UBS Global I/O Semiconductors "Auto semis: Sustained Analog Momentum, but ..."

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UBS Global I/O Semiconductors "Auto semis: Sustained Analog Momentum, but ..."

Global Research

11 June 2026ab

UBS Global I/O Semiconductors Equities

GlobalAuto semis: Sustained Analog Momentum, but

Selectivity Warranted Semiconductors

Francois-Xavier Bouvignies

Analyst

francois.bouvignies@ubs.com

Analog upcycle continues, but we remain selective +44-20-7568 7105

Following Q1, we have reviewed the latest leading indicators and refreshed our outlook Timothy Arcuri

for the automotive semiconductor market for 2026E–2027E. Recent data indicate that Analyst

the cycle is progressing as expected, and we therefore leave our automotive estimates timothy.arcuri@ubs.com

unchanged. However, we note some upward revisions to industrial forecasts from +1-415-352 5676

consensus and UBS. While pricing remains the key upside risk given pockets of supply/ Nicolas Gaudois

demand tightness, we believe these are limited—primarily within certain AI-related Analyst

products—and that broader markets still face mixed demand and lingering oversupply. nicolas.gaudois@ubs.com

As such, we do not see conditions approaching a COVID-era shortage and maintain a +65-6495 5148

selective stance, particularly after the recent strong performance. We also highlight a Kenji Yasui

slowdown in the Chinese auto market, which could offset the recovery seen in Europe Analyst

and the US. kenji.yasui@ubs.com

+81-3-5208 6211

1) Positive Analog revenue growth persisting through 2026E Randy Abrams

Based on latest results, company guidance and consensus, positive momentum that Analyst

started in Q2'25 is expected to continue throughout 2026E. Q1'26 revenue was up randy.abrams@ubs.com

20% y-o-y and consensus expects Q2 and FY26 to grow by 21% (FY26 16% previously). +886-2-8722 7338