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>I will start with a AMD section. Shares are down ~6-7% on last week’s result. Let’s talk about the result and why it was so disappointing.</li><li>AMD exactly matched EPS, was slightly light on revenue, and guided essentially in line with Q2 guidance.</li><li>This also was one of the slightest EPS and revenue beats in recent years. The last time this happened, the PC segment was imploding. This time it’s embedded revenue.</li></ul>

I will start with a AMD section. Shares are down ~6-7% on last week’s result. Let’s talk about the result and why it was so disappointing.AMD exactly matched EPS, was slightly light on revenue, and guided essentially in line with Q2 guidance.This also was one of the slightest EPS and revenue beats in recent years. The last time this happened, the PC segment was imploding. This time it’s embedded revenue.

AMD's MI300 Disappointment, Hyperscalers Capex, and FPGAs

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.

Equity Bottom-Up

<ul><li>Microsoft's Fiscal Year 2024 Third Quarter Earnings revealed that Microsoft continues to leverage and further deploy artificial intelligence (AI) initiatives and solutions through its cloud ecosystem.</li><li>It underscores Microsoft's strategic direction in intensifying its capabilities in artificial intelligence and cloud infrastructures based on market needs, with Satya Nadella, Chairman and Chief Executive Officer of Microsoft, pointing out the continuing success of Microsoft Cloud surpassing $35 billion in revenue, a growth of 23%.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Microsoft's Fiscal Year 2024 Third Quarter Earnings revealed that Microsoft continues to leverage and further deploy artificial intelligence (AI) initiatives and solutions through its cloud ecosystem.It underscores Microsoft's strategic direction in intensifying its capabilities in artificial intelligence and cloud infrastructures based on market needs, with Satya Nadella, Chairman and Chief Executive Officer of Microsoft, pointing out the continuing success of Microsoft Cloud surpassing $35 billion in revenue, a growth of 23%.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Microsoft Corporation: Will The Cloud & AI Infrastructure Investment & The Introduction Of New AI Models Give It An Edge Over Alphabet & Other Rivals? - Major Drivers

Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

<ul><li>Now that Meta, Alphabet, Microsoft, and Amazon all reported their quarters, we now have better context to how their quarters went.</li><li>So, while I will mostly discuss Amazon's earnings in this update, I will briefly touch on some broader themes as well.</li><li>Overall revenue was slightly below the high end of Amazon's guidance.</li></ul>

Now that Meta, Alphabet, Microsoft, and Amazon all reported their quarters, we now have better context to how their quarters went.So, while I will mostly discuss Amazon's earnings in this update, I will briefly touch on some broader themes as well.Overall revenue was slightly below the high end of Amazon's guidance.

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>TCOM US/ATAT US: The increase in rainfall will negatively impact travels during the Labor Day holiday.(-/-)</li>
<li>META US/MSFT US /GOOGL US /SNAP US: The application of AI in advertising on short video and social platforms may result in greater efficiency than search advertising.（///////）</li>
<li>3690 HK: Meituan plans to expand into the Middle East Riyadh via KeeTa.（-）</li>
</ul>


TCOM US/ATAT US: The increase in rainfall will negatively impact travels during the Labor Day holiday.(-/-)
META US/MSFT US /GOOGL US /SNAP US: The application of AI in advertising on short video and social platforms may result in greater efficiency than search advertising.（///////）
3690 HK: Meituan plans to expand into the Middle East Riyadh via KeeTa.（-）


[Blue Lotus Daily - TMT Update]:TCOM US/ATAT US/METAUS/MSFTUS /GOOGLUS /SNAPUS/3690HK/NTESUS/SHEINUS

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Microsoft reported (26 Apr BJT) better-than-expected 3QFY24 (June year-end) results: revenue was US$61.9bn, up 17% YoY (2QFY24: +18% YoY; 3QFY23: +7% YoY), 2% better than Bloomberg consensus driven by better-thanexpected revenue growth in Intelligent Cloud (IC) and More Personal Computing (MPC) business; net income was up 20% YoY to US$21.9bn, 4% ahead of consensus estimates, thanks to stringent cost control and improvement in operating leverage.</li><li>Management highlighted that AI related demand remained strong, and guided to further increase investments in capex to fulfil the unmet demand.</li><li>Although the incremental investments and consolidation of Blizzard are likely to weigh on margin, management still expects at least 2pp YoY OPM expansion for FY24, aided by operating efficiency improvement. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Microsoft reported (26 Apr BJT) better-than-expected 3QFY24 (June year-end) results: revenue was US$61.9bn, up 17% YoY (2QFY24: +18% YoY; 3QFY23: +7% YoY), 2% better than Bloomberg consensus driven by better-thanexpected revenue growth in Intelligent Cloud (IC) and More Personal Computing (MPC) business; net income was up 20% YoY to US$21.9bn, 4% ahead of consensus estimates, thanks to stringent cost control and improvement in operating leverage.Management highlighted that AI related demand remained strong, and guided to further increase investments in capex to fulfil the unmet demand.Although the incremental investments and consolidation of Blizzard are likely to weigh on margin, management still expects at least 2pp YoY OPM expansion for FY24, aided by operating efficiency improvement. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Microsoft (MSFT US) - AI Related Demand Remained Strong

United States

Microsoft Corporation operates as a software company. The Company offers applications, extra cloud storage, and advanced security solutions. Microsoft serves customers worldwide.

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Microsoft Corp (MSFT US)

AMD's MI300 Disappointment, Hyperscalers Capex, and FPGAs

This is my earnings overview for the Hyperscalers, AMD, and thoughts specifically on FPGAs. I will start with a AMD section. Shares are down ~6-7%...

Fabricated Knowledge

Microsoft Corporation: Will The Cloud & AI Infrastructure Investment & The Introduction Of New AI Models Give It An Edge Over Alphabet & Other Rivals? - Major Drivers

Microsoft's Fiscal Year 2024 Third Quarter Earnings revealed that Microsoft continues to leverage and further deploy artificial intelligence (AI)...

Baptista Research

Amazon 1Q'24 Update

Now that Meta, Alphabet, Microsoft, and Amazon all reported their quarters, we now have better context to how their quarters went.

MBI Deep Dives

[Blue Lotus Daily - TMT Update]:TCOM US/ATAT US/METAUS/MSFTUS /GOOGLUS /SNAPUS/3690HK/NTESUS/SHEINUS

rainfall will impact travel during Labor Day. Meituan expand into the Middle East Riyadh. NPPA released the game code. SHEIN designated asVLOP....

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

AMD's MI300 Disappointment, Hyperscalers Capex, and FPGAs

This is my earnings overview for the Hyperscalers, AMD, and thoughts specifically on FPGAs. I will start with a AMD section. Shares are down ~6-7%...

Fabricated Knowledge

Microsoft Corporation: Will The Cloud & AI Infrastructure Investment & The Introduction Of New AI Models Give It An Edge Over Alphabet & Other Rivals? - Major Drivers

Microsoft's Fiscal Year 2024 Third Quarter Earnings revealed that Microsoft continues to leverage and further deploy artificial intelligence (AI)...

Baptista Research

Amazon 1Q'24 Update

Now that Meta, Alphabet, Microsoft, and Amazon all reported their quarters, we now have better context to how their quarters went.

MBI Deep Dives

[Blue Lotus Daily - TMT Update]:TCOM US/ATAT US/METAUS/MSFTUS /GOOGLUS /SNAPUS/3690HK/NTESUS/SHEINUS

rainfall will impact travel during Labor Day. Meituan expand into the Middle East Riyadh. NPPA released the game code. SHEIN designated asVLOP....

Blue Lotus Research Institute

Microsoft (MSFT US) - AI Related Demand Remained Strong

Microsoft reported (26 Apr BJT) better-than-expected 3QFY24 (June year-end) results: revenue was US$61.9bn, up 17% YoY (2QFY24: +18% YoY; 3QFY23:...

CMB International