Swiss firm VAT Group is poised to profit considerably from the expansion in synthetic intelligence, based on analysts at quite a few funding banks. Funding agency Vontobel highlighted the corporate as a key participant within the AI chips provide chain. The inventory is listed in Switzerland and likewise trades within the U.S . Vontobel’s analyst mentioned that AI might be “the most important expertise shift of our lifetimes,” with the worldwide semiconductor trade projected to succeed in $1 trillion by 2030. “We estimate that AI-related semiconductors will account for 30-40% of the entire chip market by 2027,” mentioned Michael Foeth, senior fairness analyst at Vontabel, in a notice to purchasers on Aug. 5. “Semiconductor gear expertise is enabling this inflection,” he added, naming VAT as a key inventory set to profit. VAT Group Vontobel has a “purchase” score on VAT Group, with a worth goal of 540 Swiss Francs ($641), representing a possible 35% upside. The corporate, headquartered in Haag, Switzerland, specializes within the improvement and manufacture of vacuum valves utilized in semiconductor manufacturing. Their merchandise are utilized by different semiconductor provide chain corporations, akin to Lam Analysis , to arrange so-called “ultra-clean rooms” for chip manufacturing. VAC.N-CH 1Y line Vontobel shouldn’t be alone in its bullish stance on VAT. Funding financial institution Jefferies’ Olivia Honychurch has a worth goal of 700 Swiss francs on the inventory, indicating an upside of 75%. UBS additionally notes potential dangers related to ongoing AI-trade tensions between america and China, which might affect as much as 10% of worldwide semiconductor gear capital expenditure. FactSet estimates that 25% of the sector’s complete income is derived from China, whereas U.S. gross sales comprise 22%. Nonetheless, RBC Capital Markets — probably the most bearish amongst these masking VAT — upgraded the inventory to “sector carry out” from “underperform” in August, citing confidence within the wafer fab gear (WFE) market. “We stay general assured on the WFE market outlook and VAT’s position inside. Estimates drop considerably (decrease high-margin China enterprise and FX headwinds) with out impairing the underlying story,” mentioned RBC’s Sebastian Kuenne. Comet, Inficon Vontobel additionally highlighted Comet and Inficon as potential beneficiaries of the AI growth, albeit with extra measured expectations. The financial institution has a “maintain” score on Comet, a supplier of x-ray and radio frequency expertise, with a worth goal of 345 Swiss francs, indicating a ten% upside. Inficon, which makes a speciality of making devices for fuel evaluation and measurement, additionally has a “maintain” score from Vontobel, with a worth goal of 1,270 Swiss francs, suggesting an 8% upside.
