio spread over 800 stocks.
Therefore, GAMCO is one of the most diversified hedge funds, offering exposure to some of the biggest and fastest-growing market segments. Over the years, Gabelli has relied on a value investment strategy that focuses on stocks trading below their fair value. In return, he looks for catalysts that could cause the stock’s value to rise substantially.
Some of the catalysts the fund manager often looks for include the sale or spinoff of a business. Mergers, industry consolidation, or regulatory changes also act as tailwinds in driving share value. The value investment strategy has been the catalyst behind GAMCO investors achieving impressive annualized returns of 16.3% since inception.
READ ALSO: Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential and Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential.
Likewise, GAMCO Investors is well positioned to capitalize on emerging opportunities in the overall stock market, pulling back. Valuation levels have pulled back significantly in the aftermath of the stock market coming under pressure amid the US tariff-fueled trade war.
The announcement of President Donald Trump’s “Liberation Day” tariffs caused a significant upheaval in the stock and bond markets, resulting in the loss of trillions of dollars in investor wealth. While the administration temporarily suspended most reciprocal tariffs on April 9 for a period of 90 days, the looming threat of a global trade war poses risks to economic expansion. It is likely to shift capital flows in the equity markets.
Both policymakers and market players are also wary of the potential for a financial “mishap,” stemming from erratic movements in the U.S. Treasury market. Federal Reserve Chair Jerome Powell warned that current tariffs are “significantly larger than expected,” adding that “the same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
The tariffs imposed by U.S. President Donald Trump and other countries’ reactions have created uncertainty for investors’ holdings. Technology stocks have been the hardest hit amid the tariff wars after years of blockbuster gains fueled by the artificial intelligence frenzy.
Given the market downturns, an anticipated increase in consumer costs, and a heightened chance of a recession as a result of these tariffs, it is indeed challenging to envision what a victory would entail for Trump, who claimed in 2018 that “trade wars are beneficial and straightforward to win!”
On the other hand, now would be the best time to capitalize on the significant pullbacks in the equity markets. With most stocks trading at discounted valuations beyond historical averages, billionaire Mario Gabelli’s 10 large-cap stock picks with huge upside potential could offer a way out of the downturn.
Our Methodology
We combed Gamco Investors SEC Q4 2024 13F filings to identify Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with more than 30% upside potential based on analysts’ ratings and analyzed why the stocks stand out, as solid value investments well poised to generate significant long-term value. The list is sorted in ascending order according to analysts’ projected upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a clean room working on a semiconductor device, illuminated by the machines.
ASML Holding N.V. (NASDAQ:ASML)
Gamco Investors Equity Stake: $3.47 Million
Market Capitalization as of May 5: $270.44 Billion
Stock Upside Potential as of May 5: 32.43%
Number of Hedge Fund Holders: 86
ASML Holding N.V. (NASDAQ:ASML) is a semiconductor equipment & materials company that provides lithography solutions for developing and producing advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems. It is one of the few companies that have held steady as Trump’s tariff trade wars and recession concerns rattle the once booming sector. While the stock is down by about 2% year to date, Truist Securities upgraded it to a Strong Buy and raised its price target to $1200 on May 1.
Truist Securities’ bullish stance stems from ASML Holding N.V. (NASDAQ:ASML) cementing its position as the leading producer of lithography systems used to etch circuit patterns. Additionally, the company’s growth prospects remain solid as it is the only producer of ultraviolet lithography systems used by TSMC and Samsung to manufacture advanced Chips. Its dominance in the segment accords its pricing power. With its low-NA EUV systems costing $180 million each and high-NA EUV systems costing $380 million, analysts believe the company’s revenue is poised to grow at a compound annual growth rate of 12% between 2024 and 2027.
ASML Holding N.V. (NASDAQ:ASML) delivered solid first quarter 2025 results, with sales increasing 46% year-over-year to €7.7bn. Its net profit came in at €2.36 billion against €2.3 billion expected. Net bookings of ASML equipment stood at €3.94 billion in the first quarter, lower than the €4.89 billion analysts had expected. Nevertheless, CEO Christophe Fouquet insists that the demand outlook remains strong as artificial intelligence remains a key driver.
Overall, ASML ranks 10th on our list of billionaire Mario Gabelli’s large-cap stock picks with huge upside potential. While we acknowledge the potential of ASML as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.