In today’s briefing:
- Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade
- My Take on Samsung’s Big Foundry Deal with Tesla
- Samsung Electronics Clinches a Huge Chip Contract from Tesla
- APR: Time To Take Profits (Three Major Reasons)
Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade
- Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
- Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
- There are only 3 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.
My Take on Samsung’s Big Foundry Deal with Tesla
- The A16 chip Samsung fabs is mainly for real-time inference in Tesla’s FSD cars, not data-center training, which remains dominated by Dojo and NVIDIA hardware.
- If Tesla’s deal includes AI chips with HBM, it’s a major catalyst; if just A16, it’s not proof HBM yield issues are solved.
- Tesla’s deal isn’t a sure sign Samsung’s HBM4 passed NVIDIA’s qual tests, but it’s a key reference boosting market hype—time to consider a Samsung long, SK Hynix short setup.
Samsung Electronics Clinches a Huge Chip Contract from Tesla
- On 28 July, it was reported that Samsung Electronics (005930 KS) clinched a huge chip contract worth $16.5 billion from Tesla (TSLA US).
- This is a major win for Samsung Electronics since it is one of the largest foundry orders for the company from a single customer in the past decade.
- Samsung Electronics is trading at attractive valuations. It is trading at P/E of 12.3x, P/B of 1.0x, and EV/EBITDA of 3.6x in 2026, based on consensus estimates.
APR: Time To Take Profits (Three Major Reasons)
- There are three major reasons why we would take profits on APR (278470 KS) at current levels.
- They include lofty valuations, increased competition, and share price decline post large scale dividend payout announcement.
- APR could be facing especially tough competition for the beauty device products from Amorepacific, LG H&H, and others especially starting in 4Q 2025.
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