Insider Monkey favors ASML over Applied Materials as the better risk-adjusted stock, despite forward earnings multiples of about 31 versus 27, citing EUV tools’ hard-to-replace role; it flags ASML’s customer concentration and China export-control exposure.
ASML reported second-quarter sales of €9.3 billion, a 54% gross margin and €2.9 billion in net income. Management expects 2026 sales of €43 billion to €45 billion and a 54% to 56% gross margin, while planning substantial increases in low-NA EUV and immersion capacity for 2027.
Applied Materials posted record fiscal third-quarter revenue of $9.12 billion, up 25%, with a 50.3% GAAP gross margin; EPS rose 43% and non-GAAP free cash flow was $2.33 billion. Its tools span deposition, materials engineering and advanced packaging, but competition is stronger across its portfolio, and 28% of quarterly revenue came from China, leaving it exposed to export controls.
