Choppy trading ahead for European semis, Jefferies warns

Nokia Oyj

13/01/2026 07:21

** "Expect a choppy ride," Jefferies says in its sector outlook on European semis for 2026, adding that being selective on stocks will be key after they saw a strong share price rise in 2025

** While expectations are high going into 2026 with stocks trading around or at all-time highs, the broker sees further upside to be limited, saying underlying trends remain subdued, such as weak demand outside AI

** The market is "pricing in a sharp reversal in earnings momentum," which the broker deems unlikely

** Jefferies' favourites are SUSS SMHNn.DE, Nokia NOKIA.HE, and Infineon IFXGn.DE where "expectations are lower," with the latter also set to benefit from positive signs in demand for industrial and auto chips

** STM STMPA.PA and Melexis MLXS.BR could also benefit if the cycle were to accelerate, but "the timing here is unpredictable," analysts note

** The brokerage downgrades ASM ASMI.AS and VAT VACN.S to "underperform," citing likely further earnings cuts

RATINGS AND PT CHANGES

COMPANY
RATING
OLD RATING
PT
OLD PT
ASML ASML.AS
HOLD
/
EUR 1020
EUR 795
ASM ASMI.AS
UNDERPERFORM
HOLD
EUR 495
/
Infineon IFXGn.DE
BUY
/
EUR 52
EUR 48
SUSS SMHNn.DE
BUY
/
EUR 56
EUR 42
VAT VACN.S
UNDERPERFORM
HOLD
CHF 325
/

(Reporting by Jakob Van Calster)

((jakob.vancalster@thomsonreuters.com))