Thursday, 12 March 2026 Reading time : 3 minutes

Shares in the semiconductor supplier Comet have been among the worst performers on the Swiss stock exchange this week. Since last Thursday, they have lost around 13%, making them one of the weakest performers in the SPI, which lost 2.2% over the same period. The trigger for the slump was the company's annual results, presented last Friday.

Comet's profits have slumped by around two-thirds year-on-year, and the proposed dividend of CHF 0.50 is significantly lower than market forecasts and last year's figure of CHF 1.50. According to the annual report, the company cited the strong Swiss franc as one of the reasons for this decline. However, Comet is optimistic about 2026, pointing to the «clearly visible» upturn in the semiconductor sector, although the exact timing is still uncertain.

However, the global semiconductor industry is currently being seriously impacted by the escalation in the Middle East. This is reflected in South Korea's leading index, the Kospi, which experienced the sharpest price drop in its history last week, losing more than 12% in a single day. The index has a strong weighting in semiconductors, with Samsung Electronics and SK Hynix, two of the world's largest memory chip manufacturers, accounting for more than a third. On 26 February, the two stocks hit their respective all-time highs, having recorded enormous price gains within a year (Samsung Electronics +305%; SK Hynix +460%, including dividends). Concerns that the conflict with Iran could significantly cloud the outlook for the chip industry caused the stocks to plummet shortly thereafter.

This concern is not unfounded. According to Bloomberg, more than half of the DRAM and NAND chips used worldwide to provide electronic devices with short- and long-term memory are manufactured in South Korea – and this is where the country's dependence on foreign energy sources becomes apparent. According to data from the US Energy Information Administration (EIA), South Korea sources more than 60% of its crude oil from countries on the Arabian Peninsula, and 20% of its natural gas comes from Qatar. Therefore, the sharp rise in energy prices and supply bottlenecks are directly affecting energy-hungry chip manufacturers. The companies also depend on other raw materials from the region, such as helium, which is essential for cooling silicon wafers. According to Reuters, Qatar is one of the leading producers of the gas, for which there is currently no real alternative.

Comet is not directly affected by geopolitical developments, but its business is linked to the investment cycles of leading chip manufacturers. If they reduce or postpone their investment programmes, this could also affect Swiss suppliers, including Comet, Inficon, and VAT.

Fundamentally, however, the basis for the AI-driven boom appears to remain intact, and this should continue to fuel demand for chips and related products and technologies. Analysts also continue to see upside potential for the three stocks. According to Bloomberg, the 12-month price target for Comet is CHF 277.89 (closing price on 11 March 2026: CHF 246.40). For VAT, the consensus is CHF 534.88 (closing price on 11 March 2026: CHF 516.20), and for Inficon, CHF 120.39 (closing price on 11 March 2026: CHF 114.00).

Investors who believe Comet's current price weakness is a temporary dip and Swiss suppliers are well positioned to benefit from the demand for chips may be interested in the Barrier Reverse Convertible on Comet, Inficon and VAT. The 60% barrier provides partial protection against further price losses. At the same time, investors benefit from a coupon of 13.35% p.a.

Barrier Reverse Convertible on Swiss Chip Suppliers
13.35% p.a. BRC on Comet, Inficon, VAT
Barrier: 60%
Valor: 153 472 587

Indicative terms

 

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