Famed investor Warren Buffett brought Taiwan Semiconductor Manufacturing (TSM -0.34%) into the spotlight this month after the Oracle of Omaha's Berkshire Hathaway holding company revealed it bought a $4.1 billion stake in the foundry giant. But another semiconductor bellwether is the stock that's been crushing the market impressively over the past month: ASML Holding (ASML -1.03%).

Shares of the Dutch company -- which supplies chip fabrication equipment such as extreme ultraviolet lithography (EUV) systems to foundries like TSMC -- shot up 22% in the past month. It won't be surprising to see the stock maintain this terrific momentum in 2023 and beyond because management's long-term growth projections, presented at the company's latest investor day, point toward healthy demand for ASML's offerings.

Let's look at the reasons why shares of this semiconductor equipment supplier could soar higher.

ASML forecasts healthy long-term growth

ASML expects annual revenue to range between 30 billion euros and 40 billion euros in 2025. That's a nice increase over the prior guidance of 24 billion euros to 30 billion euros issued at ASML's 2021 investor day, indicating that the company raised its 2025 revenue guidance by nearly 30%. It also anticipates a gross margin in the range of 54% to 56% in 2025.

Even better, ASML expects to continue this healthy growth rate through the end of the decade. The company forecasts annual revenue between 44 billion euros and 60 billion euros in 2030, along with a gross margin range of 56% to 60%. ASML is on track to close 2022 with estimated sales of 21 billion euros.

So, the midpoint of the company's 2025 revenue guidance suggests that its top line is expected to grow at a compound annual rate of 19% over the next three years. The higher end of ASML's 2025 projections would translate into annual growth of 24% over the next three years. What's more, the midpoint of the 2030 annual revenue guidance suggests that ASML is expected to clock 12% annual top-line growth through the end of the decade.

Secular semiconductor growth will be a tailwind for the company

What reasons might ASML have for being so confident about its long-term growth potential? ASML management points out that the demand for chips will remain healthy in the long run. The company projects the annual total addressable semiconductor market could grow to a range of $1 trillion to $1.3 trillion by 2030, which would be a huge increase over 2021's addressable market total of $600 billion.

As a result, chipmakers will have to increase their capacity to meet the rising demand for chips. ASML estimates that the demand for advanced chip nodes could soar from 1 million wafers a month to 3.2 million wafers a month by 2030. The demand for mature semiconductor nodes is also expected to jump to 8.6 million wafers a month by the end of the decade as compared to 4.8 million wafers a month in 2020.

The need for additional wafer capacity in advanced nodes will be driven by the adoption of technologies like augmented reality and virtual reality, as well as the proliferation of cloud computing and servers. Meanwhile, the electrification of vehicles and the automation of factories will drive the demand for mature nodes.

All this explains why ASML decided to ramp up its capacity of EUV and deep ultraviolet (DUV) lithography systems in the long run. The good part is that the secular growth of the semiconductor industry should start impacting ASML positively in 2023. Analysts expect its top line to increase by 22% in 2023.

ASML is strongly positioned to achieve that target since it is sitting on an order backlog worth a whopping 38 billion euros, which is significantly higher than its 2022 revenue estimate of 21 billion euros. As such, it won't be surprising to see this semiconductor stock sustain its momentum and shoot higher in 2023.

The stock's latest rally has brought its price-to-earnings ratio to 41. The forward earnings multiple of 30 points toward solid bottom-line growth, and analysts expect ASML to sustain healthy earnings growth over the next five years as well, forecasting an annual rate of 30%.

So, investors in the hunt for a top growth stock for 2023 may want to act quickly and buy ASML before it becomes more expensive.