My Top AI Growth Stock to Buy Now and Hold Through at Least 2030

What the data shows is From an analytical perspective, There are numerous ways to invest in artificial intelligence (AI), ranging from companies building and training AI models to organizations deploying AI to enhance existing cesses

On the other hand, You can invest in companies that develop digital AI tools or bet on physical AI through robotics and self-driving cars

Here's why ASML has the makings of a foundational growth stock for long-term investors to buy and hold for years to come

Meanwhile, Image source: Getty Images

A monopoly on semiconductor manufacturing The semiconductor manufacturing cess consists of cleaning chips, depositing materials onto those chips, coating the wafers with positive and negative photoresist, lithography, etching away unwanted materials, implanting positive and negative ions, and packaging

Additionally, Additionally, ASML -- which originally stood for Advanced Semiconductor Materials Lithography -- sells systems that essentially circuit designs layer by layer onto silicon wafers until the 3D structure of the microchip is complete (which is quite significant)

Lithography is arguably the most complex and important step in manufacturing semiconductors

On the other hand, Suppliers Applied Materials and Lam Re make equipment that is used in other steps

Additionally, But no company in the world holds a candle to ASML when it comes to making extremely advanced systems for manufacturing chips for AI applications

ASML's models, called extreme ultraviolet (EUV) lithography machines, are essential for fulfilling AI order volumes (an important development)

Nevertheless, ASML's EUV machines are really good at making chips for logic, such as graphics cessing units (GPUs) and central cessing units (CPUs) used to handle complex AI workflows (quite telling)

However, EUV machines are also used for memory chips, such as dynamic random access memory (DRAM)

AI models depend on the working memory capacity of DRAM to store data for quick access (this bears monitoring)

ASML sees demand for these EUV machines growing over time to fulfill AI needs

But it won't happen overnight

But in its second-quarter earnings materials, ASML said that it can't confirm growth in 2026 due to macroeconomic uncertainties and trade tensions

ASML is built for long-term investors ASML's model is un any other company's in the semiconductor space (which is quite significant)

Its machines fetch high margins due to their sophistication and use for the most advanced semiconductor applications

But ASML has a different sales cycle than other companies

ASML sells its lithography machines to fabrication companies Taiwan Semiconductor Manufacturing (NYSE: TSM), which duces GPUs for designers Nvidia (NASDAQ: NVDA), which sells its GPUs to hyperscalers Microsoft (NASDAQ: MSFT), which uses GPUs in its data centers to service its cloud customers, which are building AI tools and software

It's essential to recognize that ASML's sales are directly influenced by fabs needing to manufacture higher volumes and more complex chips

The timing of when a key ASML customer orders a few machines can alter its results by quite a bit

On the other hand, Meanwhile, If trade tensions heat up and even one key ASML customer pauses orders, Taiwan Semi, Samsung Electronics, or Intel, it could throw a wrench in the company's results and derail its short-term growth, given current economic conditions

That risk is what ASML management called out on its earnings call

Moreover, Management is being cautious and reminding investors of an inherent characteristic of its, amid market uncertainty

It's, by no means, a red flag that demand is slowing down

Moreover, ASML's EUV machines are the size of a double-decker bus and weigh hundreds of thousands of pounds

Additionally, They take months to ship and install at fab sites, often requiring hundreds of engineers

However, The complexity and cessing of orders make ASML's sales vulnerable to economic cycles and changes in trade policies

ASML has to cure parts from around the world to build these machines in the first place, which would be more expensive if tariffs were to become widespread

In sum, ASML plays an essential role in chip duction

But due to the nature of its model, its results can ebb and flow for factors that have nothing to do with the underlying investment thesis

ASML is a compelling value ASML is telling investors that its results over the next year and half could vary based on tariff policy and the timing of customer spending, but that the long-term future is brighter due to AI's appetite for computing power

However, So it's best to focus on where the company will be several years from now rather than the coming quarters (noteworthy indeed)

It's not a breakneck growth rate, but the ultra-high gross margin allows ASML to convert a substantial amount of revenue into fit, making the stock a great value in terms of earnings per

In ASML's quarter, it earned 7

The analysis reveals s price-to-earnings ratio based on its trailing-12-month earnings is just 26

Moreover, Moreover, Time to double up on ASML stock ASML checks all the boxes for a stock to own over the long term, given the current landscape

In contrast, It makes high-margin, industry-leading ducts that address rapidly growing end

But it also acknowledges that the quarter-to-quarter path to unlock that growth may be choppy

ASML isn't the kind of stock that warrants jumping in and out of, or reading too much into, the day-to-day price action, in today's financial world

Conversely, Rather, it's a company worth owning over the long term if you want exposure to the growth of AI and nological advancement across industries

The Author Daniel Foelber is a contributing Stock Market Analyst at The Motley Fool, with extensive experience covering the broader stock market and publicly traded companies across energy, industrials, utilities, materials, nology, communications, consumer discretionary, consumer staples, and financials (which is quite significant)

Daniel looks for industry leaders offering compelling growth, value, or dividends to generate passive income (noteworthy indeed)

Additionally, Daniel has written for various energy trade publications and assisted in building oil and gas training modules

He graduated summa cum laude from the University of Houston with a BBA in Finance and Marketing and a certificate in Personal Financial Planning

Daniel is a firm believer that the best investors aren’t the ones that pick the greatest stocks, but rather, are those who pick good stocks and are able to stay even-keeled throughout market cycles and periods of high volatility

It's because of this principle that Daniel believes that regular investors who out noise and focus on fundamentals can beat Wall Street

Nevertheless, TMFpalomino2 Daniel Foelber has positions in ASML and Nvidia

The analysis reveals Motley Fool has positions in and recommends ASML, Applied Materials, Intel, Lam Re, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing

The Motley Fool has a disclosure policy.