Ai Infrastructure Stock

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Ai Infrastructure Stock

Buy And Hold This AI Infrastructure Stock Till 2030

AI spending continues to soar, and analysts think it won't slow down until 2030. This is why every other stock that has even a little exposure to AI is doing really well in the stock market.

According to research, AI spending on software, hardware, and services will touch $2.3 trillion in the next 6 years. So, it's only natural to assume that AI infrastructure stocks could be the key winners in coming years.

ASML Share Price Can Go Up By 80%

ASML is one of those AI infrastructure stocks that you can consider buying for the long term. The company makes photolithography machines. These machines use UV light to etch microscopic circuits on silicon chips.

The client list of ASML includes top foundries and microchip manufacturers. Some of these names are TSMC, Samsung, Intel, Micron, and SK Hynix. So, it is pretty clear that all the big players rely on ASML.

It won't be wrong to say that the current AI boom would be impossible without ASML. The company has a near monopoly on the EUV lithography technology it uses to make GPUS, HBM, and other advanced chips.

This monopoly is the reason why ASML's share price is so high. It is also the justification behind its high multiple. Analysts think the EPS of ASML could touch $101.57 by 2030. A growth of around 10% means it could easily touch $111.72.

And if we use a 30-times multiple, it means the ASML share price would be $3351 by 2030. This easily means an upside of almost 80% from today's trading price.

However, things could go sideways if the AI infrastructure spending slows down in the coming years. Consistent negative returns on AI spending could also force the companies to reconsider their capex. Despite these risks, ASML stock is still a very good option to ride this current AI boom.

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