AI Insights

This Artificial Intelligence Stock Plays an Important Role in Chip Production, but It’s Down 14% in 12 Months. Could It Be a Bargain Buy?

Published

4 weeks ago

August 7, 2025

ASML has a monopoly on extreme ultraviolet lithography machines, which are used in making advanced chips.

The demand for artificial intelligence (AI) products and services remains strong. Tech companies have reported earnings recently, and they still remain committed to investing heavily in AI, in an effort to grow their businesses and take advantage of next-gen technologies.

You might be tempted to invest in leading AI chipmaker Nvidia and other highly valued stocks to capitalize on these growth opportunities, but there may potentially be a better, more underrated option available. One stock that’s been sliding over the past year but that is critical in AI chip development is ASML (ASML 0.19%). It may be one of the best buys out there right now.

Image source: Getty Images.

ASML’s key role in chipmaking

Dutch-based ASML makes photolithography machines. They are integral in chipmaking because they are necessary to etch patterns on silicon wafers. The company doesn’t have any direct competition for its extreme ultraviolet lithography machines, which are used in creating the most advanced chips. The sophisticated machines give the business a strong competitive moat, which can put ASML in a great position to benefit from strong and continued demand in the AI chip market.

In the company’s most recent quarter, which ended on June 29, ASML reported net sales totaling 7.7 billion euros ($8.9 billion), which rose 23% year over year. Net income totaling 2.3 billion euros ($2.7 billion) increased by more than 45%.

For the full year, the company is projecting 15% revenue growth and for its gross profit margin to be around 52%. ASML CEO Christophe Fouquet, however, remains cautious about the following year. “Looking at 2026, we see that our AI customers’ fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments.”

That uncertainty may be a reason why investors haven’t been all that eager to buy the AI stock this year.

The stock is trading well below normal levels

Over the past 12 months, shares of ASML are down 15%. The stock has been underperforming the market this year and it’s trading at a modest price-to-earnings multiple of just 25 — that’s right in line with the S&P 500 average. Investors, however, are often paying far higher multiples for big players in AI. Nvidia, for instance, trades at nearly 60 times earnings.

ASML PE Ratio data by YCharts

Tariffs and global economic uncertainty may be the biggest factors that are weighing down ASML’s stock of late. If the company were based in the U.S., I think its valuation would likely be far higher than it is right now. But that certainly isn’t a reason to shy away from it.

According to the consensus analyst price target of nearly $924, the stock could have near-term upside of more than 33%. In the long run, it may rise even higher given the persistent demand for cutting-edge chips.

Is ASML a no-brainer buy right now?

ASML is a stock that looks like a fantastic buy, perhaps even a no-brainer investment at this point. Between its strong moat, fantastic margins, promising long-term growth, and relatively modest valuation, it checks all the important boxes that long-term investors might look for in a business.

Even if the short term is hazy due to macroeconomic conditions, strong demand for all things related to AI suggests that ASML is going to be busy for a long time. It’s a stock that I could see going a whole lot higher given its terrific fundamentals, which is why I wouldn’t hesitate to buy it for the long haul.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Nvidia. The Motley Fool has a disclosure policy.

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AI Insights

UAPB librarian leads session on artificial intelligence in STEM fields

Published

1 hour ago

September 4, 2025

The Editors

University of Arkansas at Pine Bluff librarian Shenise McGhee presented on AI-powered smart tools at the 2025 STEM Librarians South Conference hosted by the University of Texas at Arlington.

This annual conference, held virtually and in person, brings together librarians of science, technology, engineering and math from across the United States and beyond to exchange ideas, strategies and innovations in areas such as library instruction, reference services, collection development and outreach, according to a news release.

As a featured panelist during the virtual portion of the July conference, McGhee presented a session titled “Smart Tools: AI-Powered Pathways to STEM Student Success.”

She explored how advancements in artificial intelligence and machine learning are reshaping education, especially in STEM fields, where data-driven decision-making and adaptive learning are increasingly vital. She emphasized how STEM librarians can harness AI tools to enhance student learning, improve academic performance and promote equity in STEM education.

McGhee examined emerging technologies, including AI tutoring systems, intelligent learning platforms and personalized machine learning applications. She demonstrated how these tools can create inclusive learning environments by adapting instruction to meet individual student needs, delivering real-time feedback, automating instructional tasks and predicting student challenges before they arise.

Her presentation also emphasized the critical role of STEM librarians in supporting the ethical use of AI tools, teaching students how to engage with AI tools critically and effectively in their coursework by providing access to the digital resources that empower student success. Attendees were offered practical strategies, case studies and best practices to integrate AI into library services and student support initiatives.

In addition, McGhee spotlighted the UAPB STEM Academy, a five-to-six-week summer residential program designed to prepare incoming STEM majors for the academic rigor of college and life on campus. She discussed how the library collaborates with other campus departments to support students through targeted library instruction and services that contribute to academic success.

“STEM librarians are uniquely positioned to guide students through the evolving AI-driven educational landscape,” McGhee said. “By integrating smart tools and inclusive practices, we not only improve outcomes, but we also empower students to thrive.”

For more information, visit:

John Brown Watson Memorial Library

STEM Academy

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Oakland Ballers to use artificial intelligence to manage Saturday home game against Great Falls

Published

3 hours ago

September 4, 2025

The Editors

OAKLAND, Calif. (AP) — Oakland Ballers manager Aaron Miles will leave it to artificial intelligence to decide when to pinch hit or replace his pitcher.

The playoff-bound Ballers of the independent Pioneer League are turning to AI to manage most aspects of Saturday’s home game against the Great Falls Voyagers at Raimondi Park. So it might feel almost like a day off for the skipper, whose lineup and in-game decisions will even be made for him — from a tablet he will have in the dugout providing instructions.

The starting pitcher is already set.

“Luckily it’s only game. Maybe we’ve done so well that the AI will just keep doing what we’re doing,” Miles joked Wednesday. “Being a 70-win team we’ve got a very good bench. It’s hard to write a lineup without leaving somebody out that’s really good. This game I’ll be like, ‘Hey, it’s not on me for not writing you in there, it’s on the computer.’ It won’t be my fault if somebody’s not in the lineup, I guess I’ll enjoy that.”

Yet Miles knows he still might have to step in with some lineup adjustments, because the human element still matters when it comes to someone who could need rest or take a break because of injury or other circumstances.

Co—founder Paul Freedman said the second-year club will produce the first AI-powered professional sporting event. It happens to be Fan Appreciation day, too.

Last year, during the Ballers’ inaugural season, they had a game in which fans wrote the lineup and chose the uniforms — but Oakland lost. So the Ballers are doing it differently this time by partnering with AI company Distillery to control almost everything.

“The AI won’t be able to do third-base coaching, we don’t have the technology for that yet,” Freedman said. “The human will be responsible for waving somebody home or throwing up the hand. But those kind of situational decisions, we will look to the machine to make the call.”

Freedman figures with the Ballers having locked up the top seed for playoffs, this is a perfect opportunity to give AI a try.

And no need for Miles to be concerned with job security, even with the greater potential for Monday-morning quarterbacking when it comes to his moves.

“The good news is Aaron has won 100 games for us and right now our winning percentage is well over 75%, I think his job is pretty safe,” Freedman said. “And we’re happy with the decisions he’s made, but we do think it’s cool. One of the fun things about being a sports fan is being able to engage in conversations after the game about the key decisions. So this is a breadcrumb for us for what we think could be something if it works well could be part of a fan experience application or something that we do where after a game we kind of highlight what the key decisions were that our manager made and which ones kind of went against the grain — either for right or wrong.”

Miles has already experimented with AI a couple of times but earlier this season one roster showed up as the 2024 group. He expects AI might end up making a smarter decision just based on real-time data.

“I fooled around with this before just for fun, now it’s for real,” he said, “for one game.”

Ballers catcher Tyler Lozano is open-minded to incorporating new elements into the game to complement the analytics — as long as the treasured traditions aren’t lost.

“It’s immersive, it’s definitely involving new technology, new everything. It’s interesting to see what an AI platform or AI software can do for a baseball team,” Lozano said. “There’s always going to be a human element in the game of baseball. I think in sports period there’s going to be some type of human element because you’re live, you’re there. These AI platforms aren’t watching the game or don’t see all of the intricate moments that happen throughout the game and the human element of the player. I don’t think you’re going to lose that.”

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AP MLB: https://apnews.com/hub/mlb

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