Semiconductor Equipment Makers vs. Chip Designers: Who's Actually Winning the AI Cycle?

The article compares semiconductor equipment makers (ASML, Applied Materials) versus chip designers (Nvidia, Broadcom) in the AI boom. While equipment makers have outperformed over the past year, chip designers have higher profit margins (75-77% vs 50-54%) and greater pricing power, giving them a long-term advantage in capitalizing on the AI cycle despite massive capex investments expected to exceed $1 trillion next year.