Besi Shares Slump as Hybrid Bonding Orders Lag AI Growth Targets

The Amsterdam-listed firm saw its stock drop to 173.9 euros during Thursday's session, making it one of the steepest decliners on the Stoxx 600. The sell-off came despite a 25% revenue jump in the fourth quarter, as full-year revenue slipped 2.7% to 591.3 million euros. Earnings per share fell 28.1% to 1.66 euros, while gross margins contracted to 63.3%, down from 65.3% the previous year.

The primary concern for investors lies in the adoption rate of Besi’s flagship hybrid bonding technology, which is essential for high-performance AI chips. While the customer base for the tech grew to 18 from 15, the volume of orders has not yet matched the hype surrounding the sector. According to analysts at ING, Besi reached roughly 150 orders for the technology by the end of 2025, leaving a significant gap to reach the company's mid-point guidance of 300 orders by the end of the current year.

China Demand and Order Momentum

Despite the friction in high-end tech adoption, broader order activity showed signs of a cyclical recovery. Total orders for 2025 reached 695 million euros, a 17% increase over the previous year, bolstered by a 43% surge in the final quarter. Chief Executive Richard Blickman noted that "green shoots" are appearing across principal end-user markets, including automotive and industrial sectors, following a four-year downturn.

Besi remains a central figure in the European semiconductor landscape alongside peers like ASML and ASM International. Even with the recent slide, the company’s shares have gained approximately 30% year-to-date, fueled by the global rush to build out artificial intelligence infrastructure.