Semiconductor Market Highlights
ASML Holdings (NASDAQ: ASML) and Nvidia (NASDAQ: NVDA) are leading players in the booming semiconductor market, particularly in artificial intelligence (AI) technologies. ASML commands a 90% market share in lithography equipment, while Nvidia holds an estimated 90% share of the data center GPU market. Nvidia’s market capitalization skyrocketed from approximately $364 billion at the end of 2022 to around $4.3 trillion today, with sales doubling to $130.5 billion and earnings per share increasing by 130% in fiscal 2025.
ASML’s stock has risen 52% over the past year, benefiting from robust demand for AI processors. The company reported a 39% increase in service revenue, reaching 6 billion euros in the first nine months of the current fiscal year. Meanwhile, Nvidia’s shares trade at a lower price-to-earnings ratio of 23, compared to ASML’s 34, while both remain below the tech sector’s average P/E ratio of 45.
As industries increasingly invest in AI infrastructure—with estimates of spending between $3 trillion and $4 trillion over the next five years—both companies are well-positioned for continued growth. Analysts suggest that Nvidia may edge out ASML for investors, thanks in part to its cheaper valuation and significant share in a rapidly expanding market.
