Home > Comparison > Technology > ASML vs INDI
The strategic rivalry between ASML Holding N.V. and indie Semiconductor, Inc. defines the semiconductor sector’s innovation race. ASML operates as a capital-intensive leader in advanced lithography equipment, while indie Semiconductor develops specialized automotive semiconductor solutions. This head-to-head highlights a contest between established industrial dominance and agile niche innovation. This analysis will identify which business model presents a superior risk-adjusted return for diversified portfolios in the evolving technology landscape.
Table of contents
Companies Overview
ASML Holding N.V. and indie Semiconductor, Inc. both shape the semiconductor landscape, targeting vastly different niches within the sector.
ASML Holding N.V.: The Lithography Equipment Titan
ASML dominates the advanced semiconductor equipment market, generating revenue primarily from lithography and metrology systems sales. Its cutting-edge extreme ultraviolet (EUV) lithography technology defines next-generation chip manufacturing. In 2026, ASML focuses on expanding its computational lithography solutions and upgrading its installed base globally to maintain its technological edge.
indie Semiconductor, Inc.: Innovator in Automotive Chips
indie Semiconductor targets the automotive semiconductor segment with a focus on software-driven chips for driver assistance, connectivity, and electrification. Its core revenue comes from supplying specialized devices like ultrasound sensors and photonic components. The company’s strategic aim in 2026 is to deepen penetration in advanced driver assistance systems and connected car markets.
Strategic Collision: Similarities & Divergences
ASML and indie both operate in semiconductors but diverge sharply in focus—ASML commands a closed, high-tech manufacturing ecosystem, while indie pursues an open, software-integrated automotive approach. Their primary battleground is innovation leadership, with ASML setting fabrication standards and indie enhancing in-car user experience. Their investment profiles differ: ASML offers scale and technological moat; indie presents growth potential with higher volatility.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | ASML Holding N.V. (ASML) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| Revenue | 31.4B EUR | 217M USD |
| Cost of Revenue | 14.8B EUR | 126M USD |
| Operating Expenses | 5.7B EUR | 260M USD |
| Gross Profit | 16.6B EUR | 90M USD |
| EBITDA | 11.9B EUR | -94M USD |
| EBIT | 11.0B EUR | -137M USD |
| Interest Expense | 0 EUR | 9.3M USD |
| Net Income | 9.2B EUR | -133M USD |
| EPS | 23.76 EUR | -0.76 USD |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison will reveal the true efficiency of each corporate engine through their revenue growth and profitability margins.
ASML Holding N.V. Analysis
ASML’s revenue surged from 18.6B EUR in 2021 to 31.4B EUR in 2025, with net income rising from 5.9B to 9.2B EUR. Its gross margin holds strong at 52.8%, while net margin improved to 29.4%, showcasing operational excellence. The 2025 results reflect robust momentum with a 19% EBIT growth and solid margin expansion.
indie Semiconductor, Inc. Analysis
indie Semiconductor’s revenue climbed impressively over five years from 22M USD in 2020 to 217M USD in 2024, yet it remains unprofitable with net losses deepening to -133M USD in 2024. Gross margin improved to 41.7%, but negative EBIT and net margins (-63.2% and -61.2%) highlight ongoing operational challenges and inefficient cost structure.
Margin Leadership vs. Growth Struggles
ASML dominates with consistent revenue growth and strong profitability, delivering nearly 30% net margins amid expanding scale. indie Semiconductor shows rapid revenue gains but struggles with sustained losses and poor EBIT margins. For investors prioritizing earnings quality and margin stability, ASML’s profile offers a clearer path to value creation.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies analyzed below:
| Ratios | ASML Holding N.V. (ASML) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| ROE | 47.08% | -31.73% |
| ROIC | 34.14% | -19.25% |
| P/E | 38.33 | -5.35 |
| P/B | 18.05 | 1.70 |
| Current Ratio | 1.26 | 4.82 |
| Quick Ratio | 0.79 | 4.23 |
| D/E | 0.14 | 0.95 |
| Debt-to-Assets | 5.36% | 42.34% |
| Interest Coverage | N/A | -18.37 |
| Asset Turnover | 0.62 | 0.23 |
| Fixed Asset Turnover | 3.81 | 4.30 |
| Payout ratio | 26.54% | 0% |
| Dividend yield | 0.69% | 0% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as the company’s DNA, revealing hidden risks and signaling operational excellence or weakness beyond surface numbers.
ASML Holding N.V.
ASML delivers strong profitability with a 47.1% ROE and a 29.4% net margin, reflecting operational efficiency. However, its P/E of 38.3 and P/B of 18.1 indicate a stretched valuation. Shareholders receive modest dividends (0.69%), with the company heavily reinvesting in R&D to sustain growth and technological leadership.
indie Semiconductor, Inc.
Indie Semiconductor shows deep profitability challenges, posting a -31.7% ROE and a -61.2% net margin, signaling operational losses. Its P/E ratio is negative but low at -5.35, suggesting valuation is not expensive. The firm pays no dividends, focusing instead on aggressive R&D spending (80.8% of revenue) to build future capabilities despite current cash flow struggles.
Premium Valuation vs. Operational Safety
ASML balances high returns with a premium valuation, reflecting confidence in durable competitive advantages. Indie Semiconductor faces significant operational headwinds and negative returns, making it a higher risk profile. Investors seeking stability favor ASML’s efficient capital use, while those targeting potential turnaround stories might consider indie’s growth focus.
Which one offers the Superior Shareholder Reward?
I compare ASML Holding N.V. and indie Semiconductor, Inc. on their shareholder return strategies. ASML yields ~0.97% with a 34% payout ratio, backed by strong free cash flow (27.4/share) and steady buybacks. indie Semiconductor pays no dividends, generates negative free cash flow (-0.42/share), and lacks buyback programs, reflecting ongoing losses. ASML’s balanced distribution and robust cash flows offer sustainable long-term returns. indie’s reinvestment targets growth but carries high risk. I conclude ASML provides a far superior total return profile in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of ASML Holding N.V. and indie Semiconductor, Inc.:
ASML dominates with superior ROE and ROA scores (5 each), demonstrating efficient profit generation and asset utilization. It maintains moderate DCF and debt-to-equity scores (3), reflecting balanced growth and manageable leverage. However, ASML’s valuation metrics show tension, with low P/E (2) and very unfavorable P/B (1) scores. Indie Semiconductor lags across almost all metrics, scoring very unfavorable (1) except for a moderate P/B score (3), indicating reliance on book value rather than operational strength. ASML offers a more balanced and robust profile, while Indie depends heavily on valuation quirks without operational support.
Bankruptcy Risk: Solvency Showdown
ASML’s Altman Z-Score of 12.4 places it firmly in the safe zone, signaling strong long-term solvency. Indie’s score of 0.22 lands deep in the distress zone, suggesting high bankruptcy risk in this cycle:
Financial Health: Quality of Operations
ASML’s Piotroski F-Score of 8 confirms very strong financial health with solid internal metrics. Indie’s score of 2 flags significant red flags, indicating weak operational quality and heightened financial risk:
How are the two companies positioned?
This section dissects ASML and INDI’s operational DNA by comparing revenue distribution and internal dynamics. Our goal is to confront their economic moats to identify the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This comparison dissects how ASML Holding N.V. and indie Semiconductor, Inc. diversify their income streams and where their primary sector bets lie:
ASML dwarfs indie Semiconductor with a broad portfolio anchored by Arf immersion at €9.67B and NXE at €7.86B. ASML’s diverse segments, including Metrology (€645M) and Services (€6.49B), reduce concentration risk and reinforce its ecosystem lock-in. Indie Semiconductor relies heavily on Product sales ($203M), with Services contributing modestly ($14M), signaling greater exposure to product cycle volatility and less infrastructure dominance.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of ASML Holding N.V. and indie Semiconductor, Inc.:
ASML Strengths
- High net margin and ROE demonstrate strong profitability
- Low debt to assets and excellent interest coverage show solid financial health
- High fixed asset turnover indicates efficient asset use
- Broad global presence with significant revenues from China, Taiwan, and the US
- Diverse product portfolio including advanced lithography and metrology systems
INDI Strengths
- Favorable PE ratio suggests market values growth potential
- Strong quick ratio indicates good short-term liquidity
- Favorable fixed asset turnover shows efficient use of assets
- Presence in multiple regions including China, US, Europe, and Asia Pacific
- Growth in product and service revenue over recent years
ASML Weaknesses
- High PE and PB ratios may imply overvaluation risks
- Quick ratio below 1 suggests potential short-term liquidity concerns
- WACC higher than net returns could pressure capital efficiency
- Dividend yield is low, offering limited income to investors
INDI Weaknesses
- Negative net margin, ROE, and ROIC reflect unprofitability
- Negative interest coverage indicates financial stress
- Current ratio extremely high, possibly indicating inefficient asset use
- Asset turnover is low, signaling weak operational efficiency
- No dividend yield reduces appeal for income-focused investors
ASML’s strengths lie in its robust profitability, global scale, and asset efficiency, though valuation and liquidity ratios present caution. INDI shows potential in liquidity and asset management but struggles with profitability and financial stability, underscoring challenges ahead for its strategic execution.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only thing protecting long-term profits from the erosion of competition. Here’s how ASML and indie Semiconductor stack up:
ASML Holding N.V.: Dominant Patent and Technological Moat
ASML’s moat stems from advanced lithography technology and strong intellectual property. This yields consistently high ROIC above WACC, with stable 35%+ EBIT margins. New EUV product cycles and expansion in Asia deepen this moat in 2026.
indie Semiconductor, Inc.: Emerging Niche Innovator, Yet Unproven
indie Semiconductor relies on specialized automotive chip innovation but shows negative ROIC and shrinking margins. Its moat is fragile compared to ASML’s entrenched tech. Growth hinges on scaling penetrating automotive markets and software integration.
Verdict: Technological Dominance vs. Developmental Risk
ASML’s wide, durable moat built on patented technology and global customer scale far outmatches indie Semiconductor’s narrow, unproven advantage. ASML is better equipped to defend market share amid intensifying semiconductor competition.
Which stock offers better returns?
Over the past 12 months, ASML Holding N.V. surged 43.11%, showing accelerating bullish momentum, while indie Semiconductor, Inc. fell 39.79%, reflecting a steep bearish trend.
Trend Comparison
ASML’s stock climbed 43.11% over the past year, demonstrating a strong bullish trend with acceleration and high volatility, reaching a peak price of 1423.0.
indie Semiconductor’s stock dropped 39.79%, marking a bearish trend with accelerating decline and low volatility, hitting a low of 1.6 during the same period.
ASML outperformed indie Semiconductor by a wide margin, delivering significantly higher returns and sustained upward momentum over the past year.
Target Prices
Analysts show a broad target range for ASML Holding N.V. and a precise consensus for indie Semiconductor, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| ASML Holding N.V. | 1,150 | 1,911 | 1,458.5 |
| indie Semiconductor, Inc. | 8 | 8 | 8 |
ASML’s target consensus of 1,458.5 sits near its current price of 1,423, suggesting moderate upside potential. indie Semiconductor’s fixed target at 8 implies a strong upside from its 4.1 price, indicating high growth expectations.
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How do institutions grade them?
ASML Holding N.V. Grades
The table below shows recent grade updates from reputable grading firms for ASML Holding N.V.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Upgrade | Overweight | 2026-01-29 |
| Wells Fargo | Maintain | Overweight | 2026-01-29 |
| RBC Capital | Maintain | Outperform | 2026-01-29 |
| Bernstein | Maintain | Outperform | 2026-01-22 |
| KGI Securities | Upgrade | Outperform | 2026-01-15 |
| Wells Fargo | Maintain | Overweight | 2026-01-15 |
| JP Morgan | Maintain | Overweight | 2026-01-14 |
| Bernstein | Upgrade | Outperform | 2026-01-05 |
| B of A Securities | Maintain | Buy | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-12-01 |
indie Semiconductor, Inc. Grades
The table below presents grade updates from credible grading companies for indie Semiconductor, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-11-10 |
| Benchmark | Maintain | Buy | 2025-06-25 |
| Benchmark | Maintain | Buy | 2025-06-11 |
| Benchmark | Maintain | Buy | 2025-05-21 |
| Benchmark | Maintain | Buy | 2025-05-13 |
| Craig-Hallum | Maintain | Buy | 2025-05-13 |
| Keybanc | Maintain | Overweight | 2025-05-13 |
| Benchmark | Maintain | Buy | 2025-04-09 |
| Benchmark | Maintain | Buy | 2025-02-21 |
| Keybanc | Maintain | Overweight | 2025-02-21 |
Which company has the best grades?
ASML Holding N.V. consistently receives higher grades, including multiple Outperform and Overweight ratings. indie Semiconductor, Inc. holds mostly Buy and Overweight grades but lacks top-tier Outperform ratings. This suggests stronger institutional confidence in ASML, potentially impacting investor sentiment and portfolio positioning.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing ASML Holding N.V. and indie Semiconductor, Inc. in the 2026 market environment:
1. Market & Competition
ASML Holding N.V.
- Dominates high-end lithography, a niche with high barriers to entry and limited direct competition.
indie Semiconductor, Inc.
- Faces intense competition in automotive semiconductors, a fragmented and rapidly evolving market.
2. Capital Structure & Debt
ASML Holding N.V.
- Maintains low debt-to-equity (0.14) and low leverage, signaling a strong balance sheet.
indie Semiconductor, Inc.
- High debt-to-equity (0.95) raises financial risk; interest coverage is negative, indicating difficulty servicing debt.
3. Stock Volatility
ASML Holding N.V.
- Beta of 1.34 indicates moderate volatility, aligned with tech sector norms.
indie Semiconductor, Inc.
- Beta of 2.54 signals high volatility, adding risk for investors sensitive to price swings.
4. Regulatory & Legal
ASML Holding N.V.
- Operates globally with exposure to export controls, especially U.S.-China tech restrictions.
indie Semiconductor, Inc.
- Faces automotive safety and software compliance risks in a heavily regulated industry.
5. Supply Chain & Operations
ASML Holding N.V.
- Complex supply chain for advanced machinery; benefits from long-term supplier relationships.
indie Semiconductor, Inc.
- Relies on automotive industry cycles and semiconductor supply constraints, which can disrupt production.
6. ESG & Climate Transition
ASML Holding N.V.
- Focused on sustainable manufacturing; under pressure to reduce carbon footprint in energy-intensive processes.
indie Semiconductor, Inc.
- Needs to address automotive electrification trends and regulatory demands for greener technologies.
7. Geopolitical Exposure
ASML Holding N.V.
- Significant exposure to geopolitical tensions between the U.S., China, and Europe affecting supply and sales.
indie Semiconductor, Inc.
- Primarily U.S.-based but dependent on global automotive supply chains vulnerable to trade disputes.
Which company shows a better risk-adjusted profile?
ASML’s dominant market position, robust balance sheet, and strong financial health give it a substantially better risk-adjusted profile. indie Semiconductor struggles with high leverage, weak profitability, and elevated volatility, posing material risks. The most impactful risk for ASML is geopolitical exposure disrupting global sales. For indie Semiconductor, financial distress and poor profitability remain critical concerns. ASML’s Altman Z-score of 12.4 versus indie’s 0.22 starkly illustrates their divergent financial stability and risk levels.
Final Verdict: Which stock to choose?
ASML’s superpower lies in its durable competitive advantage, consistently generating returns far above its cost of capital. Its relentless innovation in semiconductor lithography creates a cash machine with robust profitability. A point of vigilance is its premium valuation, which might pressure returns in a market correction. It suits portfolios targeting steady, long-term growth with high conviction.
Indie Semiconductor’s moat centers on its ambitious R&D intensity, aiming to carve a niche in automotive chips. However, ongoing losses and declining capital efficiency signal heightened risk and cash burn. Compared to ASML, it offers greater volatility and uncertainty but potential upside for high-risk tolerant investors. It fits speculative or early-stage growth portfolios seeking disruptive innovation.
If you prioritize durable economic moats and proven cash generation, ASML outshines as the compelling choice due to its strong value creation and financial resilience. However, if you seek speculative growth in emerging tech sectors, Indie Semiconductor offers a high-risk, potentially high-reward scenario despite its current financial fragility. Both require careful risk management aligned with your investment horizon.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of ASML Holding N.V. and indie Semiconductor, Inc. to enhance your investment decisions:
