Citi highlights ASML Holding NV (ASML) 26.3% revenue exposure to China amid new stimulus measures

We recently created a list Top 20 AI news and analyst ratings. In this article, we’ll take a look at where ASML Holding NV (NASDAQ:ASML) stacks up against other popular AI stocks.

Over the past few months, artificial intelligence (AI) startups have taken the financial world by storm. This interest was sparked by the blockbuster launch of ChatGPT by California-based OpenAI in late 2022. Since then, OpenAI has raised tens of billions of dollars in new funding and reached a valuation of over $150 billion. Earlier this week, OpenAI revealed that it has secured over $6.6 billion in new funding in a funding round led by high-profile firms including Thrive Capital, Khosla Ventures, and Tiger Global, among others.

Read more about these events by accessing 10 Unsexy AI Stocks According to Goldman Sachs AND 10 buzzing AI stocks according to Goldman Sachs.

Perhaps one of the reasons this startup is so popular is that it projects revenues of more than $3.5 billion this year and more than $11 billion in 2025. Analysis of payments information shows that AI startups have generally achieved revenue faster than previous tech booms. by fintech company Stripe. The report highlights that leading artificial intelligence groups achieve multi-million sales revenues each year. This timeline is much shorter in a startup’s lifecycle than comparable non-AI technology groups. The report is based on annual revenue data from the 100 most profitable private AI companies using Stripe, compared to a comparable basket of leading software-as-a-service (SaaS) startups as of July 2018.

The report gained a lot of popularity because Stripe clients include OpenAI, Anthropic, Mistral, GitHub, and Midjourney. According to the Financial Times, Stripe says it took AI startups an average of 11 months to reach $1 million in annual revenue after their first sale on Stripe, compared to 15 months for previous-generation SaaS companies. AI startups with more than $30 million in annual revenue reached this milestone in 20 months — five times faster than previous SaaS companies. Emily Sands, chief information officer at Stripe, points out that unlike previous generations of software makers, AI companies paid computational costs upfront and were under pressure to generate monetization faster.

Read more about these events by accessing The 33 most important AI companies worth paying attention to AND 20 industrial companies are already riding the wave of artificial intelligence.

Our methodology

For this article, we selected AI stocks based on recent news and analyst ratings. These stocks are also popular among hedge funds.

Why are we interested in stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the best stocks of the best hedge funds. As part of our quarterly newsletter strategy, we select 14 small- and large-cap stocks every quarter, and since May 2014, we have returned 275%, beating the benchmark by 150 percentage points (see more details here).

Technician in clean room working on semiconductor device illuminated by machines.

ASML Holding NV (NASDAQ:ASML)

Number of hedge fund holders: 81

ASML Holding NV (NASDAQ:ASML) manufactures and markets advanced semiconductor equipment systems. The company was recently named in a basket of stocks that Citi, an investment advisory firm, says has the greatest exposure to China revenues. Citi’s analysis shows that ASML has 26.3% revenue exposure to the China market. Interest in China-exposed companies has surged since Beijing unveiled new stimulus plans that will lower short-term borrowing costs and ease restrictions on home purchases, aimed at refreshing the struggling property market and hitting a 5% growth target.

ASML in general ranks 19th on our list of the most popular AI stocks. While we recognize ASML’s potential as an investment, our belief is based on the belief that certain AI stocks are capable of delivering higher returns, and in a shorter period of time. If you’re looking for AI stocks that show more promise than ASML but are trading at less than 5x, check out our report on cheapest AI stocks.

READ MORE: $30 Trillion Opportunity: Morgan Stanley’s 15 Best Humanoid Robot Stocks to Buy AND Jim Cramer says NVIDIA has “become a wasteland”.

Disclosure: None. This article was originally published on Insider Monkey.