Chip part makers KLA, Teradyne, AEI rise as KeyBanc starts with bullish ratings

Advanced Energy Industries

26/01/2022 17:51

** KLA Corp  KLAC.O  jumps 6% while Teradyne  TER.O  and
Advanced Energy Industries  AEIS.O  rise ~5% each after KeyBanc
starts coverage on all three chip equipment makers with
"overweight" rating
    ** Brokerage says semiconductor equipment sector is enjoying
strong demand, driven by increased semiconductor content across
a growing array of apps, a near-term need to add capacity for
current demand and a long-term need to regionalize capacity to
stabilize and de-risk supply chains
    ** KeyBanc initiates Lam Research  LRCX.O , Applied
Materials  AMAT.O  and MKS Instruments  MKSI.O  with "sector
weight", lifting their shares between 3.5% and 3.8%
    ** Expects secular demand in the sector from multiple
markets including autonomous driving, AI/ML, IoT, automation &
robotics, and the metaverse
    ** The Philadelphia semiconductor index  .SOX  up 4.5% as
strong rev forecast by Texas Instruments  TXN.O  lifted the
sector
    ** Still, SOX is headed for its worst monthly performance
since the pandemic-led crash in March 2020

 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))