Chip companies surged overnight

Earlier, we published a report titled 'Chip Stocks Plummet—Blame Trump.' In that article, we primarily explained how Trump’s unpredictable policies delivered a major headwind to the semiconductor industry. But yesterday, buoyed by potential new U.S. policy announcements, chip stocks rallied strongly—surging overnight. According to Reuters, the Biden administration plans to unveil a new rule next month expanding U.S. authority to block certain foreign exports of semiconductor manufacturing equipment to Chinese chipmakers. However, anonymous sources indicated that shipments from key allied exporters—including Japan, the Netherlands, and South Korea—would be exempted, thereby limiting the rule’s overall impact. It was precisely this exemption clause that triggered last night’s euphoria across chip stocks. Surge in Equipment Makers ASML, the lithography machine giant, has suffered considerable setbacks over recent years due to U.S. policy restrictions. Following the release of the above positive news, this Dutch equipment leader surged first—its share price jumping as much as 10%. As of 3:59 a.m. Eastern Time, its stock was up approximately 7%. Market sentiment suggests July has been a tough month for ASML. Although its earnings exceeded expectations, its stock plunged sharply early this month following its earnings release. A primary reason behind the decline was investor anxiety over the Biden administration’s proposed restrictions on chip exports to China—a concern that pressured the stock and prompted investors to rotate out of chip equities into smaller-cap stocks. Now, however, the Biden administration is reportedly planning to exclude ASML from the new export restrictions targeting China. This development is a major boon for ASML, given that nearly half of its sales come from China. Last night, Barclays upgraded ASML’s rating from 'Hold' to 'Overweight,' stating that the prior sell-off had been excessive. Based on 2025 earnings estimates, the company trades at a P/E ratio of under 30—especially promising given expectations of a new growth cycle later this year, driven by next-generation extreme ultraviolet (EUV) lithography systems. ASML holds a distinct competitive advantage: it is the sole manufacturer of EUV machines, which are essential for etching intricate patterns onto silicon wafers used in microchips. Its stock thus appears well-positioned for long-term appreciation—particularly if it remains exempt from the new export rules. Beyond ASML, Tokyo Electron—the Japanese semiconductor equipment giant—also benefited significantly from this policy shift. Its shares rose 7% immediately after the Reuters report broke. Over the past 12 months, its stock has surged 46%. In May, the company projected that sales for its fiscal year ending next March would rise 20% to ¥2.2 trillion ($14 billion), with operating profit climbing 27.6% to ¥582 billion. This outlook reflects continued investment by global chipmakers in advanced technologies amid surging demand for generative AI applications. “We’re seeing renewed and expanded investment in advanced logic and memory chips,” said Hiroshi Kawamoto, General Manager of Finance, during an online press briefing.

PPG’s full-year revenue held steady at $15.9 billion, while net profit jumped 17% to $1.6 billion

Unit volume increased 1% year-on-year, with particularly strong growth in the high-performance coatings segment—including aerospace, protective, marine, and transportation solutions. The industrial coatings segment also gained market share in automotive OEM coatings, general industrial coatings, and packaging coatings. However, these gains were partially offset by declines in the automotive refinish business and the global architectural coatings segment. PPG Industries’ Full-Year 2025 Operating Results For the full year 2025, the company reported EBITDA of $2.631 billion, up 9.26% year-on-year; operating profit of $1.587 billion, up 15.25%; and net income of $1.571 billion, up 17%. Net profit margin improved from 8.5% in the prior year to 9.9%. Adjusted net income totaled $1.722 billion, down 7.0% year-on-year. Amid a challenging macroeconomic environment, the company achieved full-year diluted EPS of $6.92, and adjusted diluted EPS of $7.58—a 4% decline year-on-year. EBITDA margins across all three business segments stood at 19%. These results reflect strong sales performance driven by technologically leading products and powerful brands, with record achievements across multiple businesses—including aerospace coatings, protective and marine coatings, and packaging coatings. In 2025, PPG demonstrated exceptional adaptability amid macroeconomic headwinds: unit volume and selling prices rose across all four quarters, delivering 2% organic sales growth. The company generated $1.9 billion in operating cash flow, with a free cash flow yield of 5%. During the year, it repurchased approximately $790 million worth of shares—about 3% of its outstanding shares. Including dividends, PPG returned $1.4 billion to shareholders in 2025. PPG Industries’ Q4 2025 Factors Affecting Operating Performance PPG’s net sales for Q4 2025 totaled $3.914 billion, up 5.0% year-on-year. Organic sales rose 3%—the highest quarterly growth rate of the year—driven by broad-based growth across all three business segments. Overall selling prices rose 1% year-on-year, though structural price increases were partially offset by declines in index-based customer contract pricing. Unit volume grew 2% versus Q4 2024. Net sales also included a 4% benefit from foreign exchange translation and a 2% reduction attributable to divestitures. Sales growth was primarily driven by aerospace coatings, protective and marine coatings, and architectural coatings in Mexico, along with market share gains in the industrial coatings segment—offsetting declines in automotive refinish and architectural coatings in Europe and the Middle East. Net sales of automotive OEM coatings rose 6%, marking the second consecutive quarter of growth exceeding industry averages. Both net sales and segment income for aerospace coatings reached new highs in Q4. Adjusted diluted EPS for Q4 2025 was $1.51, compared to reported diluted EPS of $1.34.

Barclays Initiates Coverage on PPG Industries With Overweight Rating, $136 Price Target

Oct 13, 2026

Barclays has initiated coverage on PPG Industries with an Overweight rating and a $136 price target. The company manufactures coatings and fiberglass for sectors including automotive, transportation, and construction.

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