2 Wide Moat Semiconductor Stocks a Bargain Buy Now: ASML and NVDA

Core Viewpoint - The recent tariff exemptions on semiconductor chips and high-tech goods have positively impacted the equity market, leading to a recovery in semiconductor stocks, particularly ASML and NVIDIA, which are currently trading at a discount and poised for a rebound [1][2]. Semiconductor Industry Overview - The semiconductor industry has faced volatility due to President Trump's tariffs, but recent exemptions have provided a temporary relief, boosting stock prices [1]. - The demand for advanced semiconductor technologies, particularly in AI applications, is driving growth in the sector [7]. Company Analysis: ASML Holding N.V. - ASML is the global leader in extreme ultraviolet (EUV) lithography systems, essential for manufacturing powerful AI chips, and has a strong competitive advantage due to its monopoly in this technology [3][5]. - In the previous year, ASML sold only 44 EUV systems, which accounted for 38% of its total net system sales of €21.8 billion [4]. - The company expects revenues for the first quarter to be between €7.5 billion and €8 billion, representing a 46% year-over-year increase, with earnings estimated at €5.75 per share, an 85% increase year-over-year [8]. - ASML's stock has fallen 3% year-to-date but gained 0.6% recently due to tariff reliefs, with an expected earnings growth rate of 23.1% for the current year [12]. Company Analysis: NVIDIA Corporation - NVIDIA holds over 80% of the discrete GPU market, providing a significant competitive edge and fueling long-term growth [6]. - The company anticipates a 47.5% growth in earnings for the current year, despite a 17.8% decline in stock price year-to-date [14]. - Major cloud computing companies are projected to spend $250 billion on AI data center infrastructure, with total AI data center expenditures expected to reach $1 trillion by 2028, benefiting NVIDIA significantly [10]. Investment Recommendation - Both ASML and NVIDIA are currently seen as compelling investment opportunities due to their market positions and growth prospects, with analysts raising their short-term price targets significantly [12][14].