Is ASML a good stock to buy? We came across a bullish thesis on ASML Holding N.V. on Vasileios Prassas’s Substack by Vasileios. In this article, we will summarize the bulls’ thesis on ASML. ASML Holding N.V.’s share was trading at $1,357.42 as of March 9th. ASML’s trailing and forward P/E were 44.97 and 37.74, respectively according to Yahoo Finance.
ASML Holding N.V. (ASML) is the world’s most critical supplier of lithography machines used in semiconductor manufacturing, making it a foundational player in the global digital economy. Chips begin as silicon wafers and are built layer by layer through repeated manufacturing steps, with lithography acting as the “pen” that prints microscopic patterns onto each layer.
ASML dominates this step, holding a near-monopoly in advanced lithography and being the sole provider of extreme ultraviolet (EUV) machines, which use 13.5nm wavelength light to produce the smallest features required for modern chips.
These machines are essential for leading semiconductor manufacturers such as TSMC, Intel, Samsung, and SK Hynix, and the company continues pushing the technological frontier with its next-generation High NA EUV systems that further improve precision and transistor density. ASML generates roughly 75% of its revenue from machine sales and 25% from servicing them, creating a hybrid model of transactional and recurring revenue tied to long-term semiconductor fabrication planning cycles.
Over the last twelve months through the third quarter of 2025, ASML reported approximately €32 billion in revenue, gross margins of about 51–52%, and net income of €9.2 billion, reflecting strong profitability supported by an unparalleled technological moat. That moat is reinforced by extreme engineering complexity, deep customer integration, massive capital and time barriers to entry, and a highly specialized supplier ecosystem developed over decades.
The bullish thesis centers on structural growth drivers that are expected to expand lithography demand over the next decade, including the rise of AI computing, the migration of memory chips to EUV, global government investment in semiconductor manufacturing capacity, and increasing chip complexity that requires more layers and more lithography passes per wafer. As chips become larger, more sophisticated, and increasingly stacked in three-dimensional architectures, semiconductor manufacturers will need more lithography capacity, while ASML simultaneously benefits from rising machine prices as the industry transitions from DUV to EUV and High NA systems.
This combination of higher machine demand, greater pricing power, and expanding margins positions ASML to grow faster than the broader semiconductor industry over the long term. While risks such as semiconductor cyclicality, geopolitical export restrictions, and concentrated customers remain, ASML’s technological leadership and irreplaceable role in chip manufacturing make it one of the most strategically important companies in the global technology supply chain making it an attractive stock for long term investors.
Previously, we covered a bullish thesis on ASML Holding N.V. (ASML) by Monopolistic Investor in May 2025, which highlighted the company’s leadership in EUV lithography machines, its unmatched engineering complexity, strong pricing power, and strategic importance in the semiconductor supply chain. ASML’s stock price has appreciated by approximately 81.83% since our coverage. Vasileios shares a similar view but emphasizes on long-term growth driven by AI demand, chip complexity, and High NA EUV adoption.
ASML Holding N.V. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held ASML at the end of the fourth quarter which was 82 in the previous quarter. 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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Disclosure: None.
