Wall Street's Next Blockbuster Stock Split Could Come From This Chip Equipment Giant

ASML Holding (ASML) has been a major beneficiary of the AI boom, thanks to its role in advanced chipmaking. The company reported record sales in Q3, citing continued strength in AI investments and customer demand for its equipment. As a monopoly supplier of extreme ultraviolet (EUV) lithography machines, ASML manufactures the most advanced semiconductors for customers like Taiwan Semiconductor Manufacturing, Samsung, and Intel.

The company has split its stock three times in the past, but it's been a while since its last split, suggesting a long-awaited split could be imminent as its growth accelerates and shares price rises. ASML's management warns that current supply plans for 2027 and 2028 won't be enough to meet demand, with customers already expressing interest in orders as far out as 2029 and 2030.

The company is also developing High Numerical Aperture (High NA) EUV lithography technology, which can print even smaller transistors and features. Early adopters like Intel have already processed over 1 million wafers using this technology, and other manufacturers like Samsung and SK Hynix plan to introduce it into their production by 2028.

Despite facing risks like industry cyclicity, geopolitical restrictions, and its reliance on specialized supply chains, ASML remains a dominant player in chipmaking technology and benefits from the AI growth catalyst. Analysts rate ASML as a buy or strong buy, with an average 12-month price target of over $2,100, trading at around $1,550 with a forward P/E ratio of about 23.