ASML - Europe's #1 Quality + Growth Compounder

What is the company's moat built on? $ASML

ASML is the world's sole supplier of commercial EUV scanners - machines that use ultra-short light waves to "print" transistors onto silicon wafers.

Every fab run by TSMC, Samsung, Intel, and SK Hynix is built around ASML's architecture. Replacing the lithography equipment means redesigning the entire manufacturing process.

In February 2026, ASML announced that its High-NA EUV machines (next generation) are ready for mass production. This opens the path to the most advanced sub-2nm chips.

Also in February 2026, ASML achieved a breakthrough: EUV light source power increased to 1,000 watts (from 600). By 2030, this will deliver a 50% boost in throughput.

Competitors (China's SMEE, startups Substrate and xLight) are years behind. China's EUV prototype is currently where ASML was 5–7 years ago.

Installed Base Management (service + upgrades) generated €8.2B in 2025 (+26% YoY). This is a growing recurring revenue stream from already-deployed machines ("razor and blades" type moat).

In March 2026, SK Hynix placed a record $7.9B order (30 EUV machines) for HBM memory production for AI accelerators. This is the largest single order in ASML's history.

EUV demand has shifted from cyclical to structural. AI chips simply cannot exist without cutting-edge lithography.