Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<div><ul><li>The WTR AI Flow Newsletter highlights recent developments in AI and quantum.</li><li>In the AI Flood Watch (Top 10 Format), we curate the period’s top AI and quantum news items, classify them as Rising, Neutral, or Falling, and provide takeaways.</li><li>This issue features nine Rising, zero Neutral, and one Falling stories.</li></ul></div>

The WTR AI Flow Newsletter highlights recent developments in AI and quantum.In the AI Flood Watch (Top 10 Format), we curate the period’s top AI and quantum news items, classify them as Rising, Neutral, or Falling, and provide takeaways.This issue features nine Rising, zero Neutral, and one Falling stories.

AI Flow Newsletter : Monitoring The "Currents" Of AI - July 7, 2026

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Macroeconomics

<ul><li>We believe the recent rally in US equities, particularly Al-related stocks, has masked signs of tightening global liquidity.</li><li>Against this backdrop, we expect a significant rotation of global capital toward Asia, which we believe is better positioned to convert Al-related CAPEX into sustained earnings growth.</li><li>Together with Thai corporate earnings that appear to have bottomed out and continued foreign fund inflows, these factors should support a valuation re-rating of the Thai equity market, underpinning our 12-month forward SET Index target of 1,705, which we expect could be achieved in 3Q26.</li></ul>

We believe the recent rally in US equities, particularly Al-related stocks, has masked signs of tightening global liquidity.Against this backdrop, we expect a significant rotation of global capital toward Asia, which we believe is better positioned to convert Al-related CAPEX into sustained earnings growth.Together with Thai corporate earnings that appear to have bottomed out and continued foreign fund inflows, these factors should support a valuation re-rating of the Thai equity market, underpinning our 12-month forward SET Index target of 1,705, which we expect could be achieved in 3Q26.

KTX Investment Outlook 3Q26: The Broken Backbone of Global Liquidity

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>We tracked AI models, infrastructure, and M&amp;A; this week as Fable 5 returned while GPT-5.6 remained a restricted preview.</li>
<li>Meta's reported compute-sale plan hit memory stocks, and Microsoft launched an internal enterprise AI deployment unit.</li>
<li>Kuaishou raised for Kling AI, Baidu's Kunlunxin targeted an HK IPO, and OpenRouter revenue stayed Anthropic-led.</li>
</ul>


We tracked AI models, infrastructure, and M&amp;A; this week as Fable 5 returned while GPT-5.6 remained a restricted preview.
Meta's reported compute-sale plan hit memory stocks, and Microsoft launched an internal enterprise AI deployment unit.
Kuaishou raised for Kling AI, Baidu's Kunlunxin targeted an HK IPO, and OpenRouter revenue stayed Anthropic-led.


This Week in AI (Jun 29-Jul 5): Fable 5 Returns After GPT-5.6 Preview; Meta Sells Compute

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Notable shifts are occurring in the AI space as customers begin to end a practice known as tokenmaxxing and migrating toward token cost efficiency.  </li>
<li>At the same time, the large US players are trying to gain revenue as token prices decline by introducing Pay-As-You-Go models, as phone companies did with data 20 years ago.</li>
<li>The decline in the "Token Expenditure Index" is a warning sign that customers may be migrating to older-generation chips to run models, undercutting capex assumptions and AI revenue projections.</li>
</ul>


Notable shifts are occurring in the AI space as customers begin to end a practice known as tokenmaxxing and migrating toward token cost efficiency.  
At the same time, the large US players are trying to gain revenue as token prices decline by introducing Pay-As-You-Go models, as phone companies did with data 20 years ago.
The decline in the "Token Expenditure Index" is a warning sign that customers may be migrating to older-generation chips to run models, undercutting capex assumptions and AI revenue projections.


AI: The End Of "Tokenmaxxing" And What It Means for Semis

<ul>
<li>In the AI takeover of global markets, enablers are beating hyperscalers by an ever-widening margin.  Hyperscalers' unprecedented capex is fueling revenue growth across the AI enabler ecosystem.</li>
<li>The semiconductor chip sector has gone parabolic with an unsustainable rise in share prices.  The SOX momentum and % increase far exceed its rise during the Dotcom bubble period</li>
<li>The AI Memory subsector is the only segment that has significantly outperformed hyperscalers in both returns and fundamentals, primarily due to a structural high-bandwidth memory (HBM) supercycle.</li>
</ul>


In the AI takeover of global markets, enablers are beating hyperscalers by an ever-widening margin.  Hyperscalers' unprecedented capex is fueling revenue growth across the AI enabler ecosystem.
The semiconductor chip sector has gone parabolic with an unsustainable rise in share prices.  The SOX momentum and % increase far exceed its rise during the Dotcom bubble period
The AI Memory subsector is the only segment that has significantly outperformed hyperscalers in both returns and fundamentals, primarily due to a structural high-bandwidth memory (HBM) supercycle.


THE AI GOLD RUSH: Hyperscalers and Enablers

United States

Alphabet Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

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Alphabet (GOOGL US)

KTX Investment Outlook 3Q26: The Broken Backbone of Global Liquidity

We believe the recent rally in US equities, particularly Al-related stocks, has masked signs of tightening global liquidity. Against this...

Krungthai XSpring

This Week in AI (Jun 29-Jul 5): Fable 5 Returns After GPT-5.6 Preview; Meta Sells Compute

This week in AI: Fable 5 returned after GPT-5.6 preview; Meta may sell excess compute; Anthropic led OpenRouter revenue at 58.4%.

Ke Yan, CFA, FRM

AI: The End Of "Tokenmaxxing" And What It Means for Semis

Notable shifts are occurring in the AI space as customers begin to end a practice known as tokenmaxxing and migrating toward token cost efficiency.

David Mudd

THE AI GOLD RUSH: Hyperscalers and Enablers

In the AI takeover of global markets, enablers are beating hyperscalers by an ever-widening margin. Hyperscalers' unprecedented capex is fueling...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

AI Flow Newsletter : Monitoring The "Currents" Of AI - July 7, 2026

In the AI Flood Watch (Top 10 Format), we curate the period’s top AI and quantum news items, classify them as Rising, Neutral, or Falling, and...

Water Tower Research

KTX Investment Outlook 3Q26: The Broken Backbone of Global Liquidity

We believe the recent rally in US equities, particularly Al-related stocks, has masked signs of tightening global liquidity. Against this...

Krungthai XSpring

This Week in AI (Jun 29-Jul 5): Fable 5 Returns After GPT-5.6 Preview; Meta Sells Compute

This week in AI: Fable 5 returned after GPT-5.6 preview; Meta may sell excess compute; Anthropic led OpenRouter revenue at 58.4%.

Ke Yan, CFA, FRM

AI: The End Of "Tokenmaxxing" And What It Means for Semis

Notable shifts are occurring in the AI space as customers begin to end a practice known as tokenmaxxing and migrating toward token cost efficiency.

David Mudd

THE AI GOLD RUSH: Hyperscalers and Enablers

In the AI takeover of global markets, enablers are beating hyperscalers by an ever-widening margin. Hyperscalers' unprecedented capex is fueling...

David Mudd