On Wednesday, JPMorgan maintained its Overweight rating on ASM International NV (AS:ASMI) (ASM:NA) and increased the price target to €806 from €650. The firm anticipates significant market share gains for ASM International's Atomic Layer Deposition (ALD) and Epitaxy tools over the next two to three years. According to the analyst's projections, the company is expected to benefit from the adoption of its technologies in various advanced semiconductor manufacturing processes by 2025.
The adoption of ASM International's ALD tools is expected to be driven by the Gate All Around (GAA) process in the N2 node at Taiwan Semiconductor Manufacturing Company (TSMC) and equivalent nodes at other advanced logic companies. The firm will supply both ALD and Epitaxy tools for these processes. Additionally, the adoption of their ALD tools for high-k metal gate applications in DRAM and the resumption of growth in the NAND market, where ASM International improved its share prior to the market weakening in 2023, are also contributing factors to the positive outlook.
The analyst suggests that this "golden period" will likely lead to an expansion of the company's near-term multiples, as has been observed with peer companies. With the increased estimates for 2025 and beyond, the price target has been adjusted to reflect the anticipated growth and market position of ASM International. The firm's stock remains one of JPMorgan's top picks in the semiconductor sector.
The revised price target of €806 reflects JPMorgan's confidence in ASM International's potential for market share gains and the adoption of its ALD and Epitaxy tools in high-volume manufacturing processes.
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