AI is driving sales growth for both companies, but one stands out as a superior investment.The arrival of artificial intelligence (AI) has been a boon for ASML Holding (ASML 1.78%) and Nebius Group (NBIS +2.21%). Both are seeing sales growth as customers seek out their AI-related offerings.ASML provides the extreme ultraviolet (EUV) lithography equipment necessary to manufacture the most advanced semiconductor chips, which are used in AI tech. Nebius operates data centers delivering the computing capacity n ...

Specifically, it makes extreme ultraviolet (or EUV) lithography equipment that utilizes intense light to "spray" layer a chip into existence. This ultra-precise process allows for the fabrication of tiny circuitry, which of course are also more power-efficient. And to say it dominates this sliver of the semiconductor foundry business would still be a considerable understatement.It might be one of the most important companies you've never heard of; it's certainly one of the biggest. In simplest terms, Nether ...

Core Viewpoint - The technology sector has players with near monopolies, and ASML Holding is highlighted as a key investment opportunity due to its unique position in the semiconductor industry, particularly in extreme ultraviolet (EUV) lithography equipment essential for advanced chip manufacturing [1][4][5]. Company Overview - ASML Holding trades at $749.49 with a 52-week range of $578.51 to $945.05, a dividend yield of 0.84%, and a P/E ratio of 31.28. The price target is set at $923.80, indicating a potential upside of 23.26% [2][10]. Market Position - ASML holds a near monopoly in EUV lithography, crucial for producing chips at five-nanometer technology and below, which are vital for major companies like NVIDIA and Intel [4][5]. - The current market setup is characterized by popularity-driven valuations, leading to undervaluation of ASML despite its strong fundamentals [3][8]. Valuation Insights - ASML's stock is currently trading at 76% of its 52-week high, reflecting a significant undervaluation primarily due to market fears related to its exposure to China [7][8]. - The forward P/E ratio of 27.8x is well below its historical average of 40.0x, suggesting a substantial upside potential if market sentiment shifts positively [8][12]. Investor Sentiment - The market's fear surrounding ASML, particularly its ties to China, has created an emotional undervaluation, presenting a buying opportunity for patient investors [6][8][14]. - Despite ASML's critical role in the semiconductor industry, it remains under-discussed among major investors, indicating that it is still early for broader market recognition [11][15]. Financial Metrics - ASML's price-to-book (P/B) ratio stands at 14.6x, contrasting with the average P/B of 9.1x in the computer sector, indicating a premium valuation that may precede a significant stock movement [12][13].