[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Jukan [@Jukanlosreve](/creator/twitter/Jukanlosreve) on x 22.7K followers Created: 2025-07-24 23:54:54 UTC ASMPT Quarterly Report: AI Data Centers Drive Mainstream Equipment Recovery, Optimistic on TCB and China's Advanced Packaging Growth Potential Morgan Stanley (D. Dai, 25/07/24) Morgan Stanley states that as AI data center construction begins to drive demand for mainstream semiconductor equipment, ASMPT is poised for an inflection point in its performance. Although the automotive and industrial sectors remain at a low point, overall risks are converging, and the company is performing positively in TCB and the Chinese market. AI Data Centers Drive Mainstream Equipment Demand, Reshaping Growth Expectations Previous conservative ratings for ASMPT stemmed from the slow recovery of the mainstream semiconductor market, while the TCB business accounted for only about XX% in 2024, making it difficult to fully offset the impact. Now, AI data centers are beginning to drive demand for mainstream equipment, including wire bonders and molding equipment. The company is expected to benefit from NVIDIA's dominant 800V HVDC data center power architecture upgrade, and supply chain customers are willing to invest in new technologies to meet its demands. TCB Order Performance Steady, China Market Provides Future Growth Space ASMPT continues its positive trend in TCB. C2S solution orders are growing among packaging partners of leading foundries, and AOR technology shipments for C2W are expected to increase in 2025. Although NVIDIA's Rubin platform still uses traditional processes, some HBM customers are already using ASMPT's TCB tools for small-scale production in HBM4 12H. The company also benefits from advanced packaging and HBM investments in China, giving it a competitive advantage. Automotive and Industrial Sectors Hit Historical Lows, Limited Future Downside Affected by weak demand, the automotive and industrial businesses' share of revenue has fallen from XX% in 1H22 to the current 23%, continuously dragging down the company's profit performance. Management expects short-term demand to remain weak, but as Tier X inventory gradually depletes and the Chinese automotive market performs steadily, Morgan Stanley believes this business segment is likely to rebound between 2026 and 2027. Attractive Valuation, Rating and Target Price Upgraded ASMPT, as a relatively lagging stock in the advanced packaging sector, has been constrained by weakness in the mainstream market and automotive/industrial sectors. Currently, AI servers are driving demand for mainstream tools, and the automotive/industrial segment is at a trough, indicating more upside risk than downside risk. XXXXX engagements  **Related Topics** [automotive](/topic/automotive) [$0981hk](/topic/$0981hk) [dai](/topic/dai) [coins ai](/topic/coins-ai) [morgan stanley](/topic/morgan-stanley) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/Jukanlosreve/status/1948532372523323900)
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Jukan @Jukanlosreve on x 22.7K followers
Created: 2025-07-24 23:54:54 UTC
ASMPT Quarterly Report: AI Data Centers Drive Mainstream Equipment Recovery, Optimistic on TCB and China's Advanced Packaging Growth Potential Morgan Stanley (D. Dai, 25/07/24)
Morgan Stanley states that as AI data center construction begins to drive demand for mainstream semiconductor equipment, ASMPT is poised for an inflection point in its performance. Although the automotive and industrial sectors remain at a low point, overall risks are converging, and the company is performing positively in TCB and the Chinese market.
AI Data Centers Drive Mainstream Equipment Demand, Reshaping Growth Expectations
Previous conservative ratings for ASMPT stemmed from the slow recovery of the mainstream semiconductor market, while the TCB business accounted for only about XX% in 2024, making it difficult to fully offset the impact. Now, AI data centers are beginning to drive demand for mainstream equipment, including wire bonders and molding equipment. The company is expected to benefit from NVIDIA's dominant 800V HVDC data center power architecture upgrade, and supply chain customers are willing to invest in new technologies to meet its demands.
TCB Order Performance Steady, China Market Provides Future Growth Space
ASMPT continues its positive trend in TCB. C2S solution orders are growing among packaging partners of leading foundries, and AOR technology shipments for C2W are expected to increase in 2025. Although NVIDIA's Rubin platform still uses traditional processes, some HBM customers are already using ASMPT's TCB tools for small-scale production in HBM4 12H. The company also benefits from advanced packaging and HBM investments in China, giving it a competitive advantage.
Automotive and Industrial Sectors Hit Historical Lows, Limited Future Downside
Affected by weak demand, the automotive and industrial businesses' share of revenue has fallen from XX% in 1H22 to the current 23%, continuously dragging down the company's profit performance. Management expects short-term demand to remain weak, but as Tier X inventory gradually depletes and the Chinese automotive market performs steadily, Morgan Stanley believes this business segment is likely to rebound between 2026 and 2027.
Attractive Valuation, Rating and Target Price Upgraded
ASMPT, as a relatively lagging stock in the advanced packaging sector, has been constrained by weakness in the mainstream market and automotive/industrial sectors. Currently, AI servers are driving demand for mainstream tools, and the automotive/industrial segment is at a trough, indicating more upside risk than downside risk.
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