Goldman Says Nvidia and Micron Are the Biggest AI Winners: 5 Stocks to Take Advantage of it Now

AI compute and memory supply chains face concentrated dependencies. Advanced AI chips require ASML lithography machines, specifically EUV scanners sold by a single company, making ASML a critical bottleneck. ASML reported strong Q1 2026 results with EPS of $8.43 on $10.34B revenue, 53% gross margin, and raised full-year revenue guidance to $42.47B–$47.19B. Management stated demand for chips outpaces supply and customers are accelerating capacity expansion plans for 2026 and beyond. ASML also announced a €12B share buyback through December 31, 2028. Separately, hyperscalers are partnering with Broadcom to develop custom XPU accelerators and Ethernet AI switches to reduce ongoing NVIDIA spending.

"Every advanced AI chip on earth starts on an ASML lithography machine. NVIDIA designs the GPU, TSMC builds it, Micron stacks the memory around it, but none of it exists without the EUV scanners that only one company on the planet sells. That is the surprise sitting at the top of this list: the AI trade has a true single point of dependency, and Goldman's bullish chip forecast feeds straight into ASML's order book before anyone else's."

"The Q1 2026 earnings report said the quiet part out loud. ASML delivered EPS of $8.43 on revenue of $10.34B with gross margin at 53%, and management raised the full year outlook to $42.47B to $47.19B in revenue. CEO Christophe Fouquet said "Demand for chips is outpacing supply. In response, our customers are accelerating their capacity expansion plans for 2026 and beyond.""

"Backstop the thesis with a €12B share buyback running through December 31, 2028 and you have a monopoly returning capital while demand re-rates. The stock is already up 53% year-to-date and trades at a forward P/E of 45, so the easy money is gone. The setup that comes next is louder, more crowded, and has its own custom-silicon weapon."

"Every hyperscaler that writes NVIDIA a $10 billion check this year is simultaneously writing Broadcom a check to build the custom XPU that lets them stop writing NVIDIA checks. Google, Meta, and the rest of the cloud aristocracy are designing their own AI accelerators with Broadcom and pairing them with Broadcom's Ethernet AI switches."

Read at 24/7 Wall St.