Meet the Only AI Stock I'd Buy Over Nvidia in October

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Why ASML Beats Nvidia for AI Chip Supply

ASML’s near-monopoly on cutting-edge chip-making tools makes it a superior AI play, even over Nvidia.

Nvidia often steals the AI spotlight, but ASML holds a quieter, yet crucial, role in chip manufacturing. It has a near-monopoly on extreme ultraviolet (EUV) lithography machines, necessary for making the latest AI chips. South African investors should keep an eye on this because the next wave of AI innovation depends heavily on ASML’s High-NA EUV technology, just beginning to be adopted. Partners like Taiwan Semiconductor are trialing 12-inch photomask technology, expected to boost efficiency significantly by 2031. While Nvidia creates AI chips, it relies on ASML’s machines to make them. On the JSE, Prosus offers a loose proxy for global tech shifts, but exposure is indirect. Meanwhile, a weaker ZAR (USD/ZAR rising) could raise costs for local companies importing advanced tech gear, while exporters like Naspers might benefit. this is just our opinion and not financial advice