Apple’s C1X modem among key news reports highlighted by Wells Fargo

Wells Fargo highlighted key news reports on semiconductors and IT hardware, including a strong performance of Apple’s (AAPL) C1X modem, since last week.

Analysts led by Aaron Rakers said that on Monday, the U.S. Census Bureau released construction data for January, in which we would see U.S. data center construction spending at $47B (seasonally adjusted), which is an increase of 31% year-over-year. Rolling three-month data center construction spend totals $138.2B, growing 30% year-over-year, accelerating from +27% in December.

The analysts said SK hynix (HXSCL) is reportedly pulling forward its M15X DRAM Fab (Cheongju), with its second cleanroom equipment move in about two months ahead of schedule. Hynix has also moved its Yongin fab cleanroom opening from May to February 2027. In addition, the analysts highlighted SK hynix’s €6.9B (about $8B) order of EUV tools from ASML planned over a two-year period ending December 2027.

According to a report by TrendForce, the Korea Advanced Institute of Science and Technology, or KAIST, has developed a new technology to address limitations of 3D NAND bandwidth limitations. The new technology is referred to as the smart gate concept in semiconductors — enabling simultaneous improvements in data processing speeds and data storage stability, the analysts added.

In addition, Rakers and his team highlighted a recent third party test from Ookla showing strong performance in Apple’s C1X modem, noting that “data from Q4 2025 unequivocally demonstrates that Apple’s in-house C1X modem represents a generational leap over the previous C1 model. The analysts pointed out that the report noted that the C1X reached parity in download and latency performance versus Qualcomm (QCOM) X80.

The analysts noted that they remain interested in any upcoming performance data on Qualcomm’s X85 modem (released in early 2025), with Android launches expected in the first half of 2026, as well as Samsung’s recent S26 launch.

The analysts also pointed to a report from Tom’s Hardware highlighting current Nvidia (NVDA) Vera-Rubin Ultra NVL144 rack-scale pricing estimates ranging from $7M to $8.8M (versus Grace-Blackwell noted at $2.8M to $3.4M). The Vera-Rubin Ultra silicon is expected to ship in the second half of 2027, the analysts added.

Rakers and his team also highlighted news reports about expectations for PC price increases of 25% to 30% in the second quarter of 2026, with continued upward pricing into the third quarter of 2026. The analysts said that Acer, MSI, and Gigabyte are reportedly preparing price increases in the double-digit percentage range.