Bernstein cuts its fiscal 2027 earnings forecast for Qualcomm: Apple-related revenue is expected to decline, the Android business also faces pressure, and the contribution from data center growth will take time to materialize.
As of 30 October, the Philadelphia Semiconductor Index had fallen 27% from its June peak, while expected earnings per share for the next 12 months rose by about 40% over the same period. Bernstein believes cloud providers’ spending plans and Intel’s data center business continue to show strong AI demand, while the PC business is being held back by tight memory supplies.
Morgan Stanley believes Treasury and AI-related corporate bond yields are jointly pushing up funding costs and broadening the correction in risk assets; the bank is holding off on adding interest rate risk ahead of the midterm elections and key economic data releases.
Bernstein estimates that 244 gigawatts of data center projects are exposed to political risk, based on gubernatorial candidates’ probabilities of winning, little changed from last month. The firm believes local economic interests could shift the policy focus toward requiring developers to bear more of the cost of electricity infrastructure.
Brazilian soybean planting is ahead of previous years, easing concerns about second-crop corn supplies; meanwhile, heavy rain is hampering sugarcane crushing in the Centre-South. Morgan Stanley believes declining Brazilian sugar supply and El Niño-related disruptions could further tighten the global supply-demand balance.
SemiAnalysis expects more than 50 GW of new data center capacity worldwide in 2027, but most projects underlying the forecast of 62.2 GW in net additions in the US in 2028 have yet to begin construction. The duration of the Texas permitting freeze is the largest single risk to the pace of delivery.
New orders reached a record in the first three quarters of 2026, with memory customers contributing around sixty percent; but revenue fell quarter on quarter in the third quarter amid component shortages, and Nomura cut its full-year revenue forecast.
Third-quarter 2026 results compiled by Nomura show that pharmaceutical companies including Lilly and Novartis recorded rapid sales growth in China, while some medical device companies also returned to growth. However, currency movements, a low base and centralized procurement have made the extent of the recovery uneven.
Demand for optical chips and capacity expansion prompted Nomura to sharply raise its earnings forecasts, but geopolitical risks depressed its valuation assumptions; the company's third-quarter profit also failed to grow quarter on quarter alongside revenue.
Manufacturing and non-manufacturing PMIs both came in below market expectations. Nomura believes the manufacturing decline mainly reflected seasonal factors, but the divergence between production and orders and weakness in construction show that underlying growth momentum remains soft.
Major central banks have paused rate hikes, but JPMorgan expects tightening is not over. Financing-sensitive AI assets and lower-rated credit are under pressure. The bank remains positive on quality growth stocks and sees hedging value in developed-market government bonds when demand weakens.
Euro cross shorts have continued to profit recently. JPMorgan is tightening profit-taking levels while retaining positions in currencies including the US dollar, British pound and Norwegian krone. The bank believes high energy prices and interest-rate differentials still favor some higher-yielding currencies, but weakness in US technology stocks and central bank meetings are important variables.
Intermediate rates in developed markets have retreated from early-October highs, with growth concerns replacing some fears of rate hikes. JPMorgan believes valuations have become less cheap, favors German bonds over US Treasuries, and maintains its US yield curve steepening view.
JPMorgan expects the average net interest margin of its US bank sample to rise slightly in 2027, but remains cautious on regional banks; in Australia, competition and costs are in focus, while Brazil faces slowing loan growth.
JPMorgan considers Huatai Securities’ third-quarter earnings quality weak: investment income fell sharply, brokerage performance lagged peers quarter on quarter, and growth in investment banking and asset management fees failed to offset weakness elsewhere.
Second-quarter operating profit exceeded the Bloomberg consensus, and the company expects full-year revenue growth to outpace JPMorgan’s forecast for the wafer fab equipment market. However, fewer high-margin projects and higher expansion costs in the second half will limit margin improvement.
In the first three quarters of 2026, Deye’s revenue nearly doubled and net profit attributable to shareholders rose 82% year on year, but product mix, costs and exchange rates weighed on gross margin. Management is optimistic about demand in 2027, while JPMorgan has lowered its valuation multiple.
Lear’s third-quarter electronic systems margin exceeded expectations, offsetting some of the impact of business contraction. The company lowered its full-year revenue and free cash flow guidance but maintained its operating profit target; J.P. Morgan expects the stock to modestly outperform on the day.
The Logic Red Book reviews recent developments in humanoid robots, AI earbuds and dyes. Among the third-quarter reports released, Yongan Pharmaceutical benefited from higher taurine prices, while Quanyangquan’s mineral water revenue growth accelerated, although its adjusted profit fell quarter on quarter.
The company plans to change the use of proceeds from its H-share offering to expand optical module capacity; third-quarter net profit doubled from the previous quarter, and 1.6T products have begun shipping in small volumes.
