What Makes ASML (ASML) The Best-Positioned Business Within The AI Cohort?

What Makes ASML (ASML) The Best-Positioned Business Within The AI Cohort?

Fri, August 28, 2026 at 5:34 PM GMT+3 2 min read

• ASML -0.09%
• ASML -0.09%

Rothschild & Co Asset Management, an investment management company, released its "LongRun Equity Strategy" second-quarter 2026 investor letter. The letter can be downloaded here. The fund focuses on acquiring high-quality franchises for the long term, focusing on companies with strong competitive positions and sustainable business models. The strategy increased 7.6% (in EUR, unhedged) in the second quarter compared to its benchmark, which increased 15.8%. The market rebounded from March lows amid geopolitical tensions, with AI-related stocks gaining traction during negotiation breakdowns. While earnings upgrades have supported the broad index, many businesses outside the AI sector face stagnant revisions. The fund's EPS growth remains strong, suggesting that a market rotation towards overlooked quality stocks is due. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, LongRun Equity Strategy highlighted ASML Holding N.V. (NASDAQ:ASML) as a notable contributor. ASML Holding N.V. (NASDAQ:ASML) is a Dutch-based semiconductor company that provides lithography solutions. On August 27, 2026, ASML Holding N.V. (NASDAQ:ASML) closed at $1,735.01 per share. Over the past month, ASML Holding N.V. (NASDAQ:ASML) returned 6.51%, while its shares have gained 133.07% in the last 52 weeks. ASML Holding N.V. (NASDAQ:ASML) has a market capitalization of $666.42 billion, and its stock has traded within a 52-week range of $716.20 to $1,999.96.

LongRun Equity Strategy stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q2 2026 investor letter:

"The top contributors over the quarter were ASML Holding N.V. (NASDAQ:ASML) and GE Aerospace. We have long argued that ASML is one of the best-positioned businesses within the AI cohort as its products are mission critical and unique. Samsung and SK Hynix's capacity build-out will not only result in new tool sales but also grow the installed base that requires servicing."

ASML Holding N.V. (NASDAQ:ASML) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 140 hedge fund portfolios held ASML Holding N.V. (NASDAQ:ASML) at the end of the second quarter, which was 133 in the previous quarter. While we acknowledge the potential of ASML Holding N.V. (NASDAQ:ASML) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed ASML Holding N.V. (NASDAQ:ASML) and highlighted Eagle Capital Management's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.