ASML (NASDAQ: ASML) serves an essential role in the artificial intelligence (AI) supply chain.
It leads in the critical equipment used to make chips, and it’s seeing solid revenue growth as investment floods into AI data centers
Even though the stock has more than doubled over the past year, Wall Street still appears to be underestimating demand for this company’s most advanced chipmaking machines. ASML’s dominant position in the chip supply chain Taiwan Semiconductor Manufacturing is the world’s largest chip manufacturer, producing everything from smartphone chips to the processors powering the most advanced data centers. It makes chips for Nvidia and other AI leaders.
But TSMC can’t make those chips without ASML. ASML builds advanced lithography systems that etch circuits onto chips. It has a near-monopoly on extreme ultraviolet (EUV) machines — the tools TSMC and Micron Technology need to manufacture cutting-edge AI processors and high-performance memory components. $2.5 trillion is expected to flow into AI infrastructure ASML’s quarterly revenue growth has been uneven, but the bigger picture is clear: trailing 12-month revenue is up 76% since 2022.