Goldman Sachs Europe Technology: Hardware — Read-Across from Micron's 3QFY26 Results for European Semicap and AI Infrastructure Players
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Goldman Sachs leverages Micron's 3QFY26 results to analyze implications for European semiconductor equipment and AI infrastructure players. Micron's quarterly revenue reached roughly USD 6.8 billion, up about 30% year-over-year and beating guidance, driven primarily by data center SSD and high-bandwidth memory shipments. Micron's HBM3E revenue surged 50% sequentially, with total 2026 HBM revenue projected to exceed USD 10 billion. Conversely, traditional DRAM and NAND prices declined 5-10% due to weak PC and mobile demand. The firm raised its capital expenditure guidance to approximately USD 12 billion for fiscal 2026, mainly targeting HBM and advanced packaging capacity.
This dynamic creates divergent outcomes for European names. Goldman maintains Buy ratings on ASML (target EUR 1,200) and ASM International (target EUR 750), expecting their EUV and ALD/EPI equipment to benefit directly from advanced node and HBM capacity expansion. ASM International is projected to see 15% revenue growth in 2026. However, AI infrastructure players facing automotive and industrial softness trail behind. Goldman keeps Infineon at Neutral (target EUR 35) with flat 2026 revenue expectations, and retains a Sell rating on STMicroelectronics (target EUR 25), anticipating a 5% revenue decline due to SiC business volatility.