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 Key Points from the Conference Call Industry Overview - The conference call focuses on the **Global Semiconductor Capital Equipment** industry, particularly the **Wafer Fabrication Equipment (WFE)** market, with significant emphasis on the impact of **China's semiconductor market** on global trends [2][17]. Key Forecasts and Adjustments - The WFE forecast for **2025** has been raised to **$114 billion**, reflecting a **6% year-over-year growth** from the previous estimate of **$111 billion** [2][17]. - The **2026 WFE** forecast is adjusted to **$120 billion**, a **5% increase** from the prior estimate of **$119 billion** [2][17]. - A new forecast for **2027** anticipates a **3% decline** in WFE, primarily due to normalization in China's advanced logic capital expenditures [2][17]. China Market Insights - China's WFE is expected to decline by **5%** in **2025** (previously forecasted at **-13%**) and remain flat in **2026**, but is projected to drop by **19%** in **2027** due to normalization of advanced logic capex [2][21]. - The **China foundry** segment is forecasted to remain flat year-over-year in **2025**, driven by an acceleration in capacity expansion post **DeepSeek** [3][17]. - The **DRAM** segment in China has been trimmed, with global DRAM WFE expected to grow by **6%** in **2025**, down from a previous estimate of **13%** [3][17]. Company-Specific Insights - **Applied Materials (AMAT)** and **Lam Research (LRCX)** are both rated as **Outperform** with price targets of **$195** and **$105**, respectively. Both companies are expected to benefit from leading-edge technology advancements [4][41]. - **Tokyo Electron (TEL)** is also rated **Outperform** with a price target of **¥29,400**, expected to gain market share and expand margins due to competitive pricing [9][60]. - **Kokusai** is rated **Outperform** with a price target of **¥3,570**, although there are concerns regarding the high revenue CAGR guidance of **22%** [10][60]. - **Screen** is rated **Market-Perform** with a price target of **¥12,000**, facing competitive pressures and declining revenue contributions from China [11][60]. - **Lasertec** is rated **Underperform** with a price target of **¥10,900**, anticipating a deceleration in revenue growth due to increased competition [12][60]. Investment Implications - The overall sentiment towards the **Japanese semiconductor equipment** companies is cautious due to short-term challenges in China, but long-term positions remain strong with attractive valuations [5][60]. - Local Chinese semiconductor capital equipment vendors like **NAURA**, **AMEC**, and **Piotech** are rated **Outperform** due to their increasing market share driven by domestic substitution [6][14][15][16]. Additional Insights - The semiconductor industry is experiencing a shift with increased spending on **AI-related** technologies, which is expected to drive demand for advanced logic capacity in China [6][37]. - The overall WFE market is projected to grow, with a slight adjustment in expectations for non-China WFE growth, now estimated at **13%** for **2025** [26][32]. This summary encapsulates the critical insights and forecasts discussed during the conference call, highlighting the dynamics of the semiconductor capital equipment industry and the implications for various companies involved.