Yahoo Finance analysis indicates that despite ASML's monopoly in extreme ultraviolet (EUV) lithography machines, TSMC (TSM) holds a "quasi-monopoly" advantage in wafer foundry capabilities, particularly in AI chip production. The analysis suggests that TSMC's valuation (approximately 25x forward P/E) is more reasonable than ASML's (approximately 40x forward P/E), and its growth rate is faster. Furthermore, TSMC is mitigating geopolitical risks by increasing production capacity outside Taiwan, such as its total investment of $265 billion in Arizona, USA. Year-to-date in 2026, TSMC's stock price has risen by approximately 35%, while ASML's has increased by nearly 60%.