Benzinga | Oct 12, 2021 09:36AM EDT

Tech Experts See Significant Upside In ASML - Read Why

* Boutique VC firm Air Street Capital founder Nathan Benaich and AI start-up Songkick founder Ian Hogarth see ASML Holding NV's (NASDAQ:ASML) market value accelerating from $302 billion to over $500 billion in 2022, CNBC reports.

* NVIDIA Corp (NASDAQ:NVDA) is currently valued at $521 billion, while Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) is worth $533 billion.

* ASML provides chipmakers with essential hardware, software, and services to produce patterns on silicon via lithography, aiding the likes of TSM.

* Hogarth defended ASML's market cap citing its location in Europe, where the market values high-tech firms slightly lower, and because its technology is more behind the scenes.

* "As people look for alpha when investing in this trend of semiconductors being more and more critical to global supply chains, this (ASML) feels like it's an obvious candidate," Hogarth said.

* Particular nations' desire to make onshore chip-making and reduce reliance on other countries will fuel ASML's growth trajectory.

* "If China is going to build the equivalent of what TSM has today or some of the leading American semiconductor companies, they're going to need to buy a lot of these (EUV) machines," Hogarth said.

* Hogarth believes that the other analysts ignore ASML's "geopolitical dimension" and do not acknowledge how much money nations are spending on building their sovereignty regarding semiconductors.

* ASML sees significant growth opportunities beyond 2025 from "global megatrends in the electronic industry" coupled with "a highly profitable and fiercely innovative ecosystem" likely to fuel growth across the semiconductor market.

* Price Action: ASML shares traded higher by 1.45% at $732.34 in the market session on the last check Tuesday.