Morgan Stanley upgrades these two stocks on AI-led ABF substrate up-cycle

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Morgan Stanley has upgraded Unimicron Technology Corp and Nan Ya PCB to Overweight, projecting a significant increase in their earnings due to an AI-driven up-cycle in ABF substrates. The firm anticipates the ABF substrate market value to grow substantially, with AI applications driving demand and leading to an undersupply from 2027. This shift is expected to provide longer visibility and support multiple expansion for the upgraded companies.

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