A Key Player in New York’s $10 Billion Gamble on Semiconductor Research\n\nApplied Materials (AMAT) has been named the IBD Stock of the Day as its stock returns to the buy zone after a recent breakout. But the company’s value goes beyond its stock performance. New York State has announced a $10 billion investment to establish a cutting-edge semiconductor research facility at the University at Albany, in collaboration with prominent chip companies and overseen by NY Creates. This ambitious project, endorsed by Governor Kathy Hochul’s office, aims to pioneer next-generation chip manufacturing technologies and make New York a significant research hub in the industry.\n\nThe project will be equipped with the world’s most advanced chip-making equipment from ASML Holding NV (ASML), a Dutch company renowned for its sophisticated machinery. This includes their extreme ultraviolet light (EUV) machines, which will be central to the endeavor. The Albany facility will host the next generation of these systems, called high-NA EUV, to enter commercial production by 2025. This partnership also involves vital industry players such as International Business Machines Corp (IBM), Micron Technology Inc (MU), and Tokyo Electron.\n\nThe project is part of New York’s larger strategy to bolster domestic chip production and reduce reliance on foreign technologies amidst geopolitical tensions and strategic needs. With its existing chip manufacturing infrastructure, including facilities operated by GlobalFoundries Inc (GFS), ON Semiconductor Corp (ON), Wolfspeed, Inc (WOLF), and the upcoming Micron factory near Syracuse, New York is poised to become a key player in the semiconductor industry.\n\nApplied Materials is also making significant efforts to strengthen its differentiated materials engineering solutions for specialty semiconductor applications. The company has extended its long-term partnership with CEA-Leti to form a new joint lab, which aims to develop materials engineering solutions using Applied Materials’ wafer processing systems and CEA-Leti’s performance evaluation capabilities. This will benefit technology applications such as photonics, image sensors, radio frequency communications components, power devices, and heterogeneous integration.\n\nThe company’s deepening focus on strengthening its ICAPS (IoT, communications, automotive, power, and sensors) business with new products is expected to gain solid traction in the near term. Additionally, Applied Materials is currently experiencing application wins in etch, epitaxy, implant, metrology and inspection, and materials modification processes.\n\n”

Asian Shares Poised to Gain Ahead of Key US Data and Central Bank Meetings\n\nAsian shares are expected to see gains following a quiet day on Wall Street, as investors await key US economic data and meetings from major central banks. These events will provide insight into the likelihood of rate cuts in the coming year. Futures for Japan and Hong Kong point to a strong opening, while Australian stocks are also set to edge higher.\n\nThe S&P 500 index remained above 4,600, with the Nasdaq 100 outperforming thanks to a rally in chipmakers. After the closing bell, Oracle Corp. Reported disappointing sales, citing slowing cloud momentum. Treasury 10-year yields and the dollar saw little change.\n\nTuesday's consumer price index (CPI) will give Wall Street a sense of whether the trend of disinflation is continuing. This report comes a day before the Federal Reserve's last scheduled decision of 2023, where officials are expected to hold rates and announce their Summary of Economic Projections. The question is whether the Fed will try to temper expectations for policy easing after investors aggressively priced in a dovish stance.\n\nAccording to Craig Erlam at Oanda, there is a lot to come in the next few days that could determine how markets end the year and start 2024. He believes the Fed decision on Wednesday is unlikely to be controversial, but the accompanying forecasts, dot plot, and press conference may be.\n\nIn Asia, all eyes will be on a key meeting of Chinese economic policymakers at an annual year-end conference. This meeting will set the future agenda after a lackluster 2023, where the post-Covid recovery sputtered, developers faced financial strain, and money flowed out of the country. Meanwhile, Bank of Japan officials see little need to rush into scrapping the world's last negative interest rate this month, according to sources.\n\nBack in the US, a survey conducted by 22V Research shows that 46% of investors polled believe the market reaction to CPI will be mixed or negligible. 28% are betting on a risk-off event, while only 26% see a risk-on response. According to Greg Marcus at UBS Private Wealth Management, the recent strength in stocks is based on expectations of a soft landing and lower rates in 2024. Marcus adds that if the Fed cuts rates next year, it may be due to a slowing economy, which would have a different impact on the markets.\n\nMegan Horneman at Verdence Capital Advisors believes that investors are too optimistic about the economy's strength, despite signs of easing inflation. She notes that the resiliency of the labor market makes it difficult for the Fed to cut rates as the economy weakens.\n\nA Fed Bank of New York survey shows that US consumers' near-term inflation expectations dropped in November to the lowest level since April 2021. According to Matthew Weller at Forex.com and City Index, some investors may expect volatility around the CPI data. With the Fed committed to keeping rates higher for longer, there may not be as much movement as in past reports. Weller adds that regardless of the CPI report's outcome, Jerome Powell and the Fed will want to see sustained evidence of rising prices before considering any changes to monetary policy.\n\n Asian shares are expected to see gains ahead of key US data and central bank meetings.