ASML beats Qualcomm on $37.5 billion, EUV monopoly

The comparison frames the choice as a hardware monopoly versus a mobile chip leader trying to diversify. ASML's exclusive hold on EUV lithography—machines that use light to print tiny circuits on silicon—makes it indispensable to chipmakers like Intel, TSMC, and Samsung. That scarcity shows up in its numbers: a net margin of approximately 29.4%, free cash flow of nearly $12.2 billion, and an order backlog at the end of 2025 larger than a full year of revenue. Qualcomm, by contrast, relies on processors and modems for phones, with Apple, Samsung, and Xiaomi each accounting for 10% or more of fiscal 2025 revenue. Its net income fell to roughly $5.5 billion from $10.1 billion in fiscal 2024, largely due to a one-time $5.7 billion tax charge after U.S. tax legislation passed in July 2025. The analysis suggests ASML's premium valuation reflects its harder-to-copy position, while Qualcomm's cheaper multiples match its latest results: revenue for the first nine months of fiscal 2026 slipped slightly, and operating income fell by roughly a quarter. The outcome hinges on whether AI-driven chip demand holds up and whether Qualcomm's automotive, IoT, and AI chip segments can meaningfully reduce its phone dependence.