ASML Poised for Growth Amid Surging Demand for AI Chipmaking Equipment

ASML has a monopoly on extreme ultraviolet lithography machines needed to manufacture advanced AI chips. This market is growing rapidly.

ASML has a huge backlog of orders worth 39 billion euros, indicating strong demand for its chipmaking equipment. 60% are for EUV systems.

Revenue and earnings are expected to grow around 20-22% annually over the next 5 years. Stock price could increase 90% based on projections.

ASML trades at lower earnings (P/E 46) and sales (P/S 13) multiples compared to Nvidia, making it relatively inexpensive.

Analysts predict strong growth for ASML to capitalize on demand for equipment to manufacture advanced AI chips, presenting it as an alternative investment to the very expensive Nvidia stock.