An Unsung AI Stock to Watch

  • Jefferies initiates coverage of SÜSS Microtec with a Buy rating and a 76 euro price target, implying a potential 34% upside.
  • About 30% of SÜSS’s sales come from chip-on-wafer-on-substrate technology used in Nvidia AI chips.
  • SÜSS Microtec is a unique play on the NVIDIA/AI supply chain in Europe.
  • The German company’s shares are listed in Frankfurt and can be traded over-the-counter for US investors.

The world’s biggest and best-known artificial intelligence stock, Nvidia, has seen a decline in recent times. Investors seeking an alternative may find ‘the next Nvidia’ in SÜSS Microtec, a German chip equipment supplier with a market value of €1.09 billion. Jefferies equity analyst Olivia Honeychurch gave the company a Buy rating and set a 76 euro price target, suggesting a potential 34% increase from its current level. About 30% of SÜSS’s sales come from chip-on-wafer-on-substrate technology, which is used in Nvidia’s AI graphics processing units. This makes the company a unique play on the NVIDIA/AI supply chain in Europe due to its multilayered exposure. While SÜSS Microtec’s shares are listed in Frankfurt, US investors can access them through over-the-counter trading. As of Friday’s close, SÜSS has seen a 104% increase this year compared to Nvidia’s 134% surge and Germany’s TecDAX Performance Index’s 1.6% decline.

Factuality Level: 8
Factuality Justification: The article provides relevant information about SÜSS Microtec and its potential as an alternative investment option in the AI and semiconductor industry. It includes expert opinions from Jefferies analysts and compares the company’s performance to Nvidia and Germany’s benchmark tech index. However, it could provide more context on the company’s financials and market positioning for a better understanding.
Noise Level: 5
Noise Justification: The article provides some relevant information about an alternative investment option in the AI and semiconductor industry but lacks a comprehensive analysis of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, and actionable insights. It focuses more on promoting a specific stock without providing enough context or supporting information.
Public Companies: SÜSS Microtec (SUS), Taiwan Semiconductor Manufacturing Co. (TSM), Nvidia (NVDA)
Key People: Olivia Honeychurch (Equity Analyst), William Beavington (Equity Sales Specialist), George Glover (Writer)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: Nvidia and Taiwan Semiconductor Manufacturing Co.
Financial Rating Justification: The article discusses the financial performance of SÜSS Microtec, a chip equipment supplier, and its potential impact on Nvidia and Taiwan Semiconductor Manufacturing Co., which are both involved in the semiconductor industry. It also mentions the stock’s performance compared to Germany’s benchmark tech gauge, the TecDAX Performance Index.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
Deal Size: The deal size is $1,210,000,000.
Move Size: 34%
Sector: Technology
Direction: Up
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.barrons.com