ASML, The Semiconductor Giant Set to Outperform the Market
Key Takeaways ASML is currently undervalued following an industry-wide slowdown. The AI boom will drive strong growth in semiconductor demand. As the sole producer of extreme ultraviolet (EUV) lithography machines, ASML enjoys a significant competitive edge. Semiconductor Stocks in a Volatile Market Image source: Getty Images. The semiconductor industry has had a turbulent start to 2025. The recent launch of a new AI chatbot by Chinese startup DeepSeek triggered the biggest single-day drop in semiconductor stocks. DeepSeek claimed it developed an advanced AI model for just $5.5 million , leveraging a more efficient architecture that rivaled top-tier AI models from OpenAI and Alphabet . Investor sentiment, however, quickly rebounded as big tech firms reaffirmed their commitment to increasing capital expenditures in AI . Leading cloud providers and Meta Platforms pledged to ramp up spending, which is expected to benefit companies like Nvidia and ASML . Among the semiconductor pla...