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Glonghui, June 22 — CMB International released a report stating that, reviewing the first quarter results of overseas leading TMT companies, it observed that revenue and profit expectations for leading technology companies for fiscal 2026 have been further revised upwards, thanks to strong AI computing power demand and sustained AI empowerment of core businesses. However, several companies have also raised their capital expenditure guidance, leading to short-term pressure on free cash flow. In the medium to long term, the bank believes that the profit impact of AI investment on leading technology companies is manageable, and that overall operating profit growth for fiscal 2027/2028 is still expected to be maintained above 20%. Although the free cash flow ratio is under short-term pressure due to capital expenditures, a turning point is likely to occur from fiscal 2028, enabling it to rise again.The bank also indicated that, after the results, the overall valuation of the software sector has improved, with robust upward revisions to profit expectations. However, performance within the sector remains differentiated: the enterprise application software sector has performed steadily overall, while the infrastructure software sector—benefiting from AI trends—has shown more positive performance. Looking ahead, the bank believes the key to fundamentals and share price will be whether companies can achieve sufficiently high returns and ROIC in the wave of AI investment, thus supporting resilient short-term results as well as sustainable mid- to long-term profit growth. Taking into account current fundamentals and valuation levels, the bank recommends Microsoft, Google, Amazon, Palo Alto Networks, and Meta.

(1) The median forecast of eight economists surveyed by The Wall Street Journal shows that the East 8 Zone's Consumer Price Index (CPI) for May is expected to rise by 1.9% year-on-year, slightly higher than April's 1.8%. (2) Economists at Moody's Analytics noted that energy prices driven up by the Middle East conflict will be transmitted to domestic gasoline and electricity costs; meanwhile, it will take time for strait shipping to return to normal, and the risk premium may keep oil prices elevated in the coming months. (3) Barclays expects inflation to remain basically stable, believing that as oil prices retreated in May, the second-round effects from the supply-side shock may be limited. (4) This inflation data will be officially released on Tuesday.

According to Odaily, data from 8MarketCap shows that SK Hynix's market capitalization has been rising continuously and has now reached 1.348 trillion USD, up 5.61% in 24 hours. It has now surpassed Bitcoin's total market capitalization (1.286 trillion USD), rising to 16th place in global asset market capitalization rankings, while Bitcoin has dropped to 18th.