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UBS has published its ranking of semiconductor companies positioned in the AI data-center power market, highlighting different opportunities and risks across the sector.
Analog Devices receives a Buy rating with a $490 price target. UBS sees the company as a potential market-share winner in AI data-center power, particularly through its exposure to voltage regulator modules (VRMs). Analysts expect evolving power-delivery architectures to create opportunities for ADI to gain share. UBS values the company using a forward price-to-earnings approach, while highlighting industrial demand, electric-vehicle adoption and the ongoing integration of Maxim Integrated as key considerations.
STMicroelectronics is also rated Buy, with an €80 target. UBS uses a discounted cash-flow model with a 9% WACC and 2% terminal growth rate. Key risks include GDP growth, EUR/USD movements, technology product cycles and manufacturing-capacity utilization.
$ADI $STM
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