BE Semiconductor Set to Capitalize on Growth from Apple and Nvidia Innovations

Driven by advances from tech giants such as Apple ( AAPL , Financials ) and Nvidia ( NVDA , Financials ), BE Semiconductor ( BESIY , Financials ) is positioned for significant growth potential, said TF International Securities analyst Ming-Chi Kuo . The Dutch corporation's year-to-date share price is down 2.7%; however, new developments in semiconductor technology may change this trend.

Variable aperture technology, a feature expected in Apple's iPhone 18 Pro in 2026, requires special equipment provided by BE Semiconductor. The company's major contribution to this innovation is shown by its involvement in the production of tools for joining the opening blades.

Apple's transition to its M5 silicon family, scheduled to be released between 2025 and 2026, is another exciting development for BE Semiconductor. The switch will use Taiwan Semiconductor Manufacturing Co.'s 3-nanometer complex node. (TSM, Financials). Apple uses integrated circuit packaging for a small frame for its high-performance processors, which is why BE Semiconductor's hybrid bonding process is expected to gain favor.

Hybrid bonding is attracting interest in the semiconductor field for its potential to develop high-bandwidth memory solutions. Based on Kuo's findings, SK Hynix will use hybrid bonding in its HBM3e 16hi memory starting in 2026, thus addressing the needs of the AI ​​server and increasing efficiency. Because of its expertise in bonding tools, BE Semiconductor benefits from this recognition.

With integrated optics planned for inclusion in Nvidia's Quantum-3/X800 InfiniBand switch, scheduled for launch in 2025, the need for hybrid bonding solutions may arise. This change points BE Semiconductor to another area of ​​development.

Taiwan Semiconductor's expected increase in SOIC deployments across its customer base including AMD ( AMD , Financials ), Amazon Web Services ( AMZN , Financials ), and Qualcomm ( QCOM , Financials ) could therefore help ensure BE Semiconductor's place in the industry.

BE Semiconductor appears to be poised to take advantage of changes in the semiconductor and technology industries as its innovative technology aligns with industry needs.

This article first appeared on GuruFocus.