Could Buying ASML Stock Today Set You Up for Life?

I would never suggest putting all your money into a single stock. The best way to invest is through a diversified portfolio of stable, long-term stocks that can help you grow wealth over time. But there are a handful of key stocks that should be a part of that portfolio.

One of the best ones today may be flying under the radar: ASML Holding (NASDAQ: ASML), an AI infrastructure stock that's quietly having one of the best years on the Nasdaq-100 index.

About ASML Holding

ASML is a Dutch company that's crucial to the rollout of artificial intelligence and high-performance semiconductors, but it doesn't get the recognition that it deserves. The stock is up only 88% since the beginning of 2024, compared to gains of more popular stocks like Palantir Technologies (up 737%) and Nvidia (up 282%).

Now, it appears that ASML is starting to get some long-overdue appreciation. The company's stock is currently the third-best performer in 2026 in the Nasdaq-100, with gains of more than 33%.

Those gains are well deserved, considering what's happening right now in the AI space. Major hyperscalers Microsoft, Meta Platforms, Alphabet, and Amazon have collectively announced plans for up to $625 billion in capital expenditures to build out their AI capabilities. And while that's sent the stock prices of those companies down as investors absorb the impact of that kind of spending, it also shows the huge opportunity in AI infrastructure.

ASML is important because it makes machines that create the tiny circuits and components used in semiconductor chips. Semiconductor companies need components to be as small as possible because the more components they can pack into a chip, the more powerful it can be.

It's the only company to have mastered advanced extreme ultraviolet (EUV) technology for chip manufacturing. Most companies employ deep ultraviolet (DUV) technology, which uses dozens of components and lenses to focus tiny beams of light to make chips. But EUV technology uses mirrors rather than lenses, enabling designs that are beyond the reach of DUV machines.

Image source: Getty Images.

Why ASML is a buy now

Management reported full-year sales in 2025 of $32.66 billion, up 15% from a year ago. Net income was $9.6 billion, an increase of 26.9% from 2024, and earnings per share of $24.71 were up from $19.24 in the previous year.

CEO Christophe Fouquet said: "The market outlook has improved notably over the last months, specifically as related to the continued build-out of data centers and AI-related infrastructure. This buildup is now translating into additional capacity needs at our advanced logic and DRAM customers, and, in turn, an increased demand across our product portfolio, especially in our EUV business."

And that buildup will continue as the major hyperscalers increase their demand for AI capacity. ASML may not be the sexiest name in the AI space, and by itself, it won't set you up for life. But its unique position in the AI infrastructure space gives it a huge competitive moat -- and it deserves serious consideration as an integral part of any long-term portfolio.

Patrick Sanders has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.