TSMC vs ASML Stock: Which AI Semiconductor Pick Is the Better Long-Term Bet?

TLDR

• TSMC posted 2025 revenue of ~$122.4B and net income of ~$55.2B, with 33.9% revenue growth year over year
• ASML reported €32.7B in 2025 net sales, 52.8% gross margin, and €38.8B in backlog
• TSMC Q1 2026 revenue rose 35.1% YoY to $35.9B; net income up 58.3%
• ASML Q4 2025 net bookings hit €13.2B, including €7.4B in EUV bookings
• TSM trades at ~$371.66 and ASML at ~$1,450.00 as of April 17, 2026

TSMC and ASML are two of the most talked-about names in AI semiconductors right now. But they are not really rivals. They play different roles in the same supply chain.

TSMC is the foundry. It makes the chips. ASML makes the machines that let TSMC and others manufacture those chips. For investors, the choice comes down to what kind of exposure you want.

Taiwan Semiconductor Manufacturing Company Limited, TSM

TSMC’s 2025 numbers were hard to ignore. The company reported roughly $122.4 billion in revenue and $55.2 billion in net income. Revenue grew 33.9% in NT dollar terms and 51.2% in US dollar terms. That growth was driven largely by demand for advanced AI chips.

The momentum did not slow into 2026. In Q1 2026, TSMC posted $35.9 billion in revenue, up 35.1% year over year. Net income rose 58.3% in the same period.

Management also said revenue from AI accelerators is expected to double in 2025. That tells you how central AI GPUs, ASICs, and related chips have become to TSMC’s business.

What ASML Brings to the Table

ASML’s 2025 results showed a different kind of strength. The company reported €32.7 billion in net sales, a 52.8% gross margin, and €9.6 billion in net income. It ended the year with €38.8 billion in backlog.

ASML Holding N.V., ASML

ASML guided 2026 net sales between €34 billion and €39 billion. That backlog gives investors visibility that many tech companies simply cannot offer.

Q4 2025 net bookings came in at €13.2 billion. Of that, €7.4 billion were EUV bookings, showing chipmakers are still spending heavily on next-generation manufacturing tools.

ASML also said in its 2025 annual report that customers are growing more comfortable with the long-term durability of AI demand. That is a meaningful shift in tone from a company that tends to be measured in its outlook.

The Core Difference

TSMC gives you direct exposure to chip production volumes. When more AI servers get built, TSMC makes more chips. The risk is concentration — both in customers and geography, given Taiwan’s geopolitical position.

ASML gives you broader exposure to capital spending across the whole semiconductor industry. It benefits whether TSMC, Samsung, or Intel is the one building new fabs. But equipment spending can be lumpy, and export controls remain a real risk for ASML.

Both stocks reflect how essential these companies are. TSM trades at around $371.66 and ASML at around $1,450.00 as of April 17, 2026.

Final Thoughts

TSMC is the more direct play on AI chip demand. ASML is the wider infrastructure bet that benefits from industry-level capital investment. Neither is a speculative call — both have the numbers to back up their valuations.

The post TSMC vs ASML Stock: Which AI Semiconductor Pick Is the Better Long-Term Bet? appeared first on CoinCentral.