2025-12-08 00:41Investment Rating - The report maintains a positive outlook on the technology sector, particularly in AI and compute, with expectations for strong growth into 2026 [4][19]. Core Insights - AI order books remain robust, with companies like Google and Anthropic reporting significant sales growth, indicating a strong demand for AI-related products [4][6]. - Companies are managing memory constraints effectively, with rising prices prompting adjustments in product specifications and pricing strategies [4][6]. - TSMC anticipates a 45% CAGR in AI accelerator revenue from 2024 to 2029, reflecting strong demand from fabless customers and hyperscalers [19]. Summary by Sections AI and Compute - Companies reaffirmed strong AI order books, with Anthropic scaling sales from US$1 billion to US$7 billion over the past year [4]. - NVIDIA expects US$500 billion in sales through 2026, driven by AI demand and partnerships with companies like Anthropic [4][17]. - Anthropic's B2B-first strategy is yielding significant revenue growth, with a focus on enterprise applications [6][7]. Equipment and Packaging - Applied Materials sees leading-edge logic as the strongest driver for growth, with a projected increase in demand for advanced packaging [8]. - Amkor is optimistic about AI growth from a low base, with expectations for recovery in various sectors including automotive and industrial [6][8]. Hardware and Mobile - Dell reported strong demand for AI servers, with a backlog of US$18.4 billion and expectations for continued growth in 2026 [10]. - Qualcomm anticipates a slowdown in premiumization trends but remains optimistic about future upgrades with new technology [4][10]. Power and Infrastructure - Infineon is targeting US$1.5 billion in AI revenue for FY2025, up from US$700 million, indicating a significant growth opportunity in the AI sector [12][13]. - Lightmatter is advancing optical interconnect solutions, which could significantly enhance compute efficiency [15][12]. Market Dynamics - The semiconductor market is expected to see a mid-30% CAGR in leading-edge logic and DRAM/ HBM wafers, driven by AI and data center demand [8]. - TSMC's proactive capex strategy aims to support the anticipated growth in Cloud AI, with investments projected to reach US$50 billion in 2026 [19].