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

The article highlights ASML and Eli Lilly as companies with strong growth prospects driven by secular tailwinds. ASML, a critical semiconductor equipment supplier, is set for significant revenue acceleration from its next-generation High-NA EUV systems, with orders anticipated from late 2026 and shipments from 2028, fueled by AI and HPC demand, and has invested in Mistral AI to enhance innovation. Concurrently, Eli Lilly reported robust Q2 financial results with revenue up 38% and EPS up 61%, primarily driven by its dominant GLP-1 drugs Mounjaro and Zepbound, and is advancing its investigational oral GLP-1 therapy, Orforglipron, towards regulatory filings in 2025-2026, positioning it for continued leadership in the expanding obesity and diabetes markets.

Analysis

ASML remains a critical enabler for the semiconductor industry, with advanced EUV lithography systems driving future chip innovation. Despite flat Q3 net sales at 7.5 billion euros, the long-term outlook is robust, fueled by explosive demand for AI and HPC chips. Its next-generation High-NA EUV systems, costing $380-400 million each, are expected to significantly impact topline revenue with orders from H2 2026 and shipments commencing in 2028.

ASML's business model demonstrates resilience, with EUV sales projected to reaccelerate in 2026 despite moderated demand from China. The company is also enhancing innovation by acquiring an 11% stake in Mistral AI, leveraging generative AI for improved system performance and reduced development costs. Trading at 26.7 times forward earnings, its valuation is considered reasonable given its technological leadership.

Eli Lilly exhibits strong financial momentum, reporting a 38% year-over-year revenue increase to $15.6 billion and a 61% rise in adjusted EPS to $6.31 in Q2. This growth is primarily driven by its dominant GLP-1 drug portfolio, with Mounjaro leading U.S. type 2 diabetes prescriptions and Zepbound capturing nearly 66% of the U.S. branded anti-obesity market. Management projects fiscal 2025 revenue between $60 billion and $62 billion.

The company is well-positioned to capitalize on the global GLP-1 market, forecast to grow from $53.4 billion in 2024 to $156.7 billion by 2030. A significant future catalyst is the investigational oral GLP-1 therapy, Orforglipron, slated for FDA filings in late 2025 for obesity and 2026 for type 2 diabetes. This robust pipeline and market leadership justify its premium valuation of 31.2 times forward earnings.

Key Decisions for Investors

• Investors should closely monitor ASML's progress on High-NA EUV system orders and qualification runs from H2 2026, as these represent a significant future revenue catalyst.
• Consider Eli Lilly's continued market leadership in the rapidly expanding GLP-1 drug market, particularly the potential impact of its oral GLP-1 candidate, Orforglipron, on future market share.
• Evaluate both ASML and Eli Lilly for long-term strategic allocation, weighing their strong secular tailwinds and innovative pipelines against their current premium valuations.