VACNY - VAT Group Leaving The Market Breathless As Vacuum Valve Demand Soars
- VAT Group's second-quarter earnings exceeded expectations, with a 14% beat on the order line as fabs and semiconductor companies scramble to add capacity and reduce record lead times.
- Not only are fabs scrambling to add chip capacity but leading-edge designs also require even more high-vacuum steps, driving even more sales for VAT Group's core products.
- Keeping up with demand could be a more significant near-term challenge, with supply chain and labor limitations and the need to add more capacity sooner than expected (2022).
- Valuation arguments are pretty much moot now with high-end semi capex plays like VAT Group, but embedded expectations are not at all conservative.
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VAT Group Leaving The Market Breathless As Vacuum Valve Demand Soars