Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they rate highly for October!
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ASML
What it does: The company supplies the machines used in the manufacturing of semiconductors, including for AI.
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By Oliver Rodzianko. ASML (NASDAQ:ASML) is the strongest investment I know of right now.
Management forecasts revenue growth of 45% for 2025, so now is a good time for me to buy the shares.
My outlook is reinforced by its forward price-to-earnings ratio of just 24. That’s only slightly higher than the industry median of 19.
ASML is known for its extreme ultraviolet lithography systems used to manufacture world-leading semiconductors. There are very few businesses able to challenge it.
I estimate the share price could increase by 40% in the next 12 months. However, its revenue growth is likely to slow down in 2026.
It’s also worth remembering that the demand for AI chips could taper soon as companies question the return on investment of data centre spending.
Nonetheless, I’m bullish on ASML. It’ll be the next investment that I make.
Oliver Rodzianko does not own shares in ASML.
Intel
What it does: Intel is one of the world’s largest design and manufacturer of computer components and related products.
By Jon Smith. Intel (NASDAQ:INTC) might seem a controversial choice right now. The stock is down 31% over the past year, largely due to poor financial results. The business has so far been unable to capitalise on artificial intelligence (A.I.) in the same way other tech firms are. The latest results shows a Q2 net loss, with the outlook for another loss this quarter.
Despite these risks, I think the stock looks cheap. I’m clearly not the only one, with several larger companies reportedly sniffing around for a potential buyout. Putting this to one side, the firm is now in full transformation mode.
Cost cutting alongside focusing investment on core business areas for growth should help to turn the company around in the medium term. Granted, I might not be able to pick the perfect lowest price on the share, but I’m seriously thinking about buying the stock for a long-term recovery.
Jon Smith does not own shares in Intel.
KLA Corp
What it does: KLA Corp provides quality control and yield management solutions to the global semiconductor industry.
By Edward Sheldon, CFA. The semiconductor industry looks set for strong growth over the next decade and one stock I like in this area of the market (and have been buying for my own portfolio recently) is KLA Corp (NASDAQ: KLAC). It plays a vital role in the industry as its technology helps to ensure chip quality and production efficiency.
The way I see it, this is a great ‘picks-and-shovels’ play on semiconductors. No matter who turns out to be the winner in the long run (I think there will probably be multiple winners), KLA Corp should do well as it provides essential services that all chip manufacturing plants require. It’s worth noting that the company is growing at an impressive rate today thanks to high demand for AI chips. This financial year (ending 30 June 2025), revenue and earnings per share are expected to climb 17% and 27% respectively.
Now, one risk to be aware of here is that the chip industry can be cyclical at times. As a result, chip stocks can be volatile. We are looking at a long-term ‘secular’ growth trend here, however. So, I see huge potential in the long run.
Edward Sheldon owns shares in KLA Corp.
Shopify
What it does: Shopify offers an all-inclusive e-commerce platform that enables sellers of all sizes to build online businesses.
By Alan Oscroft. Shopify (NYSE: SHOP) might just qualify as the best picks-and-shovels business in the online selling space. That is, like those who sell equipment to gold prospectors, it makes its money no matter who wins at the sharp end.
Shopify recently posted revenue of $2bn in its second quarter, up 21%. That’s billion, in just one quarter, and growing strongly.
And for the next quarter, the company expects revenue to grow at “a low-to-mid-twenties percentage rate on a year-over-year basis.” More twenties, excellent. Oh, and it’s aiming at a double-digit free cash flow margin.
What’s the risk? Right now, I think the big one is the price-to-earnings (P/E) valuation. We have a trailing P/E of 81. Eek! Forecasts would drop that to around 57 by 2026, which is still very high.
But I think Shopify’s long-term earnings growth potential could be phenomenal.
Alan Oscroft has no position in Shopify.
