According to Zhītōng Cáijīng APP, analysts at Morgan Stanley and Bank of America are bullish on Dutch chipmaker ASM International (ASMIY.US) and its role in the AI boom.

Morgan Stanley's Nigel Van Putten stated that as the semiconductor industry adopts the next-generation chip architecture known as Gate-All-Around, ASMIY will become a major beneficiary. He expects ASMI's growth rate to exceed the overall chip equipment market in the coming years.

"As AI becomes the main driver of the semiconductor (equipment) market, we see ASMI as a core company," the analyst wrote in a report, upgrading its rating from 'hold' to 'shareholding'.

ASMI has over 50% market share in the atomic layer deposition field, an advanced device that deposits ultrathin material films on semiconductor chips. Van Putten cited analysis from Lexis Nexis that the company's patents are among the most important in the chip manufacturing field.

Morgan Stanley's bullish view was endorsed by Bank of America analysts, who raised the target price to 860 euros, a new high for the bank. The target price implies about an 18% upside from current levels, a stark contrast to the consensus that the stock will fall in the next 12 months.

Bank of America's Didier Scemama said ASMI's film deposition tools are "crucial for manufacturing cutting-edge logic and storage chips used in AI infrastructure," and his expectations for another Dutch chip tool maker, ASML Holding (ASML.US), are the most optimistic among Wall Street banks.