UBS has upgraded its recommendation on a printed circuit board manufacturer from neutral to buy, expecting sustained demand from the expansion of artificial intelligence infrastructure. These components, long considered secondary elements of the electronics industry, have become essential for every GPU, server, and networking equipment in data centers. Circuit boards designed for AI require advanced materials, tighter tolerances, and higher layer counts, generating higher margins than standard consumer electronics boards. The reshoring trend driven by geopolitical tensions also benefits US and allied-nation manufacturers. UBS believes the current valuation of the company does not reflect the expected tailwinds in this sector.
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