Core Insights - ASML's shares increased by 2.7% following its third-quarter earnings report, with a notable 16% rise from September 15 to October 15 [2] - The earnings report revealed a significant metric that is promising for shareholders of Nvidia, Broadcom, and AMD [2] ASML's Role in the AI Value Chain - ASML manufactures photolithography machines essential for printing circuit designs onto silicon wafers, a critical step in chip production [3] - Competing companies like Applied Materials and Lam Research focus on deposition and etching, but ASML leads in advanced photolithography equipment [3] Breakthrough Technology - ASML's extreme ultraviolet lithography (EUV) machines can print smaller and finer features compared to deep ultraviolet (DUV) technology, using mirrors for light reflection [4] - The ability to print smaller features enables chipmakers to increase the number of elements in a given space, resulting in more powerful chips [5] Importance of EUV Technology - ASML is the only company capable of producing EUV machines, which are crucial for manufacturing advanced GPUs and CPUs that support complex AI workflows [6] - EUV machines are also vital for producing DRAM chips necessary for AI models to store and access data quickly [6] Financial Performance - In the third quarter, ASML reported total net sales of 7.52 billion euros, a decrease of 2.3% from the previous quarter [7] - The standout figure was net bookings of 5.4 billion euros, with two-thirds attributed to EUV orders, indicating strong demand [7] - ASML sold nine EUV machines in the third quarter, averaging 400 million euros each [8]