The 720: Daikin upgrade, US Semis, Nvidia, China Tax, Basic Materials, Furukawa Electric, Wuxi AppTec, JX Advanced Metals, ANZ Telcos

The 720 daily note covers several themes. Daikin Industries is upgraded to Buy from Neutral with the 12m target price raised to ¥30,000 from ¥26,000, as FY3/27 and FY3/29 operating profit estimates rise to ¥470 bn and ¥550 bn on front-loaded demand and price increases in Japan, robust cooling demand and expected inventory restocking in Europe. Kurita Water is downgraded to Neutral from Buy with the target cut to ¥6,000 from ¥8,600 on uncertain electronics margins, a higher share of lower-margin facilities business and rising cost pressure. On US semis, the recent 13% sector selloff leaves semiconductor stocks oversold; power-based analysis projects roughly $1.3 tn of global AI infrastructure capex in 2027 on a 35 GW datacenter baseline, with preference for Nvidia and Broadcom, Applied Materials and Lam Research, and memory names Samsung and SK Hynix near tangible book. Nvidia's 3Q results and 4Q guidance are expected above Street with EPS 6% above consensus, and the $300 target is main