Catching the AI Wave... Slowly...

Research evidence excerpt

Catching the AI Wave... Slowly...

Idea

July 2, 2026 09:43 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MVenture Corporation Ltd. | Asia Pacific Da Wei Lee

Equity Analyst

Catching the AI Wave... Slowly… Dawei.Lee@morganstanley.comMorgan Stanley & Co. International plc+ +65 6834-6510

Shawn Kim

What’s Changed Equity Analyst

Venture Corporation Ltd. (VENM.SI) From To Shawn.Kim@morganstanley.com +44 20 7677-1018

Price Target S$15.00 S$17.00

Morgan Stanley Asia Limited+

Duan Liu

Equity AnalystVMS is becoming an AI infrastructure derivative, we think.

Duan.Liu@morganstanley.com +852 2239-7357

Portfolio B's exposure to hyperscale networking, test &

measurement and semiconductor related equipment is Morgan Stanley Taiwan Limited+ Daniel Yen, CFA

Equity Analystinflecting, while Portfolio A's consumer/lifestyle drag appears to

Daniel.Yen@morganstanley.com +886 2 2730-2863

be bottoming with a new product cycle on deck.

Derrick Yang

Key Takeaways Derrick.Yang@morganstanley.com +886 2 2730-2862

Vivi Huang

Portfolio B: Networking, hyperscale test equipment and semi-cap adjacencies are Research Associate

Vivi.Huang@morganstanley.com +886 2 2730-2860

riding the same wave lifting Korea/Taiwan tech leaders.

Portfolio A trough appears behind us, with the upcoming product cycle

representing a potential catalyst.

PT to S$17.0 (was S$15.0); Equal‑weight reiterated. New PT is now

DCF‑anchored (previously blended P/E, div yield, DCF) to better capture VMS's

Venture Corporation Ltd. (VENM.SI, VMS SP)

cash-flow profile.

ASEAN Technology | Singapore

At ~19x 2027e P/E (>1sd 20-y avg), the market has priced in the AI inflection & SG Stock Rating Equal-weight

multiple expansion. Industry View No Rating

Price target S$17.00

We wait for stronger growth and/or a clearer deployment of excess capital.