Core Insights - Lam Research Corporation (NASDAQ:LRCX) has experienced a significant stock rally, with a 137% increase last year and an additional 39% gain in January 2026, primarily driven by demand for CPUs that Intel is unable to produce in sufficient quantities [1] - The company is a leading provider of equipment for both CPU and memory chip manufacturing, positioning it to benefit from increased production efforts in the semiconductor industry [1] - Upcoming earnings reports from semiconductor capital equipment companies are anticipated to be strong, but the high stock valuations may lead to uncertain market reactions [1] Company Overview - Lam Research Corporation specializes in developing equipment for depositing, etching, and cleaning semiconductor materials, including systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning [2]

We recently published 14 Stocks on Jim Cramer’s Radar.  KLA Corporation (NASDAQ:KLAC) is one of the stocks on Jim Cramer's radar. KLA Corporation (NASDAQ:KLAC) makes and sells equipment used in the chip manufacturing process. Its shares are up by 119% over the past year and by 21% year-to-date. Morgan Stanley increased the stock’s rating to Overweight from Equalweight and the share price target to $1,697 from $1,214 in January. The bank commented that KLA Corporation (NASDAQ:KLAC) could grow its revenue b ...

How do you play the memory boom without chasing these data storage stocks. The four big players in the space, Micron, Western Digital, Seagate just reported, and Sandis, each more than tripled last year, and they keep running in 2026. Just since the beginning of the year, SanDisk has more than double.The other three are up anywhere from 35 to 50%. I don't want to chase those. I don't chase the storage memory place because even though there's a severe shortage of this stuff thanks to the data center buildout ...

case for the moment. Let's get right to the floor show. Joining me now, Goldman Sachs Asset Management Fundamental Equity Managing Director, Greg Tuorto.Greg, um, new tariffs off the table. So, the markets moved on that the markets are moving on data. What are you watching that says to you this is a time to go long US stocks.>> Thanks for having me, Liz. Uh, you know, I think that there's a, you know, a slightly new paradigm in place, you know, where you have a a reflation of a lot of the cyclical sectors i ...

Summary of the Conference Call on Global Semiconductor Capital Equipment Industry Overview - The focus is on the **Wafer Fabrication Equipment (WFE)** market, particularly imports to **China**. - In **2025**, total WFE imports to China reached **$39.2 billion**, representing a **3% year-over-year (YoY)** increase, despite a **13% YoY** decline in December imports due to a high base effect from December 2024 [2][26][37]. Key Insights - **December 2025** saw WFE imports of **$4.5 billion**, marking the highest monthly figure for the year, with a **MoM increase of 84%** [2][3][26]. - **Lithography imports** hit a record high in December at **$2.3 billion**, primarily driven by demand from **Shanghai** and **Beijing** [3][27][35]. - The overall demand for WFE in China remains robust, particularly for **AI chip and memory production**, indicating a continued push for local production capabilities [3][68]. Company-Specific Insights ASML - ASML's China sales are projected to reach **EUR 3.14 billion** in Q4 2025, reflecting a **35% QoQ** and **64% YoY** increase, driven by high lithography imports [4][68][70]. - China is expected to account for **42%** of ASML's total system sales in Q4 2025, significantly higher than previous guidance [68][79]. Lam Research (LRCX) - December revenues for LRCX are expected to decline by **42% QoQ**, with China exposure estimated at **25%** of total revenues [6][90]. - The company anticipates that its China revenue exposure will fall below **30%** in 2026 [6][90]. Applied Materials (AMAT) - AMAT's January quarter revenues are projected to increase by **4% QoQ**, with China exposure remaining around **30%** [7][87]. Other Companies - **Tokyo Electron (TEL)** and **Kokusai** are also expected to see growth, with TEL benefiting from competitive pricing and Kokusai from increased adoption of batch ALD technology [17][20]. - **Screen** and **Advantest** are projected to experience declines in China revenue, with Screen's expected to drop **43% YoY** [11][12]. Import Trends - The **US, Singapore, and Malaysia** combined accounted for **35%** of WFE imports to China in 2025, while Japan's share decreased to **23%** [43][50]. - The share of lithography imports from the Netherlands has increased significantly since 2023, indicating a shift in sourcing strategies among global vendors [43][65]. Investment Implications - **NAURA**, **AMEC**, and **Piotech** are highlighted as outperformers in the domestic WFE market, benefiting from local demand and technological advancements [14][15][16]. - **ASML**, **LRCX**, and **AMAT** are also rated as outperformers, with strong growth prospects driven by ongoing demand in the semiconductor sector [19][20][21]. Conclusion - The WFE market in China is showing signs of resilience and growth, particularly in lithography, despite some expected declines in revenue for certain companies. The ongoing investments in local production capabilities for advanced technologies like AI chips and memory are likely to sustain demand in the coming years.

Summary of Semiconductor Capital Equipment Conference Call Industry Overview - The conference call focused on the **Semiconductor Capital Equipment** industry, specifically discussing the **Wafer Fabrication Equipment (WFE)** market forecasts for 2026 and 2027, driven by demand from **DRAM** and **TSMC** [1][2]. Key Points and Arguments 1. **Market Forecast Revision**: - The WFE market forecast for 2026 has been revised from **$129 billion** (up **11%** year-over-year) to **$136 billion** (up **16%**), and for 2027 from **$145 billion** (up **13%**) to **$161 billion** (up **19%**) [2][22]. - The revisions include an increase in foundry logic by **$6 billion** and DRAM/NAND by **$1 billion** for 2026, and for 2027, foundry logic is revised up by **$11 billion**, DRAM by **$3 billion**, and NAND by **$1 billion** [2][22]. 2. **Growth Drivers**: - The growth in foundry logic is primarily driven by **TSMC** and **Samsung**, with leading-edge foundry logic capital expenditures expected to rise by **26%** in 2026, followed by a conservative estimate of **12%** growth in 2027 [3][31]. - The DRAM market is seeing increased activity due to **Samsung** accelerating wafer additions and **Micron's** acquisition of **PSMC's P5 fab**, leading to an increase in greenfield wafer additions from **220/270 kwpm** to **225/320 kwpm** for 2026/2027 [3][23]. 3. **NAND Market Insights**: - NAND WFE estimates have been slightly increased due to adjustments in greenfield wafer start assumptions for **Kioxia/Sandisk's Yokkaichi Fab 7**. However, the overall NAND WFE thesis remains unchanged, with lower smartphone bit growth assumptions offsetting the strength in enterprise SSD demand [3][33]. - AI-related bits are projected to rise from **8%** of total bits in 2025 to **20%** in 2027, contributing significantly to incremental bit growth [3][34]. 4. **Signs of Strength**: - Companies like **ASMI** and **ICHR** have reported strong order books, and **TSMC's** 2026 capex guidance has exceeded expectations, indicating a robust outlook for WFE growth in 2026 and 2027 [4]. 5. **Regional Insights**: - The WFE revenue forecast by region shows significant contributions from **China**, **Korea**, and **Taiwan**, with **China's** WFE revenue expected to grow from **$41.5 billion** in 2025 to **$46.7 billion** in 2027 [21]. Additional Important Insights - The call highlighted the potential for capacity shortages in foundry logic, particularly for **3 nm** technology, which could create bottlenecks in AI-related applications [29][31]. - The overall sentiment is optimistic, with analysts suggesting that the demand for semiconductor capital equipment is likely to outpace supply in the coming years, particularly in the foundry segment [4][31]. This summary encapsulates the critical insights and forecasts discussed during the conference call, providing a comprehensive overview of the semiconductor capital equipment landscape for 2026 and 2027.

January 15, 2026 10:30 PM GMT Global Technology | Europe Memory – How to Play the New AI Bottleneck Memory sits in a capacity-constrained cycle with unusually long order visibility driven by AI inference. For 2026, the risk is execution and transition, not demand. A steeper pricing climb and favourable conditions likely persist through 2027. Multiples have expanded, but we think stock calls can still work with much higher earnings upside from here. Inference becomes a memory challenge, not just compute. Mem ...

Summary of TSMC Earnings Call and Implications for Japanese SPE Makers Company and Industry Overview - **Company**: TSMC (Taiwan Semiconductor Manufacturing Company) - **Industry**: Semiconductor Capital Equipment (SPE) Key Points from the Earnings Call Current Business Environment - TSMC highlighted that AI demand is the primary driver of semiconductor demand growth, with major customers starting to see tangible earnings contributions from AI investments [2][4] - The company revised its 5-year outlook for AI-related sales to a compound annual growth rate (CAGR) of mid- to high-50%, an increase from the previous mid-40% CAGR forecast [2] Capital Expenditure (Capex) Outlook - TSMC's capex for 2025 is projected at **US$40.9 billion**, with **US$11.5 billion** allocated for the fourth quarter, exceeding the previous guidance of **US$40 billion to US$42 billion** [3] - For 2026, TSMC anticipates capex between **US$52 billion and US$56 billion**, with 70-80% allocated for advanced processes, 10% for specialty processes, and 10-20% for advanced packaging and other applications [3] - The company is accelerating capacity expansion in Taiwan and the US due to strong demand, indicating that cumulative capex over the next three years could significantly exceed the **US$101 billion** invested in the past three years [3] Implications for Japanese SPE Makers - The 2026 capex guidance of **US$52 billion to US$56 billion** surpasses both internal forecasts of **US$46 billion** and investor expectations of around **US$50 billion**, which is seen as positive for various SPE companies, particularly those with high sales exposure to TSMC [4] - Specific recommendations include maintaining Buy ratings on companies such as Ebara, Disco, and Tokyo Electron, which are expected to benefit from the increased capex focused on advanced processes and packaging [4] Additional Important Information - The earnings call reflects a strong outlook for the semiconductor industry, particularly driven by AI demand, which may lead to increased investment opportunities in related sectors [2][4] - The capex figures indicate a robust commitment from TSMC to expand its capabilities, which could have a ripple effect on suppliers and related industries, particularly in Japan [3][4]

Summary of Key Points from Semiconductor Capital Equipment Conference Call Industry Overview - The conference call focuses on the **Semiconductor Capital Equipment (Semicap)** industry, particularly the **Wafer Fab Equipment (WFE)** segment, which is expected to enter a multi-year upcycle starting in CY26 [1][2]. Core Insights and Arguments - **WFE Supercycle**: Anticipation of a robust demand for WFE, with expectations of broad-based beats and raises in Q4 and Q1, driven by AI constraints and upgrades in leading-edge technologies [1]. - **China's Impact**: The suspension of the "50% affiliate" rule for companies like LRCX and KLAC is expected to provide a significant boost, with potential revenue increases of $200 million for LRCX in Q4 and $600 million in CY26, and $300-$350 million for KLAC in CY26 [1]. - **Growth Projections**: Initial guidance for CY26 WFE growth is expected to be at least mid-single digits (MSD) YoY, with a target of $131 billion (+10% YoY) for CY26 and $150 billion (+13% YoY) for CY27 [2]. - **Historical Performance**: The top five WFE vendors are projected to grow at only 8%/13% in CY26/27, suggesting potential upside to estimates based on historical outperformance [2]. - **Capital Intensity**: Historical capital intensity trends indicate potential upside to WFE estimates, with expectations of nearly $20 billion of upside through CY27 [2]. Key Drivers of Growth - **Leading-edge Technologies**: Anticipated strength in leading-edge F/L WFE due to competitive capacity constraints at TSMC, alongside growth in DRAM and NAND upgrades [3]. - **Process Control**: Companies like KLAC and NVMI are expected to outperform due to a broadening customer base and rising DRAM capital intensity [3]. - **Memory Demand**: The pricing environment for DRAM and NAND is expected to remain robust, with Micron's pricing trends indicating a strong outlook into 1Q26 [4][18]. Price Objective Changes - Price objectives (POs) for several semicap companies have been raised due to a stronger demand outlook: - LRCX: $245 (up from $195) - KLAC: $1,650 (up from $1,450) - MU: $400 (up from $300) [6][9]. - The overall sentiment is that the semiconductor industry is poised for a significant upturn, with increased visibility and customer diversification [4]. Additional Insights - **NVIDIA's BlueField-4**: This platform is expected to drive memory demand, particularly for NAND, in the medium term [4]. - **Capex Trends**: Overall DRAM and NAND capex have been muted since 2023, indicating a cautious approach from major players [10][12]. - **Future Growth**: Leading-edge WFE is projected to grow at a 17% CAGR from CY25-28, with significant investments expected from TSMC and other major foundries to support AI and HPC demand [27]. Conclusion - The semiconductor capital equipment industry is entering a promising phase with strong growth projections driven by AI demand, leading-edge technology upgrades, and favorable pricing trends in memory. The raised price objectives reflect a bullish outlook for key players in the sector, indicating potential investment opportunities.

Summary of Key Points from the Conference Call Industry Overview - The report presents the **Top 10 Asia Pac Ideas for Q1 2026**, focusing on stock recommendations for companies in the Asia Pacific region that are expected to have significant market and business-related catalysts in the upcoming quarter [1][2][10]. Company Recommendations - The **10 Buy-rated stocks** identified for Q1 2026 are: - **ASX Ltd**: Target Price (TP) of AUD 64.10, representing a 27% upside [3][5]. - **Chroma ATE**: TP of TWD 1,180, with a 38% upside [3][5]. - **Damai Entertainment**: TP of HKD 1.10, indicating a 22% upside [3][5]. - **H World Group**: TP of USD 62.00, with a 28% upside [3][5]. - **LG Electronics India**: TP of INR 1,840, representing a 23% upside [3][5]. - **Mitsubishi Heavy Industries**: TP of JPY 4,900, indicating a 15% upside [3][5]. - **Montage**: TP of CNY 155.00, with a 16% upside [3][5]. - **Ping An Insurance**: TP of HKD 74.00, representing a 3% upside [3][5]. - **Singtel**: TP of SGD 5.50, indicating a 21% upside [3][5]. - **Tencent Holdings**: TP of HKD 780.00, with a 23% upside [3][5]. Investment Rationale - The selection process involved consultations with BofA Fundamental Equity Research analysts and sector heads to ensure a diversified list of stocks with strong potential for outperforming or underperforming peers [2][11]. - The report emphasizes that the stocks are chosen based on their **Buy** or **Underperform** ratings, ensuring that only high-conviction ideas are included [2][14]. Performance and Updates - The list will be published at the beginning of each quarter and will remain unchanged unless there are significant developments affecting the stocks [4][15]. - Stocks may be re-evaluated for subsequent quarters based on ongoing catalysts and market conditions [16]. Additional Insights - **ASX Ltd**: The company has seen a share price decline of over 28% since mid-June, trading more than one standard deviation below historic levels, indicating potential for recovery [34]. - **Chroma ATE**: The company is positioned well in the semiconductor capital equipment industry, with expected growth driven by demand for AI server infrastructure and system-level testing [41][56]. - **Damai Entertainment**: As a subsidiary of Alibaba, it operates in various entertainment sectors, including live performance ticketing and content production, indicating a diversified revenue stream [64]. Risks and Considerations - Potential risks include regulatory interventions, market conditions affecting revenue growth, and competition within the semiconductor equipment sector [37][60]. - The report highlights the importance of monitoring macroeconomic factors and sector-specific developments that could impact the performance of the recommended stocks [7][60]. This summary encapsulates the key points from the conference call, focusing on the companies and industry dynamics relevant to the investment recommendations for Q1 2026.