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ASML's AI Chip Monopoly Fuels Revenue Surge
19 Nov
Summary
- ASML holds a monopoly on crucial EUV machines for AI chips.
- Demand for EUV machines is expected to surge due to AI advancements.
- Goldman Sachs predicts ASML could more than double 2030 revenue expectations.
ASML, the sole global provider of specialized EUV lithography equipment, is exceptionally positioned to capitalize on the burgeoning artificial intelligence market. These machines are indispensable for etching the intricate circuitry onto semiconductors required for advanced AI workloads. Goldman Sachs analysts highlight that the increasing complexity of AI applications will drive demand for smaller, more powerful chips, making ASML's technology crucial for their production.
Goldman Sachs' bullish projections suggest that a surge in AI demand could necessitate up to 104 EUV machines by 2030. This level of demand could elevate ASML's revenue by as much as 59% above its current 2030 mid-point guidance. The firm anticipates continued strong order intake, fueled by significant AI deals and a cyclical upturn in demand for specific chip types.
Analysts also note that ASML's current valuation appears conservative given its pivotal role in the AI supply chain. Despite potential risks such as EUV production delays, the company's essential contribution to AI chip manufacturing positions it for substantial growth. ASML is currently Europe's most valuable listed firm, with its shares showing strong year-to-date performance.
