We recently published a list of 10 Best European Stocks to Buy According to Billionaires. In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other best European stocks to buy according to billionaires.
On March 12, European markets opened on a high note, surging after the European Union revealed its retaliatory tariffs on U.S. steel and aluminum imports. While U.S. indices have been struggling with continued uncertainty, European equities gained momentum, driven by geopolitical developments, fiscal stimulus, and shifting investor sentiment. With renewed commitments to defense spending, easing inflation, and a more attractive valuation landscape compared to U.S. stocks, European markets are increasingly capturing investor interest. The big question now is whether this momentum is here to stay or if Europe is simply enjoying a momentary surge.
A primary driver of Europe’s market rally has been increased defense spending, as reported by World Economic Forum (WEF). Following a Ukraine peace summit hosted by UK Prime Minister Keir Starmer, European leaders pledged to boost military investments, propelling the broad measure of the European equity market up 1% and the aerospace and defense index by 6.5%. Germany’s blue-chip index also climbed 0.9% amid reports of a potential defense fund. CNBC reported a recent upgrade by HSBC of European stocks to “Overweight” while the downgrading of U.S. equities to “Neutral” showcases a fundamental shift in economic narratives and a game-changing fiscal stimulus in the eurozone.
According to CNBC, Eurozone inflation eased to 2.4% in February, aligning with expectations ahead of the European Central Bank’s upcoming policy decision. The euro also rebounded, rising nearly 1% against the dollar after earlier declines. Meanwhile, discussions around a €500 billion infrastructure investment plan in Germany have fueled speculation about a broader fiscal expansion, further enhancing Europe’s market appeal.
U.S. markets have struggled with volatility as trade tensions and economic uncertainties persist. The Magnificent Seven tech stocks have lost momentum, and recent economic projections indicate a potential slowdown. President Donald Trump’s tariff policies continue to introduce unpredictability, prompting investors to seek alternatives. European stocks, offering lower valuations and higher dividend yields, have emerged as an attractive option against this backdrop. With the recent Purchasing Managers’ Index (PMI) showing the eurozone’s manufacturing contraction easing to its mildest level in two years, investor confidence in the region has strengthened.
However, risks remain. The recently brokered U.S.-Ukraine ceasefire agreement could shift geopolitical dynamics. Additionally, European equities have faced headwinds, with a recent sell-off in tech stocks and concerns about Germany’s fiscal policies. While Europe’s market rally is notable, its long-term trajectory will depend on economic resilience, policy decisions, and global trade developments.
With billionaire investors increasingly reallocating capital toward European stocks, the region is experiencing a renewed investment focus. The recent UBS Billionaire Ambitions Report finds that 43% of billionaires plan to expand their investments in real estate, while 42% are increasing exposure to developed market equities. Simultaneously, they are allocating more capital to perceived safe-haven assets. Whether this marks a fundamental shift or a temporary rebalancing remains to be seen, but for now, Europe is firmly in the spotlight. By using key themes from billionaire portfolios, investment strategies can be streamlined for long-term resilience.
Is ASML Holding N.V. (ASML) the Best European Stock to Buy According to Billionaires?
A technician in a clean room working on a semiconductor device, illuminated by the machines.
Our Methodology
We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of the best European stocks to invest in according to billionaires. We searched European companies that trade on the NASDAQ and NYSE stock exchanges and picked the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. These billionaires are founders or managers of some of the world’s leading hedge funds and companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
ASML Holding N.V. (NASDAQ:ASML) is a leading Dutch multinational specializing in photolithography systems, which are crucial for semiconductor production. Known for its advanced extreme ultraviolet (EUV) lithography technology, ASML enables the development of smaller and more efficient microchips.
In 2024, ASML Holding N.V. (NASDAQ:ASML) reported €9.1 billion in free cash flow, exceeding its statutory profit of €7.57 billion, highlighting strong cash generation. However, earnings fell flat owing to impacted demand in China, which accounts for 36% of ASML’s sales. The demand slump was caused by U.S. semiconductor sanctions on China. Despite these headwinds, Bank of America (BofA) maintains a Buy rating on ASML, citing robust EUV demand and a solid outlook into 2026.
ASML Holding N.V. (NASDAQ:ASML) recently announced a five-year strategic partnership with imec, backed by funding from the Chips Joint Undertaking and government support from Flanders and the Netherlands. This collaboration focuses on semiconductor advancements and sustainability initiatives. ASML is one of the best European stocks billionaires are investing in.
While the broader semiconductor sector has faced volatility, with the Semiconductor Select Industry Index down over 15% in 2025, ASML Holding N.V. (NASDAQ:ASML) remains a dominant player. Analysts remain optimistic, with 81% of 42 ratings holding a Buy consensus. The company’s Revenue (ttm) stands at $28.26 billion, and it has demonstrated strong long-term growth, with a five-year EPS growth rate of 25.62%.
Overall, ASML ranks 9th on our list of best European stocks to buy according to billionaires. While we acknowledge the potential for ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASML but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
