1 Artificial Intelligence (AI) Stock I'd Buy on Every Dip and Never Sell

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when I'm investigating potential stock buys.10 stocks we like better than ASML ›Unlike chefs, who can prepare savory meals without precisely measuring ingredients, pastry chefs require exactness when crafting their sweet treats. Just a little too much of one ingredient -- or not enough of another -- can be the difference between pastry perfection and dessert disaster.Similarly, the companies that manufacture the sophisticated semiconductors capable of handling artificial intelligence (AI) applications also require meticulous levels of precision in order to sustain high-volume production of those chips. For this reason, ASML (NASDAQ: ASML) is high on my buy list. The company plays a pivotal role in the semiconductor industry, and I've long recognized its stock as a compelling way to expand my AI industry exposure.I plan to open a position in the coming weeks, and once it's initiated, I intend to click the buy button on ASML stock again during any dips.Image source: Getty Images.Designing cutting-edge semiconductors -- the wheelhouse of companies like Nvidia and AMD -- is no small feat, yet it means little unless foundries can produce those chips at scale. This is where ASML comes in.While ASML provides a variety of equipment, software, and services to enable the large-scale fabrication of microchips, the products that make it most appealing to investors are its extreme ultraviolet (EUV) lithography machines. These machines use light at a 13.5-nanometer wavelength to print the most sophisticated chip designs on the market, making them indispensable tools for foundry operators like Taiwan Semiconductor Manufacturing and Intel.ASML is the only company capable of building EUV machines, giving it an unparalleled position in the chip industry and providing it with a robust competitive advantage over its rivals.It's hard to argue with the allure of ASML, as it has a technological monopoly in a niche that is vital to the tech sector. The company's fundamentals further illustrate why its stock will be worth holding for the long term as the AI industry develops.For one, the company generates extremely strong cash flow. In 2024 and 2023, for example, ASML reported free cash flow of $7 billion and $6.9 billion, respectively, according to Morningstar. Its results are even more impressive when stacked up against its semiconductor equipment peers, Lam Research and Applied Materials.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,963.50 -15.75 (-0.23%)Dow Futures49,006.00 +8.00 (+0.02%)Nasdaq Futures25,753.25 -110.00 (-0.43%)Russell 2000 Futures2,552.40 +1.00 (+0.04%)VIX14.89 +1.29 (+9.49%)Gold4,492.40 -60.30 (-1.32%)Trending tickersBTC-USD Bitcoin USD 87,962.42 +228.90 (+0.26%)ETH-USD Ethereum USD 2,971.57 +36.50 (+1.24%)NOVO-B.CO Novo Nordisk A/S 328.60 -2.95 (-0.89%)DTCK Davis Commodities Limited 0.3951 +0.1572 (+66.08%)FTEL Fitell Corporation 0.7299 +0.0499 (+7.34%)PortfolioSign in to access your portfolioSign inTop gainersELPC Companhia Paranaense de Energia 9.65 +0.79 (+8.92%)PSLV Sprott Physical Silver Trust 26.04 +2.08 (+8.68%)ZETA Zeta Global Holdings Corp. 20.70 +1.59 (+8.32%)CPNG Coupang, Inc. 24.27 +1.47 (+6.45%)XPEV XPeng Inc. 20.78 +1.21 (+6.18%)Top losersRGC Regencell Bioscience Holdings Limited 21.16 -3.44 (-13.98%)FLY Firefly Aerospace Inc. 23.34 -3.70 (-13.68%)TMC TMC the metals company Inc. 6.82 -0.80 (-10.50%)AAOI Applied Optoelectronics, Inc. 37.17 -3.83 (-9.34%)RGTI Rigetti Computing, Inc. 22.38 -2.13 (-8.69%)Most activeNVDA NVIDIA Corporation 190.53 +1.92 (+1.02%)TSLA Tesla, Inc. 475.19 -10.21 (-2.10%)PLUG Plug Power Inc. 2.0700 -0.0300 (-1.43%)ONDS Ondas Holdings Inc. 8.48 -0.65 (-7.12%)NIO NIO Inc. 5.10 +0.19 (+3.87%)Top economic eventsEarnings eventsMy earnings eventsEarnings events