AI Leader Alphabet and Chip Equipment Firm ASML Continue Strong Growth Despite Economic Uncertainty
-
Alphabet (Google) is an AI pioneer and remains a leader despite competition from OpenAI's ChatGPT, with products like Gemini and DeepMind. Revenue and profits continue growing.
-
ASML enables production of the world's most advanced semiconductors. It has a technical lead over peers and benefits from rising demand for AI chips.
-
ASML's machines are very expensive, up to $400 million each, providing recurring service revenue. Net sales rose 30% in 2023.
-
Powerful tailwinds drive demand for ASML's equipment as chipmakers add capacity globally with government subsidies.
-
Both Alphabet and ASML stocks have outperformed recently. Their P/E ratios remain reasonable despite strong growth.