Publication date: April 24, 2025
On February 27 of this year, we wrote an extensive article about the popular BE Semiconductor Industries N.V. (BESI) share. At the time, we concluded that the stock could speculatively recover slightly but that the bottom would be much lower than the € 115 level it was at that time. We calculated the bottom in the zone to be around € 85, to move upwards from there.
Today, we are two months further, and last Wednesday morning, BESI published its quarterly results, of course, with an explanation and expectations for the future. It is time for an update because it is time for action.
We advise you to first read back the previous article on BESI. That way, you will have the full background information and can best assess this article. The February 27 article on BESI can be found here.
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What is the current situation at BESI?
From the published quarterly results and the commentary on them, it appears that BESI has posted some declines, but that some of the decline is within expectations. BESI is cautiously optimistic about the future. Although sales fell slightly, the figures show a positive trend in demand for advanced packaging solutions, especially for AI applications.
BESI continues to benefit from the growing demand for AI-related applications. The company received hybrid bonding orders from two leading memory manufacturers for HBM4 applications and follow-up orders from a major Asian foundry for logic applications.
In addition, a leading U.S. chip manufacturer began producing AI-related logic devices, using BESI's hybrid bonders in integrated production lines.
An important step was made on April 14, 2025. That was when Applied Materials announced it had taken a 9% stake in BESI. The two companies have been working together since 2020 to develop fully integrated equipment for die-based hybrid bonding.
For the second quarter, BESI expects stable sales around €144.1 million with a gross margin of 62% to 64%. In addition, a reduction in operating costs is expected, which could reach 10% compared to first-quarter costs.
CEO Richard Blickman emphasized that despite continued weakness in traditional markets such as mobile and automotive applications, demand for advanced packaging solutions for AI applications remains strong. He also logically warned that geopolitical tensions and trade restrictions could affect future demand.
How has BESI's share price developed in recent months
Below is BESI's price chart as of Feb. 27 last year.
The possible speculative recovery did not materialize, and the correction continued firmly. After the announcement of import duties by President Trump, the price reached our price target in the panic sell-off and even slipped to €80. After a volatile period of several weeks, BESI is climbing out of the downturn, and the April 23 figures are being excellently received by the market.
What is our expectation for the BESI share price?
Our long-term expectation was positive in the previous article, and that has not changed. However, we must also mention the well-known turbulent market conditions due to the policies of the US President. As a result, BESI shares will continue to experience significant fluctuations in the coming period. Nevertheless, we believe that the bottom of the major correction has been reached and BESI can look up again.
Below is the price chart for the past four years. This gives a clear picture of the big picture.
As reported, we expect that the bottom will hold around € 80, and that we can go up in a volatile ride to the price target at
€ 190,-. This will be with big upsides and is expected to be reached via the intermediate stops at € 130,- and € 155,-.
Conclusion
BESI is a cyclical company with high highs and deep lows. To reach them, one must be prepared for a moving ride. The company has gone through a difficult period and has been severely punished on the stock market. This provides opportunities because in the long term, BESI has a lot of potential. The expectations expressed by BESI are realistic and healthy.
At the current level of around €95, you can consider taking the stock into your portfolio. Of great importance is that you keep the risk limited due to the geopolitical conditions and the volatile nature of the stock. Consider a modest position and hold the stop loss at a close below €75. With a price target of € 190, the potential for the next few years is high.
Thursday, July 24, 2025, BESI publishes its second quarter figures.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.