Key insights
- Morgan Stanley anticipates strong Q3 2027 earnings for North American smartphone component suppliers, particularly those involved in AI computing. TDK is named a top pick with an overweight rating due to expected growth in rechargeable batteries and HDD products. Murata Manufacturing and Alps Alpine also received overweight ratings, driven by demand for capacitors and camera actuators, respectively. Hirose Electric is also rated overweight, citing AI server connectors and industrial machinery.
Investing.com -- Morgan Stanley expects suppliers of high value-added components in North American smartphones to exceed consensus earnings forecasts for the fiscal third quarter of 2027, driven by the proliferation of AI computing devices.
The investment bank assigned an overweight rating to TDK, naming it as its top pick. Morgan Stanley anticipates earnings expansion for TDK's rechargeable batteries and hard disk drive-related products.
Murata Manufacturing also received an overweight rating, with Morgan Stanley citing growing demand and utilization rates for high-value-added multilayer ceramic capacitors.
Alps Alpine was rated overweight as the company's high-performance camera actuators are set to ramp up production starting in April through June.
Hirose Electric received an overweight rating based on expected earnings expansion for general industrial machinery and AI server connectors.