We recently published a list of 10 Hottest Mega-Cap Stocks of 2025. In this article, we are going to take a look at where ASML Holdings N.V. (NASDAQ:ASML) stands against other hottest mega-cap stocks of 2025.
In 2024, companies poured money into Artificial Intelligence infrastructure in a bid to outpace each other in the AI race. The communication services and information technology sectors led the the large-cap stocks in terms of returns. AI-driven hype was so significant that for the first time since 1998, the S&P’s large-cap index registered two consecutive years of 20%+ gains.
2025 may well be the year of reckoning for AI. Some analysts have questioned the massive AI spending throughout the last year. Their concerns and predictions were dealt a reality check though when Bill Gates’ tech giant announced it planned to spend $80 billion on AI in fiscal 2025. Consequently, semiconductor stocks rallied, reminding everyone that the AI rally wasn’t over by any means.
Not surprisingly, the list is dominated by chipmakers, who we believe will be critical to the market’s returns this year. To come up with the 10 hottest mega-cap stocks of 2025, we considered stocks with at least $75 billion market capitalization.
A technician in a clean room working on a semiconductor device, illuminated by the machines.
ASML Holding N.V. (NASDAQ:ASML)
Shares of ASML Holdings N.V. (NASDAQ:ASML) have been steadily inching up so far this year, despite the stock facing multiple headwinds. It recently received a setback when a class action lawsuit brought by The Gross Law Firm alleged the company had misled investors on the state of the semiconductor industry and consumer demand.
ASML Holdings (NASDAQ:ASML) also faces export control threats from the US. The China-US rivalry has meant that the company cannot simply sell its latest technology to China. China has bought the company’s deep ultraviolet (DUV) lithography machines in the past. However, the sale of the most advanced extreme ultraviolet (EUV) machines continues to be restricted.
Lithography machines are just like high-quality printers, but they use light to create extremely small patterns on silicon wafers, which become an integral part of modern chips. Despite export restrictions and legal troubles, the company will stay relevant in 2025 as its lithography machines benefit from US investments in the sector, especially in light of the CHIPS ACT.
The stock has received consistent downgrades in the last 3 months, though there is reason to believe that after being down 36% from its all-time highs, the stock is ripe for reversal.
Overall, ASML ranks 10th on our list of hottest mega-cap stocks of 2025. While we acknowledge the potential of ASML as a leading AI 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 as promising as ASML but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.