AI Growth Drives ASML and Twilio Amid Stock Pressure

AI Growth Opportunities. ASML Holding and Twilio stand to benefit from the rising demand for AI technologies, despite facing short-term stock price pressure. Analysts expect significant growth for both companies driven by AI integration.

Date: 22-03-2025

AI Rating: 7

Growth Prospects for ASML Holding and Twilio

The report highlights the broad impact of artificial intelligence (AI) on various industries and how companies like ASML Holding (NASDAQ: ASML) and Twilio (NYSE: TWLO) are poised to benefit from this trend.

ASML Holding has seen a remarkable surge in demand for its extreme ultraviolet (EUV) lithography machines, essential for manufacturing advanced semiconductor chips used in AI applications. The company's net bookings increased significantly, jumping 170% sequentially in the fourth quarter of 2024 to 7.1 billion euros. This spike in orders can be attributed to the strong demand for AI-related chips, indicating positive momentum for ASML's future revenue. The company expects to meet the higher end of its 2025 revenue guidance, estimating between 30 billion to 35 billion euros, showcasing a strong growth trajectory driven by the AI market.

Moreover, ASML's earnings growth is projected to rebalance positively, with analysts estimating earnings per share (EPS) of $20.82 for the upcoming year, following a slight decline of 3.3% last year. This anticipated growth, coupled with the increasing capital expenditures from tech giants like Meta Platforms, Microsoft, Alphabet, and Amazon, hints at sustainable expansion in the chipmaking industry through 2025 and beyond.

Twilio is equally well-positioned in the AI-enabled cloud communications market. The company reported a revenue growth of 7% in 2024, climbing to $4.5 billion, with an impressive 11% growth in the last quarter of the year, driven by AI-focused tools. Future Market Insights suggests that the AI-based cloud contact center market could grow to nearly $20 billion in revenue by 2034. With numerous customers showing interest in Twilio’s AI solutions, the company could leverage this opportunity for further revenue growth. Analysts are optimistic, predicting a 19% increase in Twilio's earnings this year.

The overall sentiment around these two stocks is cautiously optimistic, as while they are facing short-term pressures, the long-term growth potential due to the rise in AI technology adoption remains strong.

Stocks: ASML TWLO NVDA AAPL QCOM TSM META MSFT GOOGL AMZN