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Investing.com - Bernstein upgraded Ibiden Co Ltd. (4062:JP) (OTC:IBIDF) from Market Perform to Outperform on Thursday, setting a price target of JPY9,080.00.
The upgrade comes as Bernstein identifies Ibiden as "the biggest beneficiary of structural growth in AI chip substrates," particularly those used in Nvidia (NASDAQ:NVDA)’s graphics processing units (GPUs).
Bernstein notes that Nvidia’s GPUs are becoming "bigger and more complex," resulting in increasingly sophisticated substrates. From Blackwell to Rubin and Rubin Ultra chip generations, the firm observes an 80-100% increase in substrate total area with each migration.
The dollar content increase for these substrates could be 100% or more per generation, according to Bernstein’s analysis. This growth trajectory makes Ibiden strategically positioned in the AI chip supply chain.
Bernstein forecasts the total addressable market for Nvidia’s GPU substrates to grow 140% this fiscal year to $950 million, with continued growth at a 38% compound annual growth rate over the next two years, potentially reaching $1.8 billion.
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