ASML Holding maintains a virtual monopoly in advanced chipmaking equipment, with more than 90% share of the deep ultraviolet (DUV) market and complete control over extreme ultraviolet (EUV) tools necessary for fabricating processors at 7nm and below. Its EUV systems are the only commercially viable machines capable of producing the most advanced logic and memory chips used in smartphones, high-performance computing clusters and AI deployments. Decades of R&D investment, a web of over 4,000 patents and a complex global supply chain create barriers that rivals such as Nikon and Canon cannot breach. This entrenched position underpins ASML’s resilience against cyclical downturns and secures its role as a critical supplier to industry giants including Taiwan Semiconductor Manufacturing, Intel and Samsung.

Following an announcement that Taiwan Semiconductor Manufacturing plans to invest €56 billion in capacity expansion during 2026, ASML shares surged more than 6% in a single session, pushing its market capitalization above €500 billion for the first time. This milestone underscores investor confidence in ASML’s revenue outlook, which analysts project will grow in the mid-teens percentage range next year despite ongoing export restrictions to China. Consensus estimates call for annual earnings growth of around 25% over the next five years, driven by customer ramp-ups of high-numerical-aperture EUV systems and steady demand for DUV tool upgrades.

ASML’s Installed Base Management (IBM) business—comprising service contracts, retrofits and spare parts—has emerged as a significant revenue driver in 2025. With more than 200 EUV and over 1,000 DUV systems deployed worldwide, recurring service revenues are forecast to grow by over 20% year-on-year. Customers are locking in multi-year maintenance agreements to maximize uptime and throughput, while ASML’s rollout of software-enabled productivity enhancements boosts average revenue per system. This segment now contributes approximately 15% of total revenues and offers high-margin, annuity-style cash flows that further strengthen the company’s financial profile.