ASM International Added to Morgan Stanley's 'Top Pick' List in European Semiconductors Sector; Price Target Up

07:46 AM EST, 12/08/2025 (MT Newswires) -- Morgan Stanley moved ASM International (ASM.AS) to its "top pick" of stocks in the European semiconductors sector, anticipating the company to benefit from higher equipment spending from technology companies amid expected positive developments in the leading-edge logic chip manufacturing segment. "Memory spot prices continue to show extremely strong momentum, prompting expectations that investment will follow. We agree, but note that AI has started to strain overall semiconductor capacity, with additional demand requiring investment not just in memory but in leading edge logic/foundry capacity as well," analysts said Monday, raising the overweight-rated stock's price target to 625 euros from 600 euros. The research firm also once again increased its 2026 and 2027 EPS forecasts for the Dutch semiconductor wafer processing company, noting that leading-edge logic/foundry makes up more than half of ASMI's 2025 equipment revenue. "ASMI is still widely perceived as a laggard relative to the rest of the industry into next year due to its lower memory exposure and higher logic/foundry mix. That narrative may shift and start working in the company's favour as capex spending within advanced logic/foundry not only rises but broadens," Morgan Stanley added.