ROK - Strong Semiconductor Demand Boosting Yaskawa Electric Beyond The Rising Industrial Tide

• YASKAWA delivered a strong fiscal first quarter and management raised guidance meaningfully, with strong ongoing demand from the semiconductor industry a notable factor in that upside.
• Given a healthy outlook for auto and semiconductor capex, as well as overall growth in industrial automation (motion control), I believe more beat-and-raise quarters are possible.
• Even with near-term upside to guidance, YASKAWA is not undervalued today unless management can do substantially better than mid-single-digit long-term revenue growth with meaningfully higher margins.

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