Deutsche Bank ups AT&S to 'buy' as chip substrate shortage boosts prices

Deutsche Bank upgrades Austria Technologie & Systemtechnik (AT&S) ATSV.VI to "buy" from "hold", as an acute shortage of substrates used in microchips translates to higher selling prices for the circuit board manufacturer

The rise of demand for agentic AI and central processing units has increased the prices of integrated circuit substrates, DB says

The broker adds AT&S has left behind periods of excess capacity and balance sheet stress, and is well positioned in a market shaped by rising demand from customers like Intel INTC.O

It also notes the company can now make use of its shell facility in Kulim, Malaysia, which long sat idle

Shares of AT&S are up 7.6% at 1145 GMT and could see their biggest one-day rise since November if the gains hold