0613 GMT - AI capabilities could mature and drive more consumer spending on new devices in 2026, such as AI glasses and AI companions, Macquarie analysts say in a research note. Major players such as Apple, Google and Xiaomi are pursuing vertical integration strategies, controlling both hardware and AI software to optimize user experience and foster ecosystem loyalty, the analysts say. As AI models become more efficient and affordable to run locally, device manufacturers could offer functions that were previously only available through cloud services. Across the supply chain, the analysts think the memory sector is set to benefit the most given the shortage of DRAM chips. As consumers upgrade to smartphones with AI functions, that would boost the need for AI chips, boding well for contract chip makers like TSMC. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

November 27, 2025 01:13 ET (06:13 GMT)

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