Why ASML Stock Soared in the First Half of 2023
Shares of ASML Holding (NASDAQ: ASML) popped 31.6% through the first six months of 2023, according to data provided by S&P Global Market Intelligence. The leading maker of advanced lithography equipment for semiconductor manufacturers is seeing a boost due to the booming demand for artificial intelligence (AI) products like ChatGPT, which require intense amounts of computing power to run. There have also been numerous announcements from chipmakers announcing spending on factories in the United States.
AI services like ChatGPT require intense amounts of computing power to run properly, typically from chips supplied by Nvidia. This has boosted the shares of anything related to the semiconductor supply chain.
With its extreme ultraviolet lithography equipment, ASML is a key component in the making of advanced chips. It is the only company to make these machines in the world, which allows semiconductor manufacturers to make advanced AI chips for Nvidia. One could even go as far as saying, without ASML, there would be no AI boom.
Source Fool.com
