Markets Underestimate Impact of AI Spending on European Chip Stocks
Dow Jones
Sep 29
1339 GMT - Investors are underestimating the durability and breadth of artificial-intelligence spending, and the impact of that spending on European AI-related stocks, UBS analysts write. ASML, ASM International and Technoprobe are especially well-placed to benefit from AI spending, the analysts say. Investment in expanding AI capacity will benefit the companies that make highly specialized equipment used by chip makers, they say. ASML will likely raise its targets for capacity growth over 2027 and 2028, and will likely raise its year-on-year revenue growth guidance to above 30%--ahead of consensus estimates, the analysts say. ASML shares rise 3.8%, while ASM International shares jump 5.4%. Technoprobe shares jump 7.6%.
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