Quick verdict: AMD vs ASML in 2026

In this detailed AMD vs ASML stock comparison for 2026, ASML Holding N.V. (ASML) generally holds the overall edge across fundamental metrics, particularly in profitability and valuation efficiency, despite both companies being key players in the semiconductor industry. Advanced Micro Devices, Inc. (AMD) stands out as the growth leader with superior revenue momentum, while ASML leads in profitability margins, offering better value metrics, and receives a higher consensus target price upside from analysts. AMD is currently the analyst favorite by buy rating percentage, but ASML offers more compelling potential upside according to price targets. Not investment advice.

AMD vs ASML: key metrics side by side

Full side-by-side comparison of AMD and ASML across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

AMD vs ASML valuation comparison

When considering AMD vs ASML valuation for 2026, ASML appears to be the relatively cheaper option, particularly from an earnings perspective. AMD currently trades at a P/E ratio of 126.76x, significantly higher than ASML’s 46.21x. This substantial difference suggests that investors are pricing in much more aggressive future growth for AMD or that ASML is more efficient at converting revenue into earnings, making ASML’s stock appear more reasonably valued based on current profitability. A lower P/E ratio for ASML indicates that each dollar of its earnings is available at a more affordable price to investors.

However, the P/B ratio presents a different picture for AMD vs ASML valuation. AMD’s Price-to-Book ratio stands at 8.72x, which is considerably lower than ASML’s 22.21x. This suggests that AMD’s share price is less inflated relative to its book value (assets minus liabilities), potentially offering a better cushion for investors concerned about asset backing. Despite this, both companies show significant overvaluation according to discounted cash flow (DCF) models, with AMD having a negative upside of -80.8% and ASML at -74.2%. While both are trading far above their intrinsic value based on these models, ASML’s DCF suggests it is less overvalued than AMD, further reinforcing its position as the relatively more “value-oriented” choice in this high-growth technology comparison.

AMD vs ASML growth comparison

In the AMD vs ASML growth comparison, Advanced Micro Devices (AMD) demonstrates a significantly stronger top-line expansion. AMD reported an impressive year-over-year revenue growth of 34.3%, outperforming ASML’s solid but more modest 15.6%. This higher growth rate for AMD reflects its aggressive expansion into various lucrative markets, including data centers, artificial intelligence accelerators, gaming, and embedded systems, constantly pushing the boundaries of processor and graphics technology. AMD’s revenue of $34.64 billion also slightly edges out ASML’s $32.67 billion, reinforcing its larger current market presence by top-line figures.

AMD’s robust growth trajectory suggests strong momentum as it continues to gain market share and innovate across its product portfolio. This momentum is crucial for a company operating in the highly competitive semiconductor industry, where technological advancement and market adoption drive success. While ASML’s growth is respectable for a company with a near-monopoly in critical lithography technology, AMD’s double-digit lead in revenue growth indicates a more dynamic expansion phase. Investors prioritizing rapid top-line growth and market share gains might find AMD’s performance more compelling in the current market environment, as it reflects a company actively capitalizing on burgeoning demand in high-tech sectors.

AMD vs ASML profitability

When assessing AMD vs ASML profitability, ASML Holding N.V. clearly stands out with superior margins. ASML boasts an impressive net margin of 29.71%, nearly two and a half times higher than AMD’s 12.51%. This indicates that for every dollar of revenue, ASML retains significantly more as profit, showcasing its strong pricing power, operational efficiency, and possibly a less competitive landscape in its specialized niche. Similarly, ASML’s EBITDA margin of 37.99% is substantially higher than AMD’s 21.03%, further highlighting its robust operational profitability before considering depreciation, amortization, interest, and taxes.

Both companies report N/A% for Return on Equity (ROE), which means this metric isn’t available from the provided data for a direct comparison. However, looking at Free Cash Flow (FCF) yield, ASML again takes the lead with 1.94% compared to AMD’s 1.23%. A higher FCF yield suggests that ASML generates more cash flow relative to its market capitalization, providing greater financial flexibility for investments, debt reduction, or potential shareholder returns, even if dividend payouts are minimal. ASML’s dominant position in extreme ultraviolet (EUV) lithography, a critical technology for advanced chip manufacturing, grants it a unique competitive moat that translates directly into these exceptional profitability metrics, indicating a more financially efficient and stable business model.

Analyst ratings: AMD vs ASML

The analyst community shows a generally positive outlook for both AMD and ASML, though with varying degrees of enthusiasm and price target expectations. For Advanced Micro Devices, 70 analysts cover the stock, with a strong 67.1% issuing a “Buy” rating. The consensus among these analysts is a “Buy,” reflecting confidence in AMD’s strategic direction and growth prospects, particularly in the competitive semiconductor space. However, their average price target for AMD is $310.86, which, against the current price of $337.11, implies a downside of -7.8%. This suggests that while analysts like the company, they might perceive its current valuation as stretched relative to its near-term upside potential.

ASML Holding N.V. is covered by 45 analysts, a smaller group than AMD, with 57.8% recommending a “Buy.” This also forms a “Buy” consensus, affirming ASML’s critical role in the global semiconductor supply chain. Crucially, analysts have set an average price target of $1595.2 for ASML, which offers a significant upside of +14.4% from its current price of $1394.08. This positive target price upside indicates that analysts believe ASML has more room to run in the market, possibly due to its indispensable technology, strong profitability, and consistent demand. Therefore, while AMD has a higher percentage of ‘Buy’ ratings, ASML is seen to have greater potential for share price appreciation based on current analyst projections.

Should I buy AMD or ASML stock in 2026?

Deciding whether to buy AMD or ASML stock in 2026 depends heavily on an investor’s priorities and risk tolerance. For growth-oriented investors, AMD presents a compelling case. Its remarkable year-over-year revenue growth of 34.3% significantly outpaces ASML’s 15.6%, indicating stronger momentum and greater opportunity for market share expansion in high-demand sectors like AI and data centers. AMD’s continuous innovation and diversification across its product lines could drive substantial future gains, making it an attractive option for those seeking aggressive top-line growth and willing to accept a higher valuation multiple.

Conversely, for value-conscious investors, ASML offers a more appealing proposition. Despite both stocks trading at premium valuations, ASML’s P/E ratio of 46.21x is considerably lower than AMD’s 126.76x, suggesting a relatively more reasonable price for its earnings. Furthermore, ASML’s DCF analysis shows it is less overvalued (-74.2%) compared to AMD (-80.8%), and its robust profitability with a net margin of 29.71% far exceeds AMD’s 12.51%. These fundamentals, coupled with a consensus analyst target price indicating a +14.4% upside, position ASML as a better choice for investors prioritizing profitability, efficiency, and a more favorable valuation even within a high-growth sector.

For income investors, neither AMD nor ASML are suitable choices for substantial dividend income. AMD currently offers a 0% dividend yield, as it reinvests all its earnings back into growth and research & development. ASML provides a negligible dividend yield of 0.01%, indicating that it also prioritizes reinvestment over shareholder payouts. Both companies are firmly in the growth stock category, making them unattractive for those seeking regular, significant dividend income. Therefore, the choice between AMD and ASML should primarily be driven by growth versus value and profitability considerations. This is not investment advice; please conduct your own thorough research.

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