Nvidia is a semiconductor powerhouse that plays a very important role in the growth of AI.
Without the necessary hardware, the design of advanced semiconductors is impossible.
While semiconductor stocks have rallied recently, there are still bargains to be found.
10 shares we like better than ASML>
It’s hard to argue against Invidi. An absolute juggernaut, Nvidia maintains an outstanding leadership position in terms of designing semiconductors, and its contributions to the growth of the field of artificial intelligence (AI) are almost impossible to surpass.
To even suggest that NVIDIA approves one of the top spots on many investors’ lists seems like a counterproductive exercise, so I won’t even try. But there’s a case — a strong case, in fact — that’s being made that another semiconductor stock is worth buying now instead of Nvidia stock.
Image Source: Getty Images.
While Nvidia enjoys name recognition even among those who do not closely follow the technology industry, ASML(NASDAQ: ASML) it’s a business semiconductor investors should know better. Just as Nvidia is a stalwart among semiconductor manufacturing companies, ASML is a leader in providing equipment, software, and services that make the large-scale design of microchips possible.
Where ASML stands out among its peers is that it is the only company that manufactures Ultraviolet Lithography (EUV) equipment. Unlike deep ultraviolet Lithoviolet Lithovigraphy (DUV) equipment (of which there are several manufacturers), EUV systems use light in the area of 13.5 nanometers, which makes the printing of a very complex and important layer for the most complex microchips in the world. ASML admits that EUV systems have “Simplified our customers’ manufacturing processes, compared to the more flexible techniques used by DUV submersibles.”
To state that you are that -one The Most Important Equipment Manufacturer in the Face of Semiconductor Development is remarkable, and it greatly differentiates ASML from other companies that provide hardware and services to the semiconductor industry.
There’s no denying that nvidia is churning out cache boats. Thanks to the incredible growth of AI, NVIDIA saw its free cash flow from $26.9 billion in 2024 to $60.7 billion in 2025. After generating free cash flow of 3.2 billion euros in 2023, ASML reported free cash flow of 92 million euros.
It is important in the comparison between Nvidia and ASML, to remember that Nvidia generates more revenue than it can generate free cash flow. In FICSAL 2025, Nvidia reported revenue of $130.5 billion, while AsmL reported sales of 28.3 million euros (about $32.9 billion) in 2024.
But when he examines the two companies for the free movement of each share they produce, asml stands out.
ASML flow of ASML per share (yearly) YCharts data.
In addition, ASML appears to be a stronger opportunity now compared to the two companies based on free cash flow. In the 12-year period, ASML has 2.4% free cash flow compared to NVIDIA’s 1.6% free cash flow. For investors looking for a bargain opportunity, ASML represents a better option now than Nvidia.
From reducing the competitive advantage of providing only EUV Lithography programs to 2.4% free cash flow, ASML offers investors a great opportunity to buy now. Another example of why today is a good time to buy asml stock is its valuation. Currently, ASML shares are trading at 38 times their trailing earnings. Granted, many don’t make ASML stock seem like a bargain-bin opportunity, but when it’s running at a P/E of 39.6, it looks attractive.
There is no doubt that NVIDIA stock can be supplemented by portfolios that are more focused on technology investments, but even today, investors are better advised to click the buy button on ASML stock in ASML.
Before buying stock in ASML, consider the following:
This page Moteley force stock advisor The Analyst team simply presents what they believe it to be Very good shares For investors to buy now … and ASML was not one of them. 10 stocks that make the cut that can generate recurring profits for years to come.
Think When A notebook Made this list on December 17, 2004 … If you invested $1,000 during our recommendation, You will have $603,392! * Anytime Invidi Made this list on April 15, 2005 … If you invested $1,000 during our recommendation, You will have $1,241,236! *
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* Stock advisor returns from October 27, 2025
Scott Leefine has no position in any of the said shares. The Motley Fool ranks and recommends ASML and Nvidia. The Motely Fool has a disclosure policy.
1 SUPER CEMOMCROR SCOOCK to buy fist over fist (hint: not nvidia) was originally published by The Motley Fool
