VAT Group stock cut to Neutral by Bank of America on memory risks

Published on 11/15/2026 at 13:23 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

VAT Group stock faces a more cautious stance after Bank of America cut its rating to Neutral from Buy. The bank cited memory-cycle risks.

Bank of America turns more cautious

Bank of America lowered its VAT Group recommendation from Buy to Neutral on November 9, 2026.
The bank cited high memory exposure and the risk that a weaker chip cycle could pressure high-fixed-cost equipment suppliers.
VAT Group remains exposed to the broader semiconductor investment cycle, making demand trends and valuation key factors for shareholders.

VAT Group, CH0311864901, Illustration mit AI erstellt.

Bank of America lowered its rating on VAT Group from Buy to Neutral on November 9, 2026, citing the company's exposure to the memory segment and the risk of a downturn in the semiconductor cycle. Investing.com reported that the move was part of a broader reassessment of European semiconductor stocks by the bank.

Memory exposure drives rating cut

Bank of America said high memory exposure could leave VAT Group, Comet and Inficon vulnerable if the chip cycle turns. The bank argued that a deteriorating memory cycle has historically weighed most heavily on equipment suppliers with high fixed costs.

The analyst action contrasts with constructive company-level order books and management commentary across parts of the European semiconductor-equipment sector. Bank of America nevertheless pointed to macro risks including potential financing pressure on so-called neoclouds and tighter scrutiny of data-center construction.

Demand strength meets valuation risk

Bank of America said US cloud capital expenditure was running at an annualized 1.2 trillion US dollars and could rise toward 1.5 trillion US dollars in 2027. The bank also said the Philadelphia Semiconductor Index had underperformed the S&P 500 by more than 37 percent since its June peak.

For VAT Group, the rating change puts greater emphasis on how semiconductor demand develops through the next cycle. The bank retained Buy ratings on ASML, ASM International and BE Semiconductor's peer TPRO, underscoring its selective rather than broad-based stance on European semiconductor suppliers.