The Dutch semiconductor equipment maker nearly doubled its revenue outlook as hybrid bonding demand from Nvidia, Broadcom, and others accelerates faster than expected.
BE Semiconductor Industries, the Dutch company that makes the machines used to assemble advanced chips, just told investors its future looks significantly bigger than it thought a year ago. Long-term revenue targets jumped from over €1 billion to a range of €1.5 to €1.9 billion, a revision so large it effectively rewrote the company’s growth thesis.
Shares responded accordingly, climbing roughly 8.4% after the announcement at the company’s Investor Day in Amsterdam on June 12, 2025.
The numbers behind the upgrade #
Gross margin targets moved to 64-68%, up from a previous range of 62-66%. Operating margin expectations climbed even more dramatically, from 35-50% to 40-55%.
The catalyst is straightforward: AI data centers and photonics applications are consuming advanced packaging solutions at a pace BESI didn’t fully anticipate. Specifically, hybrid bonding, a technique that connects chiplets at the microscopic level without traditional solder bumps, has become the assembly method of choice for next-generation processors.
CEO Richard W. Blickman pointed to an accelerated industry push toward 2.5D and 3D chiplet architectures as the primary driver. Chipmakers are stacking and connecting smaller chip components together rather than trying to shrink everything onto a single piece of silicon. Moore’s Law, the decades-old principle that transistor density doubles roughly every two years, is running into physics-shaped walls. Chiplets are the industry’s workaround.
Who’s buying and why it matters #
Nvidia, Broadcom, Intel, and AMD are all expanding their adoption of hybrid bonding for high-performance computing applications.
The most recent quarterly results reinforce the trajectory. BESI reported Q1 2026 revenue of €184.9 million, representing a 28.3% increase compared to the same period a year earlier.
The broader semiconductor packaging shift #
Hybrid bonding allows chiplets to communicate with each other at speeds and densities that older interconnect methods cannot match. For AI workloads, where data moves between memory and processing units at staggering volumes, this performance advantage is essential.
What this means for investors #
A company moving from a €1 billion-plus revenue target to potentially €1.9 billion, while simultaneously expanding margins, is describing a fundamentally different business than the one investors priced in a year ago.
Operating margins of 40-55% would place BESI among the most profitable companies in the semiconductor equipment space. Those are the kinds of margins typically associated with software businesses, not hardware manufacturers.
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