ASML's Systems Sales Grow in Double Digits: What's Ahead?

ASML Holding ASML is the leader in the lithography-based semiconductor equipment manufacturing market. The company’s net systems sales increased 12.4% year over year in 2025. The growth was mainly driven by the expansion of the logic and memory semiconductor market that is the backbone of the AI data centers.

While logic contributed to 66% of the top line, memory contributed the remaining. ASML’s extreme ultraviolet (EUV) lithography technology contributed 48% to the top line, while deep ultraviolet (DUV) contributed 49%, and the remaining was covered by ASML’s metrology and inspection tools.

ASML’s DUV lithography technologies like Argon Fluoride Immersion, Argon Fluoride Dry, Krypton Fluoride and Mercury I-line contributed 42%, 2%, 4% and 1%, respectively, in 2025. Out of the total system sales, China contributed 33%, while South Korea, Taiwan, the United States, Japan and EMEA contributed 25%, 22%, 12%, 5% and 1%, respectively.

While DUV still contributed more than EUV in ASML’s 2025 top line, the EUV share has grown rapidly to contribute 48% of the 2025 top line, much higher than 38% contribution of ASML’s 2024 top line. As the industry moves from 4nm to 3nm to 2nm nodes, chip manufacturers would shift from multi-patterning DUV to single-exposure EUV.

The EUV technology is experiencing the highest traction among DRAM customers, followed by high bandwidth memory and DDR. Higher adoption of EUV technology will also push the installed base revenues up. The company also ended 2025 with a €38.8 billion backlog, providing strong visibility in the revenue pipeline.

How Competitors Fare Against ASML

ASML is effectively the leading player in the lithography market for its own installed base, especially in the EUV space. In the broader semiconductor equipment market, ASML competes with companies like Lam Research LRCX and Applied Materials AMAT.

Lam Research is an established wafer fabrication equipment manufacturer that is established in the memory space. Lam Research’s memory segment, accounting for both Dynamic Random Access Memory and Non-Volatile Memory divisions, is gaining traction on the back of AI.

Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. As chips become more complex with AI and high-performance workloads, Applied Materials’ tools aid in designing and making efficient and smaller node chips.

ASML’s Price Performance, Valuation and Estimates

Shares of ASML have surged 102% in the past 12 months compared with the Zacks Computer and Technology sector’s growth of 25%.

ASML 12-Month Price Performance Chart

From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 13.12X, higher than the sector’s average of 6.48X.

ASML Forward 12-Month (P/S) Valuation Chart

The Zacks Consensus Estimate for ASML’s 2026 and 2027 earnings implies year-over-year growth of 20% and 23%, respectively. The consensus estimate for fiscal 2026 and 2027 has been revised upward in the past 30 days.

ASML currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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