MediaTek raised its 2026 ASIC revenue target to US$2.5 billion and expects to reach US$16 billion in 2027; third-quarter Smart Edge growth offset a decline in the handset business.
As of 28 October, Morgan Stanley’s A-share sentiment indicator had risen 10 percentage points over the week, remaining below the 22% technical rebound signal level. Trading activity recovered, while margin financing balances and earnings estimate revisions weakened.
Oil inventories in the major regions tracked by Morgan Stanley fell by 4.6 million barrels last week, but a build in refined products offset part of the crude draw. US gasoline inventories recovered while distillate stocks remained well below the seasonal average.
Companies representing a quarter of the S&P 500’s market capitalization have reported third-quarter results. Barclays is optimistic about earnings for the full reporting season, but year-on-year EPS growth has slowed from the previous quarter in financials, industrials and consumer staples.
Amazon’s third-quarter AWS revenue grew 39.3% year over year, below some buy-side expectations but above the market consensus. Management expects AWS to grow more than 40% in each of the next two years. Citi has raised its earnings forecasts on that basis while monitoring capacity expansion spending and margins.
JPMorgan tracking shows that European companies that have reported earnings are growing faster than their US counterparts, with energy the main driver. At the same time, the shares of companies beating earnings and revenue expectations fell from the previous quarter in both regions.
AWS accelerated for a sixth consecutive quarter, and management expects revenue growth of more than 40% in both 2027 and 2028; meanwhile, advertising growth slowed and heavy infrastructure spending pressured free cash flow.
ASE’s third-quarter revenue and gross margin both exceeded Morgan Stanley’s and market expectations. The company raised its advanced packaging revenue guidance for 2026 and 2027, but its 2027 guidance for full-turnkey CoWoS-like business remains below the bank’s forecast.
Higher average DRAM and NAND prices pushed third-quarter operating profit above market consensus; Bank of America is optimistic about fourth-quarter shipments and long-term demand, but expects some memory product prices to fall in 2027.
Third-quarter revenue rose 18% quarter on quarter, but net profit fell 22%, mainly due to investment revaluation gains turning into losses. Management expects the high gross margin to persist for a time before returning to normal as price increases slow and costs rise.
Morgan Stanley expects mass production of TPU v8t to drive MediaTek’s fourth-quarter 2026 revenue up 30%–40% quarter on quarter, but weakness in non-AI businesses and changes in the product mix will also weigh on gross margin. Growth potential in 2027–2028 depends on supplies of advanced packaging and substrates.
The Federal Reserve kept rates at 3.75%–4.00%, with two officials favoring a hike. Markets read the meeting as slightly dovish but still bet on a hike in December; Morgan Stanley expects fewer subsequent hikes than markets have priced in.
Based on volatility pricing in US dollar interest-rate options, Morgan Stanley selects trading structures for rising and falling rates and for yield-curve steepening and flattening; costs, maximum returns and the risks of selling options differ.
An oncology expert interviewed by Bernstein believes that a personalized mRNA vaccine combined with pembrolizumab showed clinically meaningful benefit in a phase III melanoma study. However, disease stage, immunotherapy risks and the personalized manufacturing process will affect its use in practice.
Pinterest continues to add users, but advertising revenue and fourth-quarter guidance fell short of expectations; Reddit revenue is still growing rapidly, yet its US daily active users declined year over year, and management plans to require all users to log in.
SpaceX’s moves into the wireless market have already depressed US telecom stocks, but the three major carriers are still refusing to give Starlink wholesale access to their networks. Bernstein believes the economics of a deal depend on where customers come from, how much traffic remains on the partner’s network, and whether SpaceX still builds its own network.
In the third quarter of 2026, the company’s revenue exceeded Nomura’s forecast by 27%, while net profit attributable to shareholders fell 29% short of the bank’s forecast. Nomura believes demand for high-density optical interconnects and capacity expansion drove revenue, but component costs and depreciation during the expansion phase depressed gross margin.
ASE’s third-quarter packaging and testing gross margin exceeded the upper end of company guidance, and management now sees the former 30% ceiling as a new baseline. The company raised its advanced packaging targets and capital expenditure, while Nomura increased its earnings forecasts and price target.
Third-quarter revenue rose 7.1% year on year, slightly above Bloomberg consensus; net profit attributable to shareholders fell 11.6%, missing expectations. Nomura maintained its buy rating and price target of 13.13 yuan.
Third-quarter revenue in 2026 rose 22% year on year and fell 2% quarter on quarter, while net profit rose 109% year on year. Nomura believes higher optical fiber selling prices and a greater share of high-margin products drove margin expansion.
