TSLA
Tesla
-- 431.660 NVDA
NVIDIA
-- 137.010 BA
Boeing
-- 180.720 RGTI
Rigetti Computing
-- 17.0800 PLTR
Palantir
-- 79.080 
Why $ASML is a monster AI play hidden in plain sight
In the semiconductor industry, silicon, derived from abundant sand, serves as the foundational material for chip manufacturing. As chip functions become more compact, their capabilities expand, a principle that ASML -- a leader in semiconductor equipment -- has capitalized on with its advanced Extreme Ultraviolet (EUV) lithography technology.
EUV technology represents a significant leap over the older Deep Ultraviolet (DUV) systems. It utilizes a shorter wavelength -- 14 nanometers, which is 15 times shorter than DUV -- allowing for finer circuit patterning and higher densities of circuit elements.
The semiconductor manufacturing process involves critical steps like deposition, photoresist application, lithography, etching, ion implantation, and packaging, with lithography being a key phase where ASML’s impact is most significant. In this step, ASML’s systems use light -- either DUV or EUV -- to intricately define the chip’s circuits. ASML’s dominance in EUV lithography, where it holds virtually a monopoly, along with the high barriers to entry for nanometer-precision equipment, cements its competitive advantage. This is increasingly important as AI technologies evolve -- requiring more advanced semiconductor chips.
For example, $NVIDIA (NVDA.US)$ new Blackwell chips, produced by $Taiwan Semiconductor (TSM.US)$ -- a major ASML customer -- benefit significantly from EUV technology. These chips are designed to speed up AI model processing by up to 50 times during the inferencing phase, where the model applies what it has learned to perform tasks. This capability is crucial as AI models become more complex -- involving multi-layered inferencing that demands rapid processing capabilities. ASML’s dominance in EUV lithography machines, crucial for producing advanced chips, solidifies its monopolistic position. The demand for ASML’s technology is strong and expanding -- fueled by advancements in AI from entities like OpenAI and the persistent need for high-performance computing. ASML holds a monopoly in EUV lithography systems, particularly as it advances with its High EUV technology, making this a company I want to add to my portfolio.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
🌲ex IBDer
📝Swing Trader since 2014
📚There are 3 ways to earn money: be fast, be smart or cheat.
836Followers
34Following
4645Visitors
Follow
103613928 : Noted