ASML Holding's revenue has grown in each of the past two quarters even as Qualcomm's sales fell to $9.9 billion in its latest quarter, a reversal of the pattern that held for most of the last two years. The two semiconductor giants are now moving in opposite directions, and investors are watching whether the shift sticks.
ASML pulls ahead as Qualcomm's lead erodes
Qualcomm generated higher quarterly revenue than ASML Holding for the majority of the last eight quarters. That changed recently: ASML has now surpassed Qualcomm in quarterly revenue reported in U.S. dollars. In the quarter ended June 30, 2026, ASML brought in $10.8 billion against Qualcomm's $9.9 billion.
ASML makes its money developing, selling, and servicing the advanced lithography equipment that chipmakers need to produce complex integrated circuits. It recently struck a collaboration with Taiwan Semiconductor Manufacturing for large-format photomasks to support advanced manufacturing, even as broader reports point to delayed data center projects affecting the timing of equipment demand.
Qualcomm's mobile and modem business comes under pressure
Qualcomm earns its revenue chiefly by designing integrated circuits for wireless communication networks and by licensing its patent portfolio. Its sales have stalled in 2026, producing year-over-year declines, as its mobile device business faces headwinds from AI-driven increases in component prices that pressure margins and have reduced consumer demand.
The company's modem business with Apple has also eroded, adding further pressure on sales. Still, Qualcomm recently renewed its global patent license agreement with Apple, securing continued royalty payments through 2027, and it has established a multi-generational computing infrastructure collaboration with Amazon as it works to expand into the data center market.
Why the revenue trend matters
Revenue measures the total money a business brings in before operating expenses, showing whether a company is attracting customers and growing its overall volume over time. ASML's position benefits from what the article describes as a legal monopoly: competitors have not replicated its advanced lithography machines used to produce AI chips, letting the company sustain revenue growth as the AI boom serves as a tailwind to its business.
Qualcomm, meanwhile, is betting its Amazon partnership signals initial success in a new line of business that could offset the decline in its mobile and modem segments.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
