In today’s briefing:
- Nintendo (7974) | Early Signals from the Switch 2 Cycle
- Hyperscalers’ Cloud Revenue and Capex Update
- Mediatek 3Q25: Good News (ASIC Revenue) But Weak Margins Getting Weaker. Stock Not Attractive.
- Northsand Pre-IPO: Strong Topline Momentum With Improving Margins
- Confluent: Real-Time Data Processing with Stream Processing & Flink Are Driving Growth!
- Amkor Technology Doubles Down on Ultra-High-Density Packaging – Is This the Next Tech Revolution?
- PayPal’s BNPL Boom: How Is It Winning Over Gen Z Shoppers?
- Seagate Technology Goes All-In on HAMR – Will 40TB Drives Change Everything?
- SUTL Enterprise Limited – Setting Sail for Regional Expansion
- Corning Unveils What’s Next in Solar, Optical, and Auto Tech – Investors Take Note!
Nintendo (7974) | Early Signals from the Switch 2 Cycle
- Switch 2 production signals confidence: Supplier orders for up to 25 mn units imply upside to Nintendo’s conservative guidance and likely operating profit revisions over FY3/26.
- Quarterly Earnings Sensitivity: Every 1 mn hardware units adds ¥11 bn to OP and 1 mn software units ¥3 bn, making Q2 results a key sentiment catalyst.
- Sector positioning remains strong: With major global peers acquired, Nintendo stands as the premier pure-play gaming franchise; valuation premium sustained by scarcity and structural growth exposure.
Hyperscalers’ Cloud Revenue and Capex Update
- Hyperscalers (AMZN, GOOG, META, MSFT) revenues accelerating from 1Q25. Total revenues in 2025 ~$1.15tn, up 17% YoY.
- Cloud (AWS, GOOG, MSFT) revenues accelerating. 2025 Cloud revenues in 2025 ~$375bn, up 25% YoY.
- 2025 Capex up 63% YoY to $376bn. 2026 Capex will increase by ~46% YoY to reach ~$550bn. I estimate ~30% increase in 2027 to reach $715bn.
Mediatek 3Q25: Good News (ASIC Revenue) But Weak Margins Getting Weaker. Stock Not Attractive.
- Weak 3Q reported, weak 4Q guidance (Operating Margin) due to wafer price, some TSMC tightness (5-3nm), Opex increase. This should continue into 2026. Consensus too high. That should be negative.
- But Management provides a very upbeat ASIC guidance: $1bn revenue in ’26, several bn in ‘27 , OP margin accretive at some point. Short-term pain, long-term gain.
- MTK posits itself as the next ASIC disruptor, has several codesigns with Nvidia. But that’s material in ’27. The stock is down -8% YTD. Underperformance continues at least in 1H26.
Northsand Pre-IPO: Strong Topline Momentum With Improving Margins
- Northsand (446A JP) aims to raise around US$121m in its Japan IPO.
- Northsand is a consulting firm that provides both IT and business consulting services. Established in 2015, it helps organizations improve efficiency, modernize operations, and achieve sustainable growth.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
Confluent: Real-Time Data Processing with Stream Processing & Flink Are Driving Growth!
- Confluent, a company specializing in data streaming solutions, reported solid quarterly results, surpassing all guided metrics.
- The company’s subscription revenue saw a 19% increase year-over-year, reaching $286 million, while Confluent Cloud revenue increased by 24% to $161 million.
- This highlights the firm’s strong growth trajectory in cloud services, which now represent 56% of its subscription revenue.
Amkor Technology Doubles Down on Ultra-High-Density Packaging – Is This the Next Tech Revolution?
- Amkor Technology’s third-quarter 2025 financial results showcased strong performance and strategic advancements, yet they also highlighted some areas of pressure and challenges.
- The company reported a revenue of $1.99 billion, marking a 31% sequential increase and a 7% year-over-year growth, exceeding expectations.
- Earnings per share (EPS) for the quarter stood at $0.51, also above the guidance provided.
PayPal’s BNPL Boom: How Is It Winning Over Gen Z Shoppers?
- PayPal’s third-quarter 2025 financial performance and strategic direction reveal a nuanced picture with both notable achievements and ongoing challenges.
- The company has demonstrated impressive progress in strengthening its foundational operations and focusing on profitable growth.
- Revenue has accelerated recently, stemming from strategies centered on expanding branded experiences, buy now, pay later (BNPL) services, and increased Venmo monetization.
Seagate Technology Goes All-In on HAMR – Will 40TB Drives Change Everything?
- Seagate Technology recently reported its fiscal first-quarter 2026 results, showcasing a strong start to the year marked by notable financial performance and strategic advancements.
- Positively, Seagate reported a year-over-year revenue growth of 21%, reaching $2.63 billion.
- Non-GAAP gross margin reached a new record for the company at 40.1%, with operating margins climbing to 29%.
SUTL Enterprise Limited – Setting Sail for Regional Expansion
- SUTL Enterprise Limited (“SUTL”) is a Singapore based developer, operator, and consultant of integrated marinas and remain as the only marina focused business listed on the SGX.
- Under its proprietary ONE°15 Marina brand, the Group operates its flagship club at Sentosa Cove, manages third-party marinas across Asia, and runs a luxury yacht charter fleet of over 50 vessels.
- Its core revenue streams comprise marina club operations (berthing, hospitality, and F&B services), consultancy and management fees for marina developments, and luxury yacht charters.
Corning Unveils What’s Next in Solar, Optical, and Auto Tech – Investors Take Note!
- Corning Inc. reported a robust third quarter for 2025, demonstrating strong financial performance and strategic advancements across its business segments.
- However, there are both positive factors and challenges that potential investors might want to consider when evaluating their investment in Corning.
- Positively, Corning posted a year-over-year sales growth of 14% to $4.27 billion and an impressive 24% increase in earnings per share (EPS) to $0.67, with the operating margin expanding by 130 basis points to 19.6%.
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