Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

Advanced Micro Devices / Equity Bottom-Up

<ul>
<li>Qualcomm acquired Alphawave, a UK firm that specializes in chip design IP, especially silicon photonics and chiplets. </li>
<li>AMD acquired 3 firms. Untether AI, an AI edge / inference chip designer. Brium, an AI software and compiler firm. Enosemi, a silicon photonics and co-packaged optics firm. </li>
<li>4 acquisitions in 2 weeks. AMD and Qualcomm are putting their money where their mouth is: the future is AI. This also illustrates how far ahead Nvidia is.</li>
</ul>


Qualcomm acquired Alphawave, a UK firm that specializes in chip design IP, especially silicon photonics and chiplets. 
AMD acquired 3 firms. Untether AI, an AI edge / inference chip designer. Brium, an AI software and compiler firm. Enosemi, a silicon photonics and co-packaged optics firm. 
4 acquisitions in 2 weeks. AMD and Qualcomm are putting their money where their mouth is: the future is AI. This also illustrates how far ahead Nvidia is.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>In a strategic move underscoring its ambitions in AI infrastructure and next-gen interconnects, AMD recently acquired Silicon Valley-based Enosemi, a startup specializing in photonic integrated circuits.</li><li>The acquisition is part of AMD’s broader effort to catch up with competitors like Nvidia, Intel, and Broadcom in the co-packaged optics (CPO) space, a technology increasingly viewed as essential for building high-bandwidth, energy-efficient AI systems.</li><li>Enosemi, founded in 2023 by semiconductor engineers Ari Novack and Matthew Streshinsky, had previously collaborated with AMD on photonics development and brings with it a small but elite team of PhD-level engineers.</li></ul>

In a strategic move underscoring its ambitions in AI infrastructure and next-gen interconnects, AMD recently acquired Silicon Valley-based Enosemi, a startup specializing in photonic integrated circuits.The acquisition is part of AMD’s broader effort to catch up with competitors like Nvidia, Intel, and Broadcom in the co-packaged optics (CPO) space, a technology increasingly viewed as essential for building high-bandwidth, energy-efficient AI systems.Enosemi, founded in 2023 by semiconductor engineers Ari Novack and Matthew Streshinsky, had previously collaborated with AMD on photonics development and brings with it a small but elite team of PhD-level engineers.

AMD Just Made a Big Move in AI and Co-Packaged Optics: Here's What Investors Need to Know!

<ul><li>Advanced Micro Devices (AMD) delivered a robust start to 2025, reporting stronger-than-expected earnings that reinforced the company’s growth trajectory in high-demand areas like AI and data centers.</li><li>The semiconductor firm posted first-quarter adjusted earnings per share of $0.96, slightly above Wall Street’s estimate of $0.94, with total revenue hitting $7.4 billion, surpassing the projected $7.1 billion.</li><li>This performance was fueled by the impressive 57% year-over-year growth in AMD’s Data Center segment, which reached $3.7 billion.</li></ul>

Advanced Micro Devices (AMD) delivered a robust start to 2025, reporting stronger-than-expected earnings that reinforced the company’s growth trajectory in high-demand areas like AI and data centers.The semiconductor firm posted first-quarter adjusted earnings per share of $0.96, slightly above Wall Street’s estimate of $0.94, with total revenue hitting $7.4 billion, surpassing the projected $7.1 billion.This performance was fueled by the impressive 57% year-over-year growth in AMD’s Data Center segment, which reached $3.7 billion.

AMD's Epic Earnings & Shocking Setback: What Is The Impact Of The MASSIVE China-Related Revenue Loss?

<ul>
<li>Apparently, on news of this new Huawei chip in WSJ, Nvidia’s stock decline -2% yesterday. That’s strange – not new news, the real issue is new US export license requirements.</li>
<li>Nvidia’s problem is not Huawei, but US restrictions on selling GPU to China. Nvidia announced writing off US$5.5bn on 9 April 2025 (for H20). AMD estimates US$800m (for MI308).</li>
<li>Assume that Nvidia and AMD will not sell any AI chips to China. Same for HBM memory.</li>
</ul>


Apparently, on news of this new Huawei chip in WSJ, Nvidia’s stock decline -2% yesterday. That’s strange – not new news, the real issue is new US export license requirements.
Nvidia’s problem is not Huawei, but US restrictions on selling GPU to China. Nvidia announced writing off US$5.5bn on 9 April 2025 (for H20). AMD estimates US$800m (for MI308).
Assume that Nvidia and AMD will not sell any AI chips to China. Same for HBM memory.


Is Huawei New AI Chip Is Bad for Nvidia? New US Export Licensing Is the Real Issue (Part 2)

<ul>
<li>SK hynix derived ~25-30% of revenues from AI in 2024 (HBM, LP-DDR, eSSD). AI revenues will double in 2025. SK hynix’s lead, both roadmap, manufacturing, qualifications extends to 2026.</li>
<li>AI high growth also allows SK hynix to lower its exposure to commodity PC, Mobile, consumer segments. Hence, margins likely continue to increase in 2025-26.</li>
<li>Sk hynix’s lead over Samsung is sustainable for at least 2025-26.  AI-related ASP / margins aren’t cyclical, unlike commodity memory. The stock trades at a miserable 6x 2025 EPS.</li>
</ul>


SK hynix derived ~25-30% of revenues from AI in 2024 (HBM, LP-DDR, eSSD). AI revenues will double in 2025. SK hynix’s lead, both roadmap, manufacturing, qualifications extends to 2026.
AI high growth also allows SK hynix to lower its exposure to commodity PC, Mobile, consumer segments. Hence, margins likely continue to increase in 2025-26.
Sk hynix’s lead over Samsung is sustainable for at least 2025-26.  AI-related ASP / margins aren’t cyclical, unlike commodity memory. The stock trades at a miserable 6x 2025 EPS.


SK Hynix Will Derive ~50% of Revenues from AI in 2025. Why Is the Stock Trading at 6x 2025 EPS?

United States

Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. The Company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services. AMD serves customers worldwide.

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Advanced Micro Devices (AMD US)

Semiconductor Shopping Season Is Now

AMD and Qualcomm make strategic acquisitions in chip design and AI technology, highlighting their focus on the future of AI and competition with...

Nicolas Baratte

AMD Just Made a Big Move in AI and Co-Packaged Optics: Here's What Investors Need to Know!

In a strategic move underscoring its ambitions in AI infrastructure and next-gen interconnects, AMD recently acquired Silicon Valley-based...

Baptista Research

Is Huawei New AI Chip Is Bad for Nvidia? New US Export Licensing Is the Real Issue (Part 2)

News of Huawei chip impacts Nvidia stock, but real issue is US export restrictions on selling GPUs to China. Nvidia and AMD facing significant...

Nicolas Baratte

SK Hynix Will Derive ~50% of Revenues from AI in 2025. Why Is the Stock Trading at 6x 2025 EPS?

SK hynix's AI revenues set to double in 2025, leading in roadmap and manufacturing, with sustainable lead over Samsung and potential for increased...

Nicolas Baratte

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Semiconductor Shopping Season Is Now

​AMD and Qualcomm make strategic acquisitions in chip design and AI technology, highlighting their focus on the future of AI and competition with...

Nicolas Baratte

AMD Just Made a Big Move in AI and Co-Packaged Optics: Here's What Investors Need to Know!

In a strategic move underscoring its ambitions in AI infrastructure and next-gen interconnects, AMD recently acquired Silicon Valley-based...

Baptista Research

AMD's Epic Earnings & Shocking Setback: What Is The Impact Of The MASSIVE China-Related Revenue Loss?

Advanced Micro Devices (AMD) delivered a robust start to 2025, reporting stronger-than-expected earnings that reinforced the company’s growth...

Baptista Research

Is Huawei New AI Chip Is Bad for Nvidia? New US Export Licensing Is the Real Issue (Part 2)

​News of Huawei chip impacts Nvidia stock, but real issue is US export restrictions on selling GPUs to China. Nvidia and AMD facing significant...

Nicolas Baratte

SK Hynix Will Derive ~50% of Revenues from AI in 2025. Why Is the Stock Trading at 6x 2025 EPS?

​SK hynix's AI revenues set to double in 2025, leading in roadmap and manufacturing, with sustainable lead over Samsung and potential for increased...

Nicolas Baratte

AMD and Qualcomm make strategic acquisitions in chip design and AI technology, highlighting their focus on the future of AI and competition with...

News of Huawei chip impacts Nvidia stock, but real issue is US export restrictions on selling GPUs to China. Nvidia and AMD facing significant...

SK hynix's AI revenues set to double in 2025, leading in roadmap and manufacturing, with sustainable lead over Samsung and potential for increased...