Daily Brief TMT/Internet: Cambricon Technologies Lt, Taiwan Semiconductor (TSMC) – ADR, NVIDIA Corp, Nissan Motor, Novatek Microelectronics Corp, Coherent Inc, Skyworks Solutions, Tenable Holdings Inc, Paycor HCM, PTC Inc and more

• With just over a week left to review cutoff, there could be three changes for the iShares A50 China (2823 HK)/ CSOP China A50 (HKD) (2822 HK) ETFs in March.
• Guotai Junan Securities, Cambricon Technologies and SAIC Motor could replace CGN Power, Luzhou Laojiao and Inner Mongolia Yili Industrial Group.
• Guotai Junan Securities (2611 HK) is expected to be added to the iShares China Large-Cap (FXI) (FXI US) in March, so there should be inflows for the A-shares and H-shares.

• TSMC: +24.7% Premium; Can Consider Shorting the Spread At Current Level
• ASE: +2.6% Premium; Wait for Closer to Parity Before Going Long Again
• ChipMOS: +1.8% Premium; Can Continue to Consider Shorting at Current Level

• Nvidia set a new record for the largest single one day loss of market cap, losing 700 billion on a 17% down move
• Market risk is about being wrongly sized and underestimating volatility, diversifying assets such as gold, Bitcoin, and broad market put spreads is recommended
• Financial market insurance is not like hurricane insurance, as exposures within markets are interconnected and risk can be amplified when positions are crowded

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• Foxconn chairman emphasizes collaboration with Nissan, denies interest in takeover, focusing on their partnership.
• SMIC targets automotive growth, facing competition in China’s chip market, seeking to expand market share.
• Microip sees 489% revenue growth post-CES success, expanding ‘designless’ strategy, fueling January success.

• US-China trade war has led to tariff uncertainties. China’s subsidy program has stimulated pre-purchasing by customers in 1Q25, resulting in increased demand for televisions, tablets, phones, and IT products. 
• All three major product lines have shown seasonal growth. which LDDI has shown the largest growth, SoC follows closely, and SMDDI has lower growth.
• DeepSeek will accelerate the implementation and popularization of AI applications, benefiting the company.

• Coherent’s latest earnings report for the second quarter of fiscal 2025 illustrates a mixed set of outcomes, reflecting significant advancements in certain segments while highlighting ongoing challenges that the company faces in other areas.
• Revenue reached a record $1.43 billion, marking a 6% sequential and 27% year-over-year growth, driven by substantial progress in AI-related datacom transceivers and increasing demand in the telecom sector.
• This growth is a positive indicator of Coherent’s robust position in high-speed optical data communication markets, especially as they continue to expand their customer base for significant transceiver products like the 800-gig and invest in advancing their 1.6T transceiver applications.

• Skyworks Solutions recently reported its first fiscal quarter of 2025, delivering results that met or surpassed expectations in key financial metrics.
• The company posted a revenue of $1.068 billion, with earnings per share of $1.60 and generated a free cash flow of $338 million.
• These results were slightly above the midpoint of guidance, reflecting successful revenue growth strategies, particularly across its mobile and broad markets segments.

• Tenable Network Security’s latest quarterly performance reflects a series of strategic moves aimed at solidifying its position in the cybersecurity industry, aligning business growth with shareholder returns.
• The company reported robust financial results, exceeding expectations across several key metrics such as calculated current billings (CCB) growth, operating margin, and unlevered free cash flow.
• On the positive side, Tenable’s revenue for the quarter was $235.7 million, a year-over-year increase of 11%, which surpassed the anticipated midpoint of their guidance.

• Paycor, a human capital management (HCM) solutions provider, shared promising financial results for the first quarter of fiscal year 2025, ending September 30, 2024.
• The company reported a 17% increase in revenue year-over-year, reaching $167 million, largely fueled by strong recurring revenue growth of 16%, driven by a 5% increase in the average number of employees on its platform and an 11% rise in revenue per employee per month (PEPM).
• 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.

• PTC’s first quarter of fiscal 2025 results came in slightly above initial guidance amidst ongoing challenges in the macroeconomic environment and strategic changes in its go-to-market framework.
• The results underscore the company’s resilient annual recurring revenue (ARR) and robust free cash flow, indicative of a diversified business model and strong execution strategies.
• Positively, PTC reported a constant currency ARR of $2.277 billion, representing an 11% year-over-year increase.