In today’s briefing:
- Indian IT | Urge to the Boards – Stop the Buybacks
- UMC (2303.TT; UMC.US): 4Q25 Revenue Is Projected to Decline 5–10% QoQ.
- SentinelOne Eyes Observo AI: A $1 Billion Cybersecurity Power Play In The Making?
- DB Hitek: Treasury Shares Cancellation, EB Issue, and Employees Equity Compensation
- Texas Instruments & KLA Signal Continued AI Strength, Foreshadow TSMC’s 2nm Breakout
- Proxy for the Growth of SME Digitization
- ASML’s $1.5 Billion AI Gamble: Will Mistral AI Transform Europe’s Tech Future?
- Hybridan Small Cap Feast: 04/09/2025
- i-mobile Co Ltd (6535 JP): Full-year FY07/25 flash update
- EchoStar Is Powering Up SpaceX’s Smartphone Dreams—& Inside The $17 Billion Shock Deal!
Indian IT | Urge to the Boards – Stop the Buybacks
- Indian IT outperformed over 10 years, but recent underperformance and weak R&D spending raise questions on innovation versus high dividend and buyback payouts.
- AI disruption threatens coding demand and outsourcing models, risking productivity shocks, workforce layoffs, and urban consumption downturns if companies don’t adapt with innovation.
- Boards must prioritize bold investments and acquisitions over capital returns, positioning Indian IT as innovation leaders rather than risk-averse cash generators.
UMC (2303.TT; UMC.US): 4Q25 Revenue Is Projected to Decline 5–10% QoQ.
- United Microelectron Sp Adr (UMC US) – 2025 Full-Year and 4Q Outlook.
- The impact of U.S. recent restrictions on United Microelectron Sp Adr (UMC US) appears negligible.
- Customer demand trends are diverging in 2H25, and overall demand is expected to soften in 4Q25.
SentinelOne Eyes Observo AI: A $1 Billion Cybersecurity Power Play In The Making?
- SentinelOne’s recent earnings call made headlines with a major milestone: the company’s Annual Recurring Revenue (ARR) surpassed $1 billion, growing 24% year-over-year, while its net new ARR hit record levels.
- This momentum is underpinned by strong customer traction across emerging solutions like Purple AI, Singularity Data, and its cloud-native security stack.
- Riding this wave of innovation and expansion, SentinelOne is now reportedly eyeing Observo AI as a potential acquisition target.
DB Hitek: Treasury Shares Cancellation, EB Issue, and Employees Equity Compensation
- DB Hitek announced a detailed plan for its 4.16 million treasury shares utilization (9.4% of outstanding shares), including shares cancellation, issuance of exchangeable bonds, and equity compensation for its employees.
- There will be 2.22 million treasury shares that will be used in the issuance of EBs. This represents 54% of the total treasury shares and 5% of outstanding shares.
- The company also plans to cancel 1.486 million treasury shares (representing 35.7% of treasury shares and 3.3% of outstanding shares).
Texas Instruments & KLA Signal Continued AI Strength, Foreshadow TSMC’s 2nm Breakout
- TI is experiencing 50%+ YoY growth in data center, showing no signs of AI server demand slowdown.
- KLA calls 2nm a “compelling” node, projecting it could be the industry’s largest over first three years.
- Taiwan Tech positioned to benefit via TSMC N2 ramp, CoWoS packaging, and ABF substrate expansion.
Proxy for the Growth of SME Digitization
- We initiated on ITSL SP on Friday. The stock is up 2%.
- The initial feedback from clients was one of cautious optimism. There were concerns raised about concentration risk, competition and cybersecurity issues.
- We identified the mitigants and reiterate BUY.
ASML’s $1.5 Billion AI Gamble: Will Mistral AI Transform Europe’s Tech Future?
- In a bold strategic pivot, Dutch semiconductor equipment giant ASML has invested €1.3 billion (~$1.5 billion) to lead a €1.7 billion Series C funding round for Mistral AI, a French startup rapidly rising as Europe’s answer to OpenAI.
- This move makes ASML the largest shareholder in Mistral and grants it a board seat—signaling far more than a passive financial stake.
- The deal catapults Mistral to a €10 billion (~$11.7 billion) valuation, the highest for any AI firm in Europe, further solidifying its position as a sovereign AI champion.
Hybridan Small Cap Feast: 04/09/2025
- The biopharmaceutical company focused on drug development and delivery in diabetes and other cardiometabolic diseases, announces that it has concluded a positive Type C meeting with the US Food and Drug Administration (FDA) for AT278 in people with both type 1 and type 2 diabetes with high daily insulin needs.
- The purpose of the meeting was to discuss the design of a proposed Phase 2 clinical study for AT278 delivered by continuous infusion via an Automated Insulin Delivery (AID) system, ahead of a planned Investigational New Drug (IND) submission.
- Arecor reports they are on track to commence Phase 2 study in mid-2026, subject to further funding.
i-mobile Co Ltd (6535 JP): Full-year FY07/25 flash update
- In FY07/25, the company reported revenue of JPY21.5bn (+14.9% YoY) and operating profit of JPY4.1bn (+16.5% YoY).
- The Consumer Service segment’s FY07/25 revenue was JPY19.1bn (+19.5% YoY), with a segment profit of JPY4.0bn (+16.7% YoY).
- For FY07/26, the company projects revenue of JPY22.0bn (+2.2% YoY) and operating profit of JPY4.5bn (+8.9% YoY).
EchoStar Is Powering Up SpaceX’s Smartphone Dreams—& Inside The $17 Billion Shock Deal!
- On September 8, 2025, EchoStar made headlines by announcing a landmark $17 billion agreement to sell its AWS-4 and H-block wireless spectrum licenses to Elon Musk’s SpaceX.
- The deal, split evenly between cash and stock, marks SpaceX’s largest financial outlay to date and signals a dramatic push into the cellular connectivity space.
- In addition to the spectrum acquisition, the agreement includes a long-term commercial arrangement between the two companies, enabling EchoStar’s Boost Mobile users to access Starlink’s Direct-to-Cell satellite services.
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