Semiconductor bellwether ASML Holding (NASDAQ: ASML) had a forgettable 2022, with the stock slipping about 31% during the year. But the Dutch company, whose equipment is critical to the manufacturing of the advanced chips that power several applications ranging from smartphones to data centers, ended the year strongly with a nice rally.

ASML's year-end rally defied the mood of the broader stock market, which was shaped by a hawkish Federal Reserve that indicated that it will be raising rates further in 2023 to control outsized inflation. However, the forecasts issued by ASML management during its investor day (held in November 2022) may have boosted investor confidence in the stock, as the company is anticipating solid growth over the long run.

Let's see where ASML could be in three years and check if investors should be buying the stock in the wake of its recent rally.

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Source Fool.com