ASM International Shares Surge

Shares of ASM International (AS:ASMI) jumped over 5% on Wednesday after the company reported strong results. Analysts at BofA Securities have elevated it to their top pick within the European semiconductor capital equipment sector.

Strong Results and Forecast

The decision reflects the strong results ASMI delivered, including higher-than-expected orders and a confident upward revision of its 2025 revenue forecast. Analysts at BofA are maintaining a “buy” rating for ASMI with a price objective of €746.

Third Quarter Performance

ASMI’s third quarter results surpassed expectations on several fronts, reporting revenues of €778.6 million, a 1.7% increase over the Visible Alpha consensus estimate. Orders were robust at €815.3 million, significantly higher than the BofA forecast of €770.6 million.

These results were driven by rising demand for next-generation technologies such as Gate-All-Around (GAA) transistors and high-bandwidth memory (HBM), signaling ASMI’s strong alignment with industry trends. Gross margins also improved, reaching 49.4%, reflecting both a favorable product mix and stronger-than-anticipated sales from China.

Revenue Guidance Upgrade

Despite some headwinds in the Chinese market, ASMI managed to raise its full-year 2025 revenue guidance to a range of €3.2 to 3.6 billion, an upgrade from the previous forecast of €3.0 to 3.6 billion. “We are pleasantly surprised by the figures,” said analysts from Stifel. They noted that while the consensus had already been at €3.6bn for 2025, the buy-side had expected at least a minor cut to the previous guidance, marking it as a positive surprise.

While the company expects China’s contribution to decline in the second half of 2025, this adjustment has not altered consensus estimates. Analysts from J.P. Morgan commented on the raised bottom end of the guided range.

Strong Future Positioning

The cyclical and secular growth drivers—such as the adoption of silicon carbide epitaxy tools and advancements in semiconductor manufacturing—reinforce ASMI’s position. BofA analysts noted ASMI’s ability to maintain operational strength amid recent global semiconductor market challenges.

With other major industry players like ASML (AS:ASML) adjusting expectations downward, ASMI’s consistent performance reassures investors. Furthermore, the company’s focus on key areas like epitaxy and atomic layer deposition tools positions it to capitalize on long-term trends in the industry.

Citi Research stated, “We continue to like ASM’s positioning for the current cycle, particularly the atomic layer deposition (ALD) exposure into the gate all-around (GAA) transition. With the 2025 guidance adjustment likely to be taken into account, we are removing our Short-term Downside view.”