Better Buy: ASML vs. Aehr Test Systems
ASML (NASDAQ: ASML) and Aehr Test Systems (NASDAQ: AEHR) represent two very different ways to invest in the booming semiconductor sector.
ASML is the world's largest producer of lithography systems, which are used to etch circuit patterns onto silicon wafers. It's also the only producer of high-end extreme ultraviolet (EUV) lithography systems, which are used to manufacture the world's most intricate, transistor-dense chips. Aehr is a much smaller company that produces testing and burn-in equipment for semiconductors. However, Aehr has notably established an early-mover advantage in testing equipment for silicon carbide chips, which can operate at higher voltages, temperatures, and frequencies than traditional silicon chips.
Over the past 12 months, ASML's stock has rallied by nearly 30% as Aehr's stock more than tripled. Let's see why Aehr outperformed ASML by such a wide margin -- and consider whether it will remain the stronger investment for the foreseeable future.
Source Fool.com
