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BofA Expects Potential Rerating for ASM International Amid 'Broadening' AI Demand; Buy Rating Maintained

MT Newswires·01/07/2026 03:05:37
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03:05 AM EST, 01/07/2026 (MT Newswires) -- BofA Global Research forecasts a possible rerating for ASM International (ASM.AS) in 2026, noting the "underappreciated" stock is anticipated to benefit from the "broadening" investment in the artificial intelligence segment. The research firm on Tuesday reiterated the Dutch semiconductor wafer-processing company's buy rating, with a price objective of 658 euros. "ASM benefits from changes relating to the shift to gate-all-around architecture in leading-edge logic at the 2nm node and beyond, including atomic layer deposition and epitaxy. A gradual increase in molybdenum penetration also represents incremental revenue for ASM. 4F2 DRAM architecture shift in 2028E should also drive significant growth in [atomic layer deposition] and [epitaxy]," analysts wrote in a 2026 outlook report for the European technology sector. BofA projects a 12% EBITDA compound annual growth rate for the 2024 to 2027 period. The research firm anticipates a cyclical rebound in the power, analog and wafer sectors during the latter half of 2026, which could serve as a potential catalyst for boosting ASM International's gross margins.