BUZZ - UBS downgrades Besi rating to "Sell" due to risk from hybrid bonds, stock price plunges
路透社2026/10/07 08:36On October 7, BE Semiconductor Industries (BESI.AS) shares fell approximately 6% after UBS downgraded the Dutch chip equipment manufacturer from "Buy" to "Sell" and cut its target price by 57% to 159 euros. UBS stated that the expected demand for chip packaging technology "hybrid bonding" (HB)—the core of Besi's investment logic—"has not materialized as anticipated." UBS believes that because AI accelerator customers prioritize capacity expansion over performance improvements, the adoption rate of hybrid bonding technology in high-bandwidth memory will slow down. UBS expects that by 2028, hybrid bonding technology will account for 10% of equipment demand, whereas the market consensus suggests a figure of about 50%. The bank anticipates Besi's HB revenue in 2027-28 to be 50%-60% lower than consensus, and demand from co-packaged optics, AI accelerators, and PC processors is unlikely to fill the gap. UBS also noted that existing capacity at TSMC 2330.TW and Intel INTC.O is already sufficient to support "considerable shipment volumes," leaving limited upside unless adoption rates exceed expectations. Besi's share price extended Tuesday's losses, following a 5.4% drop after Bank of America Global Research downgraded the stock based on similar concerns. (link) (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. Due to the potential for errors or lack of required context in automated translations, Reuters does not guarantee the accuracy of these texts, which are provided solely for readers’ convenience. Reuters assumes no liability for any damages or losses resulting from the use of these automated translation functions.)
October 7 - ** BE Semiconductor Industries (BESI.AS) shares fell about 6% after UBS downgraded the Dutch chip equipment maker from “buy” to “sell” and cut its price target by 57% to €159
** UBS said that demand expectations for the chip packaging technology “hybrid bonding” (HB)—the core of Besi’s investment thesis—“have not materialized as expected”
** UBS believes adoption of hybrid bonding technology in high-bandwidth memory will slow as AI accelerator customers are prioritizing capacity expansion over performance improvement
** UBS projects that by 2028, hybrid bonding technology will account for 10% of equipment demand, while market consensus implies about 50%
** The bank expects Besi’s HB revenue in 2027–28 to be 50%-60% lower than market consensus and demand from co-packaged optics, AI accelerators, and PC processors is unlikely to make up this shortfall
** UBS said the existing capacity of TSMC 2330.TW and Intel INTC.O is already sufficient to support “significant shipment volumes”; unless adoption exceeds expectations, there is limited upside
** Besi shares extended Tuesday’s losses, after Bank of America Global Research also downgraded the stock on similar concerns; shares ended Tuesday down 5.4% (link)
(To assist non-English speakers, Reuters has automatically translated its news reports into several other languages. As automated translation may contain errors or lack necessary context, Reuters makes no guarantee regarding the accuracy of the automated translation. It is provided solely for the convenience of readers. Reuters assumes no responsibility for any harm or loss resulting 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.
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