The article discusses the surge in shares of ASML, a Dutch company that is a key supplier of equipment used to manufacture advanced semiconductors. The surge is attributed to the US government’s plans to restrict China’s access to cutting-edge artificial intelligence (AI) chips, which could benefit ASML as a leading provider of the machines needed to produce such chips. The restrictions aim to prevent China from developing AI capabilities that could threaten US national security. ASML’s extreme ultraviolet (EUV) lithography systems are crucial for manufacturing the most advanced chips, and the company has a near-monopoly in this technology. With the US crackdown, ASML’s importance in the global chip supply chain is expected to increase, boosting its prospects and driving up its stock price. The article highlights the geopolitical tensions surrounding AI and semiconductor technology.
Source: https://www.businessinsider.com/asml-shares-surge-us-government-china-crackdown-ai-chips-2024-7