ASML

This article discusses ASML's record-breaking performance and its strategic bet on the artificial intelligence boom. The author analyzes how ASML's cutting-edge lithography technology is crucial for the production of advanced AI chips, positioning the company for sustained growth as the demand for AI hardware continues to surge.

ASML has a near-monopoly on EUV lithography machines, critical for advanced chip production. This gives them immense pricing power and a durable competitive advantage. The company benefits from massive, long-term demand from various sectors like AI, cloud computing, and autonomous driving. Their backlog is substantial, ensuring stable revenue. With gross margins often exceeding 50% and strong government support, ASML is a strategically important asset. The investment thesis is based on a 10-year outlook with significant growth potential, although risks related to technological disruption and high valuation exist.