ASML and Bank of America: Momentum or Sustained Growth?

For long-term investors, the question of whether to prioritize momentum or sustained growth often hinges on a company's ability to navigate macroeconomic headwinds while maintaining operational resilience. ASML Holding NV (ASML) and Bank of America Corporation (BAC) offer contrasting case studies in this regard. By analyzing their Q2 and Q3 2025 earnings reports and forward guidance, we can assess whether these firms are driven by short-term momentum or positioned for enduring growth.

ASML: Sustained Growth in a High-Stakes Sector

ASML's Q3 2025 results underscore its dominance in the semiconductor equipment market. According to ASML's Q3 2025 financial results, the company reported net sales of €7.5 billion, with a gross margin of 51.6% and net income of €2.1 billion. Notably, EUV (Extreme Ultraviolet) systems accounted for €3.6 billion of its €5.4 billion in net bookings, reflecting robust demand for advanced lithography in AI and chip manufacturing. For 2025, ASML projects a 15% revenue increase compared to 2024, with EUV business expected to grow by 30%.

However, the company's long-term outlook is clouded by uncertainties. While ASML expects Q4 2025 net sales to range between €9.2 billion and €9.8 billion, it has not confirmed 2026 growth due to macroeconomic risks, including declining Chinese demand and tariff pressures. CEO Christophe Fouquet acknowledged these challenges during ASML's Q3 2025 earnings call but emphasized strategic partnerships, such as the collaboration with Mistral AI to enhance AI-driven product performance, as a buffer against volatility.

ASML's ability to sustain growth hinges on its capacity to innovate in EUV technology and adapt to geopolitical shifts. For now, its strong gross margins and EUV momentum suggest a resilient business model, but investors must weigh these against potential headwinds in 2026.

Bank of America: Momentum with a Foundation for Growth

Bank of America's Q3 2025 earnings demonstrated a blend of momentum and strategic positioning. The bank exceeded expectations, as shown in the Bank of America Q3 2025 transcript, reporting EPS of $1.06 (vs. $0.95 forecast) and revenue of $28.09 billion (vs. $27.48 billion forecast). Its net interest income (NII) reached $14.8 billion in Q2 2025, growing 7% year-over-year, and management projected Q4 2025 NII of $15.6 billion or higher. Morningstar's NII analysis further noted that NII could expand by 8.7% to $15.5 billion–$15.7 billion by year-end 2025.

For 2026, Bank of America's guidance is cautiously optimistic. The bank anticipates NII growth of 5–7% and EPS increasing from $3.70 to $4.36 per share, a 17.84% rise. This trajectory is underpinned by a focus on operational efficiency and risk management, as outlined in its "responsible growth" framework. Additionally, stock price forecasts suggest a steady climb, with a projected end-of-2026 price of $97.70.

Despite mixed revenue figures in Q2 2025 (some sources reported a 3.84% decline, while others highlighted a 4% increase), the bank's emphasis on operating leverage and NII expansion signals a foundation for sustained growth. Unlike ASML, Bank of America's challenges are less tied to external shocks and more to internal execution, making its outlook more predictable for long-term investors.

Momentum vs.

Sustained Growth: A Strategic Comparison

ASML's performance is driven by technological leadership in a high-growth sector, but its exposure to global supply chain dynamics and geopolitical tensions introduces volatility. Its EUV business remains a key differentiator, yet the lack of 2026 guidance raises questions about long-term stability. Conversely, Bank of America's momentum is rooted in a stable NII stream and disciplined cost management, with forward-looking metrics (e.g., 5–7% NII growth in 2026) providing a clearer path for investors.

For long-term investors, the choice between these two stocks depends on risk tolerance. ASML offers high-reward potential in a cyclical industry, while Bank of America provides a more conservative bet with steady, predictable growth. Both companies have demonstrated operational excellence, but their trajectories reflect divergent strategies: ASML's innovation-driven momentum and Bank of America's balance-sheet resilience.

Conclusion

ASML and Bank of America exemplify the tension between momentum and sustained growth in today's markets. ASML's EUV dominance and AI partnerships position it as a leader in the semiconductor revolution, albeit with macroeconomic risks. Bank of America, meanwhile, leverages its financial scale and operational discipline to deliver consistent returns. For investors seeking stability, Bank of America's forward guidance and NII projections may be more compelling. For those willing to accept volatility, ASML's technological edge and EUV growth could justify the risk.