Not just AI driving! KeyBanc: Analog chip suppliers welcome multiple positive news, demand is now experiencing "substantial recovery"

Investment firm KeyBanc Capital Markets pointed out that analog chip companies represented by Texas Instruments Incorporated (TXN.US) and Analog Devices, Inc. (ADI.US) are experiencing a "substantial improvement" in market demand, with the drive behind it not limited to just artificial intelligence. Specifically, several factors are driving this trend: first, due to supply tightening, delivery cycles in certain markets have been extended; second, customers in PC, smartphone, and other areas are stocking up early to cope with rising memory prices, leading to strong front-end demand. In addition, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) is reducing support for outdated process capacity to free up resources to increase supply of chip-on-wafer-on-substrate (CoWoS). Finally, in the non-AI analog chip market, competition between various resources and the AI field is intensifying, especially in power management - the power consumption requirements of NVIDIA Corporation's NVIDIA GPUs have increased by an average of 40% per generation. KeyBanc analyst John Vinh wrote in a report to clients, "This is driving widespread price increases in the semiconductor industry, with several power analog chip suppliers (such as TI, Infineon, MPS, Renesas, AOSL) announcing price increases, especially in the power management sector." As a result, this is favorable for companies in the entire analog chip sector, including Texas Instruments Incorporated, Analog Devices, Inc., Microchip Technology Incorporated (MCHP.US), NXP Semiconductors NV (NXPI.US), and ON Semiconductor (ON.US). Vinh further stated that the positive impact is mainly reflected in two aspects: first, with delivery cycles extending and supply tightening, channel bookings are experiencing substantial improvement; second, supply constraints driven by AI demand exceeding expectations are causing industry-wide price increases, especially in the analog power chip sector.