JPMorgan initiates BE Semiconductor stock with Overweight rating

Published 09/05/2025, 08:26
JPMorgan initiates BE Semiconductor stock with Overweight rating

On Friday, JPMorgan initiated coverage on BE Semiconductor Industries (AS:BESI:NA) (OTC:BESIY) with an Overweight rating and set a price target of €121.00. The firm’s analysis indicates that BE Semiconductor, a leading provider of die placement, bonding, and wafer-level packaging equipment, is well-positioned for significant growth due to its status as a market leader in hybrid bonding technology.

Hybrid bonding is considered a next-generation packaging technology with expectations for widespread adoption in the semiconductor industry. JPMorgan’s report highlights the potential for this technology, noting that advanced packaging is projected to grow at a compound annual growth rate (CAGR) of approximately 12% to 2029, while high-end performance packaging could see a CAGR of around 37% to the same year, according to data from Yole Développement.

Despite a multi-year downturn in BE Semiconductor’s consumer markets, including mobile, PC, and automotive sectors, JPMorgan’s research suggests a turnaround is on the horizon. The firm points to over 100 hybrid-bonder orders already placed with BE Semiconductor before mass adoption, indicating strong initial interest from the industry.

Prominent customers like AMD (NASDAQ:AMD) are already utilizing BE Semiconductor’s technology, and other major players such as Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC), and key high bandwidth memory (HBM) suppliers are currently evaluating these solutions for their next-generation chips. JPMorgan forecasts that if the adoption of hybrid bonding technology accelerates as expected around 2026-2027, BE Semiconductor could experience substantial revenue growth.

The Overweight rating reflects JPMorgan’s confidence in BE Semiconductor’s growth trajectory and its potential to capitalize on the advanced packaging market’s expansion. The price target of €121.00 is set for December 2026, suggesting a positive outlook for the stock over the next few years.

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