ASML Holding NV (ASML) A Top AI Stock to Buy on Soaring Order Backlog and Wafer Market Expansion

ASML Holding NV (NASDAQ:ASML) is one of the top AI stocks to buy according to billionaire Philippe Laffont. On June 30, Susquehanna reiterated a Positive rating on ASML Holding NV (NASDAQ: ASML) and raised the price target to €2,350 from €1,475.

ASML Holding NV (ASML) A Top AI Stock to Buy on Soaring Order Backlog and WaferMarket Expansion

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The positive stance and price target hike follow channel checks that affirm an upward revision in ASML Holding’s Supply Chain Equipment order backlog, which now extends to one year. Earlier in the year, the company reiterated that its order backlog stood at €38.8 billion. The massive order backlog stems from the company being the only maker of EUV lithography systems, which are essential for creating the tiny circuitry of advanced chips.

The company remains well-positioned to capitalize on the wafer fabrication equipment market, which is expected to reach $250 billion by 2028. According to Susquehanna analyst Mehdi Hosseini, ASML’s backlog strength should be clear in the upcoming July earnings season.

Meanwhile, BofA analyst Didier Scemama reiterated a Buy rating on ASML and hiked the price target to €1,921 from €1,710 on June 4. According to the analyst, the company’s lithography capacity is poised to exceed 90 units as it reduces lead times and improves assembly efficiency.

ASML Holding NV (NASDAQ:ASML) builds the essential photolithography machines that enable artificial intelligence. By exclusively producing the equipment required to print the microscopic circuits on advanced logic and memory chips, it serves as the foundational hardware monopoly powering the entire global AI hardware supply chain.

While we acknowledge the risk and potential of 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 time frame. If you are looking for an AI stock that is more promising than ASML and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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