Chip Equipment Giants Applied Materials and ASML Draw Investor Comparison as AI Demand Reshapes Semiconductor Spending

The artificial intelligence buildout has put the spotlight on the handful of companies that supply the equipment used to make advanced chips, and two names keep coming up in the same conversation: Applied Materials (NASDAQ:AMAT) and ASML Holding N.V. (NASDAQ:ASML). Both sit at the base of the semiconductor supply chain, but they occupy distinctly different positions within it.

Applied Materials specializes in materials engineering tools that allow chipmakers to deposit, etch, and process the many layers required in modern processors. ASML, by contrast, holds a near-monopoly in lithography, including the extreme ultraviolet (EUV) systems that are essential to producing leading-edge chips. That distinction means the two companies see different demand patterns tied to the same underlying manufacturing cycle.

Concentration and compliance risks at Applied Materials

In its most recent annual filing, covering the fiscal year ended Oct. 26, 2025, Applied Materials disclosed that two customers accounted for roughly 19% and 15% of net revenue, respectively. Heavy reliance on a small number of buyers can amplify the impact of any change in spending plans by those customers.

Export regulation has also been an area to monitor. The company recently resolved a U.S. government case tied to export violations with a $252 million settlement, and it has a longstanding business history involving Chinese chipmaker Semiconductor Manufacturing International. With trade restrictions on advanced chip equipment continuing to evolve, the regulatory environment remains a relevant factor for equipment suppliers with significant China exposure.

ASML’s position in the equipment landscape

ASML shares traded at $1,698.30 recently, up 0.88% from the prior close of $1,683.55, giving the Dutch company a market capitalization of roughly $651.6 billion. The company supplies lithography, metrology, and inspection systems, and its EUV platforms are the only commercial option for fabricating the most advanced logic chips — a position that has made it a critical dependency for AI accelerator production.

Analysts and investors frequently weigh the two companies against each other because both are viewed as indispensable to global chip manufacturing, yet their revenue exposure to cutting-edge versus mature nodes differs meaningfully.

Source: original release

What to watch

• Applied Materials’ upcoming quarterly results and any updated commentary on customer concentration and China revenue exposure.
• ASML’s next earnings report, including bookings and EUV system shipment guidance.
• Further developments in U.S. export control policy affecting semiconductor equipment sales.
• Capital spending announcements from major chipmakers, which drive equipment order volumes for both companies.