Got $5,000? 2 Stocks to Buy Now and Hold for the Long Term

The article identifies ASML and Eli Lilly as compelling long-term investment opportunities, citing their critical market positions and robust growth catalysts. ASML, a pivotal supplier to the semiconductor industry, is set to benefit from the commercial rollout of its High-NA EUV lithography systems, crucial for advanced AI and HPC chip manufacturing, despite recent flat sales, with significant revenue impact expected from 2028. Concurrently, Eli Lilly is demonstrating strong financial performance, propelled by its dominant GLP-1 drugs, Mounjaro and Zepbound, in the rapidly expanding obesity and diabetes markets, further bolstered by a promising pipeline including the oral GLP-1 candidate Orforglipron. Both companies exhibit strong market leadership and future growth potential, justifying their valuations.

Analysis

ASML Holding (ASML) maintains its critical position in the global semiconductor industry, with Q3 net sales remaining flat year-over-year while net income reached 2.1 billion euros. The long-term outlook is robust, driven by explosive demand for advanced chips in AI and HPC, with the company gearing up for the commercial rollout of its High-NA EUV lithography system. Intel and SK hynix have already begun installations, and ASML anticipates significant orders from H2 2026, with shipments commencing in 2028, where each system costing $380-$400 million could dramatically impact the top line.

ASML's business model demonstrates resilience, with management expecting EUV sales to reaccelerate in 2026 despite moderated demand from China. The company's strategic 11% stake in Mistral AI aims to leverage generative AI for system performance and innovation, potentially lowering development costs. Trading at 26.7 times forward earnings, ASML's valuation appears reasonable given its technological edge and future growth trajectory.

Eli Lilly (LLY) showcased strong financial performance in Q2, with revenue surging 38% year-over-year to $15.6 billion and adjusted EPS rising 61% to $6.31. This growth is primarily fueled by its dominant GLP-1 drugs, Mounjaro (for type 2 diabetes) and Zepbound (for chronic weight management), which hold the highest prescription share in their respective U.S. markets. The global GLP-1 market is projected to expand significantly from $53.4 billion in 2024 to $156.7 billion by 2030, positioning Eli Lilly for substantial capture.

The company's pipeline includes Orforglipron, an investigational once-daily oral GLP-1 therapy, with FDA regulatory applications planned for late 2025 (obesity) and 2026 (type 2 diabetes), potentially broadening market access. Despite trading at a premium of 31.2 times forward earnings, Eli Lilly's valuation is justified by its blockbuster drug portfolio, robust late-stage pipeline, and impressive financial momentum.

Key Decisions for Investors

• Consider long-term positions in ASML, given its indispensable role in advanced semiconductor manufacturing and the significant revenue potential from High-NA EUV systems commencing in 2028.
• Evaluate Eli Lilly for growth exposure in the rapidly expanding GLP-1 market, supported by its dominant product portfolio and promising oral drug pipeline.
• Monitor ASML's High-NA EUV system qualification and order flow post-2026, and Eli Lilly's regulatory progress for Orforglipron as key catalysts for future performance.