ASML vs. Applied Digital: Which Is the Better Semiconductor Equipment Stock to Own for the Next 1 Year?
ASML offers unmatched demand visibility, while Applied Materials brings broader AI-driven growth at a lower valuation.
Overview
ASML Holding (NASDAQ: ASML) and Applied Materials (NASDAQ: AMAT) are both benefiting from the artificial intelligence (AI) chip boom but in very different ways.
ASML's extreme ultraviolet (EUV) lithography machines are used to print the most complex circuits in leading-edge chips. As chipmakers pack more computing power into smaller chips, they need more precise manufacturing equipment. This trend has been driving demand for ASML's systems.
Details
Applied Materials is also playing a crucial role in manufacturing advanced chips. The company supplies equipment used at several stages of chip production, including creating and shaping materials, checking for defects, and packaging chips together. Demand for these tools is rising as AI chips become more complex and increasingly use technologies such as high bandwidth memory and advanced packaging.
Source
Originally published at www.fool.com.