ASML Holding (ASML 0.10%) is one of the most important companies in the global semiconductor supply chain. It has a monopoly in advanced chipmaking equipment manufactured using extreme ultraviolet (EUV) lithography, the technology that enables chipmakers and foundries to print chips sized 7 nanometers (nm) or smaller.

Chips manufactured using these advanced process nodes are more powerful and power-efficient, as they pack more transistors into a smaller area. As a result, these advanced chips are now powering key artificial intelligence (AI) applications such as data centers, smartphones, and personal computers (PCs). Not surprisingly, demand…