Three Overlooked Growth Stocks Supporting AI Chipmakers Like NVIDIA and AMD
NVIDIA (NVDA) and AMD (AMD) continue to benefit from strong demand for graphics processing units used in artificial intelligence applications. However, the production of these chips relies on a broader ecosystem of companies that design, manufacture, and supply essential components. ASML (ASML), Synopsys (SNPS), and Micron Technology (MU) are three such firms playing critical roles in this process. ASML provides extreme ultraviolet lithography systems used to print circuit patterns for chips manufactured by TSMC on behalf of NVIDIA and AMD. With strong order momentum, ASML is expected to grow sales significantly over the next few years. Synopsys supplies electronic design automation software that helps chipmakers like NVIDIA and AMD create their designs before manufacturing begins. The company has seen robust revenue growth driven largely by AI-related demand. Micron Technology provides high-speed memory used in data centers running AI models, with its products often co-packaged alongside GPUs from NVIDIA and AMD. Micron's gross margins are among the highest in the industry, reflecting strong pricing power.
Tickers: $AMD $ASML $MU $NVDA $SNPS
Topics: AI chip manufacturing ASML GPU demand Micron Technology Synopsys