# AI Chip Monopoly Stocks: TSMC vs. ASML

> Which AI semiconductor stock offers better monopoly growth: TSMC or ASML?
- Title: AI Chip Monopoly Stocks: TSMC vs. ASML · The Motley Fool
- Summary: Which AI semiconductor stock offers better monopoly growth: TSMC or ASML? TSMC and ASML both show strong AI chip growth, but ASML's faster expansion…
- Keywords: taiwan semiconductor manufacturing, asml, semiconductor, ai chips, process nodes, market cap, earnings growth, semiconductor industry, The Motley Fool
- Source: The Motley Fool — https://fool.com/investing/2026/11/04/better-ai-semiconductor-monopoly-stock-taiwan-semi
- Author: Harsh Chauhan
- Published: 2026-11-04T14:55:00+00:00
- Read time: 1 min
- Topics: taiwan semiconductor manufacturing, asml, semiconductor, ai chips, process nodes, market cap, earnings growth, semiconductor industry, finance, money
## Semiconductor Demand Surge
The demand for ASML's machines has increased significantly as they are used to manufacture advanced chips for AI applications.
## TSMC's Market Dominance
TSMC is the world's largest semiconductor foundry with 73% of the global foundry market share, ahead of the second-placed company's 7% share.
## ASML's EUV Machine Role
ASML's extreme ultraviolet lithography machines print billions of transistors on chips using light, enabling smaller, faster, and more power-efficient chips.
## TSMC's Revenue Growth
TSMC's revenue increased by 41% year over year to $46.7 billion in Q3, with 79% of revenue from chips using 7nm process nodes or smaller.
## ASML's Revenue Growth
ASML's revenue increased by 55% year over year to 11.66 billion euros in Q3, with net income up 133% from the year-ago period.
## ASML's Capacity Expansion
ASML plans to increase EUV machine production capacity by 30% next year and expand capacity by more than 30% in 2028.
## TSMC's Pricing Power
TSMC's net profit margin increased by 5.4 percentage points year over year, leading to a 69% jump in earnings per share to $29.43.
## Which Stock to Buy?
Investors seeking long-term semiconductor growth can choose ASML for higher growth potential or TSMC for a mix of growth and value.
## Key takeaway

TSMC and ASML both show strong AI chip growth, but ASML's faster expansion justifies higher valuation for investors seeking long-term semiconductor gains.