TMT/Internet

• Melco Holdings (6676 JP) chairman Hiroyuki MAKI bought up a 14% stake in BASE Inc (4477 JP) in just under two weeks. It was done quite transparently. He announced daily.
• He wants to get to 30% in a Tender Offer. The method, approach, lack of transparency, and similarity to previous situations where he invested has the company wary. 
• This looks like a Poison Pill case in the offing. It WAS a cheap stock. It is not expensive now. But it is not clear what the endgame is here.

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the June 2025 index rebal event.

• Whether Intel can achieve Process or Foundry leadership in a credible timeframe is something Mr. Tan has relatively little control over in the short term.
• His most pressing challenge will be to address the corporate culture of entitlement that’s rife throughout the company, starting with the BoD
• Measure his success by the number of high profile resignations we see in the coming months. Those who created Intel’s problems cannot be the ones to fix them. 

• CoreWeave (CRWV US) officially set terms for an IPO on Thursday morning coming in with a valuation and cash raise that was much lower than previously reported. 
• Furthermore, the underwriters placed a wider-than-normal spread on the range, $47-$55. This insinuates a negotiation process between the buy-side.
• The valuation coming in lower than anticipated will allow investors to put money to work at a more attractive risk-reward profile. 

• Huang throws cold water on a potential TSMC led deal for INTC fab business, saying he ‘wasn’t invited’ to any discussions. 
• Micron guidance beats consensus which should be a positive for related names such as Micronics. 
• CoWoS and advanced packing maker Shibaura Mechtronics raised guidance on Wednesday ahead of street, yet stock still trading around recent lows points to further upside.

• Micron’s strong HBM and Data Center growth has nearly offset low revenues in the remainder of the company’s business.
• This HBM growth depends heavily upon continued strength in hyperscale data center AI CapEx
• Micron outlined means to maintain stability in its industry, but China semiconductor goals are in conflict with these measures

• Taiwan server revenue and shipment forecast for 2025 is expected to increase, reflecting growth in the IT industry.
• Japanese government plans to invest $1 billion in Space Strategy Fund projects, highlighting a push for innovation and exploration in the aerospace sector.
• SoftBank’s $6.5B Ampere acquisition is a strategic move in the AI chip market with Arm, positioning the company for future technological advancements.

• A detailed analysis of the earnings implied jump in Kuaishou options compared to historical outcomes.
• Pre- and post-earnings price movements are examined to assess directional tendencies and magnitude.
• We find that returns heading into and after earnings have shown a strong bias.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group
• In the US, the FOMC has unanimously voted to maintain the Fed Funds target rate unchanged at 4.25-4.50%, in line with market expectations. In its statement, the FOMC noted that “uncertainty around the economic outlook has increased”, removing previous language that the risks to achieving employment and inflation goals are “roughly in balance”.
• Meanwhile, the Fed dot plot showed that the US central bank’s officials continue to see a median of two 25-bp rate cuts in 2025, two cuts in 2026 and one in 2027, with the long-run Fed funds rate unchanged at 3.0%.

• Offer software and advisory services to B2C customers to improve their product usage
• Conduct various extreme tests in labs to ensure product safety, including testing for AI integration and changing technology
• The US is the most highly regulated market for testing products, with third party testing often required

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The growth rate of total revenue came back to two digits in 4Q24.
• The growth rate of game revenue reached 20% YoY in 4Q24.
• The gross margins of all business lines improved YoY in 4Q24.

• The latest TSMC taking over Intel Foundry was on 13 March and involved joint investments by AMD, Broadcom, Nvidia, Qualcomm. Complicated.
• Yesterday, TSMC Board member and Taiwan Minister of National Development Paul LIU flatly denied: “such a topic has never been discussed at the board level”.
• As a result, Intel stock declined -6% yesterday. TSMC has corrected by -16% since early Feb. The stock is at average valuations, no obvious upside to Consensus.

• Adobe’s Q1 fiscal year 2025 financial results have demonstrated a robust performance, with the company reporting a record $5.71 billion in revenue, marking an 11% year-over-year increase.
• The company also achieved a notable growth in its GAAP and non-GAAP earnings per share, which rose by 13% year-over-year.
• Adobe’s results underscore the essential role its products play in the global digital economy, reaffirming its fiscal ’25 targets in light of the strong quarterly performance.

• Dell Technologies Inc. recently reported its fiscal year 2025 fourth-quarter financial results, demonstrating a mixed performance that offers both opportunities and challenges for investors.
• The company recorded $95.6 billion in revenue for the fiscal year, reflecting an 8% increase, and achieved an operating income of $8.5 billion.
• Notably, Dell achieved a record EPS of $8.14, an increase of 10%, attributing this success to efficiency improvements and cost reductions, with operating expenses decreasing by 4% year-over-year.

• Intel’s struggles in the semiconductor industry have reached a critical juncture.
• The once-dominant chipmaker, which led the global semiconductor space for decades, has lost significant market share to competitors like Nvidia, AMD, and TSMC.
• Manufacturing setbacks, market share declines, and massive losses in its foundry business have plagued Intel over the past few years.

• Snowflake Inc. reported its fourth-quarter financial results for fiscal year 2025, delivering strong growth in key areas while navigating several challenges.
• The company posted $943 million in product revenue for the quarter, reflecting a 28% year-over-year increase and surpassing analyst estimates of $914 million.
• Total revenue reached $986.8 million, exceeding projections of $957 million.

• HP Inc.’s first-quarter 2025 earnings report presented a mixed picture, with revenue growth offset by declining profitability.
• The company reported a 2% year-over-year revenue increase to $13.50 billion, exceeding Wall Street’s expectation of $13.39 billion.
• However, adjusted earnings per share (EPS) fell 9% to $0.74, aligning with analyst estimates.

• Broadcom’s stock surged following its impressive fiscal first-quarter earnings, signaling resilience in the artificial intelligence trade despite recent market volatility.
• The company reported revenue of $14.92 billion, surpassing Wall Street’s expectation of $14.62 billion, while adjusted earnings of $1.60 per share exceeded analysts’ estimates of $1.51.
• Additionally, Broadcom projected $14.9 billion in revenue for the current quarter, above the consensus estimate of $14.71 billion.

• CrowdStrike Holdings, Inc. has demonstrated resilience and strategic growth in its Q4 and Fiscal Year 2025 financial results.
• The company’s performance indicates effective management and the potential to leverage its offerings in the evolving cybersecurity market driven by the advancement of AI technologies.
• On the positive side, CrowdStrike reported a notable Q4 net new Annual Recurring Revenue (ARR) of $224 million, surpassing expectations and ending FY 2025 with $4.24 billion in ARR.

• Formosa Town in Telangana, India establishes industrial zone for Taiwanese firms, adapting to evolving geopolitical environment.
• AMD CEO Lisa Su builds alliances in China to advance AI and PC tech, highlighting Taiwan’s pivotal role in the era of artificial intelligence.
• Arizona governor underscores defense collaboration, TSMC partnership, and the opening of Din Tai Fung in Taiwan during official visit.

• OneConnect received a non-binding acquisition proposal from Ping An Group at $7.98/ADS, requiring 75% shareholder approval.
• Ping An acquired OneConnect’s virtual banking division for $119m and terminated its cloud services contract in 2024.
• The buyout is financially attractive for Ping An, acquiring OCFT at net cash levels, with a US$100m consideration.

• China Mobile (941 HK) / China Mobile (600941 CH) will release 2024 results on Thursday 20 March 2025. 
• Historically, the stock shows minimal post-earnings volatility, with rare exceptions. Options markets project moderate movement. Opportunities exist for investors with strong directional conviction.
• Given China Mobile’s recent history of dividend increases and strong stock performance, a significant dividend boost is possible.

• TSMC: +19.4% Premium; Consider Shorting if Spread Rises Above 20%
• ASE: +0.5% Premium; Ideally Wait for Lower Level But Near-Zero Still a Long Opportunity
• ChipMOS: -0.8% Discount; Wait for More Extreme Levels; Short Interest Spiking in Local Shares

• We take a detailed look at the implied earnings move priced into Tencent options compared to historical outcomes.
• Post-Earnings price movements are analyzed to assess directional tendencies and magnitude based on earnings beats and misses.
• An interesting post-earnings pattern emerges, with an options strategy outlined.

• In 4Q24, all business lines grew even faster than we expected in the preview note.
• We are confident in its revenue growth and operating margin in 2025.
• We however still believe the market overvalues its electric vehicle business.

• Palantir,  the secretive US tech giant, has dropped 30% in the past month, but with a PER of over 150 times, it could well have much, much further to fall.
• In the past year, no company executives have bought shares in this firm. Plenty have sold, though. In fact, as a group, they’ve dumped $3 billion worth of the stock.
• Here’s what Palantir does, what it should earn, its current valuation – and what all of that should tell you as an investor.

• Google Diversifying from Broadcom to Mediatek for Next Generation AI Chip
• Hon Hai CEO: Clients’ U.S.-Based Tech Manufacturing Set To Expand
• Memory Monitor: Multiple Reports Indicate Rising NAND & DRAM Prices

• Key Memory Names Have Rebounded; Micron and SK Hynix Lead
• NAND Flash Memory Prices to Increase; NAND Flash Pricing to Improve in 2H25E
• Memory Monitor Universe: NAND Flash Price Improvement Favors Long SK Hynix and Micron vs. Short Nanya Tech

• China Mobile (941 HK) is about to release its 2024 results and as argued by Gaudenz Schneider in his latest insight the stock usually displays minimal post-earnings volatility.
• Our model shows room for higher prices, up to 86.95, but this needs to happen very quickly because the stock may pullback after the end of this week.
• The stock is in a bullish pattern according to our model, it should continue to rally after the pullback, if results are good, so this is a tactical opportunity.

• Deep Seek is a self-funded AI lab in China that originated from a quantitative hedge fund called High Flyer
• They have fast thinking models (V1, V2, V3) and reasoning models (R1) with the R1 model developed through reinforcement learning
• Deep Seek’s innovative approach and talented team have been working on AI research for a considerable amount of time, leading to their success in the field.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• A new Sing Tao Daily article on HKBN Ltd (1310 HK) claims that China Mobile (941 HK)’s offer is a stalemate, and a potential I Squared offer faces regulatory challenges. 
• The article is being unduly alarmist. The concerns raised on the China Mobile offer remain premature, and there remains a medium-to-high probability of a competing offer from I Squared. 
• Last Friday, MBK converted its vendor loan notes (VLN) into shares, which could signal that an I Squared competing offer is imminent. 

• Jay Lee flipping the switch signals Samsung’s pivot—no more playing defense, no more legal jitters. Market’s reading this as full send on the next phase.
• Near-Term, Samsung’s pushing hard—NVIDIA’s HBM qual tests are in focus. With NVIDIA’s event this week, traders are watching for bullish signals after earlier cautious moves.
• The real juice? Samsung might drop a bold value-up play and a no-nonsense shareholder message. The prime launchpad: AGM day, this Wednesday, 19th, 9 AM.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at our capping flow expectations for the June 2025 index rebal event.
• We have also presented our index change expectations for the next semiannual index review which will take place in September 2025 (regular ADDs/DELs only take place in March and September).

• Tesla has strengthened ties with Baidu amid the US-Sino tech crossfire, showcasing the complex dynamics between the two countries.
• China achieves a breakthrough in semiconductor technology with EUV, while lawmakers propose anonymous semiconductor purchases to secure the industry.
• VCI Global’s plan to establish India’s first semiconductor wire plant in Chennai marks a significant milestone for the tech industry in the country, with Alibaba’s Tongyi Qianwen aiming to revolutionize China’s AI.

• Okta reported a strong fourth quarter, highlighting accelerating remaining performance obligations (RPO) and current RPO (cRPO), record profitability, and robust free cash flow.
• Demand for both workforce and customer identity products was strong, with notable contributions from new offerings such as Okta Identity Governance, Privileged Access, and Identity Security Posture Management.
• The company emphasized product innovation, partner ecosystem expansion, and go-to-market specialization as key drivers of its momentum heading into the next fiscal year.

• Synopsys Inc. delivered a notable performance in the first quarter of fiscal year 2025, showing resilience amidst shifting market dynamics and broader economic uncertainties.
• Synopsys reported revenue of $1.46 billion, slightly under its previous year’s performance due to one less week in the quarter.
• However, the company’s non-GAAP earnings per share were above the guidance range, indicating solid financial management and operational execution.

• ZoomInfo Technologies Inc. recently reported its financial results for the fourth quarter and full year of 2024, showcasing mixed outcomes.
• The company generated GAAP revenue of $309 million for the quarter, which exceeded expectations.
• The adjusted operating income was reported at $116 million, representing a margin of 37%, and similarly surpassing guidance.

• Emphasizing sales volume expansion – Q1-3 FY4/25 results indicated strong sales volume growth at 32.2% YoY, as the company continued diversifying into market sectors such as medical, recruitment and finance.
• Although prioritizing growth has meant a shift in the customer mix away from traditionally high margin brick-and-mortar in-store experiences, we believe this strategic shift is positive given their larger addressable markets.
• The company revised its FY4/25 guidance, providing greater clarity over the short term, and highlighted its medium-term expectations for sustained double-digit growth.

• Itron Inc., a technology company engaged in providing solutions for the management of energy and water resources, reported their fourth-quarter and full-year results for 2024.
• Their performance in the fourth quarter was marked by an above-expectation outcome, underscored by record revenues in key growth segments, remarkably Network Solutions and Outcomes.
• The company registered a fourth-quarter revenue of $613 million, demonstrating a 6% year-over-year increase.

• eBay Inc.’s fourth-quarter results highlight various strategic and financial developments that mark a significant year for the company.
• The results signify a mix of progress and challenges typical of eBay’s evolving position within the e-commerce landscape.
• On the positive side, eBay has shown resilience in gross merchandise volume (GMV), with GMV recording a modest increase of over 2% to $19.3 billion.

• Tencent (700 HK) / Tencent Holdings (ADR) (TCEHY US) is set to announce Annual 2024 Results on 19 March 2025.
• Options pricing implies a 4-6% move after earnings, significantly higher than historical patterns. From an options perspective, calendar spreads offer opportunities.
• Tencent‘s significant index weighting, around 8% in key Hong Kong indices, means its earnings has the potential to impact broader market performance.

• Sigma Healthcare (SIG AU) and Technology One (TNE AU) will be added to the VanEck Vectors Australian Equal Weight ETF (MVW AU) at the close on 21 March.
• Surprisingly, there are no deletions from the index. The two inclusions, float changes and capping changes result in a one-way turnover of 5.6% leading to a round-trip trade of A$288m.
• There will be huge buying of A$1.2bn in Sigma Healthcare (SIG AU) at the same time from S&P/ASX 200 (AS51 INDEX) and related index trackers.

• China Mobile (941 HK) has made a pre-conditional HK$5.23/share voluntary Offer for HKBN Ltd (1310 HK). However, a possible separate Offer from I Squared continues to make the news. 
• In an unusual move, MBK, via Twin Holding, has converted HK$970.5mn of VLNs, at a whopping HK$11.60/share conversion price, lifting MBK’s stake to 16.39% on a fully diluted basis.
• Speculation is rife that MBK provides an irrevocable to I Squared for its enlarged shareholding. Maybe. I still don’t see China supporting a U.S.-based infrastructure firm over an SOE .

• Gross SOUTHBOUND volumes dropped again somewhat but still high at HK$625bn. NET buying by SOUTHBOUND was HK$61bn which is HUGE.
• The flows here are still striking. >25% of the top 100 most liquid Southbound eligible stocks saw SOUTHBOUND buy more than 10% of weekly traded volume to March 12.
• A summary of important China-related stock news as I saw it this week is included. 

• Xiaomi Corp (1810 HK) is set to announce 2024 results after the close on 18 March. 
• Options markets imply a price movement in excess of historic averages, creating trading opportunities through calendar spreads and short straddles that capitalize on March’s elevated implied volatility.
• Xiaomi Corp (1810 HK) is a major constituent in key Hong Kong indices (HSI Index, HSCEI Index, and HSTECH Index). Its post-results move will likely impact the broader market.

• Xiaomi earnings are upcoming. We analyze what the options market is pricing and examine historical trends and tendencies.
• Historical earnings reactions show notable differences across quarters, with Q4 standing out for its downside risk.
• We outline a tactical hedge that minimizes jump risk while taking advantage of extended implied volatility.

• Salesforce delivered a strong financial performance for fiscal year 2025, showcasing significant progress in its AI and Data Cloud initiatives.
• The company reported annual revenue of $37.9 billion, reflecting a 9% increase from the prior year, with fourth-quarter revenue reaching $10 billion—its first-ever $10 billion quarter.
• Subscription and support revenue grew by 10% in constant currency, indicating continued demand for its enterprise software solutions.

• Earnings Momentum in 2025 – Canon expects 5% revenue growth and 17% EBIT expansion this year, driven by high-margin segments like semiconductor lithography, medical devices, and network cameras.
• Aggressive Shareholder Returns – With ¥350 billion in planned buybacks and dividends in 2024, Canon’s 6.8% TSR and strong free cash flow offer a compelling value proposition.
• De-Risked Upside – 2025 guidance provides earnings visibility, while valuation suggests ~40% upside, supported by resilient end-markets and an under-leveraged balance sheet.

• We look into whether long or short volatility strategies on the HSI have been the most effective.
• Implied volatility remained under pressure as muted trading and weak price action weighed on implied volatility.
• Despite finishing lower, HSI remained a strong relative performer among global indexes, particularly against SPX.

• Intel Corp (INTC US) has hired Mr. Lip-Bu Tan as the new CEO effective March 18th. He was formerly a board member of Intel before resigning in June 2024.
• The A18 technology node marks a new beginning for Intel Corp (INTC US), which is believed to be the new hope, but we approach it with caution.
• Intel Corp (INTC US) should focus on developing its own technology and also consider using Taiwan Semiconductor (TSMC) – ADR (TSM US) as an insurance policy.  

• There are no constituent changes for the VanEck Vectors Semiconductor (SMH US) ETF in March but there are a lot of float and capping changes.
• Estimated one-way turnover is 3% resulting in a round-trip trade of US$1.2bn. Impact on the stocks is small given they are highly liquid.
• There is expected to be US$600m to sell in Broadcom from the Technology Select Sector and Invesco S&P500 Equal Weight ETFs at the same time as the selling from VanEck Vectors Semiconductor.

• The discount’s tight, but this near-2-trillion-won raise is a rare mega-deal in Korea, despite the issuance ratio below 20%.
• Samsung Electronics is in for 150 billion won, but plenty of supply remains. A smooth clearance? Unlikely. This could drive stock rights costs lower as price discovery unfolds.
• The optimal approach is to wait for a decline in rights prices and assess hedge costs through single stock futures (or TRS, if doable), given the shorting restrictions.

• Over a dozen Hang Seng Index companies (31% of index weight) report next week, along with significant portions of HSCEI (38%) and Hang Seng TECH Index (32%) components.
• The four index heavy-weights Xiaomi Corp, Tencent, China Mobile, and Meituan all report next week.
• Weekly options expiring March 21 provide targeted instruments for traders looking to capitalize on earnings-related price movements.

• Intuit, a prominent player in the financial technology sector, recently reported its second quarter earnings for fiscal year 2025, showcasing a robust performance across various segments.
• The company reported a substantial 17% increase in total revenue, reaching $4 billion, and demonstrated significant profitability with a 61% rise in GAAP operating income.
• Non-GAAP operating income also saw an impressive increase of 26%, highlighting operational efficiencies.

• On 14 March, Samsung SDI (006400 KS) announced a 2 trillion won (US$1.4 billion) rights offering capital raise plan.
• Samsung SDI’s 2 trillion won capital raise is likely to have a near-term negative impact on the company’s share price.
• We are negative on Samsung SDI’s rights offering capital raise mainly due to shares dilution. We also remain concerned that weak demand for EVs globally could last longer. 

• Keysight Technologies delivered a strong fiscal first-quarter 2025 performance, underpinned by robust revenues and profitability that exceeded the high-end of its guidance.
• The company reported revenues of $1.3 billion and earnings per share of $1.82, both above expectations, marking the first core revenue growth in six quarters driven by the Communications Solutions Group and stabilization in the Electronic Industrial Solutions Group.
• Orders saw a year-over-year increase for the second consecutive quarter, highlighting improving sales funnels and customer engagements.

• First Solar presented a mixed set of results for its financial performance in 2024 and discussed objectives for 2025.
• The company recorded 2024 net sales of $4.2 billion, a 27% increase from the previous year, reflecting robust demand marked by the sale of a record 14.1 gigawatts of modules.
• However, full-year diluted earnings per share of $12.02 missed the lower end of guidance, largely influenced by unexpected costs and operational inefficiencies.

• Workday’s recent earnings report presents a mixed picture, offering both promising and challenging aspects that investors should consider.
• On the positive side, Workday demonstrated solid fiscal fourth-quarter 2025 performance, with subscription revenue growing by 16% to $2.04 billion, and a notable non-GAAP operating margin of 26.4%.
• For the full fiscal year 2025, the company saw its total revenue climb by 16% to $8.45 billion, underscoring strong demand for Workday’s offerings.

• By the 4th quarter of 2024, ByteDance is among the top 3 global memory manufacturers, showing significant growth in their market share.
• ByteDance has open-sourced COMET to enhance LLM training efficiency by 1.7x, which is expected to boost the effectiveness of Machine Learning models.
• Ajai Chowdhry highlights India’s potential in chip design, emphasizing it as a key strength that should not be overlooked in the tech industry.

• NVIDIA Corporation recently concluded its fourth quarter of fiscal year 2025 with impressive results, highlighting its continued dominance and growth in the data center and AI markets.
• Revenue for the quarter stood at a record $39.3 billion, marking a 12% sequential increase and a substantial 78% year-on-year growth.
• For the full fiscal year 2025, NVIDIA reported revenues of $130.5 billion, a remarkable 114% increase from the previous year.

• 3D Universes is a new platform that integrates virtual twins, GenAI, and virtual companions to support product lifecycles and data, aiming to revolutionise the design, simulation, and operation of products.
• 3D Universes enhances Dassault Systèmes’ ability to leverage legacy data and improve virtual product development, distinguishing itself from competitors by ensuring regulatory compliance and intellectual property protection.
• The company’s growth is supported by large deals like the one with Volkswagen, highlighting the potential for expanded revenue through long-term subscriptions and the adoption of 3D Universes across industries.

• Valuations across Asia are mean reverting – expensive markets derating and the cheap ones rerating. We think this is likely to continue somewhat longer.
• We think HK/China could rerate more; India and Taiwan could derate slightly further. India looks interesting. Valuation range has structurally shifted upwards. But another 5-10% relative valuation correction is warranted.
• Principal stock choices in HK/China, Korea and India pertain to themes of domestic consumption, AI resilience and unloved sectors. Some of the companies have mitigating strategies for the tariff war.

• Satyam’s chairman and founder confessed in January 2009 to misappropriating about $1.5 billion of company funds
• Scandal shook confidence in Indian corporate governance and the country’s IT services industry
• Transparently.ai’s AI tools detected accounting red flags in Satyam as early as 1998

• Lip-Bu Tan, former CEO of Cadence and founding partner at Walden Catalyst Ventures, will become Intel’s ninth CEO effective March 18
• Mr. Tan is an extremely impressive technology leader, speaker, & influencer with many and varied interests. He is an excellent choice for the most important CEO role in Intel’s history
• Press releases seem to emphasise Products over Foundry but any decision in this regard will take time so it doesn’t appear that Mr. Tan is simply following the board’s orders.

• The return of Mr. Tan as CEO suggests that spinning off or selling  Intel Foundry will accelerate, Intel’s focus should improve.
• It probably also means scaling down considerably Intel manufacturing plans and outsourcing more to TSMC. If you can’t beat them, join them.
• Now is not a good time to buy Semiconductor stocks. It will take a couple of years to fix Intel’s problems. TSMC will benefit.

• Lee Bok-hyun, FSS Chairman, unexpectedly reversed his stance and now opposes Choi’s veto on the amendment, pushing for shareholder protection and adjustments in subordinate regs instead.
• From a short-term trading angle, traders will focus on stocks with high volatility potential related to auditor appointments rather than the extension of directors’ fiduciary duties to shareholders.
• Large-Cap banks and non-bank stocks, with low controlling stakes and high foreign ownership, are likely to see significant short-term trading impact.

• Google’s full stack approach to AI, led by Nobel Prize winner Demis Asabas, includes talent, models, platforms, and chips
• Generative AI is being used to enhance search and enterprise solutions, providing monetization opportunities
• Google prioritizes quality and safety in AI development, ensuring no margin for error in critical situations like medical queries

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• HSI has surged past SPX, but past instances of strong outperformance have often preceded reversals. We examine key historical trends.
• The YTD divergence between HSI and SPX calls into question whether this is another temporary rally or the start of a new trend.
• We highlight some key hedging strategies to manage risk in this evolving market dynamic.

• We conducted a drill exercise in which BIDU’s search revenue will shrink to 1/3 of its size while its AI cloud
• Our key concern is margin compression as search’s high margin as a result of browser infrastructure and monopolistic status aren’t repeatable in AI;
• We raise the TP from US$80.0 to US$92.5 and maintain SELL.

• By 2025, AI server to be developed by Intel for BBU and Taiwanese players, aiming to enhance performance and innovation in the market.
• Nvidia visits Samsung amidst supply uncertainty of HBM3E, highlighting the importance of partner collaboration in the semiconductor industry.
• Intel’s unveiling of Panther Lake, powered by 18A core ultra chips, signals a new era of technology advancement in the company’s product lineup.

• 2025 outlook Sales: up 20-30% YoY. More certain on China demand recovery. Gradually enters Mass-Production (MP) for Gen 3/4 products. Main growth drivers are consumer and Electric Vehicle.  
• Silergy targets for auto sales contributed to reach 15% in 2025.  
• Will witness a rebound in 2Q25 for computing and Consumer and auto will also grow QoQ given resumption for production in China.  

• In a long-form merger for Cayman incorporated companies, dissenters can petition the Grand Court for determination of fair value. For short form merges, that avenue of dissent was not available. 
• But on the 28 January 2021, the Grand Court of the Cayman Islands concluded that shareholders of companies that undertake a ‘short-form’ merger were entitled to dissent.
• Changyou.com (CYOU US) appealed this decision in the Court of Appeal, and was dismissed. Then appealed to the Privy Council. In a judgement handed down yesterday, this was also dismissed. 

• With 85% of the review period now complete, we forecast 50 changes (the maximum permitted) for the CSI Smallcap 500 Index at the close on 13 June.
• We estimate a one-way turnover of 10% at the rebalance resulting in a round-trip trade of CNY26.4bn (US$3.6bn). The Information Technology gains at the expense of Healthcare and Consumer Staples.
• The forecast adds have outperformed the forecast deletes and the CSI Smallcap500 Index over the last 6 months. The best part is that the volatility of the trade is very low.

• TSMC: +14.1% Premium; Given Latest Market Weakness, Safest to Wait for a Slightly Lower Premium Before Going Long
• ASE: -1.8% Discount; Good Level to Go Long the Spread
• ChipMOS: -6.8% Discount: Long the Spread, Historical Extreme Discount Level

• Semiconductor industry set to see significant growth by 2025 due to technology advancements and global demand for electronic devices.
• TSMC proposes joint venture with Intel’s foundry division, showcasing industry collaboration for mutual benefit and innovation.
• Huawei takes action against recruitment fraud, penalizing 72 employees, while Altera CEO highlights FPGA advantages over ASIC in AI technology.

• Kakao Corp (035720 KS) has two near-term positive catalysts. First is treasury shares cancellation. Second is insiders buying of its shares.
• These moves suggest the management’s confidence in the company’s outlook ahead of the AGM on 26 March. 
• In our view, one of the major reasons why the insiders are buying could be due to Kakao’s collaboration with OpenAI. 

• TSMC Eyes Intel Foundry Joint Venture: Strategic Expansion or Risky Bet?
• TSMC Addresses U.S. Expansion Concerns: Strengthens TSMC Position & Positive for Semi Industry Capex 
• MWC Barcelona Showcased The 6G Showdown: MediaTek Vs. Qualcomm in the Race for Wireless Supremacy 

• WEX launched a $750m tender offer to repurchase ~12% of shares at $148-$170/share, prioritizing odd lots.
• Impactive Capital increased its stake in WEX from 5.6% to 6.7%, purchasing at $154.75/share average.
• WEX is highly leveraged with net debt at 5x EBITDA, despite slowing growth and weak guidance.

• FY 2025 guidance exceeds previous expectations, with cloud revenues expected to grow 26-28%, and profit to rise 26-30%. Cloud revenues are expected to reach 70% by 2027. 
• SAP optimises its cloud offerings and Opex, with a focus on driving long-term growth through its ‘land and expand’ strategy and AI. Recent senior appointments aim to support operational efficiency. 
• SAP expands AI capabilities, with 50% of deals involving AI use cases. It is aiming to enhance AI agents while positioning itself to benefit from lower AI costs.

• The return of Mr. Tan as CEO suggests that spinning off or selling  Intel Foundry will accelerate, Intel’s focus should improve.
• It probably also means scaling down considerably Intel manufacturing plans and outsourcing more to TSMC. If you can’t beat them, join them.
• Now is not a good time to buy Semiconductor stocks. It will take a couple of years to fix Intel’s problems. TSMC will benefit.

• On 4 February, the SET floated a consultation paper on capping stocks in the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) at 10%.
• The move was aimed at Delta Electronics Thailand (DELTA TB) since it was the only stock with an index weight higher than 10%.
• Delta Electronics Thailand (DELTA TB) has slid since then and at the current weight of 9.27% will not need to be capped. The market has adjusted for it.

• In late November of 2024, Baudroie (4413 JP) announced it would try to move to TSE Prime and that day they announced a 2.76mm share secondary offering and a buyback.
• The buyback was a bit less than a quarter of the offering. Fast forward 3mos and in early March the company announced it would move to Prime. Yesterday it did.
• That puts the company in line for a TOPIX inclusion in end-April , and likely other index effects later. In the meantime, earnings and guidance are out ~10 April. 

• In this insight, we discuss the potential KOSDAQ 150 rebalance candidates in June 2025.
• The top 10 inclusion candidates have sharply outperformed KOSDAQ so far this year. These 10 stocks are up on average 75.3% YTD, outperforming KOSDAQ which is up 6.4% YTD.
• The 10 potential deletion candidates in KOSDAQ 150 in June 2025 are down on average 0.9% YTD, underperforming KOSDAQ which is up 6.4% YTD. 

• As reported by Douglas Kim, Samsung Life Insurance and Samsung Fire & Marine Insurance plan to sell shares of Samsung Electronics (005930 KS) in block deal sales.
• Samsung Electronics (005930 KS) has been in a flat, bottoming behavior, since November 2024. We have previously discussed the possibility that the stock may start to rally.
• At the moment the stock has been down for 3 weeks in a row, our model is indicating a WEEKLY oversold condition that may trigger a (short-term) rally.

• Following Broadcom CEO saying “no” and TSMC investing another US$100bn in Arizona, speculations of an Intel takeover have subsided.
• On the increase, rumors of further Intel 18A delays and production push out. This means more outsourcing to TSMC for longer as mentioned by Intel’s IR last week.
• Now is not a good time to buy Semiconductor stocks, but AMD and TSMC will benefit.

• Palladyne AI sells real-time learning and reasoning AI software platforms for robots, drones, and smart industrial systems.
• The company engages in the design, development, and manufacturing of industrial robotic systems that augment human performance by combining human intelligence, instinct, and judgment with the strength, endurance, and precision of machines to enhance employee safety and productivity.
• Its mobile robotic systems include the Guardian S, Guardian GT, Guardian XO, and Guardian XT. Palladyne AI was founded in 2015 and is headquartered in Salt Lake City, Utah.

• AvePoint (AVPT US) , a global provider of data security, governance, and resilience, aims to raise around US$300m in its Singapore secondary listing.
• As of FY24, AP had over 25,000 customers who rely on its Confidence Platform to prepare, secure, and optimize their critical data across environments.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.