Nvidia and AMD Can't Make AI Chips Without This Growth Stock. Here's Why It Could Soar.
ASML is one of the most important companies in the AI semiconductor ecosystem.
Overview
Nvidia and Advanced Micro Devices are among the leading designers of artificial intelligence (AI) chips, with both companies boasting an impressive customer base that includes major hyperscalers, AI companies, and governments.
However, what's worth noting is that Nvidia and AMD are fabless chipmakers that only design and sell chips. They outsource the manufacturing part to a third-party, Taiwan Semiconductor Manufacturing, in this case. Additionally, Nvidia and AMD purchase other key components, such as memory chips, from the likes of Micron Technology, Samsung, and others.
Details
In simple words, Nvidia and AMD rely on other companies in the semiconductor ecosystem to manufacture cutting-edge chips that handle model training and inference in AI data centers. However, the most important name the above-mentioned companies rely on is ASML Holding (NASDAQ: ASML).
Source
Originally published at www.fool.com.