Better Chip Stock: ASML vs. Nvidia
ASML (NASDAQ: ASML) and Nvidia (NASDAQ: NVDA) are two very different kinds of companies, but the latter likely wouldn't exist without the former.
ASML, which is based in the Netherlands, is the world's top manufacturer of lithography systems -- which are used to etch circuit patterns onto silicon wafers. The world's top chip foundries -- including Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, and Intel -- all use its top-tier extreme ultraviolet (EUV) systems to manufacture the world's smallest and densest chips.
Nvidia, the American chipmaker that dominates the gaming and data center GPU markets, outsources its chip production to TSMC and Samsung's foundries. In other words, Nvidia can't produce its newest GPUs without ASML's EUV systems.
Source Fool.com
