Today I am going to take a closer look together at what many consider the MOST IMPORTANT company on the planet. ASML.
And no, the description “most important” is NOT an exaggeration at all. Because as strange as it may sound, ASML represents the GREATEST scientific and technological achievement of our era.
To put it simply: if ASML were to disappear tomorrow morning, the technological progress of humanity would stop. Seriously. Because without ASML’s machines, we cannot manufacture chips for smartphones, computers, or artificial intelligence. No one can make them without ASML. No one.
In fact, this dependency is not limited only to the production of electronic devices, but extends to critical sectors such as the automotive industry, defense, medical technology, and of course the data center infrastructure that powers the internet. If ASML stopped operating, this entire chain would collapse.
Over the last 12 years, its stock has skyrocketed. In 2025 alone it is up 58 percent, and in just 15 days it climbed 18 percent.
It is now the only European company with a market capitalization close to half a trillion. And this is no coincidence. It is the result of a business and technological model designed with terrifying precision and consistency.
WHAT ASML ACTUALLY DOES
ASML builds the most critical machines in the world. The ones used to produce chips. Not just any chips. The most advanced chips. The ones used by Nvidia, AMD, TSMC, and Intel.
And do you know what makes these machines so special? They use photolithography technology. Simply put, they “print” microscopic circuits onto wafers, which are round pieces of silicon. These then become chips. The level of precision required in this process is unreal. We are talking about details measured in nanometers, smaller than viruses.
The crazy part is that ASML does not make chips. It makes the MACHINES that make chips. And no one else knows how to make them. Not even China, which has been trying for years to copy ASML’s technology. It has failed. And not only has it failed, it is decades behind.
THE ABSOLUTE MONOPOLY
In my opinion, ASML is the ultimate monopoly. And since you are probably wondering why, here is the answer.
First, no engineer knows the entire manufacturing process. Everyone works on just one part. This is how the know-how is protected. On top of that, ASML has acquired or secured exclusive partnerships with key component suppliers. Without them, a machine cannot be built.
At the same time, it has created an ecosystem that depends entirely on it. Everyone needs ASML. No one can bypass it.
Each machine is the size of a two-story bus, weighs 200 tons, and costs 400 million dollars. It takes three to four Boeing 747s to transport it. And every unit is essentially a mobile high-tech factory.
And as for our test of the seven filters? It does not just pass it. It shatters every record with a perfect seven out of seven.
Revenue growth for five years? Check
Net income growth? Check
Free cash flow growth? Check
Cash surplus versus debt? Chec
Reduction in shares outstanding? Check
Sustainable dividend? Check
ROIC above 9 percent? It is at 23 percent. Check
We are talking about one of the very few companies that manages to pass all seven filters with ease.
And if that is not enough, wait, there is more.
TSMC announced it will invest 250 billion dollars in new factories in the United States. Specifically for ASML machines. Samsung and Intel are following. These companies, in order to survive, need ASML. Without ASML, they stop.
And something very important is that ASML sells the machine once, but then generates revenue from servicing it. With higher profit margins, more stable income, and total exclusivity. Essentially, the customer is locked in for years, creating a continuous revenue stream for ASML.
