AI Stocks Drive New Market Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy ASML?
Source: Fool
- Market Leader Risks: While Nvidia and OpenAI lead in generative AI applications, Nvidia faces challenges from competitors like AMD, and customers are increasingly looking to in-house semiconductor solutions, potentially impacting its market share.
- Manufacturing Competition: TSMC, the dominant third-party chip manufacturer, is encountering competition from a resurgent Intel, which has invested billions in its foundry business, while TSMC's capacity constraints add uncertainty to the market.
- ETF Investment Advantages: The VanEck Semiconductor ETF has performed excellently since its inception in 2011, particularly during the AI boom, with holdings like Nvidia and Micron reporting a 62% revenue growth, indicating strong long-term return potential for the fund.
- Growing Tech Demand: As technology advances, semiconductor demand is expected to continue rising, especially in cloud computing and smart devices, making the VanEck Semiconductor ETF a diversified investment option that provides exposure to international stocks.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1359.760
Low
1385
Averages
1583
High
1911
Current: 1359.760
Low
1385
Averages
1583
High
1911
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Significant Valuation Advantage: With a price-to-earnings ratio of just 18 times, VXUS presents a compelling investment opportunity compared to the historically high 28 times for the S&P 500, particularly amid increasing geopolitical tensions and macroeconomic challenges.
- Low Fee Structure: VXUS boasts a low expense ratio of 0.05%, significantly lower than the average 0.14% for actively managed equity ETFs, allowing investors to enjoy higher net returns over the long term and enhancing overall investment efficiency.
- Future Growth Potential: According to Vanguard's Capital Markets Model, overseas stocks are projected to outperform U.S. stocks by 2.2% annually from 2023 to 2033, providing a strong long-term growth outlook for VXUS, especially as U.S. market valuations remain elevated.
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See More
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See More
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- Doubling Gross Margin: The company's gross margin doubled year-over-year to approximately 74%, an extraordinary feat for a mature company, reflecting significant pricing power amid surging demand for AI infrastructure.
- Strong Guidance: Micron's revenue guidance for the current quarter is set at $33.5 billion, well above analysts' expectations of $24.3 billion, suggesting a nearly 50% gross margin and indicating continued benefits from the AI investment surge.
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See More
