CGS International analyst Lim Siew Khee warns that uncertainty persists around returns on capital from the global AI investment surge, despite U.S. equities reaching fresh highs driven by liquidity momentum and tech sector strength. Earnings revisions in semiconductor and tech hardware sectors across Asia’s supply chain highlight shifting dynamics, though the sector remains cyclical and priced for prolonged capacity constraints, Khee notes. Rising inflation volatility from oil supply shocks could disrupt equity valuations if interest rates swing sharply.

Xiaomi’s electric-vehicle division is rebounding, with Deutsche Bank’s Bin Wang forecasting improved sales and margins post-Q1, citing strong performance of the SU7 sedan launched in March and upcoming plug-in hybrid models. The analyst maintains a buy rating with a HK$67.00 target price as shares rise 7.2% to HK$31.10.

Tokyo Electron, a semiconductor-fabrication equipment leader, sees 41% sales growth in H1, per Morningstar’s Kazunori Ito, driven by its dominance in niche manufacturing tools and expansion into advanced technologies. Despite missing its 35% operating margin target due to inflation and yen weakness, the firm’s fair-value estimate jumped 22% to Y50,000, with shares closing 6.9% higher at Y47,450.

These developments underscore tech and media’s outsized influence on market valuations, with semiconductor demand and EV innovation acting as key growth levers. Regulatory shifts in AI adoption and supply chain resilience will shape near-term trajectories, analysts stress.