2 Semiconductor Stocks That Could Help Set You Up for Life

Industry Overview - The semiconductor industry achieved annual sales exceeding $600 billion for the first time last year, driven by global demand for chips to build AI infrastructures, with growth expected to continue into 2025 and beyond [1] - The global semiconductor market is projected to more than triple in size, exceeding$2 trillion in revenue by 2032 [3] Company Analysis: Nvidia - Nvidia is the largest semiconductor company globally, with a market cap of $3.4 trillion, attributed to its technological leadership and ability to capitalize on disruptive trends [4] - Nvidia controls 85$950 billion in revenue, indicating substantial growth opportunities for Nvidia [6] - Nvidia is diversifying into enterprise software, with expectations of its AI Enterprise revenue increasing over 2 times from the previous year, and annualizing at over $2 billion by year-end [8] - Nvidia is trading at an attractive 32 times forward earnings estimates, slightly below the Nasdaq-100 index's earnings multiple of 34, making it a compelling investment [9] Company Analysis: ASML Holding - ASML holds a monopoly in the extreme ultraviolet lithography (EUV) machine market, essential for producing advanced chips [10] - The demand for ASML's machines is increasing due to the need for advanced chips capable of handling AI workloads [11] - ASML received €7.1 billion in bookings in Q4 2024, double analysts' expectations, with EUV machines accounting for 43% of those orders [12] - The EUV lithography market is expected to quadruple between 2023 and 2030, setting the stage for significant growth at ASML [13] - ASML reported revenue of €28.3 billion last year, with expectations to reach between €44 billion and €60 billion by 2030, alongside margin improvements [13] - ASML's stock is trading at 31 times forward earnings estimates, presenting a good investment opportunity given its critical role in the semiconductor industry [15][16]