Much of the European semiconductor industry may be “cautious” about the outlook for 2025, but Bernstein sees good entry opportunities for the industry in the coming year. Analysts at the investment bank said: “While continued strong demand in China is expected to drive (fab equipment) growth of 10% in 2024, our latest outlook predicts flatness in 2025, with growth returning only in 2026 (+ 8%)” the December 18 report read. WFE is equipment used to manufacture integrated circuit semiconductor wafers. Here are two of Bernstein’s top picks on the topic. BE Semiconductors BE Semiconductor Industries, which provides semiconductor assembly equipment, remains Bernstein’s “first choice” in the industry. The investment bank set a target price on the Dutch stock at 135 euros ($140), which would represent an increase of about 0.03% from the closing price on December 24. Analysts at the bank explained that the stock has “tough going” this year, though, due to delays in hybrid-bonded memory adoption in March and a lack of recovery in the mainstream assembly business. They noted that the stock continues to offer a “very attractive fundamental story.” “Patience may be required to see Besi achieve strong growth through either or both cyclical recovery and hybrid bonds, but we continue to believe both will contribute to growth looking toward 2026 and beyond,” they added. Besi’s shares are listed on Euronext Amsterdam and trade in the United States as American Depositary Receipts (ADRs) under the symbol BESIY. Another stock Bernstein likes is German chipmaker Infineon, even though the company’s share price has been “disappointing” for much of 2024. It has fallen nearly 16.6%. “Indicators now point to a close to the trough of the cycle, raising the possibility of a significant re-rating for IFX. This, coupled with long-term growth drivers (of which powering artificial intelligence data centers is now a key driver for IFX), makes IFX is our top pick among IDMs,” the analyst noted. Infineon currently expects revenue from its AI business to exceed 500 million euros in fiscal 2025 and to exceed 1 billion euros within two years, they added. Infineon’s shares are listed on the Frankfurt Stock Exchange and trade in the United States as American depositary receipts under the symbol IFNNY. Bernstein set the stock’s target price at 36 euros, an increase of approximately 14.1% from the closing price on December 24, and maintained an outperform rating. —CNBC’s Michael Bloom contributed to this report.
Bernstein picks 2 top European semiconductor stocks for 2025 | Real Time Headlines
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