Swiss company VAT Group is poised to benefit significantly from the growth in artificial intelligence, according to analysts at a number of investment banks. Investment firm Vontobel highlighted the company as a key player in the AI chips supply chain. The stock is listed in Switzerland and also trades in the U.S . Vontobel’s analyst said that AI could be “the biggest technology shift of our lifetimes,” with the global semiconductor industry projected to reach $1 trillion by 2030. “We estimate that AI-related semiconductors will account for 30-40% of the total chip market by 2027,” said Michael Foeth, senior equity analyst at Vontabel, in a note to clients on Aug. 5. “Semiconductor equipment technology is enabling this inflection,” he added, naming VAT as a key stock set to benefit. VAT Group Vontobel has a “buy” rating on VAT Group, with a price target of 540 Swiss Francs ($641), representing a potential 35% upside. The company, headquartered in Haag, Switzerland, specializes in the development and manufacture of vacuum valves used in semiconductor production. Their products are used by other semiconductor supply chain companies, such as Lam Research , to set up so-called “ultra-clean rooms” for chip production. VAC.N-CH 1Y line Vontobel is not alone in its bullish stance on VAT. Investment bank Jefferies’ Olivia Honychurch has a price target of 700 Swiss francs on the stock, indicating an upside of 75%. UBS also notes potential risks associated with ongoing AI-trade tensions between the United States and China, which could impact up to 10% of global semiconductor equipment capital expenditure. FactSet estimates that 25% of the sector’s total revenue is derived from China, while U.S. sales comprise 22%. However, RBC Capital Markets — the most bearish among those covering VAT — upgraded the stock to “sector perform” from “underperform” in August, citing confidence in the wafer fab equipment (WFE) market. “We remain overall confident on the WFE market outlook and VAT’s role within. Estimates drop somewhat (lower high-margin China business and FX headwinds) without impairing the underlying story,” said RBC’s Sebastian Kuenne. Comet, Inficon Vontobel also highlighted Comet and Inficon as potential beneficiaries of the AI boom, albeit with more measured expectations. The bank has a “hold” rating on Comet, a provider of x-ray and radio frequency technology, with a price target of 345 Swiss francs, indicating a 10% upside. Inficon, which specializes in making instruments for gas analysis and measurement, also has a “hold” rating from Vontobel, with a price target of 1,270 Swiss francs, suggesting an 8% upside.
