Track semiconductors, computing infrastructure and the technology cycle.
Both companies’ third-quarter capital spending fell short of expectations, but their full-year plans still point to higher fourth-quarter spending. JPMorgan is optimistic about the server supply chain while wary of pressure from PC demand and inventories.
Tencent believes the key to enterprise AI adoption is connecting workflows, internal knowledge and authorization systems. WorkBuddy is deeply integrated with WeCom and connected to business travel services; Citi maintains its Buy rating on Tencent with a target price of HK$755.
Palantir’s second-quarter revenue rose 93% year over year, with growth accelerating in both its commercial and government businesses. JPMorgan initiated coverage with an Overweight rating, saying the platform’s integration into customers’ operations could support growth and cash flow, though cloud hosting costs, customer lock-in concerns and competition from model providers will also influence its growth trajectory.
Revenue and earnings per share for the quarter ended in September exceeded both company guidance and market expectations. Management said long-term agreements cover about half of the bits to be shipped in fiscal 2027, but weak PC and low-end smartphone demand, DRAM costs and industry price competition remain constraints.
Morgan Stanley expects TPU v8 to contribute 2.5 billion US dollars in revenue in the fourth quarter of 2026, while a second customer opens up new room for growth in 2028; excluding AI chips, however, traditional businesses are expected to decline quarter on quarter.
Morgan Stanley expects the AI chip market to reach 809 billion US dollars in 2027, with demand for CoWoS packaging nearly doubling; however, slower growth in cloud capital expenditure, rising chip costs and supply bottlenecks will affect the realization of that growth.
Based on guidance from Alphabet, Microsoft and Meta, JPMorgan estimates that the three companies’ combined capital spending in the fourth quarter of 2026 will be approximately 174 billion dollars, up approximately 87 billion dollars year over year. Delays in third-party capacity delivery have affected Microsoft’s spending in the quarter, but all three companies have signaled continued investment.
Higher shipments of bipedal and quadrupedal robots drove revenue growth, but rising costs, price competition and R&D expansion reduced quarterly profit. JPMorgan values the data and ecosystem advantages generated by real-world deployment.
Yageo’s third-quarter earnings beat broker expectations, though its gross margin fell slightly short of the higher buy-side threshold. AI drove increases in both MLCC volumes and prices. The company expects further growth in the fourth quarter, with new capacity coming online from the second quarter of 2027.
Morgan Stanley believes the companies’ complementary technologies could allow Marvell to capture more value from each optical link, but Lumentum’s high valuation, DSP customer conflicts and manufacturing cyclicality raise the bar for a potential deal.
Fourth-quarter revenue guidance fell far short of expectations, primarily because of a PC inventory correction. Morgan Stanley raised its 2027 earnings forecast but cut its price target, arguing that tight server supply and heavy investment may not translate into lasting competitiveness.
Morgan Stanley expects demand for Coherent to remain strong, but initial production efficiency for six-inch substrates is low, making the pace of gross margin improvement a focus of the earnings report. The bank maintained its Equal-weight rating and cut its price target from 375 dollars to 325 dollars.
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.
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.
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.
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.
