Nvidia, ASML Report Strong AI Growth; ASML Emerges as Top AI Stock
Nvidia and ASML, two tech giants, have reported strong financial performances and growth prospects, particularly in the AI sector. Nvda stock has driven a 56% year-over-year revenue increase in its fiscal Q2 2025, while ASML forecasts revenue growth despite geopolitical pressures.
Nvidia's CEO has expressed optimism about the increasing demand for AI, with the company's Blackwell platform meeting the performance and speed demands of AI systems. Nvidia expects its fiscal Q3 2025 revenue to grow to $54 billion, excluding sales to China.
ASML, on the other hand, has a monopoly on extreme ultraviolet (EUV) lithography technology, crucial for advanced AI chips. The company generated 28.3 billion euros in 2024 and expects sales to grow 15% in 2025, potentially doubling its 2024 total by 2030. Despite geopolitical pressures, the China market contributes around 25% to its 2025 revenue.
In terms of stock performance, ASML is considered the superior choice. It has shown strong EPS growth, with projections for gross margin to reach between 56% and 60% by 2030. Its P/E ratio is lower than Nvda stock's, indicating better value. However, both companies are prominent AI stock choices, with Nvda stock's price currently at $2.18 and ASML's at -$1.26.
Both Nvidia and ASML have demonstrated impressive growth and potential in the AI sector. While Nvda stock's AI chips have driven significant revenue growth, ASML's monopoly on EUV lithography technology and strong EPS growth make it the superior AI stock to buy, offering better value and growth prospects.
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