BUZZ - UBS downgrades Besi to 'Sell' due to risks from hybrid bonding adoption; share price drops accordingly
路透社2026/10/07 10:16Key update on share price in the first point; update on the performance of European peer stocks in the eighth point. October 7th - BE Semiconductor Industries (BESI.AS) shares fell by about 9.5% after UBS downgraded the Dutch chip equipment manufacturer’s rating from “Buy” to “Sell” and slashed its target price by 57% to 159 euros. UBS stated that expectations for demand for chip packaging technology “hybrid bonding”—which is at the core of Besi’s investment thesis—“have not materialized as expected.” According to UBS, adoption of hybrid bonding technology in high-bandwidth memory will slow because AI accelerator clients currently prioritize capacity expansion over performance improvements. UBS expects that by 2028, hybrid bonding technology will account for 10% of equipment demand, whereas market consensus suggests this proportion is around 50%. The bank projects that Besi’s hybrid bonding (HB) revenue in 2027-28 will be 50-60% lower than market expectations, and that demand from co-packaged optics, AI accelerators, and PC processors is unlikely to fill that gap. UBS stated that existing capacity at TSMC (2330.TW) and Intel (INTC.O) is already sufficient to support “substantial shipment volumes” and unless adoption rates exceed expectations, the upside is limited. Besi’s share price extended Tuesday’s downturn, after Bank of America Global Research also downgraded the stock based on similar concerns, with shares closing down 5.4% on Tuesday (link). In other European semiconductor stocks: ASML (ASML.AS) declined 2.3%, ASM International (ASMI.AS) dropped 5.3%, Infineon (IFXGn.DE) fell 5.8%, X-Fab (XFAB.PA) lost 5.8%, Soitec (SOIT.PA) was down 4.1%, STMicroelectronics (STMPA.PA) dropped 3.8%, Aixtron (AIXGn.DE) fell 2.7%, and ams-OSRAM (AMS2.VI) fell 3.6%. (Note: For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Because automated translations may be incorrect or may not include the intended context, Reuters does not guarantee the accuracy of translated texts and provides them solely for reader convenience. Reuters assumes no responsibility for any damage or loss caused by using automated translation features.)
The first key point updates stock prices, the eighth key point updates the European peer stock price trends.
October 7 - ** Shares of BE Semiconductor Industries (BESI.AS) fell by about 9.5%, after UBS downgraded the Dutch chip equipment manufacturer from “Buy” to “Sell” and slashed its target price by 57% to 159 euros.
** UBS stated the expected demand for “hybrid bonding” chip packaging technology — the core of Besi’s investment thesis — “has not materialized as anticipated.”
** According to UBS, since AI accelerator clients are currently prioritizing capacity expansion over performance improvement, the adoption rate of hybrid bonding technology in high-bandwidth memory will slow down.
** UBS predicts that by 2028, hybrid bonding technology will account for 10% of equipment demand, while market consensus expects about 50%.
** The bank expects Besi’s hybrid bonding (HB) revenue in 2027-28 to be 50%-60% below market consensus, and demand from co-packaged optics, AI accelerators, and PC processors is unlikely to fill the gap.
** UBS noted that TSMC 2330.TW and Intel INTC.O already have sufficient capacity to support “significant shipment volumes.” If adoption doesn’t exceed expectations, the upside potential is limited.
** Besi’s share price continued to fall on Tuesday after BofA Global Research cut its rating based on similar concerns; the stock closed down 5.4% on Tuesday (link)
** Elsewhere in the European semiconductor sector, ASML ASML.AS dropped 2.3%, ASM International ASMI.AS fell 5.3%, Infineon IFXGn.DE declined 5.8%, X-Fab XFAB.PA lost 5.8%, Soitec SOIT.PA dropped 4.1%, STMicroelectronics STMPA.PA was down 3.8%, Aixtron AIXGn.DE fell 2.7%, and ams-OSRAM AMS2.VI down 3.6%
(For non-native English speakers, Reuters provides its reporting in automated translations into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of the automated translation text and provides it solely as a convenience for readers. Reuters accepts no liability for any damages or losses arising from the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
ECB’s Pereira: No second-round inflation effects at present
Market Chatter: RWE Says Its Uniper Role Would Be Limited After Joint Bid With KKR
06:41 AM EDT, 10/07/2026 (MT Newswires) -- RWE Chief Executive Markus Krebber said any involvement by the German utility in Uniper would be limited after RWE and KKR (KKR) submitted a joint non-binding bid for the state-owned energy company, Bloomberg reported Wednesday. RWE is not targeting a takeover, given its significant position in Germany's energy market, Krebber said in an interview with Bloomberg. RWE did not immediately respond to MT Newswires' request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
BUZZ-"Broker Opinions" Observation: As growth drivers for artificial intelligence continue to increase, Wall Street’s attitude towards Marvell Electronics is becoming more positive.
October 7 - Marvell Technology (MRVL.O) on Tuesday raised its fiscal 2028 revenue forecast to around $20 billions, beating Wall Street expectations, as surging artificial intelligence spending drives growing demand for the company’s custom data center chips. At least 11 analysts have raised their price targets; the median target price among 45 brokerages covering the stock is $325, according to Reuters data. Full speed ahead: Morgan Stanley (rated “Neutral”, target price $300) said the company's long-term targets are achievable in a potential $3 trillion AI infrastructure spending environment, but cautioned that the projected 55%-70% growth leaves almost no room for execution errors, setting a high bar for quarterly results. JPMorgan (“Overweight”, target price $360) noted: "The company is operating at full speed, and the upgraded outlook is not limited to a single product category or customer, but is supported by multiple growth drivers across the data center full stack.” TD Cowen (“Buy”, target price $350) stated that Marvell’s underlying growth momentum has fully shifted to its robust connectivity business, and the risks associated with its custom XPU projects have substantially eased. Melius Research (“Buy”, target price $445) believes that Marvell's market capitalization could reach $1 trillion if the company executes as planned. (For the convenience of non-English speakers, Reuters has automatically translated its report into several other languages. Due to possible errors in automated translation or the absence of required context, Reuters does not guarantee the accuracy of translated texts, which are provided only for reader convenience. Reuters assumes no liability for any damage or loss caused by use of the automated translation feature.)
BUZZ-Penguin Solutions shares soar as it raises full-year revenue guidance and beats expectations for Q4 results.
October 7 - **Shares of AI data center infrastructure provider Penguin Solutions (PENG.O) rose 6.3% in pre-market trading to $68.26.** The company raised its fiscal 2027 net sales forecast to a midpoint of about $2.43 billion, up from the previous midpoint of about $2.17 billion; it expects fiscal 2027 revenues to grow 40% year-over-year, with a margin of error of ±10%. **Fiscal 2027 adjusted earnings per share (EPS) are projected at $4.45 (with a fluctuation of plus or minus $0.70), while consensus analyst expectations, according to LSEG data, were at $3.38.** The report shows Q4 revenue at $566.7 million and adjusted EPS at $1, both beating analyst estimates. **All seven brokerage firms covering the stock have a "buy" or higher rating; the median price target is $82.5.** As of the previous trading day’s close, PENG shares are up more than threefold this year, while the S&P 600 Small Cap Index .SPCY has risen just over 15% during the same period. (For the convenience of non-English speakers, Reuters provides automatic translations of its reports into several other languages. Due to the potential inaccuracy of automatic translations or missing context, Reuters does not guarantee the accuracy of these translated texts and provides them solely for the convenience of readers. Reuters assumes no liability for any damage or loss arising from the use of automatic translation features.)
Crypto prices
More
