Analyst David Dai CFA from Bernstein maintained a Buy rating on IBIDEN CO and increased the price target to Yen16,500.00 from Yen9,080.00.
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David Dai CFA has given his Buy rating due to a combination of factors that highlight Ibiden Co’s potential for growth and profitability. The company’s electronics margin is expected to increase significantly, driven by a higher contribution from AI technologies and improvements in Intel’s margin. While Nvidia’s margin is temporarily reduced due to depreciation, it is anticipated to rebound, and Intel’s margin is improving with its focus on high-end products. Ibiden’s technology leadership positions it well to capitalize on the growing complexity of substrates, with Nvidia’s substrate total addressable market expected to more than double by 2027.
Moreover, Ibiden is expanding its customer base, attracting new clients in networking and ASIC sectors, and is poised to benefit from the growth in AMD’s AI GPU and AI ASICs. Despite previous concerns about T-Glass shortages, Ibiden has secured a sufficient supply to support its growth. The price target for Ibiden has been raised to ¥16,500, reflecting a strong expected EPS growth and a favorable valuation. Overall, Ibiden is seen as a key beneficiary of the AI boom in the semiconductor industry, justifying the Buy rating.
In another report released on October 31, Goldman Sachs also maintained a Buy rating on the stock with a Yen14,600.00 price target.