ASML designs and manufactures photolithography systems for semiconductor manufacturing. Its main products are deep ultraviolet (DUV) and extreme ultraviolet (EUV) lithography machines that print circuit patterns on silicon wafers, with EUV enabling smaller features. The company sells these systems to leading chipmakers and earns substantial revenue from installation, maintenance, and upgrades over the machines’ lifetimes. Its goal is to help continue scaling semiconductors by leading in high-end lithography and maintaining strong relationships with customers like TSMC, Samsung, and Intel.
Company Size
10,001+
Company Stage
IPO
Headquarters
Veldhoven, Netherlands
Founded
1984
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Global chip equipment sales are forecast to reach a record $229.5 billion in 2028, according to industry trade group SEMI. Four companies dominate different stages of chipmaking: ASML makes lithography machines that print circuit patterns, Applied Materials and Lam Research produce tools that deposit and carve chip layers, whilst KLA specialises in inspection equipment. ASML holds a monopoly on extreme ultraviolet machines used for advanced chips, capturing roughly a quarter of chipmaker capital spending. Applied Materials trades at about 29 times forward earnings, the cheapest of the four. Lam recently posted its highest gross margin in 20 years. KLA trades at approximately 36 times forward earnings, the priciest valuation in the group. All four companies hold Strong Buy or Buy ratings from analysts.
ASML stock Subscribe. On September 22, 2026, ASML Holding NV's Executive Vice President of Global Public Affairs, Frank Heemskerk, disclosed at an industry event in Amsterdam that the company is currently selling zero chipmaking machines in Europe. Heemskerk reported that ASML's European revenue share dropped to 0% in 2026, down from 1% in 2025 and 5% in 2024, driven by a lack of new fab construction and lagging capital expenditures across the continent relative to substantial investments in the United States, China, and India. He confirmed that ASML is engaged in high-level discussions with European Union leaders, including European Commission President Ursula von der Leyen, to push for revisions to the EU Chips Act and stimulate domestic semiconductor manufacturing demand.
ASML Holding and Qualcomm occupy different positions in the semiconductor supply chain. ASML manufactures lithography systems and is the only producer of extreme ultraviolet machines needed for advanced chip manufacturing. Qualcomm designs processors and modems for smartphones whilst expanding into automotive and IoT markets. In fiscal 2025, ASML reported revenue of nearly $37.5 billion, up approximately 15.6% year-on-year, with net income of roughly $11 billion and a 29.4% net margin. Free cash flow reached nearly $12.2 billion. The company maintains a debt-to-equity ratio of roughly 0.2x and current ratio of approximately 1.3x. Qualcomm faces customer concentration risk, with Apple, Samsung, and Xiaomi each representing 10% or more of fiscal 2025 revenue. Some clients are developing their own components.
ASML Holding shares rose approximately 1% to $1,696.12 as investors responded to the company's potential to manufacture more than 110 extreme ultraviolet lithography systems in 2028. The Dutch equipment maker is nearly sold out for 2027, when capacity stands at at least 80 EUV machines. Increasing production beyond 110 systems would represent at least a 37.5% rise from that floor. ASML's second-quarter results included €9.33 billion of revenue, a 54% gross margin, and €2.92 billion of net income. The shares now trade 33.98% above their GF Value estimate of roughly $1,270, suggesting investors have already priced in substantial future growth. Each additional EUV machine unlocks more semiconductor fabrication capacity for customers pursuing advanced AI chips, though the systems' complexity limits how quickly ASML can scale production.
Arm Holdings reported revenue of $4.9 billion for the fiscal year ended March 2026, up 22.8% year-over-year, with net income of $904 million. The company licenses energy-efficient CPU technology deployed in over 350 billion chips, powering more than 99% of smartphones globally. ASML Holding generated €32.7 billion in revenue for fiscal 2025, compared to €28.3 billion the previous year. Net income reached €9.6 billion. The company is the sole provider of extreme ultraviolet lithography machines required for manufacturing advanced chips. Arm trades at a forward P/E of 125.0x and price-to-sales ratio of 57.3x, whilst ASML's forward P/E is 27.9x with a P/S ratio of 16.5x. Both companies maintain low debt-to-equity ratios of 0.1x. ASML offers dividend payments, whilst Arm focuses on growth, particularly in AI data centre CPUs and robotics applications.