ASML Holding NVNASDAQ: ASML

As difficult as it might be to step into a stock while it's down, that's the best time to plug in to a good growth story.

I recently wrote about the largest semiconductor equipment provider in the world, ASML NASDAQ: ASML. Now, I'll cover the second largest, Applied Materials NASDAQ: AMAT.

ASML is currently undervalued due to a weaker 2025 outlook and is a Strong Buy for medium-term value investors comfortable with semiconductor industry cycles. Despite reduced sentiment from a downward revision in sales forecasts and geopolitical risks, ASML's growth prospects remain robust due to its EUV technology monopoly. ASML's valuation metrics, including an EV-to-sales ratio 19% below its five-year average, indicate significant upside potential, with an expected enterprise value increase of 30% in 12 months.

The stock is down 35% this year.

Despite the S&P 500 trading near its all-time high today, some stocks still offer a potential buy opportunity for investors to consider, especially after some institutions have come along to buy and increase some of their positions in these stocks today to reiterate their long bias and optimism in these companies moving forward.

Unfortunately, ASML NASDAQ: ASML hasn't served as a great investment over the past three years. Over that time, the stock has provided investors a total return of -6%.

ASML's demand is weakening, but that's a shortsighted take.

Sometimes a stock drop can be a buying opportunity for patient investors.

The technology sector has been the darling of the entire stock market since the aftermath of the COVID-19 pandemic, and most stocks in the space easily delivered double-digit rallies for investors. However, not all stocks in the sector are made—or treated—equal, which is where investors can find some new opportunities to exploit in a catch-up strategy.