ASML vs. Applied Materials: Which Chip-Equipment Stock Is the Better Buy?
Semiconductor manufacturers are planning huge expansions over the next few years to meet the booming demand for AI chips. Memory chipmakers hesitated to expand at first, but now have hundreds of billions of dollars worth of new facilities set to go into chip production starting next year. Meanwhile, the largest third-party chip manufacturer in the world, TSMC, has continuously raised its capital expenditure budget as it aims to keep up with demand.
While there are multiple ways to invest in the growing demand for semiconductor production, one of the best is to move up the supply chain to silicon wafer fabrication equipment makers. Two of the biggest companies in the space are ASML (NASDAQ: ASML) and Applied Materials (NASDAQ: AMAT). Both are excellent companies with strong competitive advantages, but if you can only choose one, which stock is worth buying today?
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