** Keybanc sees signs of life in China for the semiconductor equipment sector, but says there's still uncertainty if this is sustainable in the near-term
** Keybanc was surprised to hear commentary from distribution in China that demand appears to be picking up, as the broker thinks it's unclear whether this is true end-demand or simply restocking, highlighting resales in the country's market appear to be tracking better than rest of world (ROW)
** "It’s unclear if this also reflects end-demand improving as China automotive commentary has been strong, while global tier-1 demand in China also appears to be improving but channel partners indicate increased demand ROW appears to be more restocking driven," it says
** Adds channel partners are cautiously optimistic about improving demand trends, as inventories have clearly started to normalize
** "Weaker iPhone 15 demand in China being largely offset by India and higher demand for legacy models," it says, flagging Android high-end is strong, while mid-to-low is weak
** Keybanc says it has most positive findings for Nvidia
, Micron , Qualcomm and Monolithic Power Systems , as well as positive remarks for ARM Holdings
, Analog Devices , Microchip Technology and Texas Instruments
** Broker downgrades Skyworks Solutions to "sector weight" from "overweight", as its ability to drive content growth is becoming more challenging; shares, which are down 6.1% YTD, fall 2.1% as of 1140 GMT
(Reporting by Ozan Ergenay)
((ozan.ergenay@thomsonreuters.com))
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