
Entegris (ENTG) Stock Forecast & Price Target
Entegris (ENTG) Analyst Ratings
Bulls say
Entegris is positioned favorably within the semiconductor industry, as evidenced by its largest customer, TSMC, increasing its revenue contribution from 12% to 16% in 2024, driven by heightened demand for AI technologies. The re-rating of semiconductor-related stocks following the rise of ChatGPT in late 2022 suggests a broader market recognition of enhanced profitable growth prospects within the sector. Additionally, Entegris's Advanced Purity Solutions (APS) demonstrate significant value addition, as a modest 1% yield improvement could potentially enhance profits by $500 million in advanced fabrication facilities.
Bears say
Entegris's stock outlook is negatively impacted by historical volatility in the wafer fabrication equipment (WFE) market, which has experienced declines exceeding 10% in ten separate years since 1990, including noteworthy drops of -9% in 2019 and -46% in 2009. Additionally, outside of artificial intelligence applications, fab utilization for other semiconductor devices has remained weak, stagnating around 3,300 million square inches for the past 10 quarters, which indicates a lack of growth momentum in the broader semiconductor market. Furthermore, the company is currently facing challenges related to lengthy qualification processes and operational inefficiencies that have adversely affected its gross margins.
This aggregate rating is based on analysts' research of Entegris and is not a guaranteed prediction by Public.com or investment advice.
Entegris (ENTG) Analyst Forecast & Price Prediction
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