The article argues ASML, the Netherlands-based company, is the real bottleneck in AI chip production because it is the only maker of high-end EUV lithography systems that leading foundries such as TSMC, Samsung and Intel use for their newest chips. Each system costs $200 million to $400 million, and ASML faces no competitors, which the article says leaves room to raise prices. EUV revenue exceeded half of total revenue in the first half of 2026, and ASML has raised its 2026 outlook twice to 35%–38% revenue growth with a 56% gross margin. Analysts expect full-year revenue and EPS to rise 36% and 68%, and the stock, up 177% over three years, trades at 26 times next year's earnings. The article concludes that ASML is a more balanced way to invest in AI chips than Nvidia or TSMC.
Summary written by Upside AI from the original article. Read the source for full details.
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