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Growth stocks with durable competitive advantages — or ‘deep moats’ — can create enormous wealth over time. Just look at Microsoft, Nvidia, Netflix, Alphabet, and dozens of other stock market examples.
Of course, the deepest moat is a company that has no competition in a particular market. So out of curiosity, I asked ChatGPT what the most powerful monopoly growth stock on Earth is.
Let’s unpack the AI bot’s answer.
Rare European tech giant
ChatGPT was pretty emphatic: Dutch semiconductor equipment maker ASML (NASDAQ:ASML) is the most powerful monopoly growth stock on the planet. It said it’s not just market-leading, or a duopoly, but the only game in town in one crucial area.
Specifically, ASML is the only company capable of producing EUV (extreme ultraviolet) lithography machines. These are the bus-sized systems required to make cutting-edge chips. The firm’s next-generation ‘High NA’ EUV machines cost upwards of $400m each!
So these weren’t being bought by any old Tom, Dick and Harry on Black Friday. It’s primarily the world’s largest chipmakers — Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and Intel — that fork out for this critical equipment.
In other words, without ASML’s EUV machines, there would be no Nvidia and AI boom. No self-driving cars or advanced smartphone chips. As ChatGPT puts it, ASML is “the choke point of the entire semiconductor industry“.
This makes it the most important tech company that hardly anyone’s heard of.
Misleading impression
ChatGPT then gets a bit carried away, breathlessly saying that ASML has “the single most powerful monopoly (and growth engine) in global markets“.
I wouldn’t go that far. Revenue is only expected to increase around 5% next year to €34.3bn, as the firm deals with export restrictions to China.
On the market side, we have seen continued positive momentum around investments in AI, and have also seen this extending to more customers, both in leading-edge Logic and advanced DRAM. On the other hand, we expect China customer demand, and therefore our China total net sales in 2026, to decline significantly compared to our very strong business there in 2024 and 2025. ASML, Q3 2025.
Unfortunately, ChatGPT fails to mention the geopolitical risk associated with the stock. The world’s two superpowers — the US and China –are battling for AI supremacy, putting ASML’s critical lithography systems at the centre.
As such, the company’s growth has slowed as its China business — accounting for roughly a third of revenue — has been impacted. So I wouldn’t say it has the most powerful growth engine in global markets. I think this gives the wrong impression of reality.
The future’s still bright
Having said that, this is clearly a very special company, and I expect it to get much larger in future as the tech revolution accelerates.
According to industry association SEMI, annual spending on advanced chipmaking equipment will jump from $26bn last year to more than $50bn by 2028. This should directly benefit ASML, even with China sales restricted.
Earnings growth of 21% is expected in 2027. Going on this, the stock’s trading at 27.8 times forward earnings.
At this price, I reckon ASML is a buying opportunity worth checking out. It’s one of a number of stocks that have caught my attention lately.
