Because ASML makes machines for one industry, when its business is ramping up, it’s a pretty surefire sign that chip businesses (such as Taiwan Semiconductor Manufacturing, known as TSMC) are going to see increased demand in two to three years as facilities around these machines are built. This is a great sign for the overall health of the chip industry over the next few years, and it shows that the AI build-out<\/a> is far from over. <\/p>\n ASML posted another strong quarter, with 25% revenue growth. This isn’t the fastest-growing AI stock in the world, but it is still a solid figure. <\/p>\n However, that wasn’t the fact that excited investors. What thrilled investors was that ASML bumped its revenue guidance for this year to between 43 billion and 45 billion euros. Previously, this mark was between 36 billion and 40 billion euros, so this is a major increase in guidance, considering the year is halfway over. With ASML having a pulse on the chip production industry, this is a telltale sign of increased chip demand on the horizon, which also confirms what one of its major clients, TSMC, said during its conference call. <\/p>\n With a strong quarter like that in its bag, is ASML a great buy now? The market is well aware of ASML’s technological monopoly and the opportunity, which is why the stock is priced at a premium. <\/p>\n ASML is by no means a cheap stock, but it is the only company in the world with its technology, and without it, the chips utilized today wouldn’t be possible. So, is the price worth paying for the stock? In my eyes, no. I’d much rather invest in a downstream company like TSMC<\/a>\u00a0that’s growing faster and benefiting from the same tailwinds as ASML is. While ASML is still a solid investment, I like others more. <\/p>\n Should you buy stock in ASML right now? <\/p>\n Before you buy stock in\u00a0ASML, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0ASML\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $364,562!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,247,668!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 22, 2026. <\/p>\n Keithen Drury<\/a> has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: ASML. Business is booming for ASML <\/p>\n
<\/a> ASML Revenue (Quarterly YoY Growth)<\/a> data by YCharts<\/a> <\/p>\n
<\/a> ASML PE Ratio (Forward)<\/a> data by YCharts<\/a> <\/p>\n