Alphabet and ASML Positioned to Ride AI Megatrend Despite Valuation Concerns
-
Alphabet (Google) is an AI pioneer that remains competitive despite concerns over chatbots like ChatGPT. It continues growing revenue and profits.
-
ASML enables production of cutting-edge semiconductors needed for AI chips. It has strong tailwinds as demand rises for its expensive but critical equipment.
-
ASML also earns recurring revenue from servicing its machines, which clients invest heavily in maintaining.
-
Both Alphabet and ASML stocks have outperformed recently as investors recognize their leadership in AI-related fields.
-
Though some valuations seem high, growth trends make Alphabet and ASML good long-term plays on the AI mega-trend.