ASML: The Sole Monopoly in Semiconductor Equipment Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ASML?
Source: Fool
- Monopoly Status: ASML is the world's only provider of extreme ultraviolet (EUV) lithography machines, capable of etching semiconductor chips of 7 nanometers or smaller, fulfilling the critical demands of modern smartphones and AI data centers, thereby dominating the global semiconductor manufacturing equipment market.
- Surge in Orders: In 2025, ASML's net bookings skyrocketed from 5,399 units in Q3 to 13,158 units in Q4, with total orders for the year reaching 28,035, a significant increase from 18,899 in 2024, reflecting robust demand for advanced semiconductors.
- Strong Financial Performance: ASML reported revenue of €32.66 billion for 2025, a 15% increase year-over-year, with basic earnings per share rising by 28.4%, and a net margin of 29.42%, showcasing its profitability and financial management prowess in the industry.
- Valuation Insights: Despite a 75.99% increase in share price over the past 12 months, currently at $1,291, ASML's price/earnings-to-growth (PEG) ratio stands at only 2.06, indicating that its unique monopoly status renders it both overvalued and undervalued in the absence of comparable companies.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1317.250
Low
1385
Averages
1583
High
1911
Current: 1317.250
Low
1385
Averages
1583
High
1911
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ASML: The Sole Monopoly in Semiconductor Equipment Industry
- Monopoly Status: ASML is the world's only provider of extreme ultraviolet (EUV) lithography machines, capable of etching semiconductor chips of 7 nanometers or smaller, fulfilling the critical demands of modern smartphones and AI data centers, thereby dominating the global semiconductor manufacturing equipment market.
- Surge in Orders: In 2025, ASML's net bookings skyrocketed from 5,399 units in Q3 to 13,158 units in Q4, with total orders for the year reaching 28,035, a significant increase from 18,899 in 2024, reflecting robust demand for advanced semiconductors.
- Strong Financial Performance: ASML reported revenue of €32.66 billion for 2025, a 15% increase year-over-year, with basic earnings per share rising by 28.4%, and a net margin of 29.42%, showcasing its profitability and financial management prowess in the industry.
- Valuation Insights: Despite a 75.99% increase in share price over the past 12 months, currently at $1,291, ASML's price/earnings-to-growth (PEG) ratio stands at only 2.06, indicating that its unique monopoly status renders it both overvalued and undervalued in the absence of comparable companies.
See More
ASML: The Sole Provider of Semiconductor Equipment
- Surge in Orders: ASML's net bookings skyrocketed from 5,399 in Q3 2025 to 13,158 in Q4 2025, with total bookings for the year reaching 28,035, a 48.5% increase from 18,899 in 2024, highlighting the robust demand for advanced semiconductors and reinforcing its market dominance.
- Strong Financial Performance: In 2025, ASML reported revenue of €32.66 billion, a 15% increase year-over-year, with basic earnings per share growing by 28.4%, indicating the company's profitability and financial health in a high-demand environment, which boosts investor confidence.
- Unique Market Position: As the world's only supplier of extreme ultraviolet (EUV) lithography machines, ASML's products are essential for manufacturing chips of 7 nanometers or smaller, ensuring its irreplaceability in the rapidly growing smartphone and AI data center markets, thereby enhancing its strategic value.
- Valuation and Growth Potential: Despite a 75.99% increase in share price over the past 12 months, currently priced at $1,291, ASML's price/earnings-to-growth (PEG) ratio stands at only 2.06, reflecting a potential overvaluation amidst its unique market position and ongoing growth, attracting investor interest.
See More
US Stocks Surge as Oil Prices Plunge Over 10%
- Oil Price Plunge Fuels Market Surge: US stocks rallied sharply with the S&P 500 up 1.15%, the Dow Jones up 1.38%, and the Nasdaq 100 up 1.22%, as President Trump postponed strikes on Iranian energy infrastructure, alleviating geopolitical tensions and boosting investor sentiment.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.33%, providing support for equities as concerns over inflation pressures eased, which could influence future monetary policy decisions by the Federal Reserve.
- Mixed International Market Reactions: While US markets surged, European markets showed mixed results, with the Eurozone consumer confidence index dropping to a nearly 2.5-year low of -16.3, indicating economic uncertainty that may affect future investment strategies.
- Strong Performance from Tech Stocks: The so-called
See More
ASML Stock Rises on AI Demand Outlook
- Stock Surge: ASML's stock jumped 5.1% to $1364.12 by 11:40 a.m. ET on Monday, reflecting market optimism about the artificial intelligence sector, even though analyst Stacy Rasgon did not mention ASML directly.
- Positive Industry Outlook: Bernstein analyst highlights that despite a sell-off in AI stocks this year, demand for AI remains strong, with projections for Broadcom and Nvidia's 2025 profits potentially reaching $20 and $12 per share, respectively, indicating a bullish trend for the semiconductor sector.
- Supply Chain Impact: As profits soar for Broadcom and Nvidia, third-party contractors like TSMC will have more capital to invest in ASML's machines, thereby driving ASML's sales growth further up the supply chain.
- Earnings Expectations: Although ASML's price-to-earnings ratio stands at 46.5, suggesting it is not cheap, analysts anticipate a 19% annual earnings growth over the next five years, and if AI chip demand continues, ASML's stock could rise rapidly, presenting a buying opportunity for investors.
See More
Oil Price Plunge Boosts Stock Market Gains
- Market Surge: The S&P 500 rose by 2.10%, the Dow Jones by 2.30%, and the Nasdaq 100 by 2.19%, indicating a strong market response to the sharp drop in oil prices, which is expected to enhance corporate profitability.
- Oil Price Drop: Crude oil prices plummeted over 10% after President Trump postponed strikes on Iranian energy infrastructure, which will lower fuel costs for airlines and cruise lines, thereby boosting their profit margins.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.34%, reflecting reduced market concerns about inflationary pressures, which supports further stock market gains.
- International Tensions: Productive talks between Trump and Iran may lead to an end to the Middle East conflict, with the International Energy Agency reporting severe damage to over 40 energy sites across nine countries, potentially causing long-term disruptions to global supply chains.
See More
Analyst Bullish on AI Industry Prospects
- Strong AI Chip Demand: Bernstein analyst Stacy A. Rasgon highlights that despite the sell-off in AI stocks this year, demand remains robust, potentially driving semiconductor giants like Broadcom and Nvidia to significantly increase profits, with Broadcom's earnings per share expected to exceed $20 by 2025.
- ASML Stock Surge: Following the analyst's optimistic outlook, ASML's stock jumped 5.1% on Monday morning, indicating investor confidence in its potential demand, even though Rasgon did not directly mention ASML.
- Increased Supply Chain Investment: As profits for Broadcom and Nvidia rise, third-party contractors like TSMC are likely to have more funds to invest in ASML's equipment, thereby boosting ASML's sales and market demand, further solidifying its position in the semiconductor manufacturing equipment market.
- Earnings Growth Expectations: Although ASML's price-to-earnings ratio stands at 46.5, making it appear expensive, analysts project an annual earnings growth of 19% over the next five years, suggesting that if AI chip demand continues, ASML's stock could rise rapidly, making it a focal point for investors.
See More
ASML: The Sole Monopoly in Semiconductor Equipment Industry
- Monopoly Status: ASML is the world's only provider of extreme ultraviolet (EUV) lithography machines, capable of etching semiconductor chips of 7 nanometers or smaller, fulfilling the critical demands of modern smartphones and AI data centers, thereby dominating the global semiconductor manufacturing equipment market.
- Surge in Orders: In 2025, ASML's net bookings skyrocketed from 5,399 units in Q3 to 13,158 units in Q4, with total orders for the year reaching 28,035, a significant increase from 18,899 in 2024, reflecting robust demand for advanced semiconductors.
- Strong Financial Performance: ASML reported revenue of €32.66 billion for 2025, a 15% increase year-over-year, with basic earnings per share rising by 28.4%, and a net margin of 29.42%, showcasing its profitability and financial management prowess in the industry.
- Valuation Insights: Despite a 75.99% increase in share price over the past 12 months, currently at $1,291, ASML's price/earnings-to-growth (PEG) ratio stands at only 2.06, indicating that its unique monopoly status renders it both overvalued and undervalued in the absence of comparable companies.
See More
ASML: The Sole Provider of Semiconductor Equipment
- Surge in Orders: ASML's net bookings skyrocketed from 5,399 in Q3 2025 to 13,158 in Q4 2025, with total bookings for the year reaching 28,035, a 48.5% increase from 18,899 in 2024, highlighting the robust demand for advanced semiconductors and reinforcing its market dominance.
- Strong Financial Performance: In 2025, ASML reported revenue of €32.66 billion, a 15% increase year-over-year, with basic earnings per share growing by 28.4%, indicating the company's profitability and financial health in a high-demand environment, which boosts investor confidence.
- Unique Market Position: As the world's only supplier of extreme ultraviolet (EUV) lithography machines, ASML's products are essential for manufacturing chips of 7 nanometers or smaller, ensuring its irreplaceability in the rapidly growing smartphone and AI data center markets, thereby enhancing its strategic value.
- Valuation and Growth Potential: Despite a 75.99% increase in share price over the past 12 months, currently priced at $1,291, ASML's price/earnings-to-growth (PEG) ratio stands at only 2.06, reflecting a potential overvaluation amidst its unique market position and ongoing growth, attracting investor interest.
See More
US Stocks Surge as Oil Prices Plunge Over 10%
- Oil Price Plunge Fuels Market Surge: US stocks rallied sharply with the S&P 500 up 1.15%, the Dow Jones up 1.38%, and the Nasdaq 100 up 1.22%, as President Trump postponed strikes on Iranian energy infrastructure, alleviating geopolitical tensions and boosting investor sentiment.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.33%, providing support for equities as concerns over inflation pressures eased, which could influence future monetary policy decisions by the Federal Reserve.
- Mixed International Market Reactions: While US markets surged, European markets showed mixed results, with the Eurozone consumer confidence index dropping to a nearly 2.5-year low of -16.3, indicating economic uncertainty that may affect future investment strategies.
- Strong Performance from Tech Stocks: The so-called
See More
ASML Stock Rises on AI Demand Outlook
- Stock Surge: ASML's stock jumped 5.1% to $1364.12 by 11:40 a.m. ET on Monday, reflecting market optimism about the artificial intelligence sector, even though analyst Stacy Rasgon did not mention ASML directly.
- Positive Industry Outlook: Bernstein analyst highlights that despite a sell-off in AI stocks this year, demand for AI remains strong, with projections for Broadcom and Nvidia's 2025 profits potentially reaching $20 and $12 per share, respectively, indicating a bullish trend for the semiconductor sector.
- Supply Chain Impact: As profits soar for Broadcom and Nvidia, third-party contractors like TSMC will have more capital to invest in ASML's machines, thereby driving ASML's sales growth further up the supply chain.
- Earnings Expectations: Although ASML's price-to-earnings ratio stands at 46.5, suggesting it is not cheap, analysts anticipate a 19% annual earnings growth over the next five years, and if AI chip demand continues, ASML's stock could rise rapidly, presenting a buying opportunity for investors.
See More
Oil Price Plunge Boosts Stock Market Gains
- Market Surge: The S&P 500 rose by 2.10%, the Dow Jones by 2.30%, and the Nasdaq 100 by 2.19%, indicating a strong market response to the sharp drop in oil prices, which is expected to enhance corporate profitability.
- Oil Price Drop: Crude oil prices plummeted over 10% after President Trump postponed strikes on Iranian energy infrastructure, which will lower fuel costs for airlines and cruise lines, thereby boosting their profit margins.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.34%, reflecting reduced market concerns about inflationary pressures, which supports further stock market gains.
- International Tensions: Productive talks between Trump and Iran may lead to an end to the Middle East conflict, with the International Energy Agency reporting severe damage to over 40 energy sites across nine countries, potentially causing long-term disruptions to global supply chains.
See More
Analyst Bullish on AI Industry Prospects
- Strong AI Chip Demand: Bernstein analyst Stacy A. Rasgon highlights that despite the sell-off in AI stocks this year, demand remains robust, potentially driving semiconductor giants like Broadcom and Nvidia to significantly increase profits, with Broadcom's earnings per share expected to exceed $20 by 2025.
- ASML Stock Surge: Following the analyst's optimistic outlook, ASML's stock jumped 5.1% on Monday morning, indicating investor confidence in its potential demand, even though Rasgon did not directly mention ASML.
- Increased Supply Chain Investment: As profits for Broadcom and Nvidia rise, third-party contractors like TSMC are likely to have more funds to invest in ASML's equipment, thereby boosting ASML's sales and market demand, further solidifying its position in the semiconductor manufacturing equipment market.
- Earnings Growth Expectations: Although ASML's price-to-earnings ratio stands at 46.5, making it appear expensive, analysts project an annual earnings growth of 19% over the next five years, suggesting that if AI chip demand continues, ASML's stock could rise rapidly, making it a focal point for investors.
See More
