Freedom Broker Downgrades ASML Holding N.V. (ASML) to ‘Hold’ Following Q2 Results

ASML Holding N.V. (NASDAQ:ASML) is one of the 14 Best IT Stocks to Buy for the Long Term.

Freedom Broker Downgrades ASML Holding N.V. (ASML) to ‘Hold’ Following Q2 Results

Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.

On July 21, 2025, Freedom Broker downgraded ASML Holding N.V. (NASDAQ:ASML) from ‘Buy’ to ‘Hold’, maintaining a $790 price target following the company’s Q2 results. The company’s quarterly results exceeded expectations. However, the company issued mixed Q3 guidance, causing the company’s shares to decline 9% in the following week.

While ASML Holding N.V. (NASDAQ:ASML) reaffirmed its FY2025 targets, it faces increasing FY2026 risks associated with tariffs, export restrictions, and broader geopolitical uncertainty. Accordingly, Freedom Broker reduced its 2026 forecasts. At the same time, the investment firm remains confident in the company’s ability to pass potential cost increases along the supply chain.

Yet the analyst believes the recent sell-off offers a buying opportunity, valuing ASML Holding N.V. (NASDAQ:ASML) at 27x FY2026 earnings.

ASML Holding N.V. (NASDAQ:ASML) offers lithography, metrology, and inspection systems for advanced semiconductor equipment globally. It is one of the best IT 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 this cheapest AI stock.

READ NEXT: 13 Best Oil Refinery Stocks to Buy Right Now and 13 Hot Oil Stocks to Buy Now.

Disclosure: None.