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ASMLIBM

ASML vs IBM

ASML and IBM are the focus of this page, comparing their business models, financial performance, and market context in a clear, neutral manner to help readers understand how each operates within its s...

Why It's Moving

ASML

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.
Sentiment:
🐃Bullish
IBM

IBM Stock Surges on Stellar Q4 Earnings Beat and Robust 2026 Outlook Fueled by AI Momentum.

  • Software segment soared 14% with Automation up 18% and Data up 22%, underscoring explosive AI-driven demand.
  • Infrastructure revenue jumped 21% on strong adoption of next-gen mainframes, powering the earnings beat.
  • Pending $11B Confluent acquisition set to enhance real-time data streaming for AI, alongside analyst upgrades and steady $1.68 quarterly dividend.
Sentiment:
🐃Bullish

Investment Analysis

ASML

ASML

ASML

Pros

  • ASML holds a dominant market position as the sole supplier of advanced extreme ultraviolet (EUV) lithography machines critical for semiconductor manufacturing.
  • The company has demonstrated strong revenue growth, reaching nearly $30 billion, driven by high demand for next-generation chip production.
  • ASML exhibits a high return on equity (around 54%), reflecting efficient capital use and strong profitability relative to its peers.

Considerations

  • ASML's valuation metrics, such as a high price-to-book ratio, suggest investors are paying a premium that depends on continued technological leadership and market growth.
  • Revenue growth expectations show volatility, with very low growth anticipated in 2024 before a strong rebound, indicating potential exposure to semiconductor industry cyclicality.
  • The company operates in a highly specialized, capital-intensive industry with execution risks related to complex technology development and geopolitical supply chain sensitivities.
IBM

IBM

IBM

Pros

  • IBM is strategically pivoting towards high-margin sectors like cloud computing and artificial intelligence, aiming for future revenue and earnings growth.
  • Despite recent revenue decline, IBM maintains a solid profitability profile with a return on equity near 29%, indicating effective capital deployment.
  • The company benefits from its established market presence and diverse IT services portfolio, supporting steady cash flow and operational stability.

Considerations

  • IBM’s revenue has declined due to divestitures and transition efforts, reflecting challenges in sustaining top-line growth during its strategic turnaround.
  • Profit margins are lower compared to ASML, suggesting IBM faces higher costs or pricing pressures which may limit near-term profitability expansion.
  • Growth forecasts for IBM are modest, with low to mid-single digit revenue and earnings growth expected over the next few years, reflecting its mature market status.

Related Market Insights

The AI Infrastructure Gold Rush: Why the Real Money Is in Picks and Shovels

OpenAI's £500B valuation signals massive capital flowing into AI. Discover how to invest in the essential infrastructure powering this boom, from semiconductors to data centres, with Nemo.

Author avatar

Aimee Silverwood | Financial Analyst

August 17, 2025

Read Insight

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.

IBM (IBM) Next Earnings Date

IBM's next earnings date is estimated for Wednesday, April 22, 2026, following the company's historical late-April pattern for Q1 reports, as the Q4 2025 results were released on January 28, 2026. This report will cover the first quarter of 2026 (Q1 2026) ending in March. Estimates vary slightly across sources, ranging from April 22 to April 29, but have not been officially confirmed by IBM.

Which Baskets Do They Appear In?

Powering The AI Gold Rush

Powering The AI Gold Rush

OpenAI's recent secondary stock sale, valuing the company at a record $500 billion, highlights the massive investor confidence pouring into the artificial intelligence sector. This surge in capital creates a significant opportunity for companies that provide the critical infrastructure and hardware powering the AI revolution.

Published: August 17, 2025

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