It will take China years to catch up with ASML Holding NV’s chipmaking technology, according to a senior executive at the Dutch firm.

Dutch chip equipment maker ASML Holding NV beat the fourth quarter earnings estimates and posted record net sales on an annual and sequential basis, on Wednesday. The company also reduced its Chinese market share in Q4.

We recently compiled a list of the Morgan Stanley’s 15 Best European AI Stocks. In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against Morgan Stanley’s other European AI stocks.

Top computer chip equipment maker ASML ASML.AS reported fourth-quarter bookings on Wednesday that far exceeded expectations, as a boom in AI drove demand for its most advanced equipment.

Dutch Prime Minister Dick Schoof held "critical conversations" with visiting Chinese Vice Premier Ding Xuexiang, he said on Friday, including discussions on human rights and on semiconductor equipment supplier ASML .

After sending shockwaves through the semiconductor industry following a third-quarter earnings miss, scrutiny is building ahead of ASML Holding NV’s results next week with uncertainty over the spending plans of its top clients.

The AI hype is now also reaching ASML. The Dutch company closes 2024 with an annual turnover of a good 28 billion euros.

Valued on earnings, shares of Lam Research look the cheapest today, valued just a little over 25 times trailing earnings. KLA stock is more expensive at 34 times earnings, while ASML looks most expensive at a P/E ratio of 40. I hesitate to call any of the three stocks a "bargain," however.

ASML stock rose nearly 6% premarket after the Dutch semiconductor equipment company posted better than expected fourth quarter earnings and its CEO dismissed concerns over DeepSeek AI.

Overall, ASML Holding N.V. reported a very strong Q4 and set the stage for a promising fiscal '25 performance. Learn more about ASML stock here.

ASML is understood to be the only company in the world that makes extreme ultraviolet (EUV) photolithography equipment, which can reproduce finer and more complex patterns on silicon wafers, allowing for more transistors to be crammed into chip designs.