SCB EIC has revised its 2026 economic growth forecast for Thailand to 1.7%, based on the strong first-quarter expansion and support from government measures. However, economic growth remains concentrated in certain business sectors, particularly technology-related businesses, reflecting a fragile recovery. Meanwhile, the increasing risk of conflict in the Middle East is impacting the Thai economy.

The latest economic data increasingly reflects the impact of the war in the Middle East. The overall inflation rate in April accelerated to 2.9%, the highest in over three years, following rising domestic oil prices driven by market mechanisms and the passing of costs to consumers, particularly on processed food prices. Meanwhile, producer inflation accelerated much more sharply at 9.1%.

This disparity reflects that businesses are still absorbing higher costs themselves. While the pass-through of costs to consumers is expected to become more pronounced in the coming period, it will be limited amidst low economic growth, which is pressuring business profitability, especially for SMEs. Furthermore, business dynamics have deteriorated, with a contraction in new business openings and an increase in business closures during the first four months of the year. Business and consumer confidence has continued to decline sharply since March. The number of foreign tourists contracted by -7% in April and -3% in the first 17 days of May. Overall exports showed strong growth of 18.7% in March, but this was concentrated in electronics. (But the Middle Eastern market contracted by -57.1%) while imports accelerated by 35.7%, resulting in a trade deficit in the first quarter of the year.

SCB EIC has revised its 2026 Thai economic growth forecast upwards to 1.7% (from 1.4%), but noted that growth is concentrated in sectors benefiting from the AI ​​and digital trends. Key factors in this revision include:

1) The 400 billion baht loan decree is expected to contribute approximately 0.6% to economic recovery this year, based on the assumption that 274 billion baht will be injected into the economy: 198 billion baht from support programs (such as “Thai Helps Thai Plus”), expected to alleviate short-term cost of living pressures starting in June, and approximately 76 billion baht from the clean energy transition program, expected to begin spending in the third and fourth quarters;

2) Exports and investment are projected to improve following the positive momentum in the first quarter, and the value of investment approvals and certificates issued by the BOI remains high, particularly in the AI ​​and data center sectors; and

3) Import values ​​are expected to increase significantly, partly reflecting the impact of rising import prices. In particular, the price of global crude oil;

4) The estimate of foreign tourists in 2026 has been revised down to 31.7 million (from 33.2 million) due to reduced flights and higher ticket prices, while tourist confidence has decreased due to concerns about safety and the fragility of purchasing power.

Thailand’s economic growth rate is projected at 1.7% this year, a significant slowdown from the 2.4% projected for 2025 and the 2.9% projected for 2024. This reflects existing economic vulnerabilities and additional pressure from the conflict in the Middle East. The average annual inflation rate for 2026 is projected to accelerate beyond the target range of 3.6%, up from a negative -0.1% in the previous year, reflecting the pressure from the war on higher production costs.

The Monetary Policy Committee (MPC) is likely to maintain its policy interest rate at 1% throughout the year, following the prolonged conflict in the Middle East and the increasing role of fiscal policy in supporting the economy.

SCB EIC projects that the Monetary Policy Committee (MPC) is likely to maintain its policy interest rate at 1% throughout the year. The prolonged conflict in the Middle East is expected to keep headline inflation above the target range for the remainder of the year. Meanwhile, the gradual implementation of fiscal policies to mitigate the impact of the war will help support domestic demand to some extent, reducing the need for the MPC to further cut interest rates to prop up the economy, especially given the limited policy space available. It is anticipated that measures to assist retail borrowers and improve SME access to credit will play a more significant role in addressing the economic impact in the coming period.

The global economy is expected to slow down somewhat in 2026 due to pressures from war, while major central banks are unable to further ease monetary policy.

SCB EIC maintains its global economic growth forecast at 2.5% in 2026. Most major economies performed well in the first quarter, driven by AI investment, while the conflict in the Middle East has not yet had its full impact. Looking ahead, the global economy is expected to slow down due to the prolonged nature of the conflict, which will keep energy prices high for an extended period, pressuring production and consumer purchasing power. SCB EIC believes the Eurozone and Japan will be significantly impacted due to their high dependence on energy imports. Meanwhile, the US economy is expected to continue growing strongly, supported by AI investment and improved labor market stability . The Chinese economy is projected to maintain growth driven by manufacturing and exports, particularly the accelerating demand for alternative energy products such as batteries and solar panels.

Major central banks will be waiting for clarity on the war situation and may not be able to further ease monetary policy this year. The U.S. Federal Reserve (Fed) is likely to keep its policy interest rate at 3.5-3.75% throughout the year (previously expected to cut once) due to higher inflation risks and improved labor market prospects . The European Central Bank (ECB) is likely to raise interest rates once to 2.25% (previously expected to remain unchanged) to anchor inflation expectations, but the ECB may be unable to raise rates significantly due to the fragility of its economy . The Bank of Japan (BOJ) is likely to raise interest rates once to 1.0% this year (previously expected to raise them twice), focusing on the potential for a slower economic growth due to the war’s impact. Overall, global financial conditions will tighten, and the prolonged war will put significant pressure on global government bond yields to rise.

The upward revision of Thailand’s 2026 economic forecast reflects the significant role of fiscal policy in supporting the economy, rather than recovery driven by structural factors. This makes the Thai economy remain vulnerable to external risks, particularly war, and rising energy and raw material costs for the remainder of the year.

Other People are Reading

This is the forum for daily political discussion on Seeking Alpha. A new version is published every market day.

Please don’t leave political comments on other articles or posts on the site.

The comments below are not regulated with the same rigor as the rest of the site, and this is an ‘enter at your own risk’ area as discussion can get very heated. If you can’t stand the heat… you know what they say…

More on Today’s Markets:

Moderation Guidelines:

We remove comments under the following categories:

• Personal attacks on another user account
• Anti-Vaxxer or covid related misinformation
• Stereotyping, prejudiced or racist language about individuals or the topic under discussion.
• Inciting violence messages, encouraging hate groups and political violence.

Regardless of which side of the political divide you find yourself, please be courteous and don’t direct abuse at other users.

For any issue with regards to comments please email us at : moderation@seekingalpha.com.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

NEW YORK — Navitas Semiconductor Corp. shares advanced 0.94% to $25.32 in morning trading on Monday, reflecting continued investor interest in the company’s gallium nitride (GaN) power semiconductor solutions amid expanding applications in data centers, electric vehicles and consumer electronics.

The modest gain occurred in a generally positive session for semiconductor stocks, as broader market sentiment remained supportive of technology names tied to artificial intelligence infrastructure and energy efficiency. Navitas, a leader in next-generation power electronics, has positioned itself at the intersection of high-growth markets where faster, smaller and more efficient power conversion is increasingly critical.

Navitas specializes in GaN power ICs that offer significant advantages over traditional silicon-based solutions, including higher switching speeds, lower energy losses and reduced size. These characteristics make GaN technology particularly valuable for fast-charging adapters, data center power supplies, solar inverters and electric vehicle systems. The company’s platform approach integrates power, analog and digital functions on a single chip, simplifying design for customers while improving overall system performance.

In recent quarters, Navitas has reported strong revenue growth driven by adoption in mobile chargers, notebooks and data center applications. The company’s technology is increasingly specified by major consumer electronics brands and hyperscale data center operators seeking to reduce energy consumption and thermal management challenges in AI server racks. As AI training and inference workloads surge, efficient power delivery has become a key bottleneck that GaN solutions help address.

Analysts have highlighted Navitas’ potential to capture market share in the rapidly expanding power electronics sector. GaN adoption is accelerating as industries prioritize energy efficiency and compact designs. The company’s partnerships with leading foundries and its expanding portfolio of integrated solutions provide a competitive edge in a market projected to grow significantly over the coming years.

For investors, Navitas represents a high-growth play in the semiconductor value chain. While still a relatively small company compared to industry giants, its focus on a differentiated technology with broad applicability has attracted attention from growth-oriented funds. The stock’s performance reflects both enthusiasm for its long-term potential and the inherent volatility of early-stage semiconductor innovators.

The current share price movement fits within normal daily fluctuations and does not necessarily signal a major trend reversal. It reflects steady buying interest in a stock that has experienced significant volatility since going public. Navitas’ market capitalization and trading patterns remain typical for a growth-stage technology company in a competitive industry.

Broader semiconductor market context shows strength in areas tied to AI infrastructure, data centers and power management. Navitas’ GaN platform aligns well with these trends, offering customers tangible benefits in efficiency and power density that translate into competitive advantages for end products.

Looking ahead, Navitas is expected to continue ramping production and expanding its customer base. Upcoming earnings reports and technology updates will be closely watched for evidence of sustained design wins and margin improvement. The company’s ability to scale manufacturing while maintaining technological leadership will be critical for long-term success.

Risks include intense competition from established silicon players transitioning to wide-bandgap technologies, potential supply chain disruptions and the capital-intensive nature of semiconductor development. As a smaller company, Navitas must execute efficiently to maintain momentum against larger, better-resourced competitors.

For long-term investors, Navitas offers exposure to secular trends in electrification, renewable energy and AI infrastructure. Its technology addresses real pain points in power conversion, positioning it favorably as industries transition to more efficient solutions. However, the stock’s volatility requires careful risk management and a patient investment horizon.

Analysts generally maintain constructive views on the company, citing its differentiated technology and growing addressable markets. Price targets reflect optimism around market share gains, though execution and competition remain key variables to monitor.

Navitas continues investing in research and development to expand its portfolio and improve device performance. Recent product introductions target higher-power applications, broadening its reach beyond consumer electronics into industrial and automotive segments.

The semiconductor industry’s shift toward compound materials like GaN and silicon carbide (SiC) represents a multi-year opportunity. Navitas’ focus on GaN gives it a specialized position in this transition, with potential for significant growth as adoption accelerates across multiple end markets.

Monday’s trading added to positive sentiment around the stock but also highlighted the need for sustained catalysts to support higher valuations. As the company advances its roadmap, future performance will depend on successful customer adoption and operational scaling.

Investors evaluating Navitas should consider individual risk tolerance, portfolio allocation and time horizon. The company offers high-growth potential in attractive markets but carries risks typical of semiconductor innovators, including technological shifts, competitive pressures and execution challenges.

Overall, Navitas Semiconductor maintains a solid position in the fast-evolving power electronics landscape. Its GaN technology platform, expanding customer relationships and alignment with major industry trends provide a compelling foundation for growth. While near-term volatility is likely, the company’s focus on energy-efficient solutions positions it favorably for long-term success in an increasingly electrified and AI-driven world.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

This article was written by

Follow

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WEN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The monthly average ADR reading of all BSE stocks continued to remain strong as the ratio remained above one for two consecutive months. In May, the ratio was at 1.06 while the reading was at 1.5 in April, the highest since June 2020 in nearly six years. In June, the ratio has advanced to 0.86 as of Monday.

“The domestic investors continued to pump money into equities and midcaps typically attract retailers,” said Jay Vora, technical analyst, Mirae Asset Sharekhan. “The large-caps however, bore the brunt of the foreign sell off,” he said.

The Nifty Midcap 100 index hit a record high in May and jumped 3.2% during the month, while the Nifty Smallcap 100 index rose 0.7%. The benchmarks Nifty and Sensex fell 2% and 2.8% respectively.

“Benchmark Nifty and the smallcap index remained 8-9% away from their peaks in May, while the midcap index scaled a fresh new high in the month,” said Nilesh Jain, VP-head of Technical and Derivative Research, Centrum Finverse.

Live Events

“This led to the divergence between the advance-decline ratio and benchmark Nifty,” Jain said.

ET Bureau

Jain added that the smallcaps had slumped 24% from peaks but recovered almost 20% signaling that the rebound could sustain.

An advancing Advance-Decline Ratio means more stocks are gaining and points to a strengthening market. While benchmark Nifty is likely to remain in a range, the broader market is expected to relatively outperform.

“The midcap index is holding above its breakout levels in May, and the momentum seems to be picking up in the smallcap index as well,” said Vipin Kumar, AVP Equity Research & PMS (Derivatives & Technical Analyst), Globe Capital Market. For the Nifty Midcap 100, gains could extend to 63,500 levels while the Smallcap 100 index is expected to test its record high around 19,600 in June, he said.

“The midcaps and smallcaps are likely to outperform while the Nifty is anticipated to remain in a range with a negative bias,” said Jain. “The largecaps are not looking promising currently and are likely to remain under pressure,” he said.

NEW YORK — Alphabet Inc. shares slipped 1.60% to $359.89 in early trading on Monday, reflecting typical sector rotation and profit-taking after recent gains, but the internet and AI giant remains one of the most compelling long-term investment stories in technology as it capitalizes on artificial intelligence advancements across search, cloud computing and advertising.

As of June 2026, Alphabet continues to dominate digital advertising while aggressively expanding its AI capabilities through Google DeepMind and Gemini models. The company’s diversified business model — encompassing Google Search, YouTube, Cloud, Android and emerging ventures like Waymo — provides multiple growth engines that have helped it weather economic cycles and competitive pressures.

Alphabet reported solid first-quarter 2026 results, with revenue growth driven by robust performance in Search and Cloud segments. Google Cloud achieved significant year-over-year expansion, benefiting from enterprise adoption of AI tools and infrastructure services. The company’s ongoing investment in AI infrastructure, including data centers and custom chips, underscores its commitment to maintaining leadership in the rapidly evolving technology landscape.

Analysts largely maintain Buy ratings on Alphabet, citing its unmatched data advantage, vast distribution reach through Android and Chrome, and accelerating AI monetization opportunities. Average 12-month price targets suggest meaningful upside potential, with some optimistic forecasts highlighting the transformative impact of AI integration across products.

The bullish case for buying Alphabet centers on its structural advantages in AI. Google Search continues to evolve with AI-powered overviews and multimodal capabilities, enhancing user experience while creating new advertising opportunities. YouTube’s Shorts and AI-enhanced recommendations drive engagement, while Google Cloud emerges as a strong challenger to Amazon Web Services and Microsoft Azure in the enterprise AI market.

Alphabet’s DeepMind division has delivered breakthroughs in areas ranging from protein folding to advanced reasoning models. The Gemini family of models powers new features across Google products, positioning the company to capture a significant share of the AI services market. Waymo, its autonomous driving unit, continues expanding commercial operations, representing a long-term growth avenue in mobility.

Financially, Alphabet maintains a pristine balance sheet with substantial cash reserves and consistent free cash flow generation. The company has returned capital to shareholders through dividends and share repurchases while funding ambitious research and development initiatives. This disciplined capital allocation supports both growth and shareholder returns.

Regulatory risks remain a notable consideration for potential buyers. Ongoing antitrust scrutiny in the United States and Europe continues to create uncertainty, with potential remedies that could impact core businesses. However, analysts generally view these challenges as manageable over the long term, given Alphabet’s innovation track record and diversified revenue streams.

For investors considering a sell position or remaining on the sidelines, valuation is a primary concern. Shares trade at premiums that assume continued strong execution in AI and advertising. Any slowdown in cloud growth or adverse regulatory outcomes could pressure multiples. Near-term volatility tied to macroeconomic factors and quarterly earnings also warrants caution for shorter-term traders.

Investment decisions in 2026 should factor time horizon and risk tolerance. Long-term investors bullish on digital transformation and AI adoption may favor accumulation on dips, viewing Alphabet as a core technology holding with durable competitive advantages. Growth-oriented portfolios benefit from its exposure to multiple high-potential markets, while its advertising business provides relative stability.

Broader market context supports a constructive view. Technology spending remains robust, particularly in AI infrastructure and enterprise software. Alphabet’s ability to integrate AI across its ecosystem creates network effects that are difficult for competitors to replicate. The company’s scale in data, talent and computing resources provides a significant moat.

Analyst sentiment has remained positive overall, with recent notes highlighting the company’s progress in monetizing AI features and expanding cloud market share. Institutional ownership stays high, reflecting confidence among professional investors. Earnings momentum and product innovation continue to drive positive revisions.

Diversification remains key for any exposure to Alphabet. While the company’s quality and growth prospects are compelling, concentration risk in technology warrants balancing with other sectors. Pairing it with more defensive holdings or international exposure can help manage volatility.

As the year progresses, key catalysts include quarterly cloud growth metrics, AI product adoption rates and regulatory developments. Alphabet’s ability to convert AI investments into sustainable revenue growth while maintaining margins will be closely watched.

The company continues investing heavily in research and development, infrastructure and talent acquisition to stay at the forefront of technological change. Its focus on responsible AI development, including safety and ethical considerations, aligns with growing societal expectations around emerging technologies.

For retail investors, Alphabet offers an accessible way to participate in the digital economy’s leaders. Its consumer-facing products like Search and YouTube provide everyday relevance, while enterprise offerings drive high-margin revenue. The stock’s liquidity and analyst coverage make it suitable for both core holdings and tactical positions.

Monday’s modest decline fits within normal daily fluctuations and does not alter the longer-term positive thesis. It reflects typical market dynamics rather than fundamental concerns. Alphabet’s consistent innovation and financial strength provide a solid foundation for navigating short-term volatility.

As one of the world’s most valuable companies, Alphabet plays a central role in shaping the digital future. Its products and services touch billions of users daily, influencing how people access information, communicate and conduct business. The company’s ongoing evolution in AI and cloud computing positions it at the heart of technological progress.

Investors evaluating Alphabet should conduct thorough due diligence, consider individual risk tolerance and maintain a long-term perspective. The company’s track record of adaptation and value creation through technological shifts supports optimism for continued success in the AI era.

Overall, Alphabet remains a high-quality growth story with significant upside potential as AI capabilities mature and monetization accelerates. While risks around regulation and competition persist, its scale, innovation culture and diversified businesses make it a compelling consideration for long-term investors seeking exposure to the digital economy’s leaders.