Here's Why Bristlemoon Global Fund Decided to Establish a Position in ASML Holding N.V. (ASML)

Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.0% in the September quarter, 5.6% for September 2025, net of fees. Since its inception, the fund has produced a cumulative return of 19.3%, net of fees. The fund focuses on compounding the capital at attractive rates over the long term. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bristlemoon Global Fund highlighted stocks such as AASML Holding N.V. (NASDAQ:ASML). Headquartered in Veldhoven, the Netherlands, ASML Holding N.V. (NASDAQ:ASML) offers lithography solutions for the development and production of advanced semiconductor equipment systems. The one-month return of ASML Holding N.V. (NASDAQ:ASML) was 7.94%, and its shares gained 7.33% of their value over the last 52 weeks. On October 10, 2025, ASML Holding N.V. (NASDAQ:ASML) stock closed at $936.19 per share, with a market capitalization of $383.584 billion.

Bristlemoon Global Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its third quarter 2025 investor letter:

"ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that develops, assembles and sells photolithography (“litho” or “lithography”) machines that are used to print integrated circuit designs onto silicon wafers during the semiconductor fabrication process. ASML is the sole supplier of Extreme Ultraviolet (EUV) lithography machines that are used by the likes of TSMC and Intel to fabricate the most advanced chips for AI, smartphones and computing. It also has an effective monopoly over Deep Ultraviolet (DUV) machines which are the primary litho workhorses within a fab.

There is plenty of material in the public domain explaining why ASML is a one-of-a-kind business, so we won’t belabour the point here. Instead, we want to focus on why the opportunity to buy this business at a steep discount existed in the first place considering the AI investment boom taking place, and where our views diverged from the market.

Since attaining an all-time high of €1,002 in mid-2024, ASML subsequently experienced a -45% drawdown at the Liberation Day trough and has otherwise trodden water in the ~€700 range. A disastrous Q2 2025 earnings call where CEO Christophe Fouquet volunteered that ASML “cannot confirm” growth in 2026 despite no one asking him about 2026 further amped up the bearish narrative to eleven..." (Click here to read the full text)

ASML Holding N.V. (NASDAQ:ASML) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 78 hedge fund portfolios held ASML Holding N.V. (NASDAQ:ASML) at the end of the second quarter, compared to 80 in the previous quarter.  While we acknowledge the potential of ASML Holding N.V. (NASDAQ: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.

In another article, we covered ASML Holding N.V. (NASDAQ:ASML) and shared the list of AI stocks in the spotlight for investors. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.