Track semiconductors, computing infrastructure and the technology cycle.
Seedance’s overseas revenue grew nearly 5-fold over the past six months; Guangdong has proposed developing “AI + consumption.” Meanwhile, mainland Chinese A-shares weakened on lower turnover, and a subsidiary of Yunnan Germanium signed a long-term supply agreement for indium phosphide substrates.
Palantir’s revenue growth accelerated for the 13th consecutive quarter, but short-term contracts slowed booking metrics; Apple’s iPhone and China businesses performed strongly, while rising memory prices and slowing services growth weighed on its margin outlook.
Shopify’s third-quarter GMV growth slowed for a second consecutive quarter, and its fourth-quarter gross profit guidance fell short of some investors’ thresholds. Dynatrace’s subscription revenue beat expectations, but the increase in its full-year ARR guidance came from an acquisition, while its organic growth target remained unchanged.
Oracle’s bond and equity financing has arrived earlier than expected, but refinancing, supplier financing and lease liabilities remain issues for creditors. Morgan Stanley remains cautious about its medium-term credit outlook.
Marvell plans to acquire Lumentum in an all-stock transaction. Morgan Stanley sees promise in the co-design of lasers and chips, but believes cost synergies, customer relationships and elevated margins will test the transaction’s returns.
Marvell plans to acquire Lumentum at an enterprise value of approximately 115 billion dollars; Lumentum’s quarterly margins exceeded expectations and it secured a second purchase commitment worth more than 5 billion dollars, but the capacity ramp and transaction approvals will still determine subsequent progress.
Morgan Stanley expects Arm’s results for the quarter ending September 2026 to be broadly in line with consensus. Investors are more focused on whether fiscal 2028 CPU revenue guidance can be raised from over $1 billion to around $2 billion.
Combined revenue growth at the three largest cloud providers rose from 48% year over year in the second quarter to 56% in the third. Morgan Stanley sees this as a favorable demand backdrop for infrastructure software earnings, although cloud providers are also intensifying competition in data analytics, databases and AI monitoring.
Citi expects Xiaomi to report third-quarter 2026 revenue of 104 billion yuan and adjusted net profit of 4.8 billion yuan. Average smartphone prices and gross margin are improving, but the IoT, internet and electric vehicle businesses are under pressure, while AI research and development and automotive selling expenses are also weighing on earnings.
Xiaomi delivered over 336.5 thousand electric vehicles in the first three quarters, achieving approximately 75% of its full-year target of 450 thousand vehicles; deliveries exceeded 50 thousand in October. Citi expects the third quarter may be the low point of the year and maintains its Buy rating.
Weaker-than-expected white goods demand slowed IPM growth, while fair-value losses on investments brought Silan’s third-quarter net profit down to 18 million yuan. Citi cut its earnings forecasts and target price while maintaining a Neutral rating.
In the third quarter of 2026, CR Micro’s gross margin exceeded 30% for the first time in three years, but widening losses from the ramp-up of joint-venture wafer fabs in Chongqing and Shenzhen brought net profit below expectations. Citi raised its revenue forecasts while lowering its earnings forecasts.
Jiangsu Cable’s AI short-drama business remains in the exploration and development stage; Mingyang Electric’s wholly owned subsidiary will design, manufacture, integrate and deliver IT modular units for a computing center in Thailand.
OmniVision Group’s third-quarter gross margin rose to 30% from the previous quarter, while net profit increased 50.53% quarter on quarter. The company expects a fourth-quarter gross margin of 29.44% to 30.74%, with several new vision sensors scheduled to enter mass production in stages.
As of the end of September 2026, the operating capacity of new-type energy storage nationwide had grown 63% year on year. Ping An Securities expects electricity consumption for computing to continue rising and direct green power supply to potentially drive energy storage demand; relevant companies have disclosed technological achievements and project applications.
Longsys’s third-quarter revenue rose 124% year over year, while its gross margin fell 16.5 percentage points quarter over quarter but beat Citi’s expectations. Citi is positive on enterprise products and the ramp-up of mSSD shipments, while lowering its price targets.
Hon Hai says its AI rack assembly capacity doubled in one year. Factory integration of DSX POD could also expand the value contractors can create; Morgan Stanley expects Hon Hai’s share of Vera Rubin racks to rise in 2027.
Morgan Stanley is inclined to raise its forecast for 2027 DRAM wafer fab equipment spending growth, but supply-chain costs and contracting industry valuations continue to constrain Applied Materials’ outlook.
Morgan Stanley sees strategic value in co-designing lasers and electronic chips, but high valuation, customer losses and a decline in laser margins could affect returns.
Morgan Stanley raises its forecast for AMD server revenue growth and expects it to offset a cut to its PC business forecast. Meanwhile, demand for AI connectivity and mature-node manufacturing is improving, but customer concentration, capacity and smartphone costs continue to constrain the performance of different companies.
