Opportunities Amidst Tariff Turmoil: Why ASML and MercadoLibre are Solid Buys
As President Donald Trump’s tariffs linger in the minds of investors, a curious trend is emerging in the market: some stocks are taking a hit, not due to any direct implications from tariffs, but rather a guilty-by-association mentality. Investors would be wise to consider this as a prime opportunity to pick up otherwise solid shares on sale. Notably, ASML (NASDAQ: ASML) and MercadoLibre (NASDAQ: MELI) stand out as exemplary candidates for savvy investors looking to capitalize on current market fluctuations.
1. ASML: The Semiconductor Powerhouse
Let’s start with ASML, a company rooted in the Netherlands. At first glance, you might wonder why it’s a player in the U.S. tariff conversation. However, ASML plays an essential role in semiconductor manufacturing, producing the extreme ultraviolet lithography machines that are crucial to chip production. Notably, ASML is the only company globally capable of delivering this cutting-edge technology, which puts it in a unique position.
The importance of ASML’s machinery cannot be overstated. With the ongoing explosion of demand for semiconductors—driven by advancements in artificial intelligence (AI)—ASML’s products are a linchpin for chip manufacturers. While there’s uncertainty about whether ASML’s machines will be shielded from tariffs, as the White House has exempted semiconductors, it’s plausible that machinery associated with chip production will enjoy a similar exemption due to its strategic importance in re-establishing U.S. manufacturing capabilities.
Despite its critical role, ASML has seen its stock price retreat to around 40% below its all-time high set last July. Trading at 25 times forward earnings and 31 times trailing earnings, this valuation is among the lowest it has been in years. In light of the essential nature of its products and minimal competition, ASML appears to be a prime buy for investors ready to act before the market realigns with its intrinsic value.
2. MercadoLibre: E-Commerce and Fintech Growth
Next up, we have MercadoLibre, a foreign player that specializes in enticing e-commerce and fintech solutions primarily in the Latin American region. Although it operates completely outside the U.S. market, MercadoLibre’s stock is listed on American exchanges, making it susceptible to domestic investor sentiment—which can often lead to irrational sell-offs.
With strong and consistent growth rates in recent years that outpace the majority of stocks in the market, MercadoLibre’s performance is noteworthy. Recent market corrections have seen its stock price dip about 15% from its all-time high, presenting a golden opportunity for investors looking to enter at a discount. The rollout of e-commerce and fintech in Latin America is still in its nascent stages, meaning the growth potential is massive. Analysts project a robust revenue growth rate of 24% in 2025 and 23% in 2026—testament to the bright future ahead for MercadoLibre.
Conclusion: Timing is Key
The current state of the market may seem tumultuous, particularly in light of ongoing tariff discussions. However, investors looking for unique opportunities should focus on ASML and MercadoLibre. These stocks represent solid value, unshaken by the broader market’s fears tied to tariffs.
In the end, successful investing often hinges not just on capitalizing on potential growth but also on timing. When the prices are down, but the fundamentals are strong, it might just be the right moment to buy. Those willing to put their trust in traditional financial principles should consider these two opportunities as starting points in a portfolio poised to weather any storm.
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