Asia stocks climb tracking Wall St rally; Nikkei hits record high, China GDP beats
Netflix remains driven by subscriber growth, which is still the key metric to watch. The company has been freed from the Warner Brothers acquisition, which allows it to focus more on programming. There is also a push into sports streaming, although quality issues remain, as streams can appear blurry, highlighting the need for more server capacity and, by extension, more data centers.
ASML plays a central role in the semiconductor ecosystem, providing the machines that manufacture chips. The broader semiconductor and circuit board industries remain firm. ASML’s sales are expected to grow 11.8%, with earnings projected to rise 10.6%. Analyst revisions have been positive, but the company missed expectations last quarter. As a result, it will need to deliver a strong surprise and solid guidance to regain momentum.
Taiwan Semiconductor stands out as the manufacturer behind major chips, including those used by Nvidia. Expectations are strong, with sales projected to rise 33.2% and earnings expected to increase 56.3%. Analyst revisions have been trending upward, and the company has a solid history of earnings surprises. Sales growth is currently running ahead of guidance, and since the company reports sales regularly, the outlook appears very strong. Among all the companies discussed, this is the strongest setup and is expected to deliver a standout performance.