Swiss agency VAT Group is nicely positioned to benefit from the rise of artificial intelligence (AI), in accordance with a number of funding banking analysts.
A key participant in the AI chip trade
Investment agency Vontobel has recognized VAT Group as a key participant in the AI chip provide chain. The company’s shares, that are listed in each Switzerland and the United States, have attracted consideration on account of the development of the semiconductor trade.
Vontobel analyst Michael Foeth sees AI as “the biggest technological shift of our lifetimes.” He estimates that the world semiconductor trade will likely be value $1 trillion by 2030. He additionally predicts that by 2027, 30% to 40% of the chip market will likely be AI-related. Foeth additionally highlighted that semiconductor tools know-how, equivalent to that supplied by VAT, is driving this alteration in the trade.
Purchase advice for VAT Group
Vontobel has given VAT Group a “buy” ranking, with a goal worth of 540 Swiss francs (roughly $641), implying an upside potential of 35%.
VAT Group, based mostly in Haag, Switzerland, is a specialist in vacuum valves utilized in semiconductor manufacturing. These valves are important for different corporations in the provide chain, equivalent to Lam Research, which use them to create “ultra-clean rooms” for chip manufacturing.
Other banks’ perspective on VAT Group
It’s not simply Vontobel that has a optimistic view on VAT Group. Jefferies’ Olivia Honychurch has a goal worth of CHF 700 on the inventory, indicating a possible upside of 75%.
However, UBS has warned of potential dangers arising from commerce tensions between the United States and China. These conflicts may have an effect on as much as 10% of world spending on semiconductor tools. According to estimates by FactSet, 25% of the sector’s revenues come from China, whereas 22% is generated in the United States.
RBC improves its view on VAT
RBC Capital Markets, which was initially extra pessimistic about VAT Group, upgraded its ranking in August from “underperform” to “sector perform.” According to RBC analyst Sebastian Kuenne, regardless of declining gross sales in China and foreign money headwinds, the company stays an essential participant in the wafer fabrication tools (WFE) market.
Kuenne stated they keep “general confidence in the WFE market and the role of VAT within it,” even with some changes to the estimates.
Other corporations benefiting from the rise of AI
In addition to VAT Group, Vontobel additionally talked about Comet and Inficon as potential beneficiaries of AI development, albeit with extra average expectations.
Comet, a supplier of X-ray and radio frequency know-how, was given a “hold” ranking with a goal worth of CHF345, representing a possible upside of 10%.
Inficon, which makes devices for fuel evaluation and measurement, additionally has a “hold” ranking with a goal worth of 1,270 Swiss francs, suggesting 8% development.
