ASML Holding N.V. (ASML) Stock Analysis

ASML’s competitive position is anchored by its near-monopoly in extreme ultraviolet (EUV) lithography, a technology essential for manufacturing the most advanced semiconductors. ASML is currently the only supplier of EUV systems globally; its closest rivals, Nikon and Canon, remain limited to older deep ultraviolet (DUV) platforms and have not matched ASML’s technical or commercial progress in EUV. As of 2025, EUV accounted for €11.6 billion of ASML’s €32.7 billion in net sales, with 48 EUV systems shipped—no competitor approaches this scale or capability.

The company’s technological lead is reinforced by a vast patent portfolio and deep, long-term R&D investment (over €8.9 billion in 2025). ASML’s systems are highly complex, with integration across optics (Zeiss), lasers, and precision mechanics, creating high switching costs and customer lock-in. Major chipmakers—TSMC, Samsung, Intel—depend on ASML for their most advanced nodes, as evidenced by record Q4 2025 bookings (€13.2 billion).

Barriers to entry are formidable: replicating ASML’s EUV technology would require years of development and multi-billion-euro investment. Customer satisfaction is high, reflected in repeat orders and collaborative product development. While export controls and geopolitical risks (notably in China) are threats, ASML’s entrenched position, customer relationships, and technical moat provide a durable edge over all named rivals.