Core Insights - The rapid growth of artificial intelligence (AI) is driving an increased demand for data centers, which is expected to accelerate in the coming years [1][2] - The global data center market was valued at $347.6 billion in 2022 and is projected to reach $652 billion by 2030, reflecting a compound annual growth rate of 11.2% [2] - Key companies positioned to benefit from this data center build-out include Nvidia, Taiwan Semiconductor Manufacturing Company (TSMC), and ASML [3][16] Nvidia - Nvidia is the leading provider of GPUs, with a market share of approximately 92% in high-end data center GPUs, and has seen its stock price increase by 1,440% over the past three years, achieving a market capitalization of $5 trillion [4][7] - In fiscal Q2 2026, Nvidia reported data center revenue of $41.1 billion, which constituted a significant portion of its total revenue of $46.7 billion, marking a 56% increase year-over-year [5] - The company is also investing in quantum computing partnerships to further enhance its technological capabilities [7] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is the world's leading semiconductor fabricator, serving major clients like Nvidia, Apple, and Qualcomm, and is expected to benefit significantly from the demand for advanced GPUs [8] - High-performance computing has become increasingly important for TSMC, rising to 57% of its total revenue from 39% three years ago [10] - A significant portion of TSMC's revenue, 76%, comes from North American companies, which positions it well amid tariff and trade concerns [11] ASML - ASML is the only company that has mastered extreme ultraviolet (EUV) lithography technology, essential for producing advanced semiconductor components [12] - In Q3, ASML sold 66 new lithography machines, maintaining net sales of €7.5 billion ($8.61 billion) year-over-year, with guidance indicating a 15% increase in total net sales for the year [14] - ASML's stock has risen 53% in 2025, reflecting strong market performance [15] Investment Outlook - The increasing demand for data center infrastructure presents significant investment opportunities, particularly in companies like Nvidia, TSMC, and ASML, which are integral to the AI ecosystem [16]

ASML Holdings' NASDAQ: ASML stock price plunged more than 8% in pre-market trading following the release of its Q2 earnings, opening up a buying opportunity that is unlikely to last long. ASML TodayASMLASML$736.20 -86.83 (-10.55%) 52-Week Range$578.51▼$979.99Dividend Yield0.97%P/E Ratio31.01Price Target$923.80Add to WatchlistThe dip was caused by the guidance, specifically for F2026, which is still two reporting periods away.  The company didn’t even provide bad guidance; instead, it offered uncertainty in ...