Freedom Broker Downgrades ASML Holding N.V. (ASML) to 'Hold' Following Q2 Results

ASML Holding N.V. (NASDAQ:ASML) is one of the 14 Best IT Stocks to Buy for the Long Term.

On July 21, 2025, Freedom Broker downgraded ASML Holding N.V. (NASDAQ:ASML) from ‘Buy’ to ‘Hold’, maintaining a $790 price target following the company’s Q2 results. The company’s quarterly results exceeded expectations. However, the company issued mixed Q3 guidance, causing the company’s shares to decline 9% in the following week.

While ASML Holding N.V. (NASDAQ:ASML) reaffirmed its FY2025 targets, it faces increasing FY2026 risks associated with tariffs, export restrictions, and broader geopolitical uncertainty. Accordingly, Freedom Broker reduced its 2026 forecasts. At the same time, the investment firm remains confident in the company’s ability to pass potential cost increases along the supply chain.

Yet the analyst believes the recent sell-off offers a buying opportunity, valuing ASML Holding N.V. (NASDAQ:ASML) at 27x FY2026 earnings.

ASML Holding N.V. (NASDAQ:ASML) offers lithography, metrology, and inspection systems for advanced semiconductor equipment globally. It is one of the best IT stocks.

While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.