TMT/Internet

• Today after the close, GMO Internet Group (9449 JP) subsidiary GMO Payment Gateway (3769 JP) announced its subsidiary GMO Financial Gate (4051 JP) would move to TSE Prime 5 June.
• That means it moves to TOPIX at the close of trading 30 July 2025.
• This growth stock appears to have “de-growthed” somewhat in stock price terms – trading near its IPO price from covid era, so it is worth a look.

• NVIDIA reported Q1FY26 revenues of $44.1 billion, up 69% YoY and up 12% QoQ
• NVIDIA forecasted current quarter revenues of $45.0 billion, marginally up QoQ and weighed down by the loss of around $8 billion in previously anticipated H20 revenues
• Does China really wish to remain reliant on US infrastructure/platforms for its AI build out indefinitely? I think not. Gradually losing China market was inevitable, even without US restrictions.

• In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the June 2025 index rebal event.
• We see one M&A-related intra-review change for the F250 index prior to the June 2025 review and then one more shortly after the rebal event.
• Our latest estimates suggest there could be four regular changes for the F250 index during the June 2025 rebalance. We do not currently see any changes for the F100.

• HP Results Show Commercial PC Growth is Resilient, AI PC Penetration Expanding
• Key Industry Outlook Perspective — HP’s ZGX AI Station with NVIDIA Chips Marks the True Arrival of AI PCs… Locally Run LLMs Signal a Step-Change for PC Capabilities
• Remain Structurally Long PC Makers on AI PC Upgrade Cycle — Emergence of New NVIDIA Blackwell-Powered Workstations Clarifying the Path for AI PCs to Deliver Step-Change Improvements in Value

• Skyworks Solutions reported its second fiscal quarter 2025 results, highlighting both strengths and challenges within its operational landscape.
• The company delivered revenue of $953 million and earnings per share of $1.24, both slightly exceeding the midpoint of their guidance.
• Gross profit was $445 million, with a gross margin of 46.7%, indicating strong execution in cost management and operational efficiency.

• Shift’s share price has been up by more than 35% YTD driven by improved margins which saw a temporary decline due to Shift’s investment on HR and system reinforcement.
• The company’s GPM reached an all-time high in 2QFY08/2025 while OPM has shown significant improvement driven by the company’s changes to recruitment policy that is aligned to utilisation rates.
• Though Shift’s top line growth has slowed down, it’s not something to worry too much about as its new businesses and large-scale project wins should help revive top line growth.

Global Fashion Group (GFG) operates leading fashion and lifestyle platforms that enable brands to reach customers in a mix of developed and developing markets with high growth potential. Management has responded to industry-wide competitive and macroeconomic challenges by focusing its geographic coverage and refining its product offer and customer engagement, which is leading to more encouraging trends in customer numbers and spend per customer. This gives management confidence to guide to a significant increase in profitability in the medium term, to levels comparable with its peers. This is significant given GFG’s low absolute enterprise value, with a market capitalisation broadly similar to its net cash position including leases and low multiples versus its peers.

• The earnings for CDW Corporation’s first quarter of 2025 highlights several key aspects of its performance and outlook.
• With detailed comments from management, the company presents a mixed set of results and expectations amid a dynamic market environment.
• Starting with the positives, CDW reported a robust start to the year with net sales increasing by 8% year-over-year to $5.2 billion.

• IonQ’s latest financial results and strategic developments signal a bold push toward cementing its role as a dominant player in the emerging quantum computing industry.
• The company reported first-quarter revenue of $7.6 million, matching last year’s figure but exceeding analyst expectations.
• Despite the flat top-line performance, IonQ remains aggressive in its vision to become the “Nvidia of quantum computing,” as CEO Niccolo de Masi described.

• Unity Technologies recently reported their earnings, presenting both its positive strides and current challenges in the first quarter of 2025.
• The company’s results exceeded expectations in several areas, notably in revenue and adjusted EBITDA, surpassing high-end guidance by 5% and 29% respectively.
• The company attributed this growth to its unified efforts in the Grow and Create segments, both of which exhibited considerable strength.

• Jensen claims his Taiwan expansion is just about needing more chairs, yet an NVIDIA blog post describes the Santa Clara HQ taking to the skies & landing in Taiwan. 
• He was critical of US restrictions on China chip exports while in Taipei, yet had nothing to say on the topic while in the White House or the Middle East
• NVIDIA’s market share in China is down from 95% in 2022 to 50% now, yet the country continues to challenge global AI leadership. That puts NVIDIA in an awkward spot.

• There could be 1 constituent change (maybe 2) for the STAR&CHINEXT 50 Index in June. The announcement of the potential change will be made after market close on Friday.
• Anker Innovations Technology could replace Suzhou Maxwell Technologies in the index. If AVIC Chengdu Aircraft is added to the index, Wuxi Lead Intelligent Equipment could be deleted.
• Anker Innovations Technology could have opposite flow and Suzhou Maxwell Technologies could have same way flow from passive trackers of other indices on the same day.

• Large impact of H20 discontinued sales to China. Including the impact, 1-2Q26 are inline with consensus. Adding back the H20 missed revenues, 1-2Q26 would have been ~10% above Consensus. 
• The ramp of GB200 is very impressive, demonstrating Jensen’s point: “it drives down cost and improves quality of response with higher speed”. The Good Times Keep Rolling.
• This means that Consensus most likely does not need to revise down FY26 forecasts. This means that the stock is cheap-ish, trading at 31x FY26 EPS and 24x FY27.

• Lens Technology (300433 CH), a precision manufacturing solution provider, aims to raise around US$1.5bn in its H-share listing.
• Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• AppLovin, a leader in performance marketing, has recently announced its first-quarter 2025 financial results, highlighting its robust growth trajectory despite external challenges.
• The company has navigated market volatility, such as short-seller scrutiny and broader economic conditions, by focusing on emerging opportunities in the advertising sector.
• This quarter is especially significant due to its strategic decision to divest its games business entirely, further sharpening its focus on advertising technology.

• China represents ~11% of revenues for Cadence and Synopsys. The weight of China has been declining. 
• China has a number of startup working on replacement software, the leader is Empyrean – good but some years behind Cadence and Synopsys and focused on legacy chip design. 
• Between this news today and more restrictions on Nvidia’s sales to China, it looks like more US restrictions will come.

• By the time this insight is published, NVIDIA Corp (NVDA US) will have reported earnings. Our model does not rely on fundamentals or news, so the forecast is made in advance.
• The stock pulled back last week, mild pullback, not oversold, ideally a buy-the-dip opportunity. Support targets: 123-112
• If the stock rallies, the rally could last 3 weeks and reach 156. Read the detailed analysis in the insight.

• Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst.
• The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources.
• Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin mining, generative AI, and other compute-intensive applications. 

• Fortinet’s first-quarter 2025 financial results showcased a mixture of strong operational metrics and cautious forward-looking guidance amid broader economic uncertainties.
• On the positive side, Fortinet reported significant financial achievements, with total revenue rising by 14% year-over-year to $1.54 billion.
• This growth was largely driven by product revenue, which increased 12%, and was complemented by service revenue, which similarly grew by 14%.

• US treasuries climbed yesterday, with yields declining in the long end.
• This came on the back of a solid auction of 2Y notes, as well as a rally in JGBs on signs that the Japanese government may adjust debt issuance to ease market volatility.
• The yield on the 2Y UST edged down 1 bp to 3.98%, while that on the 10Y UST fell 7 bps to 4.45%. 

• There could be 3 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are some fairly large capping changes for some stocks.
• Estimated one-way turnover is 4.9% and the round-trip trade is HK$5.4bn (US$694m). The impact on the deletes will be a lot larger than the impact on the adds.
• The forecast adds have outperformed the forecast deletes over the near-term, though the trade has been quite volatile over the medium term.

• April 2025, the US Gvt extended restrictions on Nvidia’s China-specific H20 chip. Restriction also apply to H20’s memory bandwidth. This means SK Hynix HBM and TSMC CoWoS.   
• Nvidia new China-specific chip derive from this: a downgraded chip, half a Blackwell, without HBM-CoWoS packaging. Time to design, manufacture, could lead to ~15% downside risk to FY26 Consensus?   
• FY26 revenues could land at US$175bn or  -12% below Consensus at 199bn. $175bn implies 35% growth YoY, Consensus expects 52%. The stock trades at “low” 30x FY26 and 24x FY27.

• There are 9 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) in June. Most of the adds and all of the deletes were forecast.
• The index committee have used their discretion and kept Fadu (440110 KS) and Snh Inc (051980 KS) out of the index for yet another rebalance – no reason provided.
• There’s been little movement in the relative performance of the adds/deletes the last few months. The announcement of the changes could see the stocks move over the next few weeks.

• Circle will be offering 24 million shares at a $24-$26 range equating to a 5.2b-5.65b valuation.
• The company is a stable coin powerhouse with more than $25 trillion in transacted volume since founding. 
• The deal has a potential “floor” with companies reportedly interested in acquiring Circle Internet. 

• Globalwafers (6488 TT) held its shareholders’ meeting yesterday (May 26th).  
• Regarding the U.S. market, Globalwafers (6488 TT) noted that the U.S. government will impose tariffs on imported products, although the specific rates are still unknown.  
• Regarding the overall market conditions, the 12-inch silicon wafer market is currently performing significantly better than the 8-inch market, with higher utilization rates.  

• Looking ahead to the second quarter, Silergy Corp (6415 TT) did not provide specific guidance targets but emphasized that uncertainty in customers’ decisions regarding chip production locations could impact seasonal demand.  
• Despite short-term challenges, Silergy Corp (6415 TT) still anticipates 2025 to be a year of growth.  
• In terms of profitability, Silergy Corp (6415 TT) expects that capacity at Chinese foundries will approach full utilization, leading to supply chain tightness and helping maintain stable gross margins.

• Alphabet Inc. (NASDAQ:GOOGL) has entered a defining phase in its AI journey, unveiling a host of advanced technologies and product integrations that mark its most aggressive push yet into artificial intelligence.
• At the heart of this transformation is Gemini 2.5 Pro, the company’s most advanced AI model, now powering everything from Search and mobile assistants to developer platforms and multimodal queries.
• The rollout of AI Overviews, which now serves over 1.5 billion monthly users, and the launch of AI Mode, capable of handling more complex search tasks, underscore Alphabet’s commitment to redefining user experience through AI.

• Zen Technologies (ZEN IN) reported record-high quarterly and annual financial performance in Q4 & FY25, surpassing internal guidance for the year. Strategic acquisitions in naval simulation, drone components& robotics completed.
• The strong financials and acquisitions significantly diversify capabilities and market reach, positioning Zen to capitalise on increasing defence spending and evolving warfare needs.
• Performance exceeds expectations, reinforcing confidence in Zen’s indigenous technology leadership and growth trajectory, despite potential short-term order inflow volatility.

• Google’s Pixel Chips to Go All-In on TSMC After Using Samsung Foundry Previously
• TSMC (2330.TT; TSM.US): TSMC Provides Updates at 2025 Technology Symposium in Hsinchu Today. 
• GlobalWafers (6488.TT): Shareholders’ Meeting Held; US Tariff Effects Pending; SiC Chances Ahead. 

• BIDU reported C1Q25 top line, non-GAAP operating profit and GAAP net income 4.5%, 8.6% and 58% vs. our estimates. Baidu Core revenue beat our estimate by 3.4%, 
• We believe BIC’s outperformance stemmed from enterprise demand for AI adoption. Further, BIDU’s integrated AI offering should allow it to capture AI’s 2C revenue quicker. 
• We cut the TP from US$88 to US$85 and maintain SELL.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• Today is the base date for the June 2025 index rebal event and the expected ADDs/DELs discussed in this insight are our final index change expectations.
• We expect one change for T50 and two changes for T100 index for the June 2025 rebalance.

• Regarding Datadog’s Q1 2025 financial results, the company reported a solid performance with a revenue of $762 million, representing a 25% year-over-year increase.
• This figure surpassed the high end of their guidance.
• Datadog revealed a customer base of approximately 30,500, with about 3,770 customers having an Annual Recurring Revenue (ARR) of $100,000 or more, accounting for 88% of ARR.

• Advanced Micro Devices (AMD) delivered a robust start to 2025, reporting stronger-than-expected earnings that reinforced the company’s growth trajectory in high-demand areas like AI and data centers.
• The semiconductor firm posted first-quarter adjusted earnings per share of $0.96, slightly above Wall Street’s estimate of $0.94, with total revenue hitting $7.4 billion, surpassing the projected $7.1 billion.
• This performance was fueled by the impressive 57% year-over-year growth in AMD’s Data Center segment, which reached $3.7 billion.

• The first quarter of 2025 results for Fidelity National Information Services, Inc. (FIS) demonstrated both operational progress and strategic initiatives that position the company robustly for future growth.
• The revenue growth for the quarter was 4%, with a significant acceleration in recurring revenues, indicative of a resilient business model that thrives across different economic conditions.
• The quarter was marked by strategic structural changes, notably the announced acquisition of Global Payments’ issuer business and the sale of a minority stake in Worldpay.

• Super Micro Computer shares experienced their steepest decline in months after the company released preliminary third-quarter fiscal 2025 results that came in well below Wall Street expectations.
• SMCI stock fell 14% to $30.96, marking its largest one-day drop since late February.
• The artificial intelligence server maker reported revenue between $4.5 billion and $4.6 billion and adjusted earnings per share of $0.29 to $0.31, significantly below analysts’ forecasts of $5.4 billion in revenue and $0.53 EPS.

• Electronic Arts Inc. recently reported strong financial performance in the last quarter of its fiscal year 2025, showcasing strengths and addressing some challenges faced throughout the year.
• The company recorded notable achievements with its popular gaming franchises, highlighting its robust position in the gaming industry.
• One of the significant positives for Electronic Arts was the turnaround in its EA SPORTS FC franchise.

• Our base case valuation of Dowoo Insys is target price of 40,667 won per share, which is 27%  higher than the high end of the IPO price range (32,000 won). 
• We used an EV/EBITDA multiple of 14.9x to value the company, which is 10% premium to the comps’ valuation multiples in 2024.
• The decline in operating margin remains one of the biggest risk factors on the company. Its major customers such as Samsung Display are putting increasing pressure to reduce its prices.

• Shenzhen Dobot, a leading manufacturer of collaborative robots in China, has completed its IPO and raised ~HK$680M of the net proceeds in 2024. The IPO was priced at HK$18.80/share.
• Shenzhen Dobot shares have massively outperformed year-to-date (+158%) and finished the trading session at HK$62.55 on Monday, up ~233% vs. IPO offer price.
• The stock peaked at HK$83.80 in March and fell ~25% over the next two months. The company’s six-month IPO lockup will expire on June 22, 2025.

• Lenovo’s Q4/24-25 performance was weak in our view, while the full-year results were acceptable.
• The company recorded solid revenue growth and higher profitability across segments.
• The PC segment has benefited from: [1] the upcoming cessation of Windows 10 support and interest in on-device AI; [2] a rush to ship PCs early in Q1/25 to avoid potential new US tariffs.

• Q1-4 FY3/25 results were in line with guidance, with progress made YoY to transform both Sports and Lifestyle segments into material earnings pillars.
• Company guidance for FY3/26 appears conservative.
• The core theme is a significant investment in growing the TIPSTAR (domestic keirin, or cycle team sports) betting service, achieving high user retention, and strong sales growth YoY. 

• Horizon Robotics (9660 HK) will be added to Southbound Stock Connect from the start of trading today. Then there will be passive buying at the close on 20 June.
• The lock up expiry in April will result in large buying from trackers of the Hang Seng TECH Index (HSTECH INDEX) and HSIII Index in September.
• The stock will also be added to another large global index, though the timing on inclusion is not certain at the moment.

• Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ insights published over the past two weeks on Smartkarma
• In this cut, we look at Korea’s compelling valuation versus AxJ equities, CATL’s blockbuster Hong Kong listing and its market implications, and explore copper’s price surge amidst Chinese demand
• Want to dig deeper? Comment or message with the themes you think should be highlighted next

• Elite Material (2383 TT)‘s stock price has soared recently and is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in June, replacing Unimicron Technology (3037 TT). 
• Passive trackers will have 1 day of ADV to buy in Elite Material (2383 TT) and over 1 day of ADV to sell in Unimicron Technology (3037 TT). 
• However, Elite Material is at risk of deletion from another ETF where the impact of passive selling is a lot bigger. Tricky interplay between the two ETFs.

• There could be 1 change each for the STAR Chip Index and CNI Semiconductor Chips Index, and 3 changes for the CES China Semiconductor Chips Index in June.
• There are a few stocks that will have same-way flow from passive trackers of the STAR50 INDEX, STAR 100 Index, CSI 500 Index, CSI 1000 Index and CSI A500 Index. 
• The round-trip trade across the indices is CNY 2.9bn (US$400m) and will add to the impact across the other China indices that rebalance on the same day.

• Fabrinet has reported strong results for the third quarter of fiscal year 2025, which ended on March 28, 2025.
• The company achieved a revenue of $872 million, surpassing its guidance range, and non-GAAP earnings per share stood at $2.52, also above expectations.
• This performance highlights Fabrinet’s robust execution capabilities, especially in the optical communications sector where telecom revenue demonstrated significant growth, counterbalancing a predicted decline in datacom revenue.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Pharmaceuticals (1276 HK) performance has paved the way for a slew of A/H listings to follow.
• On the placements front, there was a large selldown in HD Hyundai Marine Solution (443060 KS) and a lockup release for Pony AI (PONY US) is coming up.

• It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).
• We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China’s 30 year bond yield). 
• Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.

• Implied Volatility Trends: One-month implied volatility is currently cheap, trading in its 14th percentile, while Tencent (700 HK) approaches its twelve-months high.
• Skew and Term Structure Dynamics: A pronounced skew smile and a relatively flat term structure make spreads and calendar / diagonal spreads attractive strategies.
• Open Interest Distribution: Liquidity can be found in the monthly May expiry and the Quarterly expiries. The historically low implied volatility facilitates longer term positions.

• The U.S. Department of Commerce’s Bureau of Industry and Security (U.S. BIS) recently released a series of public consultations regarding Section 232 related to semiconductors.  
• TSMC stated that any import measures should not create uncertainty for existing semiconductor investments.
• Any measures taken by the U.S. government should not undermine the national security policy objectives of the U.S. government, including advanced semiconductor production at TSMC Arizona.

• I tally  46 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• Just one new deal was discussed on Smartkarma this week: Bastion’s off-market Offer for Xanadu Mines (XAM AU).
• Key updates/news took place on: Reject Shop (TRS AU),ESR Group (1821 HK), Shibaura Electronics (6957 JP),Jamco Corp (7408 JP), and Tsuruha Holdings (3391 JP)/Welcia Holdings (3141 JP).

• Palantir Technologies entered 2025 with first-quarter results that underscore both the power of its artificial intelligence portfolio and the hurdles that still shadow its global ambitions.
• Revenue climbed 39% year over year to roughly $1.02 billion, led by a 55% jump in the United States, where commercial sales surged 71% and government revenue rose 45%.
• Management highlighted that U.S. commercial activities have crossed a $1 billion annualized run rate and that uptake of its new Artificial Intelligence Platform is “racing ahead” across healthcare, financial-services, and industrial clients.

• Itron’s first quarter of 2025 financial results demonstrated a robust performance characterized by strong margin expansion and earnings growth that surpassed expectations.
• The company delivered a revenue of $607 million with an adjusted EBITDA of $88 million, indicating a solid operational quarter.
• Non-GAAP earnings per share reached $1.52, representing a substantial year-over-year increase, while free cash flow doubled from the previous year to $67 million.

• Lumen Technologies’ latest earnings reveals a company engaged in an ambitious transformation, illustrated by both promising developments and notable challenges.
• The organization executed well on its strategy to drive operational efficiency, enhance its AI infrastructure, and transition its telecommunications model to a cloud based system.
• These areas contributed to better-than-expected financial outcomes for the first quarter of 2025.

• Microsoft Corporation’s latest quarterly results delivered a strong rebound in investor confidence, with all major business segments exceeding internal forecasts and analyst expectations.
• The company posted $70.1 billion in revenue, marking a 13% year-over-year increase.
• Operating income reached $32 billion, coming in 6% above consensus estimates, and net income stood at $25.8 billion, or $3.46 per diluted share, well ahead of the expected $3.22.

• ON Semiconductor reported a performance that reflects both ongoing strategic maneuvers and the challenges posed by the current economic landscape.
• The company delivered first quarter 2025 revenues of $1.45 billion, slightly exceeding the midpoint of their guidance, and achieved non-GAAP earnings per share of $0.55.
• The non GAAP gross margin was reported at 40%, highlighting the impact of their operational strategies amid a challenging environment.

• InterDigital, a company specializing in technology development and licensing, reported a strong start to 2025, surpassing expectations with its first-quarter financial results.
• The company achieved revenue of $211 million for the quarter, exceeding both the initial guidance range of $116 million to $206 million and the prior year’s revenue of $264 million, which had been bolstered by a significant Samsung TV license.
• This performance was primarily driven by newly signed licensing agreements with Vivo Mobile, a major smartphone manufacturer, and HP, which license personal computers to InterDigital’s WiFi and video decoding technologies.

• Dowoo Insys is getting ready to complete its IPO in Korea. Dowoo Insys is one of the first companies in Korea to commercialize ultra thin glass (UTG) for foldable displays.
• The IPO price range is 29,000 won to 32,000 won.  At the high end of the IPO price range, the expected market cap of the company is 351 billion won.
• The bankers used five companies including Synopex, Duksan Neolux, and Innox Advanced Materials as comparable companies. The bankers used these companies’ average EV/EBITDA multiple of 15x to value Dowoo Insys.

• Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Calendar and Diagonal Spreads make up a quarter of all strategies. Several examples are presented incorporating upfront cost, upfront credit, or zero-cost combinations. 
• While there is a bias towards bullish strategies, 26% of all strategies express a market-neutral view in the form of Straddles, Strangles, Butterflies or Condors.

• Xiaomi has its own smartphone chip! It’s the 4th announcement (2014, 2017, 2021, 2025)? Yes it is. Why it didn’t succeed before, will it work out now? It won’t.
• Mobile chip development costs US$800m-1bn, to be amortized on Xiaomi’s small volumes. The economics don’t work. It won’t give Xiaomi any performance / differentiation benefits.  
• Why now? Computex was ongoing in Taipei with 10 big-size CEOs, Nvidia, AMD, Qualcomm, Mediatek, TSMC… maybe they felt lonely in Beijing? If you bought Xiaomi, please sell.

• After four years of behind-the-scenes development, Xiaomi has officially joined the top tier of smartphone chipmakers with the launch of its first in-house 3-nanometer system-on-chip (SoC), the Surge Xuanjie O1, along with its first self-developed 4G baseband chip, the Xuanjie T1.
• The announcement came during the company’s product launch event in Beijing on Thursday, where Xiaomi also introduced its new flagship phone 15s Pro and 7Ultra tablet — both powered by the Xuanjie O1— as well as a smartwatch using the T1 chip.
• The Xuanjie O1 is built using TSMC’s second-generation 3nm N3E process the same advanced node used in Apple’s A18 chips and Qualcomm’s Snapdragon 8 Elite.

• Huawei Technologies Co. Ltd. unveiled its first personal computers Monday in Chengdu, with machines powered by the company’s self-developed chips and HarmonyOS operating system in a direct challenge to the long-standing dominance of Windows-Intel (Wintel) and Apple’s macOS technology.
• The MateBook Fold, priced from 23,999 yuan ($3,328), features an 18-inch foldable screen and a split keyboard, while the lighter MateBook Pro, starting at 7,999 yuan, follows a more conventional laptop design with a 14.2-inch display.
• Huawei did not disclose the specific chip used in either model, but industry observers believe the devices are equipped with the company’s Kirin X90 processor built on an Arm architecture.

• MNTN, Inc., a high-growth provider of CTV performance marketing platform, priced its IPO at $16.00 per share, high end of range.
• The offering was ~14x times oversubscribed, according to Mark Douglas, Founder & CEO of MNTN. The IPO opened at $21.00 and closed at $26.36 per share, up ~65%.
• I think the stock was attractively priced vs. peers, given 30%+ growth rates, FCF positive business and top-tier backers.

• Avnet, Inc. reported its financial results for the third quarter of fiscal year 2025, demonstrating a performance that exceeded some expectations despite challenging market conditions.
• The company achieved sales of $5.3 billion, reaching near the high end of its guidance, while adjusted earnings per share (EPS) of $0.84 surpassed expectations.
• Cash flow from operations amounted to $141 million for the quarter, driven largely by a better-than expected performance in Asia and positive developments from Farnell, although the company faced ongoing weaknesses in the Western markets, with Europe providing the most difficult environment.

• At Sapphire 2025, SAP reintroduced its Business Suite as a unified cloud-based platform, AI, and Business Data Cloud. This strategy aims to simplify operations and improve scalability through embedded AI.   
• SAP is on track to meet or exceed its financial targets, with significant revenue opportunities. Efficiency gains powered by Business AI are helping SAP decouple expense growth from revenue growth.   
• Despite broader industry uncertainty, SAP’s domain expertise and robust infrastructure offer a strong foundation to lead in the evolving AI-driven enterprise software landscape.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Xiaomi Corp, China Hongqiao
• Treasury yields ended lower yesterday, after recovering from a bear-steepening move earlier in the day that pushed the 30Y yield to as high as 5.15%.
• The recovery could be driven by dip buyers, after the US Congress narrowly passed President Donald Trump’s signature tax bill.

• Broadridge Financial Solutions Inc. reported strong third-quarter results for fiscal year 2025, reflecting robust performance across its various business segments, with total revenue increasing by 5% to $1.8 billion.
• The company achieved 8% growth in recurring revenues, constant currency, and a 9% increase in adjusted EPS, supported by solid execution of its growth strategy and a high level of visibility into its revenue streams driven by a 98% revenue retention rate and a significant recurring revenue backlog of $450 million.
• 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.

• Contemporary Amperex Technology (3750 HK) (CATL H), a global leader in providing battery solutions, was listed on the 20th May at $263/share. Here is the prospectus.
• Via the H-share listing, CATL raised ~US$5.2bn. Shares have since gained ~26% and trade at HK$330/share, as I type.
• It is worth noting the HKEx issued a high concentration warning in CATL’s H shares the day before shares were listed.

• Pony AI (PONY US) raised around US$260m in its upsized US ADR listing in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• As per Frost & Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
• In this note, we will talk about the lockup dynamics and possible placement.

• TSMC explained that the growing demand for autonomous driving technologies in smartphones, PCs, IoT devices, and the automotive industry is driving the development of its N4/N3 and N6RF process technologies.
• TSMC announced that the A14 process, which will adopt the new NanoFlex Pro technology, is scheduled to begin production in 2028.
• TSMC plans to launch CoWoS-L with 5.5x reticle size in 2026 and surpass current CoWoS limitations with 9.5x reticle size by 2027.

• Xiaomi to launch strategic new products on the 22nd, including the new SoC chip “Surge O1”.
• Xiaomi Surge O1 at a glance: benchmark scores suggest it’s a strong rival to MediaTek and Qualcomm.   
• While Xiaomi has not confirmed the chip’s foundry partner,  we believe it is very likely manufactured by Taiwan Semiconductor (TSMC) – ADR (TSM US).  

• VEON returned to billion-dollar quarterly revenue in 1Q25; EBITDA grew 13.7% YoY on strong digital execution.
• Digital revenues rose 50% YoY, now 14.3% of group total.
• Kyivstar IPO on track for 3Q25 at US$2.3bn valuation; fintech optionality in Bangladesh and Ukraine emerging.

• Reports of Samsung securing 2nm customers (Nvidia, Qualcomm), but AMD is saying that TSMC has the best and only 2nm, Nvidia saying there’s no alternative to TSMC CoWoS.   
• Competition at 2nm / 18A is already over. Chips tape-out are rolling out. If Intel, Samsung can gain Foundry customers, it is for the next node 14A in 2027-28.
• The difficulty for Intel and Samsung is that TSMC is a lot faster to develop PDK, qualify process, tape-out chips. The total cost of chipdesign at US$0.5-1bn is another hurdle.  

• F1 is evolving to be more than just a sport, focusing on entertainment and business development
• The fan base is becoming younger and more diverse, with 40% women and 60% men, average age 35
• F1 is balancing historic venues with new races, aiming for 24 races per season and considering new markets in Asia and Africa

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• Tuya delivered a strong 1Q25, outperforming seasonal trends, with a record GAAP net profit of $11.0 million and a net margin of 14.8% (more than 20 percentage points higher Y/Y).
• Non-GAAP net profit also surged to $19.3 million, with margins reaching an impressive 25.8%.
• The company’s success reflects disciplined expense control, strong revenue momentum across all segments, and a growing emphasis on AI-driven solutions. 

• Over past year the price of Silicon Carbide wafers has declined by 50-60%, leading to the bankruptcy of Wolfspeed. The Western media tends to blame Chinese over-capacity and price cuts. 
• But all SiC firms have massively increased capacity: Infineon, Onsemi, STMicro. The vertical integration of the majors is also to blame: over-investments in a small market (rapidly growing, but small). 
• Who benefits? Nominally the big integrated vendors Infineon, Onsemi, Rohm, STMicro – but Power SiC is a small fraction of their revenues.

• MNTN priced a full-size deal of 11.7mm shares at the high-end of the range, $16.00, and opened at $21.00 for a gain of 31.3% at first trade. 
• The fireworks continued as the stock traded to a high of $26.88 before closing its opening session at $26.36 for a first day return of 65%.
• The deal was considered multiple-times oversubscribed and our sources stated that the final deal finished north of 12-times oversubscribed.

• The buying in Contemporary Amperex Technology (3750 HK) over the last couple of days has dragged Contemporary Amperex Technology (CATL) (300750 CH) higher as the arbs trade the AH spread.
• The Fast Entry into a global index could keep CATL (3750 HK) supported over the next few trading days, but reality will take hold pretty soon.
• Short CATL (3750 HK) / long CATL (300750 CH) offers great risk/reward, while an outright CATL (3750 HK) short offers higher return albeit at a much higher level of risk.

• Yageo Corporation (2327 TT) approached Shibaura Electronics (6957 JP) for a takeover at ¥4300. Shibaura dismissed them and asked Minebea Mitsumi (6479 JP) to overbid. They did at ¥4500. 
• Then Yageo overbid Minebea at ¥5400, who then overbid Yageo at ¥5500, who then re-overbid at ¥6200. Despite not having its FEFTA Approval in place, YAGEO overbid and launched. 
• The Minebea CEO objected. We don’t know status. Now the Shibaura Special Committee has paused, supporting but not recommending the Minebea bid and Neutral on Yageo. We are in limbo.

• The Shibaura Electronics (6957 JP) Board supports Minebea Mitsumi (6479 JP) JPY5,500 offer, but has shifted its recommendation from tendering to a neutral stance. 
• The Board maintains that it is not yet in a position to provide an opinion on Yageo’s JPY6,200 offer due to concerns on feasibility and synergies. 
• Minebea hopes Yageo will withdraw due to its failure to secure regulatory approvals. If Yageo secures the required approvals, Minebea will actively consider measures.

• China announced game approval for the May batch. The number of games approved remained at a higher level than 2023.
• The pace of China’s game approval appears to have accelerated to the same level as pre-tightening.
• Of the companies that we are monitoring, none of them got approval for domestic games but a handful approvals of imported games save their day.

• SEA reported C1Q25 top line, non-GAAP operating profit and GAAP net income (3.7%), 10% and 8.4% vs. our estimates and 1.4%, (16%) and 31% vs. consensus. 
• SEA has weathered the return of TikTok Shop better than rivals three quarters in a roll, but we see its e-commerce business vulnerable to future attacks. 
• We raised TP from US$75 to US$134 but DG to a SELL on rich valuation

• Tencent reported C1Q25 rev., IFRS op. profit, and IFRS net inc, in-line, (3.1%), (5.6%) vs. our est. and 3.8%, (2.3%), (4.9%) vs. cons. 
• As predicted, Tencent maintained a transitional game quarter well, going forward new game launches shall fill the pipeline while recovering consumption helping on advertising and fintech. 
• We raised our TP to HK$584 for better outlook and place Tencent back to the TOP BUY list. Our TP implies 21x PE.

• Greenidge announced a solid 1Q25, with revenue of $19.2 million, roughly flat Y/Y, and debt reduction of $12 million from the original $72 million to $60 million.
• The company had $13.3 million in cash and Bitcoin at the end of the quarter.
• CEO Jordan Kovler said, “This past quarter, our team’s disciplined execution and prudent financial management have significantly advanced the turnaround of our business and operations. 

• GTG Financial was acquired in late February 2025 and so did not make a full quarter impact on AIRE’s consolidated results.
• Even so, since closing the acquisition during the quarter, GTG contributed to originating 36 mortgages in 1Q25, representing total loan volume of about $22.4m.
• 2Q25 – with peak homebuying activity underway – will mark the first quarter with full GTG contribution.

• Soluna recently announced its 1Q25 earnings an business update, with revenue of $5.9 million, 220 MW of new project development (698 MW total), and a solid cash position.
• The company has also simplified its capital structure by fully converting its notes last year, restructuring its Preferred B equity, paying off it Navitas loan, and securing $5 million in non-dilutive financing from Galaxy Digital.
• CEO John Belizaire said, “Our outlook shines brighter with expanding project development at Projects Rosa, Ellen, and Hedy.

• CATL (3750 HK) is trading at a 6.9% premium to Contemporary Amperex Technology (CATL) (300750 CH) – if that is due to expectations of Fast Entry, that premium could drop.
• CATL (3750 HK) has not announced the overallotment option as exercised and that puts Fast Entry at risk. An announcement prior to the close tomorrow could lead to Fast Entry.
• The earliest inclusion could be at the close on 30 May while the other global index inclusion looks likely in December.

• ETF trading topped 50% of KOSPI turnover in April—a first outside the March 2020 COVID crash—rising nearly 14 percentage points month-to-month despite a sharp overall volume drop.
• Despite a 30% drop in KOSPI volume, leveraged and inverse ETFs surged 28% and 34%, led by ‘KODEX Leverage’ and ‘KODEX 200 Futures Inverse 2X’ hitting top ADV ranks.
• Some local traders see opportunities in spot market dislocations amid volatility, futures rollovers, and ETF-driven supply-demand imbalances likely to persist from last month’s surge.

• If ₩500B comes from common shares, about 40M shares retire, raising Samsung Life and Fire stakes to 10.07%, requiring a ₩0.23T block sale to trim excess.
• Slightly smaller than last time but still notable, the insurers acted fast in February. Expect a ~0.07% block trade soon, though price impact was mild previously.
• Watch for preferred share outperformance as phase two buyback hits 0.66% common vs. 0.81% preferred (effective buyback assuming cancellation); similar dynamics may repeat in the larger ₩4T phase three buyback.

• The review period for the June rebalance of the CSI All Share Semiconductor Index ended 30 April. The changes should be announced on 30 May and implemented on 13 June.
• We forecast 4 adds and 9 deletes for the index with a one-way turnover of 2.7% and a round-trip trade of CNY 1.2bn (US$167m).
• Some stocks have overlaps with changes to the CES China Semiconductor Chips Index and the CNI Semiconductor Chips Index and there will be increased passive flow for those stocks.

• As reported by Sanghyun Park, Samsung Electronics (005930 KS) ‘s phase 2 buyback disposal plan appears to be virtually finalized (or will be finalized soon – not official yet).
• As always, we’ll assess what our tactical models suggest about the trend from here—interpreted alongside the latest catalysts.
• We have been monitoring Samsung Electronics (005930 KS) for a while: the stock has been bottoming, then flat for a while, rallied modestly, now a minor pullback… time to BUY?
  

• Following its AGM on May 13 last, AMD announced a new $6 billion share repurchase program, despite still having $4 billion remaining on the previous buyback program
• The AGM also approved a proposal to authorize a 78% increase in the company’s share count, from 2.25 billion to 4 billion shares
• It’s a bold move on AMD’s part and it reawakens memories of the company’s acquisition of Xilinx back in 2022 in a $35 billion all stock deal. Deja vu ?

• With 8 trading days left in the review period, we forecast 3 changes for the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) in June.
• Capping changes for Delta Electronics Thailand (DELTA TB) will result in big passive selling in the stock and funding inflows for the other index constituents.
• The forecast adds have drifted lower over the last 6 months and outperformed the SET 50 Index while the deletes have dropped a lot and underperformed the index.

• We expect Baidu to report C1Q25 top line,non-GAAP operating profit and GAAP net income inline, (4.2%) and (8.2%) vs. the consensus, and C2Q25 top line guidance (2.7%) vs. the consensus
• Although we expect rebounding consumption to help BIDU’s advertising business, its traffic share losses were alarming. Further, we expect some of BIDU’s core advertising categories to experience sluggish recovery;
• We maintain our view that Baidu lacks visible growth drivers, reiterate our SELL rating, and cut its TP to US$88.

• PROTEAN eGov Technologies LTD (PROTEAN) has experienced a significant setback by not being shortlisted for the Indian government’s PAN 2.0 project worth INR 1,440 crore, a material negative.
• This exclusion, despite earlier confidence, is expected to lead to a substantial decline in this revenue stream over the next 2-3 years, potentially collapsing by 75-100%.
• The PAN business has historically been a key driver of profitability and free cash flow, funding new initiatives now under threat. 

• Makus is #34 in our Korea Small Cap Gem series. Its treasury shares as  percentage of outstanding shares is 44%. Net cash as a percent of market cap is 78%.
• With greater interest in companies that have a combination of high levels of treasury shares as a percentage of market cap, cheap valuations, and excellent fundamentals, Makus fits the bill.
• Makus could be one of the targets for potential tender offers/M&As and likely to outperform the market in the next 1-2 years.