Daily Brief TMT/Internet: Advanced Micro Devices, Taiwan Semiconductor (TSMC), GB Group PLC, reAlpha Tech, Telefonica Brasil , Unusual Machines, Kioxia Holdings , Poletowin Pitcrew Holdings and more

• Qualcomm acquired Alphawave, a UK firm that specializes in chip design IP, especially silicon photonics and chiplets. 
• AMD acquired 3 firms. Untether AI, an AI edge / inference chip designer. Brium, an AI software and compiler firm. Enosemi, a silicon photonics and co-packaged optics firm. 
• 4 acquisitions in 2 weeks. AMD and Qualcomm are putting their money where their mouth is: the future is AI. This also illustrates how far ahead Nvidia is.

• TSMC is on its way to beat its 2Q revenue guidance, Apr + May represent 72% of 2Q guide. YTD revenue growth 43% YoY, Consensus at 26% (NT$). Upgrade coming? 
• UMC is on its way to miss its 2Q revenue guidance, Apr + May represent 63% of 2Q guide. YTD revenue growth 4% YoY . No recovery in legacy semiconductor. 
• This confirms, again, that AI is the only growing segment in semiconductors. The rest is lackluster (computers, smartphone, automotive, industrial, you name it).

GB Group’s CEO Dev Dhiman’s first full year has seen initiatives addressing the company’s foundations rather than its short-term growth. This is a necessary step if management are to optimise longer-term shareholder value. Accordingly, any share price disappointment regarding H225 and H126 growth rates needs to be set against the group’s increasing optionality around capital allocation and the reassurance of an unchanged FY26 financial outlook.

• With only a partial contribution from recently acquired mortgage brokerage company, GTG Financial, and before peak homebuying season had begun, 1Q25 revenue reached $925.6k vs $20.4k in 1Q24.
• As competition intensifies during the peak homebuying spring-summer season, we expect the company to record further revenue ramp as homebuying activity climbs.
• We also believe the GTG acquisition underscores AIRE’s focus on offering mortgage brokerage, title and home insurance services, which are also expected to lead to recurring revenue opportunities & potentially help smooth out the seasonality of homebuying trends.

• Long-term readers will know I have held Telefonica Brasil (Vivo) for four years and been loudly bullish on the company at times.
• But the thesis hasn’t played out as hoped and the time has come to make way for better opportunities.
• It’s the good type of mistake, where you scrape away with a modest gain (20% + some nice dividends), but an analytical error all the same.

• According to the WSJ, Ukraine’s drone strike on June 1 damaged as many as 40 aircraft deep inside Russia as strategic bombers sat outside in the open on military bases.
• Ukraine was able to secretly place numerous cheap drones near Russian military installations all over the massive country.
• The order was then given, and the drones were flown out of trucks and remotely piloted directly into exposed expensive bombers.

• Kioxia Holdings (285A JP) raised around US$800m (including over-allocation) in its Japan IPO, after pricing its IPO in the middle of its range. Its IPO linked lockup will expire soon.
• Kioxia is a manufacturer and a global leader in flash memory and solid state drives for smartphones, PCs, enterprise servers and data centers.
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• Revenue increased by 6.7% YoY to JPY12.8bn, with all business segments posting profit growth despite some challenges.
• The company posted an operating loss of JPY22mn, significantly better than the forecasted JPY236mn loss for 1H.
• Recurring profit was JPY481mn, with a foreign exchange loss of JPY434mn due to yen appreciation against the USD.