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UBS analysts told investors in a note that the company is the undisputed structural winner, but a lot of its positives are priced in.
“We would wait for a better entry point from here,” the analysts wrote. “Although ASMI is a key beneficiary of the transition to GAA, we believe this has been well flagged for some time and is mostly embedded in consensus forecasts for the near term.”
“Despite ASMI having high exposure to advanced logic and therefore an enabler of AI, we forecast the incremental Nvidia opportunity to represent low to mid-single digit % of sales in 2025. Therefore, we believe the rally off the back of this theme is overdone,” they added.
The analysts also believe the stock is trading at a premium and, although they still believe ASMI deserves a premium due to its higher exposure to faster growing markets, they would wait for a better entry point.
