DBS Raises SMIC TP to HKD96 After 2Q Results Far Exceed Expectations
AASTOCKS News·- DBS reported that SMIC's 2Q revenue reached USD 3.01 billion, up 36% year-on-year, while gross margin significantly beat market expectations at 25.3%. - Management projected 3Q revenue growth of 2% to 4% quarter-on-quarter and guided gross margin to be between 26% and 28%. - Following these results, DBS raised SMIC's earnings forecasts for 2026 to 2028 by 13.4% to 16.5% and lifted its target price to HKD 96.Prescient warns AI-driven chip rally erodes global equity diversification benefits
PUBT·- Prescient analysis reported that the AI-driven chip rally is eroding global equity diversification benefits by increasing cross-border market risks. - By late July 2026, the 60-day Kospi–Nasdaq 100 correlation reached approximately 0.5, alongside high market concentration in top tech firms. - China chip-equipment developments triggered synchronized semiconductor selloffs, while tight investment loops and capital expenditure strains elevate downside contagion risks.Memory prices to peak this year in upcycle turning point, research suggests
SCMP·- Global memory-chip stocks are retreating as cooling price growth and rising inventories signal that the sector's upcycle is nearing its late stage. - Bernstein Research reported that conventional DRAM contract price increases are projected to slow to about 17 per cent in the third quarter compared to 65 per cent in the previous period. - Despite aggressive supply expansions by Chinese producers like CXMT and YMTC, major financial institutions project that memory market shortages will persist until at least 2028 due to robust AI demand.