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Investing.com - Morgan Stanley (NYSE:MS) upgraded ASM Pacific Technology (HK:522) (OTC:ASMVF) from Equalweight to Overweight on Thursday, raising its price target to HK$80.00 from HK$63.00.
The upgrade reflects Morgan Stanley’s revised outlook on ASM Pacific’s growth potential in the artificial intelligence data center market, which is now expected to drive demand for the company’s mainstream semiconductor equipment.
Morgan Stanley previously maintained an Equalweight rating due to expectations of a slow recovery in the mainstream semiconductor market, with the company’s Thermal Compression Bonding (TCB) growth insufficient to offset broader weakness at approximately 10% of the overall company mix.
The investment bank now sees demand for AI data centers boosting growth across ASM Pacific’s mainstream tool business, including die bonders, wire bonders, and molding equipment.
Morgan Stanley specifically noted NVIDIA (NASDAQ:NVDA)’s transition to 800 V HVDC data center power infrastructure to support 1 MW IT racks beginning in 2027, with supply chain companies investing in new technologies to meet NVIDIA’s requirements.
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