ASML Has Incredible News for Nvidia Stock and Micron Stock Investors

ASML Holding (ASML) is a leading semiconductor company with a monopoly in the extreme ultraviolet (EUV) lithography machine market. This technology is crucial for printing advanced chips used in artificial intelligence (AI) data centers. On Oct. 14, ASML reported strong growth in revenue and earnings during its third quarter of 2026, indicating that the demand for its advanced chipmaking equipment is outpacing supply through at least 2028.

ASML's high-volume customers, including TSMC, Intel, Samsung, and Micron, are securing long-term commitments, leading management to believe that AI hardware demand will exceed supply through at least 2028. Consequently, the company is now targeting production capacity expansion beyond the initial 2028 goal of 30 units.

This positive outlook should alleviate concerns about a slowdown in the AI infrastructure space, making it an opportune moment to invest in chip stocks, such as Nvidia (NVDA) and Micron Technology (MU), which have experienced recent declines due to rising financing costs from higher interest rates. Currently, NVDA is down 9% and MU is down 13% since Oct. 6, presenting attractive valuations for investors.

Nvidia CEO Jensen Huang has already indicated that the company's chip sales will double in the following year, with NVDA EPS estimates for the current fiscal year (ending in January 2027) expected to increase by 95%. Additionally, Micron Technology's EPS is anticipated to double this fiscal year, with another significant increase expected in fiscal 2028.

Both companies currently trade at attractive forward earnings multiples, lower than the tech-heavy Nasdaq Composite index's multiple of 42. Therefore, now appears to be an ideal time to buy Nvidia and Micron shares, capitalizing on their strong growth prospects and the semiconductor sector's correction.