On Wednesday, shares of ASML (ASML 1.27%) popped by 2.7% in response to its third-quarter earnings report. The artificial intelligence (AI) growth stock rose 16% from Sept. 15 to Oct. 15.

But it wasn't just investors in ASML listening in to the report. Here's the hidden-gem metric from that earnings report that is an encouraging sign for Nvidia (NVDA -0.31%), Broadcom (AVGO 0.03%), and Advanced Micro Devices (AMD 3.29%) shareholders.

ASML's role in the AI value chain

ASML makes photolithography machines that are used to print circuit designs layer by layer onto silicon wafers. Photolithography is arguably the most complicated step in chip production. And while other equipment makers like Applied Materials and Lam Research compete with it in the deposition and etching steps, no company holds a candle to ASML when it comes to advanced photolithography equipment.

ASML's breakthrough technology is extreme ultraviolet lithography (EUV) machines, which are capable of printing significantly smaller and finer features than the previous best-in-class technology, deep ultraviolet (DUV). By reflecting light using mirrors rather than refracting it with lenses, EUV machines achieve a small wavelength that is paramount for printing precise features on today's most advanced chips. 

Put simply, the ability to print smaller features allows chipmakers to squeeze more elements into a given space. The result: more powerful chips. 

So far, only ASML has managed the technical feat of creating  EUV machines. As such, its equipment is vital for manufacturing today's most advanced graphics processing units (GPUs) and central processing units (CPUs) -- hardware that can handle complex AI workflows. They're also useful for manufacturing the dynamic random access memory (DRAM) chips that AI models depend on for storing and quickly accessing data.

EUV is on the rise

For the third quarter, ASML reported total net sales of 7.52 billion euros, which was down 2.3% from the second quarter. However, the standout number from the earnings report was net bookings of 5.4 billion euros, two-thirds of which came from orders for EUVs. Net bookings include all system sales orders.

In the quarter, ASML sold nine of its EUV systems for a total of 3.6 billion euros -- or an average of 400 million euros per unit.

ASML sells its machines to semiconductor fabricators such as Taiwan Semiconductor, Samsung Electronics, and Intel. The uptick in EUV machine sales is great news for Nvidia, Broadcom, and AMD because they rely on photolithography machines to manufacture their most advanced chips.

As foundries purchase and install more EUV lithography machines, they will be able to expand their production of chips designed to be manufactured using advanced process nodes such as 3 nanometers (NM) or 2 nanometers. The smaller the node, the more transistors can fit onto a single microchip.

Driving global AI chip production

EUV's growing role in ASML's sales mix is great news for the companies that design AI-capable chips because it means that production capacity for those chips will grow, allowing them to fulfill orders from hyperscalers and other data center operators faster. And good news for companies should be good news for their investors. Meanwhile, EUV machines, especially ASML's ultra-advanced high-NA EUV machines, are pushing the bounds of what is possible in chip manufacturing. They'll almost certainly play an integral role in the manufacture of the next generations of GPUs and custom AI accelerators as well.