VAT Group: tailwind from chip boom

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  Wolfgang Hagl
  Redaktor

The semiconductor sector is currently experiencing a remarkable boom. Driven by strong quarterly figures from leading chip companies and structural trends such as artificial intelligence, cloud computing and increasing memory requirements, the industry is once again establishing itself as the growth engine of the global economy. In this environment, an often overlooked but key player is also coming more into focus: the domestic VAT Group. As the global market leader for high-performance vacuum valves, the company based in Haag in the canton of St. Gallen supplies key components for chip production and is therefore benefiting directly from the investment boom.

Flood of orders

A look at the latest figures reveals a mixed but robust picture overall. In the first quarter of 2026, sales fell to around CHF 221 million, which corresponds to a decline of almost a fifth compared to the previous year. This was primarily due to supply chain problems in the wake of geopolitical tensions, which led to delayed deliveries. At the same time, however, incoming orders literally exploded: at CHF 356 million, they were 47% higher than in the previous year, signaling continued high demand from the semiconductor industry. The book-to-bill ratio reached a strong 1.6 – a clear indication that the pipeline is well filled for the coming quarters.

This discrepancy between short-term sales pressure and long-term demand illustrates the cyclical nature of the business. However, this is precisely where VAT’s strength lies. The company is deeply integrated into the semiconductor industry’s value chain and benefits from structural trends such as the increasing complexity of modern chips and the growing need for precise vacuum solutions. According to a recent analysis by Kepler Cheuvreux, VAT is expected to experience a significant acceleration in growth in the years 2026 to 2028, supported by increasing investments in semiconductor manufacturing equipment.

Opportunities and risks

The opportunities are manifold: technological advances such as 2-nanometer processes or new memory architectures are increasing the number of production steps and therefore also the need for vacuum valves. In addition, the geographical diversification of chip production, for example through new factories in Europe and the USA, could generate additional demand. At the same time, however, the business model is not without risks. The high dependency on the semiconductor industry’s investment cycle and geopolitical uncertainties – particularly in China, which accounts for more than 30% of sales – could slow down momentum.

Despite these uncertainties, optimism prevails. Analyst firms such as Citigroup, UBS and Goldman Sachs have raised their price targets following the latest figures, in some cases significantly. Citigroup raised the fair value of the share from CHF 600 to CHF 640, while UBS experts even increased it to CHF 650. Goldman Sachs upgraded the share from “neutral” to “buy” and set the price target at CHF 703, which corresponds to a premium of around 16% compared to the current level.

Investment solutions

VAT is an example of the second tier of the semiconductor industry, i.e. those companies that operate in the background but are essential for technological progress. For those who believe that the Group will benefit disproportionately from the structural growth drivers in the industry, VAT shares are an attractive candidate in the technology sector. Meanwhile, a short-term speculation on new record prices can be realized with the Long Mini Future MVALLT. The product has a leverage of 4.5, the knock-out is at CHF 484.5102 and thus just under a fifth away from the current price level. The Mini Future Long SPTBXU from UBS is not quite as aggressively structured. The leverage is 3.2, while the knock-out is a relatively comfortable 29% away.

In the event that the Swiss tech stock takes a breather, the newly issued Barrier Reverse Convertible RVAACV from Bank Vontobel would be a suitable solution. The product offers the prospect of a high sideways yield of 9.7% p.a. with a buffer of 41.7%. The term of this BRC ends on April 23, 2027.