Analyst Explains Why Nvidia China News Could be ‘Huge’ for ASML Holding (ASML)

ASML Holding N.V. (NASDAQ:ASML) is one of the 10 Stocks to Buy and Sell in 2025: Top Analyst Calls.

Joe Tigay from Equity Armor Investment said in a recent program on Schwab Network that the US government’s decision to allow Nvidia to sell chips in China could be “huge” for ASML Holding NV (NASDAQ:ASML). He explained why the company is important in the AI industry:

“ASML has been a company I’ve been following for the past few years. I am obviously a big fan. It’s been behind this chip revolution. It makes what people have called the most complicated machine humans have ever built and as you can imagine it is very expensive to produce. They are essentially the machine that makes the machine. So we can’t get these Nvidia chips without these ASML machines. And I think this China news could be really huge for this company. We remember they took a big write off, big leg down when the China news came out that Nvidia will not be selling to China earlier in the year. So it’s going to be interesting to see are we going to be able to recover all that? Yes, the stock actually has recovered from that gap right now, but a lot of that recovery was just from new businesses, existing growth of their business.”

Photo by Redd on Unsplash

Parnassus Growth Equity Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q1 2025 investor letter:

“In Information Technology, we moved from an underweight to an overweight as we added new positions in Synopsys, ASML Holding N.V. (NASDAQ:ASML) and AppFolio while selling Adobe and Procore Technologies. ASML is a leading supplier of photolithography systems, equipment crucial for producing advanced microchips. It has a wide moat built on technology innovation, high market share and strong customer and supplier relationships.”

While we acknowledge the potential of ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

Source link

Visited 1 times, 1 visit(s) today

Related Article

A Strategic Goldmine in a Global Tech Renaissance

A Strategic Goldmine in a Global Tech Renaissance

In 2025, China’s Premier Li Qiang unveiled a transformative AI strategy that transcends domestic ambitions, positioning the nation as a cornerstone in the global AI ecosystem. By advocating for an international AI governance framework and cross-border collaboration, Li’s vision not only addresses the fragmented state of global AI regulation but also creates a fertile ground

26 July 2025
Reshaping the Digital Silk Road and Tech Stock Opportunities

Reshaping the Digital Silk Road and Tech Stock Opportunities

In 2025, China’s strategic push to dominate the global artificial intelligence (AI) landscape is accelerating, driven by a blend of geopolitical ambition, technological innovation, and economic pragmatism. Beijing’s vision for AI is no longer confined to domestic markets; it is a cornerstone of its broader Digital Silk Road (DSR), an initiative that seeks to weave

26 July 2025

How China’s economy remains vibrant despite U.S. tariff war

BEIJING, July 25, 2025 /PRNewswire/ — With Chinese Vice Premier He Lifeng to hold economic and trade talks with the United States in Sweden later this month, the strength and resilience of the Chinese economy is in the limelight once again. This round of talks, mutually agreed upon by both nations, is not only a diplomatic

26 July 2025
John Ross Photo: Courtesy of Jonh Ross

China’s solid fundamentals drive strong growth and technological upgrading

John Ross Photo: Courtesy of Jonh Ross China’s second quarter 2025 GDP growth of 5.2 percent, 5.3 percent for the first half-year as a whole, exceeded the expectations in much of the Western media, given international economic turbulence. But it came as no surprise to those watching China’s economic data as it was released during

26 July 2025
Taiwan holds controversial vote targeting 'pro-China' lawmakers

Taiwan holds controversial vote targeting ‘pro-China’ lawmakers

Tessa Wong BBC News, Asia Digital Reporter BBC / Tessa Wong Several of the Kuomintang lawmakers facing the recall vote appeared at an anti-recall rally last weekend Thousands of Taiwanese are heading to the polls in an unprecedented and controversial vote aimed at ousting lawmakers accused of being too close to China. More than 30

25 July 2025
ET logo

China satellite laser outpaces Starlink: China’s 2-watt satellite laser shatters space communication records with 1 Gbps speed — is this a leap for technology or a warning shot in the new space war?

Chinese satellite laser breaks communication records from 36,000 km in space- In July 2025, Chinese scientists accomplished a breakthrough in satellite communication, successfully transmitting data from a satellite using a 2-watt laser beam over a staggering distance of 36,000 kilometers—the height of geostationary orbit. The test, conducted by a team from Peking University and the

25 July 2025