Daily Briefs

• Intel just announced that SoftBank has agreed to buy $2 billion worth of Intel stock, details here. 
• The shares are likely newly issued, meaning dilution of existing shareholders. Markets didn’t care and shares rose >5% in after hours trading. 
• $2 billion is a far cry from the $40 billion former CEO Craig Barrett thinks Intel needs. Could this be the first of similar deals with US semiconductor/technology companies?

• Monetary support may temporarily ease Intel’s current financial difficulties, but the ultimate solution lies in securing technical support from manufacturing.  
• We remain curious how the U.S. government will devise a solution for Intel if the company ultimately cannot provide the necessary support for U.S. Fabless players.
• We are bearish on Intel Corp (INTC US)’s current position and do not believe financial support alone can help the company overcome its challenges.

• Despite a 307% surge in revenue, CoreWeave’s extended six-year GPU depreciation schedule flatters its profitability while masking faster asset wear-down.
• Despite ballooning into a $30 bn market cap, CoreWeave is weighed down by debt and lease obligations; Q2 interest expense exceeded operating profit, with CRWV netting $290 m in losses. 
• The Aug 15 IPO lock-up expiry triggered insider selling via $1 bn+ block trades, driving a 35% stock plunge and spiking short interest.

• Guided down: ASML, Applied Materials, Tokyo Electron. Revised up: LAM. A number of reasons are mentioned for a slower outlook. China slowdown. TSMC lumpy. Export licenses. Geo-Globo uncertainty. 
• Yes, But: 1) Chinese firms bought too much equipment in 2022-24  2) Logic Capex of Intel Samsung will decline further  3) Chinese SPE vendors are gaining share 
• AI is real, HBM is real, SOCAMM is real, but TSMC and SK Hynix are not revising up Capex in 2025. Expect higher Capex in 2026 and 2027. 

• Arista Networks presented a robust financial performance in its second quarter of fiscal year 2025, reflecting substantial growth and strong market positioning, albeit with some areas of challenge and scrutiny.
• The company reported a record revenue of $2.2 billion for the quarter, surpassing expectations by $100 million and marking a 30.4% increase year-over-year.
• This impressive performance was driven by robust demand across its product sectors, particularly within the AI, cloud, and enterprise domains.

• Advanced Micro Devices, Inc. recently reported its financial results for the second quarter of 2025.
• The company’s performance was marked by significant achievements as well as notable challenges.
• Overall, AMD’s revenue reached a record $7.7 billion, which exceeded its forecasted midpoint, representing a 32% increase compared to the previous year.

• Soluna recently announced its 2Q25 earnings and business update, with revenue of $6.2 million, 295 MW of new project development (773 MW total), and a solid cash position.
• The YoY decline was driven by four factors that drove the decrease.
• Bitcoin halving and subsequent Hashprice volatility ($2.0 million), the change in commercial model mix to more Profit Sharing (fully offset by decline in cost of revenue by ($0.8 million) for no Gross Profit impact), lower Prop Mining volume related to site availability and miner efficiency ($0.6 million), and lower Demand Response Services driven by increased participation rate within ERCOT ($0.1 million).

• Sales increased by JPY16.4bn due to Iwatsu Electric’s acquisition, while operating profit declined by JPY964mn.
• Achievement toward full-year forecast reached 97.3% for sales, 84.7% for operating profit, and 79.6% for recurring profit.
• Sales and profit in the Security Equipment segment increased YoY, driven by large orders and strong replacement contracts.

Global Fashion Group’s (GFG’s) H125 results confirm continued growth in its two largest regions, Australia New Zealand (ANZ) and Latin America (LatAm) as they benefit from their prior repositioning, with improving trends in the number of active customers who are spending more with GFG. The third region, South-East Asia (SEA) remains a work in progress ahead of the arrival of a new CEO in September 2025. The underlying improvements in revenue, the higher gross margins across all regions, despite variable revenue trends, and the focus on generating cost savings and efficiencies are delivering consistent improvements in profitability.

Global Fashion Group’s (GFG’s) H125 results confirm continued growth in its two largest regions, Australia New Zealand (ANZ) and Latin America (LatAm) as they benefit from their prior repositioning, with improving trends in the number of active customers who are spending more with GFG. The third region, South-East Asia (SEA) remains a work in progress ahead of the arrival of a new CEO in September 2025. The underlying improvements in revenue, the higher gross margins across all regions, despite variable revenue trends, and the focus on generating cost savings and efficiencies are delivering consistent improvements in profitability.