Is This the Most Critical Company in the Artificial Intelligence Supply Chain?
There are arguments to be made for investing in multiple facets of the artificial intelligence (AI) supply chain. There is the data collection side, data center suppliers, software applications, or hardware plays that can all make sense to invest in. However, these areas require semiconductors to power them. Not just any chip will do since the sheer amount of data in these workloads requires the most powerful chips on the planet to run them efficiently.
Making these chips is incredibly complex, and there are a few processes that require specific machines. One of these processes is EUV (extreme ultraviolet) lithography, and only one company in the world makes these machines: ASML (NASDAQ: ASML). So, is this the most important company in the AI chain?
EUV lithography is needed to pattern the smallest features on chips. This allows semiconductor foundry companies to pack more transistors onto a chip, thus increasing its power and efficiency. These machines are incredibly complex and are about the size of a bus. This complexity is partially why ASML has maintained its monopoly on this field, and ASML is taking steps to ensure it doesn't lose it.
Source Fool.com
