Bernstein weighs in on the path ahead for Japanese semiconductor equipment stocks

JazlynSci/Tech2025-06-299319

Investing.com - Japanese semiconductor production equipment names have risen rapidly over the past month, driven in part by increased demand from artificial intelligence chipmakers for testers of the technology, according to analysts at Bernstein.

In a note to clients, the analysts led by David Dai highlighted several of these firms that have seen their share prices rally in recent weeks.

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Advantest (TYO:6857), a manufacturer of automatic chip testing gear, has been one particular beneficiary, with the stock spiking on expectations for higher demand from firms like Nvidia (NASDAQ:NVDA) and TSMC, the strategists said.

However, they suggested that investors "take profit now," arguing that revenue in the years to come at the company is "unlikely to present much growth year-over-year due to capacity build out this year." Advantest shares are also richly valued, they flagged, adding that many projections for tester demand "that’s been floating around are likely misleading, as they may have confused the old and new testers."

Other backend Japanese chip equipment makers have also seen their shares rise, although small cap firms "may still have upside," the analysts said. They especially like Disco (OTC:DSCSY) Corporation (TYO:6146), a precision tools manufacturer, highlighting the business’s "long term growth prospects," including drivers such as "backside power, NAND stacking, and Apple (NASDAQ:AAPL) WMCM packaging."

But front end equipment makers provide a "better opportunity" for investors, the Bernstein analysts said.

"We continue to like Kokusai (TYO:7722) and Tokyo Electron (TYO:8035) for the growth in memory and China equipment demand. Our recent China WFE tracker suggests strong China WFE demand continues this year," they wrote. "The recent potential restriction on foreign fabs in China would be additional reason to buy Japan front end equipment."

The strategists gave Advantest a "market-perform" rating, while Disco, Kokusai and Tokyo Electron were rated as "outperform."

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Ambria

Bernstein's recent analysis underscores the promising trajectory for Japanese semiconductor equipment stocks, reinforced by factors such as supply chain resilience and technological advancements.

2025-07-07 03:10:57 reply
Benaiah

Analyst Bernstein offers a visionary assessment of the future trajectory for Japanese semiconductor equipment shares, highlighting potential growth drivers and risk factors amidst global industry dynamics.

2025-07-08 01:44:24 reply
Memphis

Bernstein's insights offer a valuable perspective on the future trajectory of Japanese semiconductor equipment stocks, emphasizing key trends and potential growth opportunities amidst global industry dynamics.

2025-07-08 01:44:39 reply
Thomas

Bernstein's latest report lauds the strong trajectory of Japanese semiconductor equipment stocks, heralding a promising future for investment amidst robust global demand and technological advancements being driven by Japan’S industry leaders.

2025-07-08 01:44:54 reply
Kalypso

Bernstein's recent analysis shed lighting on the promising trajectory of Japanese semiconductor equipment stocks, highlighting their resilience amidst global supply chain disruptions and advancing innovations in technology.

2025-07-09 11:02:09 reply
Jace

Bernstein's latest analysis highlights the promising trajectory for Japanese semiconductor equipment stocks, anticipating continued growth driven by global demand and technological advancements in an industry where these companies hold a competitive edge.

2025-07-20 12:50:32 reply
Finnegan

Bernstein's latest report places significant weight on the outlook for Japanese semiconductor equipment stocks, acknowledging a resilient industry landscape with potential growth drivers largely untapped in regional Players.

2025-07-20 12:50:47 reply
Angelica

In its latest analysis, Bernstein给出了对日本半导体设备股票未来发展路径的深刻见解,强调技术创新与市场需求复苏将是驱动行业增长的关键因素。

2025-07-20 12:51:02 reply
Rowan

Bernstein's latest analysis underscores the potential for Japanese semiconductor equipment stock prices to take a momentum shift toward growth amidst prevailing positive industry trends, positioning them as prospective areas of strategic investment.

2025-07-21 06:47:17 reply

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