Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

<ul>
<li>Latest Nanya Tech results showed weak margin rebound. Gross margin rebounded but remained below zero.</li>
<li>Nanya expects DRAM pricing improvement through 2024E; due to demand for AI related memory products reducing capacity for other DRAM products rather than improvement for Nanya's main Consumer segment.</li>
<li>Micron is reportedly increasing prices post Taiwan earthquake and this is positive, but we see Nanya's 2024E consensus margin expectations set at a high bar and the stock isn't cheap.</li>
</ul>


Latest Nanya Tech results showed weak margin rebound. Gross margin rebounded but remained below zero.
Nanya expects DRAM pricing improvement through 2024E; due to demand for AI related memory products reducing capacity for other DRAM products rather than improvement for Nanya's main Consumer segment.
Micron is reportedly increasing prices post Taiwan earthquake and this is positive, but we see Nanya's 2024E consensus margin expectations set at a high bar and the stock isn't cheap.


Nanya Technology Sees DRAM Industry Pricing Rising Through 2024E; But Is Underperforming Financially

<ul>
<li>DRAM producer Nanya Tech will report its 1Q24E results on April 10th.</li>
<li>While Micron has said it is evaluating the impact of the Taiwan earthquake on its operations and has halted price discussions with clients, Nanya could provide latest DRAM outlook color.</li>
<li>Short interest has spiked ahead of Nanya's results; We note that the company has a large revenue and margin rebound it needs to deliver on to meet 2024E consensus.</li>
</ul>


DRAM producer Nanya Tech will report its 1Q24E results on April 10th.
While Micron has said it is evaluating the impact of the Taiwan earthquake on its operations and has halted price discussions with clients, Nanya could provide latest DRAM outlook color.
Short interest has spiked ahead of Nanya's results; We note that the company has a large revenue and margin rebound it needs to deliver on to meet 2024E consensus.


Memory Monitor: Nanya's Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul>
<li>This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly.</li>
<li>This is one of the 16th-best quarters in SOXX since 2002. While it’s a pretty solid showing at a 17% quarterly return, this doesn’t compare to the incredible returns in 2020 and 2023.</li>
<li>Now, the misleading thing is that SMH, a broader ETF, is up 30%.</li>
</ul>


This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly.
This is one of the 16th-best quarters in SOXX since 2002. While it’s a pretty solid showing at a 17% quarterly return, this doesn’t compare to the incredible returns in 2020 and 2023.
Now, the misleading thing is that SMH, a broader ETF, is up 30%.


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>Micron Technology's Fiscal Second Quarter 2024 Earnings showcased a lean towards optimism with some cautionary notes.</li><li>It was revealed that the Micron sees substantial demand for High Bandwidth Memory (HBM) which has even surpassed their expectations and as such the HBM supply for 2024 is already sold out, with most of 2025's capacity also already allocated.</li><li>This is due in part to the product’s high performance specs and 30% lower power consumption.</li></ul>

Micron Technology's Fiscal Second Quarter 2024 Earnings showcased a lean towards optimism with some cautionary notes.It was revealed that the Micron sees substantial demand for High Bandwidth Memory (HBM) which has even surpassed their expectations and as such the HBM supply for 2024 is already sold out, with most of 2025's capacity also already allocated.This is due in part to the product’s high performance specs and 30% lower power consumption.

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul>
<li>U.S. chipmaker Micron Technology Inc. expects deeper cooperation with the Chinese government as Beijing ramps up efforts to boost foreign investment, its CEO said at a forum in the capital Monday.</li>
<li>Speaking at the China Development Forum, Sanjay Mehrotra hailed the recent release by the State Council of a <a href="https://www.caixinglobal.com/2024-03-20/china-releases-action-plan-to-attract-foreign-investment-102177094.html" target="_blank" rel="noopener">24-point plan</a> designed to promote high-level opening-up and attract foreign investment as the latest show of China’s determination to improve its business environment for foreign companies.</li>
<li>Micron cannot grow its business in China without government support, Mehrotra added, while reaffirming the company’s commitment to expand its business in the world’s second-largest economy, where it has a presence in Beijing, Shanghai, Shenzhen and Xi’an.</li>
</ul>


U.S. chipmaker Micron Technology Inc. expects deeper cooperation with the Chinese government as Beijing ramps up efforts to boost foreign investment, its CEO said at a forum in the capital Monday.
Speaking at the China Development Forum, Sanjay Mehrotra hailed the recent release by the State Council of a 24-point plan designed to promote high-level opening-up and attract foreign investment as the latest show of China’s determination to improve its business environment for foreign companies.
Micron cannot grow its business in China without government support, Mehrotra added, while reaffirming the company’s commitment to expand its business in the world’s second-largest economy, where it has a presence in Beijing, Shanghai, Shenzhen and Xi’an.


Micron Reaffirms China Expansion Plan as Government Welcomes Foreign Businesses

United States

Micron Technology, Inc., through its subsidiaries, manufactures and markets dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, other semiconductor components, and memory modules.

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Micron Technology (MU US)

Nanya Technology Sees DRAM Industry Pricing Rising Through 2024E; But Is Underperforming Financially

Nanya Tech's gross margin rebound appears to be lagging Memory peers. DRAM pricing is expected to improve through 2024E, but its mostly due to...

Vincent Fernando, CFA

Memory Monitor: Nanya's Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

Nanya Tech to report results -- Potential insight into DRAM outlook amid Micron's earthquake impact evaluation. We note increased short interest....

Vincent Fernando, CFA

Fabricated Knowledge Quarterly Review

This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly. This is one of the 16th-best quarters in...

Fabricated Knowledge

Micron Technology: HBM Product Adoption

Micron Technology's Fiscal Second Quarter 2024 Earnings showcased a lean towards optimism with some cautionary notes. It was revealed that the...

Baptista Research

Micron Reaffirms China Expansion Plan as Government Welcomes Foreign Businesses

U.S. chipmaker Micron Technology Inc. expects deeper cooperation with the Chinese government as Beijing ramps up efforts to boost foreign...

Caixin Global

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52-week Range

Market Cap (USDm)

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Nanya Technology Sees DRAM Industry Pricing Rising Through 2024E; But Is Underperforming Financially

​Nanya Tech's gross margin rebound appears to be lagging Memory peers. DRAM pricing is expected to improve through 2024E, but its mostly due to...

Vincent Fernando, CFA

Memory Monitor: Nanya's Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

​Nanya Tech to report results -- Potential insight into DRAM outlook amid Micron's earthquake impact evaluation. We note increased short interest....

Vincent Fernando, CFA

Fabricated Knowledge Quarterly Review

This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly. This is one of the 16th-best quarters in...

Fabricated Knowledge

Micron Technology: HBM Product Adoption

Micron Technology's Fiscal Second Quarter 2024 Earnings showcased a lean towards optimism with some cautionary notes. It was revealed that the...

Baptista Research

Micron Reaffirms China Expansion Plan as Government Welcomes Foreign Businesses

U.S. chipmaker Micron Technology Inc. expects deeper cooperation with the Chinese government as Beijing ramps up efforts to boost foreign...

Caixin Global

Nanya Tech's gross margin rebound appears to be lagging Memory peers. DRAM pricing is expected to improve through 2024E, but its mostly due to...

Nanya Tech to report results -- Potential insight into DRAM outlook amid Micron's earthquake impact evaluation. We note increased short interest....