Goldman Sachs has highlighted eight Japanese semiconductor stocks as top picks, anticipating strong earnings revisions in the coming months. Analysts at the investment bank predict upward adjustments to earnings guidance, driven by improved capacity utilization, mix improvements, and stabilizing prices in the sector.
The firm maintains a buy rating on all eight stocks, citing solid fundamentals. For one company, Goldman Sachs expects a second upward revision to full-year guidance at the half-year results. The bank points to increasing utilization rates and price stabilization for MLCCs as key drivers.
Another company is expected to see a significant upward revision to full-year guidance, with mix improvements and higher pack ratios in batteries contributing to positive earnings trends. The firm also notes rapid earnings recovery in HDD-related businesses and profit improvements in passive components.
For a third company, Goldman Sachs anticipates steady quarter-over-quarter revenue increases, with potential for major valuation improvement if earnings exceed consensus in the third and fourth quarters. The firm believes the stock's valuation could improve rapidly if earnings momentum increases in the first half of 2027.