chip stocks poised for growth: asml, lam research, micron
Chicago, Friday, 16 May 2025.
zacks investment ideas highlights three semiconductor stocks showing promise. asml holdings, lam research, and micron technology possess compelling growth catalysts. earnings estimates are trending upward. valuations are reasonable. jim cramer suggests lam research over asml. asm international plans to pass tariff costs to buyers. nvidia’s blackwell ai supercomputers generated $11 billion in q4 2025. the ai industry is projected to reach $243.7 billion next year.
cramer’s view on asml
Jim Cramer, the host of ‘Mad Money,’ has expressed concerns about ASML’s recent performance [2][3]. He noted that the last couple of quarters have been weak [2][3]. Cramer suggests that investors looking to invest in the semiconductor industry should consider Lam Research instead of ASML [2][4]. His recommendation reflects a preference for Lam Research’s current strength compared to ASML’s perceived weakness in recent financial periods [2].
tariffs and asm international
ASM International, a Dutch chip-making equipment supplier, intends to transfer any tariff-related cost increases to its customers and value chain [5]. The company’s CEO and finance chief communicated this strategy during a meeting with Bank of America [5]. ASM International believes its manufacturing flexibility will prevent it from being at a disadvantage compared to its competitors [5]. ASML had previously stated that U.S. chipmakers would bear the majority of tariff costs [5].
chinese market impact
ASM International anticipates that its sales in China may reach the higher end of its projected range for 2025 or potentially exceed it [5]. The company has estimated that Chinese equipment sales will constitute a low-to-high twenties percentage of its total sales in 2025 [5]. ASML’s chief financial officer also indicated that Chinese demand was stronger than initially anticipated during the company’s last earnings presentation [5]. This suggests a continued strong performance in the Chinese market for semiconductor equipment suppliers [5].
ai industry growth
The artificial intelligence industry is experiencing rapid growth and is projected to reach an estimated $243.7 billion in 2025 [6]. This expansion is driven by the increasing integration of AI across various applications and sectors [6]. Companies such as NVIDIA, Amazon Web Services (AWS), Google Cloud, and Microsoft Azure are benefiting from this boom [6]. NVIDIA’s Blackwell AI supercomputers generated $11 billion in revenue in Q4 2025, highlighting the significant financial impact of AI technologies [6].