Fabricators like TSMC buy this equipment from firms that make tools for specific steps in the process. This places these firms near the beginning of the semiconductor value chain. As such, they feed into this complex ecosystem, which is an essential part of its proliferation. I’ll detail two semiconductor equipment stocks that may be gearing up for a big year in 2025. All return, valuation, and implied upside figures are as of the Dec. 11 close.
Tokyo Electron: Dominant Japanese Supplier Looks Undervalued Versus Peers
The company has the lowest or second-lowest relative valuation among the world's top five chip equipment firms based on various valuation multiples. Combined with its recovering sales, dominant market position, and preferential treatment from the U.S. government, Tokyo Electron could take off in 2025.
Camtek: Small Fish Looking to Move Its Way Up the Food Chain
On average, the two recently released Wall Street analyst price targets on Camtek imply upside in the share price of 32%. The company’s revenues have around 50% exposure to increasingly important high-performance computing applications, a key contributor to this upside. However, two key risks stem from Camtek’s country of origin.
The article "2 Semiconductor Stocks That Could Break Out in 2025" first appeared on MarketBeat.
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