Better Artificial Intelligence Stock: Nvidia vs. ASML

From NASDAQ: 2025-02-11 07:30:00

Artificial intelligence (AI) is driving Industry 5.0, offering immense opportunities for companies like Nvidia and ASML. Nvidia leads in AI hardware and software, facing competition and market volatility. ASML dominates lithography with EUV technology, boasting a near-monopoly and recurring revenue model. Both trade at a premium but ASML appears more compelling for investors.

Nvidia’s value lies in AI leadership and ecosystem expansion, with risks including competition and market cycles. ASML’s monopoly on EUV technology creates a wide moat, generating substantial revenue and facing risks from industry cycles and geopolitical tensions. ASML emerges as a better buy due to its market position and balanced risk-reward profile.

Consider investing in ASML for AI exposure with a wider margin of safety. The Motley Fool Stock Advisor identifies 10 best stocks for investors, potentially offering monster returns. Nvidia’s inclusion in the list in 2005 yielded significant gains, showcasing the potential for long-term growth. Stock Advisor service has outperformed the S&P 500 since 2002.



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