ASML's Earnings Prove the Artificial Intelligence (AI) Supercycle Isn't Slowing Down. Here Are the Best Growth Stocks to Buy Now.

ASML raised 2026 revenue guidance to 36 billion-40 billion euros from 34 billion-39 billion euros after first-quarter revenue rose nearly 14% year over year to 8.8 billion euros, signaling continued strength in AI chip demand. The article argues this is bullish for AI infrastructure beneficiaries Vertiv and Celestica, both of which reported robust 2025 growth and guided to further double-digit expansion in 2026. Vertiv expects 2026 revenue of $13.5 billion and adjusted EPS of $6.02, while Celestica guided for 2026 revenue up 37% and EPS up 45% to $8.75.

Analysis

The key read-through is not just “AI demand is healthy,” but that the next leg is shifting from speculative compute orders to a broader infrastructure spend cycle. That is favorable for the second derivative beneficiaries: power, cooling, racks, interconnect, and manufacturing capacity, where backlog visibility and pricing power tend to lag chip equipment strength by 1-3 quarters. In that setup, names like VRT and CLS can keep compounding even if AI-capex headlines become choppier, because customers still need to de-bottleneck delivery rather than simply add more chips.

The more important signal is supply tightness, which implies underinvestment is now the risk rather than overinvestment. If advanced memory and logic remain constrained, hyperscalers are incentivized to pre-buy adjacent infrastructure earlier, pulling forward orders for thermal management, switchgear, and assembly capacity. That should benefit suppliers with scarce manufacturing footprints and long qualification cycles, while pressuring smaller peers that cannot scale fast enough or cannot secure components.

The main risk is that this becomes a crowded “good news” trade: if capex upgrades are already embedded, the next catalyst has to be shipment acceleration, margin expansion, or backlog conversion, not just strong demand language. Watch for any sign that customers are shifting from broad AI buildouts to efficiency/optimization spend, which would hit the faster-growing but more cyclical exposure in CLS first. A second-order downside is that aggressive capacity adds at VRT/CLS could create execution risk if supply chains loosen faster than expected over the next 2-4 quarters.

Consensus may be underestimating how much of the upside is now in the ecosystem, not the lithography leader itself. ASML is still the cleaner structural story, but the incrementally better risk/reward may be in the picks-and-shovels with operating leverage and backlog that can re-rate if guidance gets lifted again. Conversely, the market may be overpaying for near-term certainty, so the cleanest entry is likely on any 8-12% pullback rather than chasing momentum after a strong tape.

Key Decisions for Investors

• Long VRT on a 1-3 month horizon; add on any pullback of 8-12% because backlog conversion plus capacity expansion can drive a second leg higher if AI capex revisions continue.
• Long CLS versus short a basket of slower-growing industrials or electronics manufacturers over 3-6 months; the pair captures AI-driven operating leverage while reducing market beta.
• Buy ASML on dips, not strength, with a 6-12 month horizon; treat any post-earnings consolidation as an entry because EUV shipment ramp can support another guidance raise.
• For tactical upside, use VRT call spreads 2-4 months out rather than outright equity; the setup is bullish but crowded, so defined-risk convexity is preferable.
• If CLS reports any slowdown in order conversion or margin compression, reduce exposure quickly; it is the most likely first domino if AI infrastructure spend pauses.