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>
PC upgrade mini-cycle front-loaded: Realtek 3Q25 results reflected normalization after Windows 10-related demand pulled forward into 1H25, with revenue and margins easing sequentially but remaining solid.</li>
<li>
Diversification offsets softness: Communications infrastructure and automotive Ethernet continued to expand, with stronger growth outside China and resilient contribution from next-gen connectivity and Wi-Fi 7 adoption.</li>
<li>
Cautious near term, constructive on 2026E: Inventory build and tariff uncertainty temper 4Q outlook, but management expects a strong 1Q26 rebound as PC inventories normalize and AI-driven peripherals lift ASPs.</li>
</ul>



PC upgrade mini-cycle front-loaded: Realtek 3Q25 results reflected normalization after Windows 10-related demand pulled forward into 1H25, with revenue and margins easing sequentially but remaining solid.

Diversification offsets softness: Communications infrastructure and automotive Ethernet continued to expand, with stronger growth outside China and resilient contribution from next-gen connectivity and Wi-Fi 7 adoption.

Cautious near term, constructive on 2026E: Inventory build and tariff uncertainty temper 4Q outlook, but management expects a strong 1Q26 rebound as PC inventories normalize and AI-driven peripherals lift ASPs.


Realtek Results Readthrough: Normalization Marks Pause Before Next PC Wave

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<ul>
<li>Y/Y improvement for LCD panel, 8"/12" raw wafer, CMOS sensor, GaAs RF, cooling system, design service, and semi equipment and material vendors but y/y deterioration for PC/server and gaming vendors. </li>
<li>After 9 vendors beating consensus, we might see smartphone IC and RF, semi equipment OEM, and design service vendors in US to report a better than expected 4Q23 sales/earnings.    </li>
<li>After 6 vendors missing consensus, we might see PC/general server IC and niche memory vendors in US to report a worse than expected 4Q23 sales and earnings.</li>
</ul>


Y/Y improvement for LCD panel, 8"/12" raw wafer, CMOS sensor, GaAs RF, cooling system, design service, and semi equipment and material vendors but y/y deterioration for PC/server and gaming vendors. 
After 9 vendors beating consensus, we might see smartphone IC and RF, semi equipment OEM, and design service vendors in US to report a better than expected 4Q23 sales/earnings.    
After 6 vendors missing consensus, we might see PC/general server IC and niche memory vendors in US to report a worse than expected 4Q23 sales and earnings.


Stories Behind the Reported Dec/4Q23 Taiwan Semi/Tech Sales

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Dec 12th. The aggregated short interest was USD28.2bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Hon Hai Precision, Nanya Technology, King Yuan Electronics, King Slide Works, Winbond Electronics, Hon Hai Precision, Nanya Technology, King Yuan Electronics, King Slide Works.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Dec 12th. The aggregated short interest was USD28.2bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Hon Hai Precision, Nanya Technology, King Yuan Electronics, King Slide Works, Winbond Electronics, Hon Hai Precision, Nanya Technology, King Yuan Electronics, King Slide Works.


TWSE Short Interest Weekly (Dec 12th): Hon Hai Precision, Nanya Technology, King Yuan Electronics

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>IDC reported 3Q24 PC shipments declining -2% YoY, Canalys an increase of +1%. Let’s call this flat. If 4Q24 is “average seasonal”, 2024 will reach ~265m, or the pre-Covid range. </li>
<li>No AI fever, no accelerated replacement cycle, for now. If it happens, it will take time, ie compelling AI apps that only run locally and need a new PC.</li>
<li>In Asia, PC vendors: Lenovo, Acer, Asus. Taiwan ODM: Compal, Quanta, Wistron. Semi with high exposure: Novatek, Realtek. </li>
</ul>


IDC reported 3Q24 PC shipments declining -2% YoY, Canalys an increase of +1%. Let’s call this flat. If 4Q24 is “average seasonal”, 2024 will reach ~265m, or the pre-Covid range. 
No AI fever, no accelerated replacement cycle, for now. If it happens, it will take time, ie compelling AI apps that only run locally and need a new PC.
In Asia, PC vendors: Lenovo, Acer, Asus. Taiwan ODM: Compal, Quanta, Wistron. Semi with high exposure: Novatek, Realtek. 


3Q24 PC Shipments Are Flat YoY. Lenovo, Acer, Asus. Compal, Quanta, Wistron.

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>Top Gainers/Loser: Taiwan Tech Stocks Hit Hard Last Week By Global AI/Tech Pullback</li>
<li>Key Events This Week: Major Earnings Week Including UMC, Mediatek, Realtek, AMD, Microsoft</li>
<li>TechChain Insights: Call with Silicon Motion; QLC NAND Emerging as Key Enabler for AI Devices </li>
</ul>


Top Gainers/Loser: Taiwan Tech Stocks Hit Hard Last Week By Global AI/Tech Pullback
Key Events This Week: Major Earnings Week Including UMC, Mediatek, Realtek, AMD, Microsoft
TechChain Insights: Call with Silicon Motion; QLC NAND Emerging as Key Enabler for AI Devices 


Taiwan Tech Weekly: Hit Hard By AI/Tech Pullback; Watch UMC, Mediatek, Realtek, AMD, MSFT Earnings

Taiwan

Realtek Semiconductor Corp. designs, tests, and distributes integrated circuits which are used in consumer electronics, computer systems and peripherals, and communication network hardware.  The Company also provides technical counseling and systems software services.

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Realtek Semiconductor (2379 TT)

Realtek Results Readthrough: Normalization Marks Pause Before Next PC Wave

Realtek's 3Q25 results show front-loaded PC upgrade cycle, with revenue and margins remaining solid. Cautious near term, but constructive outlook...

Vincent Fernando, CFA

Stories Behind the Reported Dec/4Q23 Taiwan Semi/Tech Sales

Stories Behind the Reported Dec/4Q23 Taiwan Semi/Tech Sales; Y/Y improvement for LCD panel, 8"/12" raw wafer, CMOS sensor, GaAs RF, cooling system,...

Andrew Lu

TWSE Short Interest Weekly (Dec 12th): Hon Hai Precision, Nanya Technology, King Yuan Electronics

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Hon Hai Precision (2317 TT), Nanya Technology...

Ke Yan, CFA, FRM

3Q24 PC Shipments Are Flat YoY. Lenovo, Acer, Asus. Compal, Quanta, Wistron.

3Q24 PC shipments are flat YoY. The great recovery or AI replacement cycle aren’t happening (for now). IDC reported 3Q24 PC shipments declining -2%...

Nicolas Baratte

Taiwan Tech Weekly: Hit Hard By AI/Tech Pullback; Watch UMC, Mediatek, Realtek, AMD, MSFT Earnings

A recap of last week's gainers and losers plus key events to watch out for this week and recently published research pieces.

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Realtek Results Readthrough: Normalization Marks Pause Before Next PC Wave

​Realtek's 3Q25 results show front-loaded PC upgrade cycle, with revenue and margins remaining solid. Cautious near term, but constructive outlook...

Vincent Fernando, CFA

Stories Behind the Reported Dec/4Q23 Taiwan Semi/Tech Sales

Stories Behind the Reported Dec/4Q23 Taiwan Semi/Tech Sales; Y/Y improvement for LCD panel, 8"/12" raw wafer, CMOS sensor, GaAs RF, cooling system,...

Andrew Lu

TWSE Short Interest Weekly (Dec 12th): Hon Hai Precision, Nanya Technology, King Yuan Electronics

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Hon Hai Precision (2317 TT), Nanya Technology...

Ke Yan, CFA, FRM

3Q24 PC Shipments Are Flat YoY. Lenovo, Acer, Asus. Compal, Quanta, Wistron.

3Q24 PC shipments are flat YoY. The great recovery or AI replacement cycle aren’t happening (for now). IDC reported 3Q24 PC shipments declining -2%...

Nicolas Baratte

Taiwan Tech Weekly: Hit Hard By AI/Tech Pullback; Watch UMC, Mediatek, Realtek, AMD, MSFT Earnings

A recap of last week's gainers and losers plus key events to watch out for this week and recently published research pieces.

Vincent Fernando, CFA

Realtek's 3Q25 results show front-loaded PC upgrade cycle, with revenue and margins remaining solid. Cautious near term, but constructive outlook...