We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ASML Holding N.V. (ASML - Free Report) is set to deliver another year of solid growth, with its Extreme Ultraviolet (“EUV”) sales anticipated to increase about 30% in 2025. This optimistic expectation is driven by chipmakers expanding production for advanced logic and memory chips used in artificial intelligence and high-performance computing.
ASML Holding’s latest EUV tools, such as the NXE:3800E, are helping customers improve efficiency by replacing complex multi-patterning steps with simpler EUV exposures. This raises productivity and supports margin expansion for chipmakers.
All this is fueling the demand for ASML’s advanced lithography equipment and high revenue growth expectations for 2025. However, the outlook for 2026 is less certain. During the last earnings call, management acknowledged that while the long-term demand for advanced lithography remains strong, visibility for 2026 is clouded.
Much of this uncertainty comes from external pressures. Tariff uncertainties, export restrictions and broader geopolitical tensions are making customers cautious about the timing of new capital investments. ASML Holding has already seen adjustments to its backlog as some clients reassess orders in response to these challenges.
Nonetheless, long-term demand drivers remain encouraging. AI adoption is accelerating, and DRAM manufacturers are increasing EUV layers in their latest nodes. High NA EUV systems, currently being qualified, should eventually expand the company’s market opportunity.
For now, 2025 should be another strong year of growth, but whether ASML Holding can sustain the same momentum into 2026 depends on macro stability and customer spending patterns. The Zacks Consensus Estimate for 2025 revenues indicates year-over-year growth of 23.8%, while that for 2026 signifies a decline of 0.9%.
How Are ASML’s Rivals Positioned Amid Export Restrictions?
Export restrictions on advanced semiconductor chips and equipment have been impacting every company in the space, including Applied Materials (AMAT - Free Report) and Lam Research (LRCX - Free Report) .
Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. While it also faces export limits, AMAT has a broader product range that serves older technology nodes still in demand in China.
Meanwhile, Lam Research specializes in wafer etching and cleaning tools. Like ASML, Lam Research is exposed to U.S. export policies, but it can ship tools for legacy nodes that China continues to ramp up.
ASML’s Share Price Performance, Valuation and Estimates
Shares of ASML Holding have risen 8.9% year to date compared with the Zacks Computer and Technology sector’s gain of 12.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 7.89, significantly higher than the sector’s average of 6.66.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ASML Holding’s 2025 and 2026 earnings implies a year-over-year increase of approximately 35.1% and 1.5%, respectively. Estimates for 2025 earnings have been revised upward in the past 60 days, while those for 2026 have moved north over the last 30 days.
Image: Bigstock
ASML Sees 30% EUV Growth in 2025: Is Demand Sustainable Through 2026?
Key Takeaways
ASML Holding N.V. (ASML - Free Report) is set to deliver another year of solid growth, with its Extreme Ultraviolet (“EUV”) sales anticipated to increase about 30% in 2025. This optimistic expectation is driven by chipmakers expanding production for advanced logic and memory chips used in artificial intelligence and high-performance computing.
ASML Holding’s latest EUV tools, such as the NXE:3800E, are helping customers improve efficiency by replacing complex multi-patterning steps with simpler EUV exposures. This raises productivity and supports margin expansion for chipmakers.
All this is fueling the demand for ASML’s advanced lithography equipment and high revenue growth expectations for 2025. However, the outlook for 2026 is less certain. During the last earnings call, management acknowledged that while the long-term demand for advanced lithography remains strong, visibility for 2026 is clouded.
Much of this uncertainty comes from external pressures. Tariff uncertainties, export restrictions and broader geopolitical tensions are making customers cautious about the timing of new capital investments. ASML Holding has already seen adjustments to its backlog as some clients reassess orders in response to these challenges.
Nonetheless, long-term demand drivers remain encouraging. AI adoption is accelerating, and DRAM manufacturers are increasing EUV layers in their latest nodes. High NA EUV systems, currently being qualified, should eventually expand the company’s market opportunity.
For now, 2025 should be another strong year of growth, but whether ASML Holding can sustain the same momentum into 2026 depends on macro stability and customer spending patterns. The Zacks Consensus Estimate for 2025 revenues indicates year-over-year growth of 23.8%, while that for 2026 signifies a decline of 0.9%.
How Are ASML’s Rivals Positioned Amid Export Restrictions?
Export restrictions on advanced semiconductor chips and equipment have been impacting every company in the space, including Applied Materials (AMAT - Free Report) and Lam Research (LRCX - Free Report) .
Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. While it also faces export limits, AMAT has a broader product range that serves older technology nodes still in demand in China.
Meanwhile, Lam Research specializes in wafer etching and cleaning tools. Like ASML, Lam Research is exposed to U.S. export policies, but it can ship tools for legacy nodes that China continues to ramp up.
ASML’s Share Price Performance, Valuation and Estimates
Shares of ASML Holding have risen 8.9% year to date compared with the Zacks Computer and Technology sector’s gain of 12.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 7.89, significantly higher than the sector’s average of 6.66.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ASML Holding’s 2025 and 2026 earnings implies a year-over-year increase of approximately 35.1% and 1.5%, respectively. Estimates for 2025 earnings have been revised upward in the past 60 days, while those for 2026 have moved north over the last 30 days.
Image Source: Zacks Investment Research
ASML Holding currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.