--- title: "ASML vs. TSM: The Better AI Chip Stock to Buy Now" type: "News" locale: "en" url: "https://longbridge.com/en/news/286829724.md" description: "ASML and TSMC are key players in the AI semiconductor market, with TSMC currently seen as the better buy due to its direct ties to AI demand. Analysts highlight TSMC's struggles to meet demand and its valuable capacity in the AI supply chain. ASML, while critical for chipmaking, relies on future equipment orders and memory investments. Price targets suggest ASML has more upside potential than TSMC, with ASML's target at $1,791.40 indicating a 21% upside compared to TSM's 17.4%." datetime: "2026-05-18T23:41:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286829724.md) - [en](https://longbridge.com/en/news/286829724.md) - [zh-HK](https://longbridge.com/zh-HK/news/286829724.md) --- # ASML vs. TSM: The Better AI Chip Stock to Buy Now ASML (ASML) and Taiwan Semiconductor Manufacturing (TSM) are both critical AI semiconductor stocks, but TSM looks like the cleaner Buy right now. ASML owns one of the most important bottlenecks in chipmaking through its EUV lithography machines, while TSMC manufactures the advanced chips used by tech companies like Nvidia (NVDA), Apple (AAPL), AMD (AMD), and Broadcom (AVGO). The difference is that recent analyst commentary appears more directly tied to near-term AI demand for TSM, while ASML's case depends more on the next wave of fab spending and memory investment. ### Claim 55% Off TipRanks New trading tool for NVDA bears ## **ASML: A Monopoly-Like Business, but More Equipment-Cycle Dependent** The strongest recent analyst case for ASML comes from Bernstein's five-star analyst, David Dai, who named ASML a top European semiconductor pick and highlighted rising demand from DRAM memory makers. Dai's argument is that generative AI and data center construction are pushing companies like Micron (MU), Samsung (SSNLF), and SK Hynix (HXSCL) to buy more EUV lithography systems, which are needed to manufacture advanced chips. He also recently raised his ASML price target to $1,971 from $1,911, while forecasting 92 EUV shipments in 2028, up from his prior estimate of 79. That is a strong bull case because ASML is almost impossible to replace in leading-edge lithography. However, the stock still depends on when chipmakers place big equipment orders. Bernstein's upgrade also pointed to 2026 and 2027 as important years for ASML, thanks to memory investment and stronger logic demand. So ASML is a high-quality AI infrastructure play, but its growth may show up in waves as customers expand capacity. ## **TSM: The Cleaner AI Demand Story** In contrast, TSM looks more directly tied to today's AI boom. Five-star Cantor Fitzgerald analyst C.J. Muse recently argued that fabs are becoming a key constraint in the semiconductor industry and noted that TSMC is already struggling to meet demand. He also pointed out that bottlenecks around TSMC wafers, CoWoS packaging, substrates, and memory are already well known, which supports the view that TSMC's capacity is extremely valuable in the AI supply chain. The company's own outlook strengthens that analyst view. Indeed, TSMC now expects the global chip market to top $1.5 trillion by 2030, up from its previous $1 trillion forecast, with AI as the main driver. TSMC is also quickly expanding advanced capacity, including CoWoS packaging and 2nm/A16 production, which are central to AI processors. ## **Wall Street's Price Targets** Turning to Wall Street, out of the two stocks mentioned above, analysts think that ASML stock has more room to run than TSM. In fact, ASML's price target of $1,791.40 per share implies almost 21% upside versus TSM's 17.4%. ### Related Stocks - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [ASML.US](https://longbridge.com/en/quote/ASML.US.md) - [TSMU.US](https://longbridge.com/en/quote/TSMU.US.md) - [TSMX.US](https://longbridge.com/en/quote/TSMX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [TSMG.US](https://longbridge.com/en/quote/TSMG.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [ASMG.US](https://longbridge.com/en/quote/ASMG.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Position Lifted by HighTower Advisors LLC](https://longbridge.com/en/news/286875739.md) - [Two Creeks Capital Boosts Taiwan Semiconductor Stake by 86K](https://longbridge.com/en/news/286659331.md) - [Hotchkis & Wiley trims Taiwan Semiconductor stake by 4,070 shares](https://longbridge.com/en/news/286659881.md) - [Weitz Investment Management boosts TSMC stake with 20,000 shares](https://longbridge.com/en/news/286630768.md) - [Sony’s Surprise TSMC Deal Could Ignite Its Next Big AI Growth Wave](https://longbridge.com/en/news/286294426.md)