Continuously upward revisions to hyperscaler capital expenditure are driving demand for GPUs, HBM and memory; TSMC's CoWoS capacity is expected to double to 26 thousand wafers per month by 2028, but lagging OSAT capacity expansion could crowd out AI GPU capacity. Meanwhile, Teradyne's test equipment share rising to 8% and Applied Materials' advanced packaging revenue expected to grow by 70% indicate that AI investment is deeply transmitting into the equipment and packaging segments.

NAND demand is shifting toward long-cycle AI infrastructure, and Sandisk has locked in over 50% of shipments through multi-year agreements to support its valuation premium; however, aggressive capacity expansion by Chinese competitors and CXMT's additional DRAM wafer capacity could rapidly break supply discipline and depress earnings of Korean memory stocks.

Oracle has established its AI cloud leadership with IaaS revenue up 121% year-on-year and RPO of 6640 billion dollars; MiniMax's enterprise customer revenue share has reached 80% with ARR momentum continuing to grow. However, hyperscalers' free cash flow has turned negative and will remain under pressure until the end of 2027, highlighting the time mismatch between investment and commercialization.

China's 8 month passenger car retail sales fell more than 20% year-on-year amid intensifying price wars, but EV penetration rose to a record 64.7% and exports surged 67% year-on-year, forcing automakers to accelerate overseas localization layouts while facing potential EU tariffs and risks of consumption tax rebate reductions.

Despite rising interest rates, investors continue to allocate to fixed income and inflows into long-duration government bond ETFs are accelerating, while the yen is dominated by structural selling pressure from NISA overseas investments and corporate M&A, with USD/JPY fair value models suggesting current levels are too low.

Japanese equities have shifted from AI momentum trading to stock selection based on earnings progress, with a TOPIX base target of 4300 points; meanwhile, surging power demand from AI data centers is driving HD Hyundai Heavy Industries to significantly expand engine capacity, while Japan needs at least 1160 billion dollars in supply chain investment to reduce energy dependence.

Process upgrades for iPhone 18 Pro and foldable screen expectations are driving higher assembly and component content; the reshaping of AI server architecture is expected to raise MLCC server revenue share to 56%, and Nan Ya Plastics' electronic materials revenue rose 82% year-on-year. However, PC ODM shipments are expected to fall 16%, and excessive valuation stretch among optical interconnect names constitutes headwinds.

Capesize freight rates more than 100% above the ten-year average are lifting the iron ore cost curve; China's completed-property sales reform extends developers' cash conversion cycles to 2-3 years and compresses IRRs, while CROs/CDMOs, backed by strong order backlogs, are the core winners in the low-risk re-rating of China's healthcare sector.