ASML Holding N.V. (ASML) Stock Analysis

ASML’s primary competitive advantage is its technological leadership in extreme ultraviolet (EUV) lithography, a technology essential for manufacturing the most advanced semiconductor chips. As of 2025, ASML is the only company globally capable of producing EUV lithography systems at commercial scale. These machines are indispensable for leading-edge chipmakers such as TSMC, Samsung, and Intel, who rely on ASML’s tools to produce chips at 5 nanometers and below. EUV systems account for a significant portion of ASML’s €28.3 billion in 2024 revenue, and the company’s backlog remains robust at over €33 billion.

Rivals such as Nikon and Canon are limited to older deep ultraviolet (DUV) technology and have not matched ASML’s EUV capabilities, despite years of effort and substantial R&D investment. This technological gap is reinforced by ASML’s close, long-term customer relationships and its integration with critical suppliers (notably Zeiss for optics), creating high switching costs and supply chain barriers.

ASML’s culture of customer collaboration and continuous innovation—evidenced by record R&D spending of €4.3 billion in 2024—further entrenches its position. While geopolitical risks and export controls present threats, customer satisfaction remains high, as evidenced by strong repeat business and the company’s ability to command premium pricing. In sum, ASML’s technological monopoly, supplier integration, and customer lock-in form a durable competitive moat.