"One way to track the speed of the AI boom is to follow the hardware supply chain. Nvidia is the classic example: As AI companies build out data centers, they're buying up billions of dollars of GPUs each month, turning Nvidia into the most valuable company on earth. But Nvidia has suppliers too, and looking at them can give us an even longer-term view of the market."
"That's why we care about ASML, a Dutch photolithography company that has become a key linchpin for the semiconductor industry. ASML is the sole supplier of the EUV equipment needed to make cutting-edge chips, making it a central supplier for the entire industry. When ASML does well, it's because companies are expecting to sell a lot of semiconductors. And based on the quarterly earnings released Wednesday morning, the company is doing very well indeed."
Following the hardware supply chain reveals the pace of the AI boom, with Nvidia exemplifying heavy GPU demand from data-center buildouts. Suppliers offer a longer-term view of market expectations. ASML, a Dutch photolithography company, is the sole supplier of EUV equipment required to produce cutting-edge chips. Strong ASML performance indicates that chipmakers expect high semiconductor sales. The company reported 32.7 billion euros in net sales this quarter. New bookings reached 13 billion euros, a record and more than double the prior quarter. ASML's CEO reported customers now hold a more positive medium-term outlook based on sustained AI-related demand, prompting orders to add capacity for future data centers.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]