Picture this: a stock that nearly doubles in a single year while the broader market chugs along with modest gains. That’s exactly what happened with one of the oldest names in tech last year. It wasn’t some flashy newcomer—it was a company many had left for dead in the chip wars. Yet here we are, talking about even more potential upside. What flipped the script, and more importantly, could the momentum keep rolling?
I’ve followed the semiconductor space for years, and rarely do you see such a dramatic turnaround story. The numbers speak for themselves: an 84% surge in 2025 alone, blowing past the S&P 500’s respectable but far tamer advance. Now, fresh into the new year, a respected analyst has stepped up with a bullish upgrade, pointing to several catalysts that haven’t fully priced in yet. It’s the kind of setup that gets investors sitting up and taking notice.
A Fresh Bullish Call on a Resurgent Giant
One firm recently shifted its stance dramatically, moving from neutral to a full buy recommendation. They didn’t just tweak their rating—they hiked the price target meaningfully, suggesting around 27% more room to run from current levels. In my experience, when analysts make moves like this early in the year, it’s worth digging into their reasoning. Often, they’re spotting trends that the broader market hasn’t fully digested.
The upgrade hinges on a mix of near-term tailwinds and longer-term strategic shifts. Perhaps most intriguing is the focus on an upcoming manufacturing process that’s still a couple years away from volume production. But in the fast-moving world of chips, investors love to price in tomorrow’s breakthroughs today.
The Next-Generation Node That’s Turning Heads
At the heart of the optimism sits a new chipmaking technology slated for 2027 debut. Think of it as the company’s bold attempt to reclaim ground in the race for ever-smaller, more powerful transistors. Analysts believe this node could attract major players looking for alternatives in manufacturing—companies that currently dominate headlines with their own cutting-edge designs.
Here’s where it gets really interesting. There’s speculation that big industry heavyweights, including one that’s already a shareholder, might seriously consider shifting some production to this new process by the late 2020s. If that materializes, it could fundamentally change how the market values the company’s manufacturing arm. We’ve seen similar bets pay off handsomely in the past when foundries gain marquee clients.
There is a good chance that major tech leaders take a hard look at producing chips on the upcoming node by 2028/2029 and this news could fully filter into the stock as we go throughout 2026, driving higher book value.
That kind of forward-looking commentary is what separates routine upgrades from ones that spark real excitement. It’s not just about next quarter’s earnings—it’s about positioning for a multi-year growth cycle.
Leadership Connections That Matter
Another factor getting attention is the new leadership at the top. The current CEO brings a Rolodex that’s frankly enviable in this industry. Relationships with key figures in government and rival companies alike could prove valuable as trade policies evolve and partnerships form.
In an era where geopolitics and supply chains are intertwined, having insiders who can navigate Washington and Silicon Valley simultaneously isn’t just nice to have—it’s potentially a competitive edge. I’ve seen how personal networks can accelerate deals or smooth regulatory hurdles in tech, and this feels like one of those situations.
- Deep ties to influential policymakers shaping semiconductor incentives
- Established relationships with CEOs at competing yet collaborating firms
- Track record of bridging ecosystem players for mutual benefit
These aren’t flashy headline-grabbers on their own, but they create optionality. When combined with technical progress, they paint a picture of a company better positioned than it’s been in years.
Foundry Ambitions Finally Gaining Traction?
For years, the big question hanging over this stock was whether its ambitious foundry plans would ever bear fruit. Building a contract manufacturing business to rival the dominant players is enormously capital-intensive and technically challenging. Many investors had grown skeptical, and rightly so—progress was slower than hoped.
But the tone has shifted noticeably. Analysts are now expressing more confidence that these assets could start contributing meaningfully. Part of that comes from seeing actual demand materialize in related areas.
Sometimes in investing, perception lags reality. If the foundry narrative flips from “expensive moonshot” to “viable growth driver,” that alone can support a higher valuation multiple. Add in government support for domestic chip production, and the backdrop looks more favorable than it has in a long time.
Packaging Technology: The Under-the-Radar Strength
While everyone focuses on shrinking transistors, another part of the business is quietly seeing increased demand. Advanced packaging—the art of connecting multiple chip pieces efficiently—has become crucial for high-performance applications, especially artificial intelligence workloads.
The company has developed its own sophisticated packaging techniques that rival the best in the industry. These methods allow for larger, more complex designs with better yields. Right now, there’s actually a shortage of this capacity across the market, which means existing assets are more valuable than many realize.
Packaging assets are seeing increased demand given shortages, which could buoy results for the foundry segment even in the near term. The technology supports very large packages critical for AI chips because they enable more chiplets and higher yields.
This creates an interesting dynamic: while the headline-grabbing node advancements are years away, packaging could provide more immediate positive surprises in financial results. It’s the kind of dual-track progress that sustainable bull cases are built on.
Putting It All Together: Risks and Rewards
No investment thesis is complete without acknowledging risks. Execution remains key—delivering on aggressive technology roadmaps isn’t guaranteed. Competition is fierce, and customer wins can take longer than expected to materialize. Capital spending will stay elevated, pressuring free cash flow in the interim.
Yet the risk/reward skew appears more attractive now than it has in years. With shares already rewarding patience in 2025, the question becomes whether the next chapters of this turnaround story are already unfolding.
- Strong 2025 performance provides momentum
- Upcoming node could attract major customers
- Packaging demand offers near-term support
- Leadership and policy tailwinds align favorably
- Foundry perception shifting positively
When multiple catalysts line up like this, it’s often worth paying attention. I’ve learned over the years that the best opportunities sometimes hide in companies that most investors have written off. This feels like one of those moments where contrarian thinking could still pay dividends.
The semiconductor space never stays still for long. New breakthroughs emerge, alliances shift, and market leadership can change faster than many expect. But for those willing to look past short-term noise, the ingredients for continued appreciation seem present here.
Whether 2026 brings another year of outperformance remains to be seen. But with fresh analyst conviction, improving fundamentals, and strategic positioning, it’s certainly a name that belongs on growth-oriented watchlists. Sometimes the most compelling stories are the ones still being written.
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