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Investing.com - Morgan Stanley (NYSE:MS) downgraded Lasertec Corp . (TYO:6920:JP) (OTC:LSRCF) from Equalweight to Underweight on Monday, citing shifting technology trends in the semiconductor industry.
The downgrade reflects Morgan Stanley’s view that the semiconductor industry’s technological focus is moving away from advanced lithography toward packaging solutions, which impacts Lasertec’s core business areas.
Morgan Stanley lowered its earnings outlook and price target for Lasertec, specifically pointing to falling demand for extreme ultraviolet (EUV) lithography masks and related systems that form a significant part of Lasertec’s product portfolio.
The investment bank noted that industry signals support this cautious outlook, including Intel (NASDAQ:INTC)’s indication that it might consider suspending developments for its 14A process if it cannot secure sufficient demand.
The rating change comes as semiconductor equipment manufacturers face evolving market dynamics and shifting priorities among major chip producers, potentially affecting companies specialized in lithography-related technologies.
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