U.S. equity markets opened in positive territory on Wednesday, February 25, 2026, as investors balanced the policy signals from President Trump’s State of the Union address with the anticipation of a high-stakes earnings report from the world’s most valuable company. Market sentiment was bolstered by a return of risk appetite in the technology sector and a historic rally in Asian markets overnight, setting a constructive tone for the domestic session.Major Market Indexes Opening PerformanceAs the opening be ...

Key Takeaways AI-driven chip demand is powering South Korea stocks and lifting ETF performance sharply this year.Semiconductor giants Samsung Electronics and SK Hynix remain key drivers of Korea's market rally.Positive alpha signals strong outperformance potential for South Korea ETFs amid the global chip crunch.Asian stocks have been great shape this year, with iShares Asia 50 ETF (AIA) gaining 15.2% year to date compared with a 0.6% uptick noticed in State Street SPDR S&P 500 ETF Trust (SPY) . Over the pa ...

Core Viewpoint - The iShares MSCI South Korea ETF (EWY) has reached a 52-week high and has increased by 200% from its 52-week low of $48.49 per share, indicating strong momentum in the fund [1]. Group 1: ETF Overview - The underlying MSCI Korea 25/50 Index includes stocks primarily traded on the Stock Market Division of the Korea Exchange, with the fund charging 59 basis points in annual fees [2]. Group 2: Drivers of Growth - South Korea ETFs are benefiting from the global AI boom, particularly due to strong demand for semiconductors and rising export momentum, with significant contributions from Samsung Electronics and SK Hynix [3][5]. - The ETF reflects strong investor confidence in Korea's AI-driven market outlook, supported by positive alpha and sustained earnings growth [3]. Group 3: Future Outlook - EWY is expected to maintain its strong performance in the near term, indicated by a positive weighted alpha of 189.19, suggesting potential for further gains [4].

Group 1 - SK Hynix plans to invest 21.6 trillion won ($15.07 billion) in new semiconductor production lines in Yongin, South Korea by 2030 to address increasing semiconductor demand [1][1][1] - The investment reflects the company's strategy to expand its manufacturing capabilities in response to the growing global demand for chips [1][1][1]

February 24, 2026 06:27 PM GMT Global Technology AI boosts NAND demand, but Asian module maker margins may soon compress We see challenges for module makers with constrained supply, margin normalization, and weakening consumer SSD demand amid higher NAND prices. Phison and Longsys to EW. Memory supercycle – unequal beneficiaries: AI demand and tight supply have sharply shifted bargaining power across memory. Consensus EPS for the memory supply chain is up 279% YoY, versus 37% for our global tech coverage. S ...

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Data Center** industry, particularly the impact of **Artificial Intelligence (AI)** on data center demand and infrastructure investments. Core Insights and Arguments - **AI Demand Surge**: The demand for power driven by AI is exceeding previous expectations, leading to an increase in projected IT load demand for 2026 by **4.3 GW** to **14.5 GW**, which represents a **23% year-over-year growth**. The total IT load demand is now estimated at approximately **77 GW** [7][38]. - **Long-term Projections**: The average annual incremental demand for IT load between **2027 and 2030** is raised to about **19.9 GW**, with a forecast for global IT load to reach **156 GW** by **2030**, reflecting a **5-year CAGR of 20%** [7][38]. - **Capex Growth**: Global capital expenditures (capex) for AI workloads are projected to grow at a **46% CAGR** from **2025 to 2030**, slightly ahead of the **44% CAGR** for AI IT load [7][38]. - **Hyperscaler Investments**: Capex from major hyperscalers like **Amazon (AMZN)**, **Google (GOOGL)**, and **Meta** is expected to grow at a **28% CAGR** from **2025 to 2030**, with a combined projected spend of approximately **$251 billion** in **2026** [7][51][57]. Demand and Supply Dynamics - **Data Center Demand**: AI workloads are anticipated to represent over **70%** of total data center power demand by **2030**. The overall data center market is expected to grow at a **CAGR of 20%** to **156 GW** by **2030** [21][26][38]. - **Colocation Market**: The total tracked colocation capacity is estimated at **39,339 MW** with a supply of **45,248 MW**, indicating an **87% utilization rate** across **81 markets** [13][26]. - **Absorption Rates**: The global market is expected to absorb between **14-21 GW** per year through **2030**, with approximately **78%** of this coming from the colocation market [26][38]. Risks and Considerations - **Digestion Phase Risk**: There is a potential risk of a digestion phase for hyperscalers due to the large capacity expected to be deployed for AI workloads. This phase may occur around **2028-2029** [7][38]. - **Market Pricing Trends**: Pricing trends in primary markets remain strong, with a **5% growth** in primary markets and **10% growth** in secondary markets, while other markets are experiencing a decline [35][38]. Notable Companies Mentioned - **Digital Realty (DLR)**: Buy rating with a target price of **$190** [8]. - **Equinix (EQIX)**: Buy rating with a target price of **$1070** [8]. - **NVIDIA (NVDA)**: Buy rating with a target price of **$270** [8]. - **Microsoft (MSFT)**: Buy rating with a target price of **$635** [8]. - **Amazon (AMZN)**: Buy rating with a target price of **$265** [8]. - **Oracle (ORCL)**: Buy rating with a target price of **$370** [8]. Additional Insights - **AI Workload Dynamics**: AI training and inference workloads have distinct requirements compared to traditional data center workloads, with training being more power-intensive and requiring higher peak power levels [49]. - **Investment Returns**: The return on investment from AI infrastructure is reflected in high cash returns on cash invested (CROCI) at hyperscalers, indicating a favorable environment for continued investment in AI infrastructure [47]. This summary encapsulates the key points discussed in the conference call, highlighting the significant growth and investment trends in the data center industry driven by AI demand.

24 February 2026 | 6:37PM EST Portfolio Strategy Research US EQUITY VIEWS The broadening and narrowing of the AI trade AI capex surprises and spreading fears of disruption risk have injected new volatility into the AI trade in recent weeks. Memory stocks have rallied by an average of 55% YTD while software stocks have plunged by 24%. We expect modest further upside to consensus hyperscaler capex estimates but continue to expect a peak in the capex growth rate later this year. Consensus estimates show hypers ...

We present five key takeaways from memory firms' 4Q earnings results: (1) low inventory turnover days (e.g., Hynix only 127 days vs 1Q23 peak of 233 days, or just 2-3 weeks vs 10+ weeks for finished memory modules); (2) strong ASP (Samsung Electronics' DRAM +40% QoQ; SK Hynix's NAND +32% QoQ); (3) aggressive capex spend (Hynix: W12tn vs W5tn/W7tn in 3Q25/4Q24); (4) good execution of HBM4 mass production/ shipment (Samsung, Hynix); and (5) bullish guidance for not only 1Q26 but also long term (memory super-c ...

Vi e w p o i n t | 20 Feb 2026 11:21:44 ET │ 17 pages US Semiconductor Equipment SPIE 2026 Investor Packet CITI'S TAKE We will be attending the SPIE Advanced Lithography conference from Feb 22-26 in San Jose, California, and hosting meetings with Lam Research, KLA and Applied Materials management teams. The conference features keynotes by a) SK Hynix on HBM technology evolution b) high-NA EUV/process control updates by ASML/IBM/TSMC, and c) Advanced packaging solutions presentations by Rapidus/Micron. Moreo ...

Summary of Semiconductor Capital Equipment Conference Call Industry Overview - The conference call focuses on the semiconductor capital equipment industry, specifically discussing the wafer fabrication equipment (WFE) market and its growth projections for 2026, 2027, and 2028 [1][9]. Key Points and Arguments WFE Market Estimates - WFE estimates for 2026, 2027, and 2028 have been raised to $132 billion, $160 billion, and $174 billion respectively, reflecting increases of 20%, 21%, and 9% compared to previous estimates of $124 billion, $132 billion, and $144 billion [1][9]. - The positive outlook is driven by strong capital expenditures (CapEx) in memory and foundry segments, supported by node transitions and capacity additions [1]. Foundry Segment - Foundry WFE estimates have been increased to $51 billion, $64 billion, and $70 billion for 2026, 2027, and 2028, representing year-over-year growth of 28%, 25%, and 10% respectively [2]. - TSMC's CapEx estimates have been raised by $10 billion and $11 billion to $56 billion and $65 billion for 2026 and 2027, driven by higher N2 intensity and customer demand [2]. DRAM Segment - DRAM WFE estimates have been adjusted to $40 billion, $47 billion, and $49 billion for 2026, 2027, and 2028, with year-over-year growth of 25%, 18%, and 5% respectively [3]. - Samsung's and SK Hynix's CapEx estimates for 2026 and 2027 have been increased by 14% and 15%, and 5% and 17% respectively, indicating a trend of higher spending despite capacity constraints in the near term [3]. NAND Segment - NAND WFE estimates have been revised to $10 billion, $15 billion, and $17 billion for 2026, 2027, and 2028, with year-over-year growth of 25%, 45%, and 15% respectively [4]. - Samsung's NAND CapEx for 2026 has been modestly decreased to approximately $6 billion, while Kioxia's CapEx for 2027 has been raised by 18% [4]. Logic/Other Segment - Logic WFE estimates have been raised to $31 billion, $34 billion, and $38 billion for 2026, 2027, and 2028, with year-over-year growth of 3%, 10%, and 10% respectively [5]. - After a decline in 2025, a modest recovery is expected in 2026 as trailing-edge and analog markets begin to improve [5]. Additional Insights - The overall WFE market is expected to experience a 20% growth in 2026, driven by strong performance in foundry, DRAM, and NAND segments [9]. - The report maintains a selective bullish stance on semiconductor capital equipment, recommending stocks such as Applied Materials, Lam Research, ASML, and others [1]. Conclusion - The semiconductor capital equipment industry is poised for significant growth, particularly in the foundry and memory segments, with revised estimates reflecting a more optimistic outlook for the coming years.