Semiconductor Capital Equipment: Semifcap Q2 preview: pricing an incremental layer to logic/HBM buildout

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Semiconductor Capital Equipment: Semifcap Q2 preview: pricing an incremental layer to logic/HBM buildout

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Semiconductor Capital Equipment

Semicap Q2 preview: pricing an

incremental layer to logic/HBM buildout

Industry Overview

Pricing power, stock volatility=enhanced buying opp’ty 20 July 2026

We preview semicap Q2 earnings following a recent pullback from recent highs (LRCX - Equity

29% QTD, AMAT -27%, KLAC -31%) dragged by their tight correlation to memory stocks United States

amid fears of decelerating DRAM/NAND ASPs, while cheaper Chinese AI models have Semiconductors

stoked concerns that AI infrastructure spend could roll over. We see this as an enhanced

buying opportunity as the fundamental backdrop is only improving for WFE with sales VivekResearchAryaAnalyst

accelerating into 2H and CY27 before potentially growing even in CY28 as current BofAS

vivek.arya@bofa.com

unprecedented >2 year visibility suggests. We have increased confidence in our ~30%

WFE growth or $144bn/$190bn/$250bn by CY28E and $300bn by CY30E, with pricing DuksanResearchJangAnalyst

adding potentially another 10% incremental lever. Cloud capex trends remain key but AI BofAS

duksan.jang@bofa.com

buildout should continue to unlock a wave of greenfield and tech migration spending.

Michael Mani

The demand backdrop is rich in drivers for leading semicaps to differentiate and gain Research Analyst

share including HBM, gate-all-around, backside power, and 3D NAND as surging FCF BofAS michael.mani@bofa.com

support robust capital returns.

Liam Pharr

Research Analyst

BofASASML and TSMC results point to healthy beat/raises liam.pharr@bofa.com

Recent industry prints set a constructive tone with ASML delivering a sizable beat that