Free tools Windows power users keep installed
One-click scans. No signup required.
ASML and Taiwan Semiconductor Manufacturing Company (TSMC) both report demand linked to AI investment, but their revenue comes from different parts of the semiconductor supply chain. ASML sells chipmaking lithography equipment and services; TSMC manufactures chips designed by customers. In 2025, ASML’s sales rose 15.6% in euros, while TSMC’s revenue rose 35.9% in U.S. dollars. Those growth rates describe each company’s own business and currency—not a like-for-like measure of which is larger or the better investment.
How to read the comparison
The most useful comparison is each company’s revenue growth against its own prior-year period, with the reporting currency and business model kept in view. ASML reports in euros; TSMC reports in U.S. dollars. Comparing their nominal revenue totals directly would require an exchange-rate date and method, and even a currency conversion would not make their unlike business activities equivalent.
Revenue growth also does not establish that AI alone caused the change. Both companies describe AI-related demand as an important driver, but the figures reflect broader business activity and management commentary does not isolate AI’s contribution.
What the latest reported revenue shows
ASML: annual growth and a strong second quarter
ASML reported total net sales of €32.7 billion for 2025, up 15.6% from 2024. Its Q2 2026 release reported €9.326 billion in total net sales, a 54.0% gross margin and €2.918 billion in net income. The release was published July 15, 2026. ASML’s Q2 2026 results provide the quarterly figures.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11#1 Best Overall
TSMC: faster 2025 growth in its own reporting currency
TSMC reported consolidated revenue of US$122.42 billion for 2025, up 35.9% year over year in U.S.-dollar terms. Its Q2 2026 net revenue was US$40.20 billion, with a gross margin of 67.7%. The 2025 growth rate is higher than ASML’s reported 2025 rate, but it is not an apples-to-apples comparison: the companies report in different currencies and earn revenue from different activities. TSMC’s Q2 2026 quarterly results list the quarter’s actual revenue and margin.
The cited Q2 materials do not establish year-over-year growth rates for Q2 2026, so the quarterly revenue figures above should not be read as quarterly growth comparisons.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Why their revenue lines respond differently to AI investment
ASML sells equipment and services to chipmakers
ASML supplies lithography systems used in semiconductor manufacturing and services its installed base. Its 2025 net sales included €16.1 billion from Logic, €8.4 billion from Memory, and €8.2 billion from net service and field option sales. Those categories sum to €32.7 billion, subject to rounding. The service and field-option business means ASML’s revenue reflects both new systems and activity related to equipment already installed.
ASML said in its Q2 2026 release that ongoing AI-related investment and advances in AI technologies were driving demand for advanced Logic and Memory chips, while customers accelerated capacity expansion. The company said this improved its visibility into longer-term demand. That is management’s account of market conditions, not proof that AI alone caused its sales growth. In its 2025 financial overview, ASML also linked Logic sales to leading-edge foundry growth supporting strong AI demand, and Memory momentum to investment in high-bandwidth memory and DDR5 for AI-related applications. ASML’s 2025 financial overview gives its annual revenue mix and commentary.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
TSMC manufactures chips designed by customers
TSMC describes itself as a pure-play foundry: it manufactures customer-designed products and does not design, manufacture or market semiconductor products under its own name. Its revenue therefore reflects customer demand for manufacturing capacity and related capabilities, rather than sales of lithography tools.
In 2025, advanced technologies—7-nanometer and more advanced processes—accounted for 74% of TSMC’s total wafer revenue; 3-nanometer technologies accounted for 24%. TSMC’s annual report describes robust AI-related demand in 2025 and says the company expected it to continue into 2026 despite macroeconomic uncertainty. It points to advanced process technologies, advanced packaging and chip stacking as parts of its capacity and technology response. TSMC’s annual reports contain the business-model, process-mix and demand disclosures.
Rank #4
The business-model connection is straightforward but not a fixed revenue formula: AI-related chip demand can encourage manufacturers to add capacity and purchase equipment, while foundry revenue depends on customer demand for wafers and related manufacturing services. The disclosures do not quantify how much of one company’s revenue growth passes through to the other.
Margins add context, but periods matter
ASML’s Q2 2026 gross margin was 54.0%. TSMC’s Q2 2026 gross margin was 67.7%. These are reported quarterly figures, but a gross-margin comparison alone does not measure overall profitability, capital intensity, cash generation or investment value.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
For a separate annual view, TSMC reported a 59.9% gross profit margin and a 50.8% operating profit margin for 2025. These annual figures should not be compared as though they were from the same period as either company’s Q2 2026 gross margin. ASML’s supplied 2025 figures here establish sales and revenue mix, not a directly comparable annual margin pair. TSMC’s 2025 annual report reports its annual margins.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Reported results versus company outlook
Guidance is management’s expectation, not revenue already earned. In July 2026, ASML forecast 2026 net sales of €43–45 billion and Q3 2026 sales of €11–12 billion. TSMC guided to Q3 2026 net revenue of US$44.6–45.8 billion. These outlooks are in different currencies and concern different companies; they do not provide a direct ranking of scale or future performance. See ASML’s Q2 release and TSMC’s Q2 results for the guidance.
What an investor can—and cannot—infer
- AI exposure is real but indirect in the revenue data. Both companies report AI-related demand, but neither cited disclosure attributes all revenue growth to AI.
- The 2025 growth rates favor TSMC only on this narrow measure. TSMC’s 35.9% U.S.-dollar growth exceeded ASML’s 15.6% euro growth, but the figures are not a currency- or business-model-normalized comparison.
- Revenue timing differs. Equipment purchases, equipment services, wafer demand and capacity expansion are related but distinct activities; the disclosures do not provide a quantified pass-through between them.
- Revenue and margins are not a complete investment case. A fuller comparison would also require analysis of capital needs, cash flow, customer concentration, valuation and risk. The revenue figures and margins alone do not answer which shares are more attractive.
TSMC Chairman and Chief Executive Officer C.C. Wei wrote in the 2025 annual report: “Thus, our conviction in the AI megatrend is strengthening, and we believe the demand for semiconductors is very fundamental.” This is the company leader’s view of demand, not a forecast that guarantees future revenue.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
