We are in a race for chips and memory, says ODDO BHF's Stéphane Houri

• Semiconductor market growth forecast lifted for 2026-2027, with wafer fab equipment expected to grow 25-30% in the near term.
• Strong demand for computing capacity, particularly in advanced memory (HBM), will keep prices high until at least 2028, creating opportunities for equipment manufacturers.
• AI investment opportunities are broadening beyond GPUs (Nvidia) to include memory, power, connectivity (photonics), and CPUs.
• European chipmakers are leaders in specialized equipment (ASML, ASMI) and power/photonics (STMicro, Infineon), but are unlikely to compete in leading-edge chip manufacturing against Asian and US giants.
• Memory market is experiencing high demand and strong margins, expected to continue for 2-3 years, though it will remain cyclical.

Stéphane Houri of ODDO BHF is bullish on the semiconductor sector, forecasting significant growth in 2026-2027, driven by robust demand for computing capacity from AI. He highlights a persistent supply-demand gap in memory and strong capital expenditure plans from major foundries, benefiting equipment manufacturers and specialized chipmakers. Geopolitical tensions are noted but not seen as fundamentally derailing CapEx trends.