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.

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