Investment Rating - The semiconductor/SPE sector has a positive investment rating with specific companies like Advantest, Disco, and Tokyo Electron rated as "Buy" [2][15][24]. Core Insights - Investor sentiment towards the semiconductor/SPE sector has improved, particularly due to strong demand for AI semiconductors, with back-end companies like Advantest and Disco gaining significant interest [3][4]. - The WFE market is expected to experience low single-digit growth in both CY25 and CY26, while memory investments (DRAM/NAND) are anticipated to grow at a higher rate [2][3]. Summary by Sections Investor Sentiment - Investor sentiment has shifted positively compared to earlier observations, driven by strong AI semiconductor demand and recent earnings reports from major players like Nvidia and Broadcom [3][4]. - There is a growing focus on micro-level factors rather than macroeconomic concerns, as many semiconductor products are currently exempt from US tariffs [4][7]. Company Highlights - Advantest is highlighted as a "Buy" due to potential upward revisions in guidance, while Disco is also rated "Buy" for its new growth drivers beyond existing technologies [2][8]. - Tokyo Electron is noted for its growth potential and is rated "Buy" as well [15]. Market Outlook - The WFE market is projected to grow at low single-digit percentages in CY25 and CY26, contrasting with higher growth expectations in memory investments [2][3]. - The discussions indicate a selective approach among investors, focusing on specific stocks rather than the overall sector [7]. Company-Specific Insights - Among mid/small-cap stocks, Tokyo Seimitsu is rated "Sell" due to stagnant profit margins, while JEOL and Ulvac are seen as undervalued with "Buy" ratings, pending market recovery confirmations [9]. - Kioxia Holdings is under observation for its competitive position in the enterprise SSD market and potential threats from competitors [8].

April 21, 2025 11:41 PM GMT Asia Technology | Asia Pacific M Foundation Tuesday TMT: TSMC, Tariff Impact on Technology, and Japan SPE Join our Technology analysts Shawn Kim, Charlie Chan, Tetsuya Wadaki, and Derrick Yang as they discuss TSMC's takeaways post results, further potential tariff impacts on Technology, and Japan semicap equipment updates. | Morgan Stanley Asia Limited+ | | | --- | --- | | Shawn Kim | | | Equity Analyst | | | Shawn.Kim@morganstanley.com | +852 3963-1005 | | Morgan Stanley Taiwan ...

Core Viewpoint - Lumen's stock is experiencing a significant increase, driven by positive market momentum and strong earnings from Broadcom, which is a key player in the AI infrastructure market [1][2][3]. Group 1: Market Performance - Lumen's share price rose by 7.8% as of 3 p.m. ET, outperforming the S&P 500 index, which increased by 0.4%, and the Nasdaq Composite index, which gained 0.5% [1]. - The positive momentum in the broader market is contributing to Lumen's stock performance [2]. Group 2: Broadcom's Earnings Impact - Broadcom reported better-than-expected Q1 results, with non-GAAP earnings per share of $1.60 on sales of $14.92 billion, surpassing analyst estimates of $1.51 on sales of $14.59 billion [3]. - Broadcom's management provided strong forward guidance, expecting revenue of approximately $14.9 billion, indicating a year-over-year growth of roughly 20% [4]. Group 3: Future Outlook for Lumen - Broadcom anticipates generating $4.4 billion in revenue from AI semiconductors in Q4, driven by continued investments from hyperscale customers in data center solutions [5]. - Lumen's relationship with cloud hyperscale customers, such as Microsoft and Meta Platforms, positions the company to potentially secure new fiber network and support services contracts as these customers invest in AI data centers [6].