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In Tech, Semis +1% continuing to rally on the back of Korea’s KOSPI’s 7% gain. Overall, earnings mixed overnight in the space with SKHY, VRT, GEV, FLEX, APH all betterand STX, NXPI, TER, FFIV mixed.

The company's stock rose in anticipation of increased test capacity in 2027, driven by NVDA's expansion plans.

Strengthening demand for AI-related testing is expected to drive earnings significantly above consensus estimates.

The stock benefited from MU's implicitly high FY27 net CapEx projections, which are significantly above previous years.

Management indicated that the second half of the year should be stronger year-over-year, despite limited visibility for Q4 due to the business's seasonal weighting towards the first half.

JPM highlighted a second hyperscaler qualification expected by the end of Q3, merchant GPU share targets of approximately 30% within 3-4 years, and robust memory test demand driven by HBM and DRAM.

The firm also sees a multi-year tailwind from increasing memory capital expenditure and noted that Intel could become an incremental opportunity under new leadership, although any impact appears longer dated.

TER: JPM Says 2H Setup Is Improving, with Merchant GPU and Memory Demand Providing Longer-Term Upside

The company's stock increased as UBS recapped meetings with management, arguing that Google qualification by calendar year 2026 is a major upside catalyst that could help close the gap between Street's calendar year 2028 revenue estimates of $6.7 billion and UBS's $7.4 billion.

UBS believes incremental upside will be driven by Google TPU qualification, accelerating NVIDIA networking exposure, and growing CPO/SiPho adoption, noting that management did not push back on this framework.

UBS estimates that the company's NVIDIA networking business may already be running near a $1 billion annualized pace, with GPU dual-source share gains representing a multi-year tailwind.

The firm maintains a positive stance on merchant GPU expansion and co-packaged optics positioning, citing AI networking growth tailwinds.

There is potential for Q4 upside as chip complexity drives demand for higher-specification testers.

The stock continues to perform well and has recovered above its pre-earnings gap down, despite a recent miss.

The stock, despite a miss, was bought up by investors, indicating underlying confidence.

Charts are being bought aggressively on any mini-pull back (AVGO, LITE, AMD), plenty of names breaking out to new highs, beats are following through to the upside (NOK, STX, QCOM, WDC, TXN, VRT, INTC), and misses are being bought up (CLS, TER, GLW, ON, AMZN...

Goldman Sachs sees tactical long opportunities due to tester demand and GPU testing upside.

Semis: GS 1Q Preview; Broad Upside — Long AMAT, TER, AMD; Cautious KLAC, ON, ARM AMAT TER AMD KLAC ON ARM

Goldman sees a constructive 1Q setup post-pullback, with most fundamental upside in compute (server CPUs/ASICs), HDD/NAND (tight supply), and semi cap (DRAM/foundry pull-ins). Tactical longs: TER on tester demand and GPU testing upside, AMAT on capacity pul...

Chip testing is becoming a major bottleneck in the AI boom, creating a tailwind for firms like Teradyne.