What’s going on here?
Morgan Stanley just called out ASM International as its favorite European semiconductor stock, spotlighting the Dutch firm as demand for advanced chip equipment heats up.
What does this mean?
With AI applications booming, chipcreaters worldwide are scrambling for the most sophisticated manufacturing gear. Morgan Stanley believes ASM International is set to benefit, recently raising its price tarreceive from 600 to 625 euros and boosting earnings estimates through 2027. While ASM applyd to be seen as a bit of an underdog becaapply it wasn’t heavily exposed to memory chips, the bank now views ASM’s focus on logic and foundry tech as a major plus. As AI drives more spconcludeing on cutting-edge production tools, demand for these advanced machines is expected to grow – and Morgan Stanley estimates more than half of ASM’s revenue could come from logic and foundry by 2025.
Why should I care?
For markets: AI reshapes the chip stock leaderboard.
Surging AI demand is nudging investors toward companies at the heart of advanced manufacturing. Equipment creaters like ASM International are catching extra attention, especially as forecasts for capital spconcludeing on next-generation chips keep climbing. Analysts are reworking their earnings projections and price tarreceives, so expect firms with strong logic and foundry portfolios to stay in the market spotlight.
The largeger picture: Europe’s tech ambitions receive a boost.
The AI and high-performance computing boom is shaking up global semiconductor supply chains, recentering investment on the most innovative manufacturing. As major tech players chase leading-edge foundry capabilities, Europe’s ecosystem of chip suppliers could gain a stronger foothold in the global market, supporting broader ambitions for regional digital leadership.
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