To The Moon

Silicon may be invisible, but these two companies are making an indelible mark on the AI era

They’re Not the Stars—They’re the Stage Crew Running the Show

While the market fawns over Nvidia like a rockstar, I’ve got my eye on the backstage crew: ASML and TSMC. These two companies don’t just ride the AI wave—they build the surfboard, shape the tide, and install the Wi-Fi at the beach. ASML, for the uninitiated, holds a monopoly on EUV lithography—an engineering miracle essential for making the smallest, most powerful chips. And TSMC? It’s the world’s dominant chip manufacturer, printing silicon for everyone from $NVIDIA(NVDA)$ and $Apple(AAPL)$ to AI-hungry hyperscalers with budgets that rival GDPs.

The real power sits behind the curtain, not centre stage

In the AI arms race, compute is king. And the companies that enable compute—not just design it—are positioned to extract long-term value whether the winners are Nvidia, $Advanced Micro Devices(AMD)$, or the next name on a black hoodie in a keynote.

Margins Like Software, Moats Like Fortresses

ASML isn’t just a high-tech machinery firm—it’s a license to print money. Even after a 27% tumble from its highs, it’s still pumping out 30% margins and a frankly outrageous 55% return on equity. Last quarter alone, earnings popped 92%. That’s not a typo—it’s ASML casually showing off.

ASML’s chart this year reads like a suspense thriller—tight range, rising tension, and just enough movement to make you wonder what comes next.

When chips tighten, only the strong break free

And over in Taiwan, TSMC is casually running a 49% operating margin like it’s no big deal. It’s up over 300% in five years, and it’s not even trying to be exciting. With $2.7 trillion TWD in cash and a command over the 3nm process node, TSMC isn’t fighting for business—it’s allocating runway.

Even the legacy stuff is printing revenue. ASML’s older DUV machines are flying off to China faster than regulators can blink, showing that even "vintage" lithography has modern utility. TSMC, meanwhile, has nailed advanced chip stacking—something few investors appreciate, but all future AI models will depend on. This isn’t just scale—it’s staying power.

Not All Risk is a Bug—Some of It’s a Feature

Let’s be honest: nothing in semis is risk-free. ASML’s guidance for this year is flatter than a Dutch pancake, and demand can wobble if hyperscalers blink. TSMC’s location, wedged between China and geopolitics, isn’t exactly tranquil. And their capex bills read like the budget for a small country.

Then there’s competition. Intel is spending like it found oil under its fabs, and Samsung’s trying to claw back foundry share. But let’s not kid ourselves—catching ASML’s lead in EUV is like trying to outpizza the Hut with a microwave and good intentions.

Valuation? Not screaming cheap. But quality rarely is. ASML’s forward P/E sits around 27.5x. TSMC is closer to 25x. These aren’t tech bargains, but they are fair prices for businesses with dominant positions and multi-year tailwinds. If you're holding your breath for a fire sale, you might miss the real story.

TSMC, on the other hand, hasn’t tiptoed—it’s strutted up the trendline, laying down price channels and volume bars like breadcrumbs for bullish algorithms.

Quiet conviction, loud results. That’s how dominance scales

So, Is Now the Time to Buy?

I think so—if you're not the type to panic at the first market sneeze. These aren’t trades. They’re stakes in the most mission-critical part of AI infrastructure. They are the picks and shovels—but also the toll booths and patent holders. Every AI model, from Siri to GPT-9, still needs transistors, packaging, and bleeding-edge process nodes. $ASML Holding NV(ASML)$ and $Taiwan Semiconductor Manufacturing(TSM)$ don’t care who wins—they win by simply selling the tools and taking a healthy cut.

Both stocks have already moved this year, but the runway ahead is long—and layered with complexity that only these two can truly solve. Everyone talks about AI scale. These are the companies actually building it.

Build the city, own the skyline. That’s real leverage

Final Thought: When Chip Happens, Be Holding the Blueprint

ASML and TSMC aren’t just riding a trend—they’re making the trend possible. They’re not the breakout stars of the AI party. They’re the ones who built the venue, installed the lighting, and stocked the bar. Sure, the crowd may cheer louder for Nvidia, but it’s these two making sure the show runs on time.

If you want hype, there are plenty of ways to chase it. But if you want to own the silicon scaffolding of the future—and get paid while you wait—then now might be exactly the right time to buy.

Because when chip happens, I’d rather be holding the blueprint and the factory keys than just another AI stock trying to look clever.

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