ASML’s near‑monopoly EUV lithography business shows strong 2025 earnings and cash flow, while Intel’s foundry pivot yields revenue decline, a net loss and negative cash flow, prompting a mixed investment view.
ASML Holding reported fiscal 2025 revenue of about $37.5 billion, a 15.6% increase year over year, with net income of roughly $11.0 billion (≈29.4% net margin). Its balance sheet showed a low debt‑to‑equity ratio of 0.1x, a current ratio of 1.3x, and free cash flow near $12.2 billion.
Intel’s fiscal 2025 revenue was approximately $52.9 billion, a 0.5% decline, and it posted a net loss of about $267 million (‑0.5% net margin). The company’s debt‑to‑equity ratio stood at 0.4x, its current ratio at 2.0x, and free cash flow was negative $4.9 billion, partly due to large stock‑based compensation adjustments.
The author notes ASML faces geopolitical export risks and R&D cost pressures, while Intel confronts capacity constraints, a loss‑making foundry segment, and regulatory scrutiny over its U.S. government stake. Valuation metrics show ASML trading at a lower forward P/E (38.1x vs 71.2x) but a higher P/S ratio (17.3x vs 10.4x). The analyst recommends buying ASML for its consistent earnings and suggests a smaller position in Intel for investors willing to tolerate volatility while the foundry scales. Uncertainty remains around ASML’s exposure to trade restrictions and Intel’s ability to turn its foundry business profitable.