By John Ballard
Publication Date: 2026-10-06 12:48:00
Nvidia (NVDA +2.12%) and Advanced Micro Devices (AMD -0.34%) are seeing booming demand for graphics processing units (GPUs). The consensus estimate has both companies growing revenue roughly 90% and 45%, respectively, this year. But you don’t have to choose between winners and losers in this GPU rivalry.
Every chip still has to be designed, printed, and paired with fast memory before it can train or run an AI model. ASML (ASML -0.40%), Synopsys (SNPS -0.29%), and Micron Technology (MU -1.02%) provide these essential steps in the chipmaking process, offering investors another way to ride the growing demand across the chip industry.
Image source: Getty Images.
ASML
ASML supplies the extreme ultraviolet lithography systems that print circuit patterns on chips. Taiwan Semiconductor Manufacturing builds Nvidia and AMD GPUs, and it buys that equipment from ASML. Without those tools, the GPUs do not get made.
Management sees surging demand for AI chips, prompting customers to add manufacturing capacity. Analysts expect full-year 2026 sales to grow 32% over 2025, then another 27% in 2027. Order momentum was “extremely strong” in the first half of 2026, driving backlog growth across a broad mix of customers.
The shares trade at a price-to-earnings (P/E) ratio of 57 as of Oct. 1, 2026. That valuation leaves downside risk if growth stalls. However, CEO Christophe Fouquet said on the second-quarter earnings call that the company has demand visibility extending several years.
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