The solid request for Palantir’s AI software has suralined the stock, but it is negotiated with a very expensive multiple at the moment.
ASML hold should be accelerating growth.
ASML is negotiated with an attractive assessment and is not much behind Palantant with regard to market capitalization.
10 actions that we love better than ASML ›
PALANTOUT Technologies(Nasdaq: PLTr) was one of the hottest actions on the market in the past year. The software specialist has experienced a significant increase in demand for its artificial intelligence platform (AI), which allows organizations and governments to integrate generative AI tools in their operations and processes.
The solid growth in income and profits of Palantir in the last quarters has led to a 5x leap in the company’s share price in the past year. The generative IA software supplier now has a market capitalization of $ 385 billion after its recent increase and it is one of the best companies in the United States by market capitalization.
However, there is another company that has the potential to establish palantants over the next three years. Let’s take a closer look.
Image source: Getty Images.
ASML Holding(Nasdaq: ASML) is one of the most important semiconductor companies in the world. Its machines play an essential role in helping the foundries and manufacturers to make advanced fleas which are deployed in several applications ranging from smartphones to personal computers via cars via the Internet of Things (IoT).
ASML has a quasi-monopoly in extreme ultraviolet lithography machines (EUV), which are essential to make smaller fleas which are both efficient and powerful. Unsurprisingly, ASML machines are deployed by the main flea manufacturers around the world to meet the rapidly growing demand for AI fleas that gain ground in several applications.
ASML’s net reservations increased by 40% to 5.5 billion euros in the second quarter. The company plans to finish 2025 with income growth of 15% to 32.5 billion euros. However, it should be noted that the company’s directives in 2025 are towards the lower end of its initial forecasts from 30 billion euros to 40 billion euros.
ASML is cautious about its prospects due to the potential impact of prices on its activities. However, the Dutch company experienced a lower impact than the prices of the quarter in the last quarter. He recorded an increase of 34% of his income in the first six months of 2025. There is therefore a chance that ASML can end the year on a stronger note than expected, in particular given the robust expenses for the IA infrastructure.
All large cloud computing companies have reported massive jumps in their remaining performance obligations (RPO), or backwards, recently, suggesting that they will provide more data center capacity to meet demand. McKinsey estimates that 3.1 billions of dollars are likely to be spent on fleas and equipment deployed in AI data centers until 2030.
This explains why the semiconductor equipment industry is expected to spend $ 50 billion to obtain advanced flea manufacturing equipment in 2028, according to the association of semi industry. It is almost double 2024 levels. Semi adds that investment in “2 nm and lower than the wafter equipment represents a particularly dramatic expansion, with more than to double from US $ 19 billion in 2024 to 43 billion US dollars in 2028.”
This augurs well for ASML, because its latest EUV lithography equipment will allow fleas manufacturers to produce smaller chips than 2-nanomers (nm). This explains why analysts provide that ASML growth ends impressively over the next three years.
The superb Palantant Stock pushing in the past year has cost it dearly. It is now negotiating sales at 114 times. It is much higher than the Nasdaq Composite The price ratio / average sales of the 5 index. Palant should continue to accelerate its growth so that it can justify the massive premium in which it is negotiated.
The good news is that analysts expect Palantir to deliver on this front.
PLT income for data for the current fiscal year by Ycharts
However, even if Palantant reaches $ 7.6 billion in revenue after three years, his advantage could be limited by its expensive evaluation. In addition, all the cracks in the company’s growth store could weigh on the stock. On the other hand, ASML is negotiated with a much more attractive price / sale of sales. The market could reward it with a richer multiple thanks to potential acceleration in its growth.
ASML income estimates for current exercise data by Ycharts
So, if ASML is negotiated at 8 times sales after three years and reached $ 44 billion in revenues (as shown in the previous graph), its market capitalization could increase to $ 352 billion. ASML currently has a market capitalization of 311 billion dollars, 24% short of palantant. However, if the market decides to lower the massive premium of which Palant is currently enjoying because of any slowdown in its growth or due to the intensification of competition on the AI software market, its red -heated rally could calm.
Asml has the potential to go beyond the market capitalization of palantant over the next three years on the back of an acceleration in its growth and its potential slowdown for Palantant given its large evaluation.
Before buying actions in ASML, consider this:
THE Motley Fool Stock Advisor The team of analysts has just identified what they believe 10 Best Actions So that investors are buying now … and Asml was not part of it. The 10 actions that cut could produce monster yields in the coming years.
Inquire Netflix Make this list on December 17, 2004 … if you have invested $ 1,000 at the time of our recommendation, You would have $ 640,916! * Or when Nvidia Make this list on April 15, 2005 … if you have invested $ 1,000 at the time of our recommendation, You would have $ 1,090,012! *
Now it’s worth noting Stock advisor The total average yield is 1,052% – a market output overperformance compared to 188% for the S&P 500. Do not miss the last list of the best 10, available when you join Stock advisor.
See the 10 actions “
* Return Actions Advisor to September 8, 2025
Harsh Chauhan has no position in the actions mentioned. The Motley Fool has positions and recommends the ASML and Palantir technologies. The Motley Fool has a policy of disclosure.
Prediction: this stock will be worth more than palantant in 3 years was initially published by the Motley Fool
