ASML shows chasm in chip land: AI winners versus everyone else

Published On Oct 21, 2024, 4:48 AM

The semiconductor industry is experiencing a significant divide, with companies that focus on artificial intelligence (AI) thriving, while those without an AI strategy are struggling. ASML has forecasted lower sales for 2025 due to a slowdown in demand outside AI. This reflects a broader trend as many sectors, including personal computers and automobiles, face declining demand. Despite Taiwan Semiconductor Manufacturing Company (TSMC) raising its 2024 revenue forecasts due to AI-related demand, many chipmakers are still cautioned due to geopolitical issues and market weaknesses. Analyst sentiment suggests difficult times for non-AI semiconductor equipment makers, increasing focus on AI chip production, particularly for companies like Nvidia, which continues to dominate the AI semiconductor landscape.