Daily Brief TMT/Internet: NVIDIA Corp, Taiwan Semiconductor (TSMC), Tencent, Japan Business Systems , Texas Instruments, Allfunds Group, Hexaware Technologies, Startia Holdings, ParkerVision and more

• News that DeepSeek’s latest AI release appears to be superior to latest OpenAI’s ChatGPT in  most (if not all) of the benchmark tasks have apparently shaken markets today.
• DeepSeek may be able to beat its competitors (including other AI developed by other US companies like Meta Platforms (META US) ), using lower cost chips and less data.
• Tech companies like NVIDIA Corp (NVDA US) are falling hard (like -12%) in pre-market, and so are the US Indices. Let’s see where support for reversal rallies can be found.

• This reports addresses the alarmist wrong conclusions over DeepSeek, especially over GPU usage and costs
• This said, DeepSeek shows that Foundational models are commoditizing. Applications will be more resilient and profitable, ie customized with attached services
• We are just at the beginning of the AI revolution with language models. Physical models are next and massive Application deployment.  

• Information technology very strong with AAC Tech, Sunny Optical, Kingdee Int’l and Byd Elec all posting > 10% weekly gains.
• Gains were positive with helpful seasonals but not as widespread as last week with fewer singles stocks and Sectors participating in the rally.
• China Vanke has big increase in option trading, in particular Calls, with implied vols also rising. 

• Taiwan Semiconductor Manufacturing Company (TSMC) closed 2024 on a high note, driven by robust demand for AI-related chips and its cutting-edge 3-nanometer and 5-nanometer technology nodes.
• The world’s largest contract chipmaker reported a record fourth-quarter net profit of NT$374.68 billion (US$11.37 billion), marking a 57% year-over-year increase, alongside a 39% revenue jump to NT$868.46 billion.
• The company’s gross margin rose to 59%, supported by high demand for advanced nodes despite challenges like ramp-up costs for its overseas facilities in the U.S. and Japan.

• In the Company’s stated goal aiming to become the No.1 cloud integrator in Japan, the importance of its close relationship with Microsoft cannot be overstated.
• JBS became certified as a Microsoft Partner in 1995, and it was awarded Microsoft Japan Partner of the Year for the first time in 2007.
• JBS has been recognized as Microsoft Japan Partner of the Year for 12 consecutive years from 2013 – 2024, reflecting its business strategy to focus on cloud migration/integration during that period. 

• Texas Instruments recently presented their fourth-quarter earnings, offering insights into the performance and outlook of the company.
• The financial results indicate both challenges and opportunities for investors to consider.
• In the fourth quarter of 2024, Texas Instruments reported revenue of $4 billion, which marks a 3% sequential decrease and a 2% decline from the previous year.

• Allfunds is a European B2B fund platform founded in 2000 by CEO Juan Alcaraz, with strong organic revenue growth and EBITDA margins
• Despite facing challenges in the public markets, the company is poised to return to its historical growth trajectory
• With a client retention rate of 99.8% and significant market share, ALLFG offers a compelling growth opportunity yet to be fully reflected in its valuation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Hexaware Technologies (HEXW IN)is looking to raise about US$1.2bn in its upcoming India IPO.
• Hexaware is a global digital and technology services company with AI at its core, delivering innovative solutions that help customers in their digital transformation journey and subsequent operations.
• In this note, we look at the firm’s past performance.

• Startia Holdings, Inc. (hereafter, the Company) is a corporate group providing IT solutions mainly to SMEs.
• Its core businesses consist of its IT infrastructure segment and its digital marketing segment which provides the Cloud CIRCUS digital marketing tool as a SaaS offering.
• The IT infrastructure segment promotes “defensive DX” providing one-stop solutions and DX to IT-related issues for customer companies through merchandises such as office automation equipment and network services, while the digital marketing segment promotes “offensive DX” with the aim of helping them acquire new customers and expand sales. By conducting

• ParkerVision (PRKR) is seen as a potentially mispriced option with a significant investment opportunity
• The company’s patent infringement case against Qualcomm (QCOM) could result in a value of $8+ per share, which is 9 times the current price of $0.90
• The case, estimated to be worth $2.6 billion, is expected to go to trial in the first half of 2025, with favorable odds for a positive outcome justifying a small position in PRKR

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.