Editorial companion

What stands out

Aadil Ebrahim of Klay Group told CNBC International Live that Chinese semiconductor stocks are trading at a valuation premium driven by Beijing’s drive to build domestic supply chains. He cautioned that the premium leans on policy momentum more than on industry fundamentals, and that overcapacity, especially in memory, can sharply compress pricing and margins. His point about long-term supply agreements is the useful nuance: multi-year contracts can protect margins and justify higher multiples if utilization stays high, but they are a real test of who actually earns cash versus who simply benefits from patriotic buying and headline rerating.