When the company that builds the world’s most advanced chipmaking tools raises its outlook, the rest of the semiconductor industry tends to follow. That’s exactly what happened on Wednesday after ASML (ASML) lifted its 2026 forecast, sending a positive signal across the chip sector and pushing stocks like Nvidia (NVDA) and TSMC (TSM) higher.
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Forget margin or options. Here's how the pros trade NVDAAt the same time, a fresh deal between Broadcom (AVGO) and Meta Platforms (META) added to the momentum, reinforcing the view that demand for AI infrastructure is still growing.
Together, these updates are pushing key chip stocks higher.
Nvidia Stock Rises as AI Demand Remains Strong
Nvidia shares moved higher after ASML’s update pointed to rising demand from “logic” chipmakers—the companies that design advanced processors used in AI systems.
This matters because Nvidia sits at the center of that demand. Its GPUs power most AI workloads today, from data centers to generative AI models. So when ASML says its customers are ordering more advanced chipmaking tools, it signals that companies are preparing to produce more AI chips, many of which are designed by Nvidia.
In simple terms, more demand for ASML’s machines today likely means more demand for Nvidia’s chips tomorrow.
TSMC Stock Gains as Production Expands
TSMC also gained after ASML reported strong demand from Taiwan, where the company has its largest manufacturing base.
As ASML’s biggest customer, TSMC uses its EUV machines to produce cutting-edge chips for companies like Nvidia and Apple (AAPL). The strong demand highlighted in ASML’s report suggests that TSMC is continuing to expand its production capacity to keep up with rising orders.
This is important because TSMC plays a key role in the supply chain if it is scaling up, it means demand for advanced chips is still growing.
Broadcom Stock Moves Higher on Meta AI Deal
Broadcom extended its gains following a new multi-year deal with Meta Platforms (META), announced on April 14. Under the agreement, Broadcom will design and supply custom AI chips, while Meta will deploy them across its data centers. These chips are used for both training and running AI models at scale.
The deal also highlights a broader trend, as large tech companies are increasingly turning to custom-built chips to cut costs and improve performance. Broadcom is emerging as a key player in this space, benefiting from the shift toward tailored AI hardware.
Which Is the Best AI Chip Stock, According to Analysts?
We used TipRanks’ Comparison Tool to see which of the above-mentioned stocks analysts favor. Based on analyst estimates, Nvidia (NVDA) offers the highest upside potential at about 39%, making it the most favored pick among the group.
Investors can dig deeper to decide which AI chip stock best fits their strategy. Below is a screenshot for reference.
