Applied Materials vs. ASML: Which Technology Stock Is a Better Buy in 2026?
One holds a near-monopoly on advanced chip printing, while the other supplies the broader toolkit. Their financial profiles and risk exposures diverge sharply.
Overview
As the artificial intelligence boom shifts from hype to hardware, choosing between Applied Materials (NASDAQ:AMAT) and ASML(NASDAQ:ASML) requires understanding the specialized tools that make modern computing possible.
These giants operate at different stages of the manufacturing process. While one provides a broad suite of materials engineering tools, the other holds a near-monopoly on the machines that print patterns on advanced chips.
Details
Applied Materials sells a wide variety of equipment used to deposit, remove, and modify materials on silicon wafers. Its customers include global leaders in the foundry, logic, and memory markets who depend on these tools to build complex chip architectures. In fiscal 2025, two customers accounted for approximately 19% and 15% of net revenue, respectively, while a partnership with TSMC supports critical technology requirements for artificial intelligence.
Source
Originally published at www.fool.com.