Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond

Key Points

• Investors are discounting ASML and Alphabet stocks at the moment.

• ASML may struggle with tariffs but is poised to succeed over the long haul in artificial intelligence.

• Alphabet is boosting its growth in consumer and commercial artificial intelligence services.

• These 10 stocks could mint the next wave of millionaires ›

Even though it seems like every stock is soaring, the market is only up a few percentage points since the middle of February. Many stocks are flat or even down year to date (YTD). Starting to invest while the market is at all-time highs may seem foolish, but if you avoid high-flying stocks with premium valuations, there are plenty of cheap-looking companies you can buy right now.

Two bargain buys for 2025 and beyond are ASML Holding (NASDAQ: ASML) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), two technology stocks with long growth runways that are trading at cheap valuations. With just $1,000, you can invest in these stocks and watch your wealth appreciate over the long haul. Here's why.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

ASML's industry dominance

Even though artificial intelligence (AI) has propelled some industry stocks to all-time highs this year, semiconductor equipment maker ASML is in the gutter. The stock is flat YTD and off 37% from all-time highs. Why is the stock falling when spending on semiconductors and computer chips is projected to keep growing to keep up with AI demand? Because of uncertainty around 2026 revenue due to tariffs.

ASML is based in the Netherlands and assembles vast lithography machines that help print tiny designs onto computer chips. These machines are assembled with parts from around the globe and sold into the United States, Taiwan, China, and more. Increased tariff taxes -- especially on machines sold into the United States -- may cause semiconductor manufacturers to delay or halt orders of new lithography machines.

This could hurt ASML's business in 2026. However, in the long run, the company is positioned to benefit from the growing need for advanced computer chips. No company has been able to replicate ASML's advanced lithography technologies, which are required to build advanced computer chips. This means that manufacturers are forced to go to ASML for these machines, which they will need eventually to build these advanced chips, giving ASML pricing power. A new machine is reportedly going for $400 million when sold to customers.

A strong competitive position gives ASML management confidence in making long-term guidance. By 2030, the company expects to hit between 44 billion and 60 billion euros in revenue, compared to 30 billion euros over the last 12 months. The guidance includes profit margin expansion, which has been a consistent theme for ASML due to its strong pricing power.

Today, ASML stock trades at a below-market earnings multiple, with a price-to-earnings ratio (P/E) of 25.4. With strong pricing power and good long-term demand for its end markets, ASML is a bargain stock to buy at a price of $700 if you are patient enough to hold for many years into the future.

Image source: Getty Images.

Alphabet's impressive growth

Another stock with a beaten down P/E is Alphabet, which owns Google, YouTube, and Google Cloud. Some are speculating that the company will be a loser in AI, even though it keeps putting up impressive financial growth and is proving to be an AI winner.

On the consumer and individual front, AI is helping Alphabet expand the moneymaking potential of Google Search. Revenue for the division grew 12% year over year last quarter to $54 billion. On top of this, Alphabet's subscription and devices revenue grew 20% year over year to $11.2 billion. This is the segment that houses the Gemini AI chatbot, the advanced conversational AI tool that Alphabet developed and that now has hundreds of millions of users.

Let's not forget the commercial side of things, which is perhaps the biggest bright spot for Alphabet at the moment. Google Cloud grew revenue 32% to $13.6 billion and is turning into another way for Alphabet to monetize its AI infrastructure. With profit margins expanding to 21%, Google Cloud is turning into a real earnings growth driver for the company. It is one of the top places to host for AI-focused cloud computing. It has a huge market share among AI start-ups, which will help the division grow for many years into the future.

Alphabet's business is booming, but look at the P/E ratio and you'd think it was left for dead. The P/E is now at 21, which is significantly lower than its big technology peers' and most other AI companies'. This makes Alphabet an easy bargain buy for your portfolio at today's stock price of $200.

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Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends ASML and Alphabet. The Motley Fool has a disclosure policy.