ASML vs Applied Materials
This page provides a comprehensive comparison of ASML Holding NV and Applied Materials, Inc., examining their distinct business models, recent financial performance, and broader market context. Gain insights into these two key players in the semiconductor industry without any specific recommendations. Educational content, not financial advice.
This page provides a comprehensive comparison of ASML Holding NV and Applied Materials, Inc., examining their distinct business models, recent financial performance, and broader market context. Gain i...
Why It's Moving
ASML surges on record orders and aggressive 2026 outlook signaling AI chip boom acceleration.
- Record $15.8B Q4 net bookings crushed Visible Alpha's $7.56B estimate, fueled by AI and data center chip demand for a backlog spanning over a year.
- Raised 2026 guidance alongside €12B+ buyback and quarterly dividend hike to $3.1771 (annual $12.71, 0.9% yield), enhancing cash return appeal.
- Bernstein hiked price target to $1,911 with Outperform rating, viewing recent dip as a buying opportunity despite capacity concerns.
Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.
- Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
- Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
- Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.
ASML surges on record orders and aggressive 2026 outlook signaling AI chip boom acceleration.
- Record $15.8B Q4 net bookings crushed Visible Alpha's $7.56B estimate, fueled by AI and data center chip demand for a backlog spanning over a year.
- Raised 2026 guidance alongside €12B+ buyback and quarterly dividend hike to $3.1771 (annual $12.71, 0.9% yield), enhancing cash return appeal.
- Bernstein hiked price target to $1,911 with Outperform rating, viewing recent dip as a buying opportunity despite capacity concerns.
Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.
- Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
- Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
- Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.
Investment Analysis
ASML
ASML
Pros
- ASML holds 90% market share in lithography, particularly EUV technology essential for advanced chips.
- Strong ties with top customers TSMC, Samsung and Intel ensure long-term revenue stability.
- Past decade revenue growth outpaces peers, driven by lithography demand in next-gen nodes.
Considerations
- Gross margins expected to decline to 50-52% in Q3 due to High NA system revenues and fewer upgrades.
- Higher valuation metrics including P/E of 40 and P/S of 11.67 compared to diversified peers.
- Narrow focus on lithography exposes it more to industry cycle fluctuations than broader competitors.
Pros
- Diversified portfolio across deposition, etching and metrology provides exposure to multiple chip production stages.
- Advanced node revenues exceeded $2.5 billion in fiscal 2024, projected to double in 2025 from AI demand.
- Stronger near-term earnings stability and lower valuation enhance resilience amid sector volatility.
Considerations
- Recent quarterly sales declined 3.48% year-over-year, lagging behind some industry peers.
- Slower long-term growth trajectory compared to lithography specialists like ASML over the past decade.
- Higher total debt at $6.76 billion relative to cash reserves limits financial flexibility.
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ASML (ASML) Next Earnings Date
ASML Holding N.V. (ASML) is scheduled to report its next earnings on April 15, 2026, covering the Q1 2026 quarter. This date aligns with the company's historical mid-April reporting pattern for first-quarter results, as confirmed across multiple analyst projections. Investors should monitor for any updates from official channels ahead of the release.
Applied Materials (AMAT) Next Earnings Date
Applied Materials is scheduled to report earnings on February 12, 2026, after market close. The report will cover the fiscal quarter ending in January 2026. This earnings release is approaching imminently, occurring just 10 days from the current date. Investors should anticipate the company's financial results and guidance update for the upcoming quarter during this earnings call.
ASML (ASML) Next Earnings Date
ASML Holding N.V. (ASML) is scheduled to report its next earnings on April 15, 2026, covering the Q1 2026 quarter. This date aligns with the company's historical mid-April reporting pattern for first-quarter results, as confirmed across multiple analyst projections. Investors should monitor for any updates from official channels ahead of the release.
Applied Materials (AMAT) Next Earnings Date
Applied Materials is scheduled to report earnings on February 12, 2026, after market close. The report will cover the fiscal quarter ending in January 2026. This earnings release is approaching imminently, occurring just 10 days from the current date. Investors should anticipate the company's financial results and guidance update for the upcoming quarter during this earnings call.
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