An acute semiconductor shortage has pushed governments worldwide to invest heavily in the industry to boost chip production, given its huge applications in electronics, electric vehicles and several other important technology areas. Two major semiconductor producers, ASML Holding (NASDAQ:ASML) and Intel (INTC), are well-positioned to benefit from the industry’s current tailwinds. But let’s find out which of these stocks is a better buy now.ASML Holding N.V. (ASML) is a Netherlands-based company that develops , produces, markets, sells, and servicing advanced semiconductor equipment systems, with a focus on lithography related systems worldwide. It caters mainly caters to the makers of memory chips and logic chips.
Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer products and technologies that deliver networking, data storage and communication platforms. The company’s products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory, graphic, network and communication, systems management software, conferencing, and digital imaging products.
The demand for semiconductors has increased with heightened need for tech products and solutions amid the pandemic. Also, semiconductors play an integral role in the production of electric vehicles (EVs) and 5G deployment. The rapid digital transformation of almost all the industries has caused an acute shortage of semiconductor chips worldwide, leading to a rise in their prices.