Does Morgan Stanley’s AI Focus Sharpen ASM International’s (ENXTAM:ASM) Strategic Edge in Chip Equipment?

• Earlier this month, ASM International announced that its Supervisory Board intends to reappoint CEO Hichem M’Saad for a second four-year term, while chair Pauline van der Meer Mohr plans to retire around the 2027 AGM once a suitable successor is in place.
• At the same time, Morgan Stanley singled out ASM International as its top European semiconductor equipment name, highlighting the company’s focus on advanced logic and foundry tools used in AI-driven chip production.
• We’ll now examine how Morgan Stanley’s endorsement, centered on AI-fueled demand for advanced deposition equipment, interacts with ASM International’s existing investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

ASM International Investment Narrative Recap

To own ASM International, you need to believe that AI-driven demand for advanced logic and foundry tools will keep expanding the company’s ALD and epitaxy footprint, while order softness and China exposure remain key watchpoints. The planned reappointment of CEO Hichem M’Saad supports continuity around the most important near term catalyst, the leading edge node ramp, but does not materially change the biggest risk, which is still concentrated exposure to a few advanced customers.

Among the recent announcements, Morgan Stanley naming ASM its top European semiconductor equipment name is most connected to this story, because it explicitly ties the company to AI related capital spending on advanced logic and foundry. That endorsement sits against a backdrop of easing order intake and a book to bill expected below 1, which keeps the question of how quickly demand normalizes front and center for investors watching the next 12 to 24 months.

Yet investors should also be aware that concentrated reliance on a handful of leading edge customers could...

Read the full narrative on ASM International (it's free!)

ASM International's narrative projects €4.6 billion revenue and €1.1 billion earnings by 2028. This requires 12.0% yearly revenue growth and about a €600 million earnings increase from €527.1 million today.

Uncover how ASM International's forecasts yield a €626.16 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community currently value ASM International between €256.09 and €690.00, underlining how far opinions can diverge even on the same numbers. When you set that against the reliance on a few advanced logic and foundry customers, it becomes even more important to compare different views on how sustainable that demand really is.

Explore 8 other fair value estimates on ASM International - why the stock might be worth as much as 27% more than the current price!

Build Your Own ASM International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ASM International research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free ASM International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ASM International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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