How did the AI wave affect both companies?

Both companies benefited from AI capital expenditure, posting strong results in their latest fiscal quarters.

ASML vs. Applied Materials: Which Is the Smarter Buy Now?

Q: Which company is a better investment?

It depends on investor preference: ASML offers monopoly and pricing power, while Applied Materials provides broader market exposure with higher competitive risks.

24/7 Wall St. compares ASML and Applied Materials amid the AI capex wave. ASML leverages its lithography monopoly for pricing power, while Applied Materials shows a cyclical recovery in deposition and etch.

June 30, 2026

2 min read

Source: 24/7 Wall St.

24/7 Wall St. published an analysis comparing two semiconductor equipment giants: ASML Holding (NASDAQ: ASML) and Applied Materials (NASDAQ: AMAT). Both companies posted strong results driven by AI capital expenditure, but each has different strengths.

Recommendation Change

The analysis did not indicate any specific analyst rating change, but rather provided an objective comparison of the two companies' performance.

Analyst Rationale

Analysts believe ASML enjoys pricing power due to its monopoly in lithography equipment, leading to higher margins. In contrast, Applied Materials faces broader competition in deposition and etch but benefits from a strong cyclical recovery.

Context

ASML's Q1 FY2026 results showed dominance in lithography, while Applied Materials' Q2 FY2026 results revealed a sharp recovery in demand for deposition and etch equipment.

Conclusion

The choice between the two stocks depends on investor preference: ASML offers monopoly and pricing power, while Applied Materials provides broader exposure to the semiconductor equipment market with higher competitive risks.

Frequently Asked Questions

ASML monopolizes the lithography equipment market, giving it pricing power, while Applied Materials operates in a more competitive market for deposition and etch equipment.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.