ASML and Twilio set for significant AI growth

Artificial intelligence (AI) is growing rapidly, and many companies are looking to benefit from this trend. A recent report estimates that generative AI could boost the global economy by $2.4 trillion over the next ten years. This has led to substantial investments in AI technology from both companies and governments worldwide. Two companies that may see significant growth due to AI are ASML Holding and Twilio. Both companies have recently experienced some short-term declines in their stock prices, but analysts believe they have the potential for dramatic increases in the future. ASML is a key supplier of equipment for chip manufacturing. They are the only company that makes extreme ultraviolet (EUV) lithography machines, which are crucial for creating advanced semiconductor chips. Many of these chips are used in AI applications by companies such as Nvidia, Apple, and Qualcomm. Recently, orders for ASML's machines surged, with net bookings increasing by 170% in the last quarter of 2024. This strong demand is expected to help ASML achieve their revenue goals for 2025, which could reach as much as €35 billion. On the other hand, Twilio specializes in cloud-based communication solutions. Their technologies allow businesses to connect with customers through voice, text, and email. The market for AI-powered cloud contact centers is expected to grow significantly, from $3.7 billion last year to nearly $20 billion by 2034. Twilio reported a revenue increase of 7% in 2024 and saw an 11% rise in the final quarter. They are also partnering with companies like OpenAI to enhance their services. With its strong customer base and the growing demand for AI solutions, Twilio has significant opportunities ahead. Analysts predict Twilio's earnings will grow by 19% this year. The stock is currently viewed as a good investment, with a median price target of $160, indicating a potential gain of 61% over the next year. Both ASML and Twilio are positioned well to capitalize on the increasing demand for AI technologies, making them stocks to watch for future growth.