Daily Brief TMT/Internet: SK Hynix, Micron Technology, Taiwan Semiconductor (TSMC) – ADR, Semiconductor Manufacturing International Corp (SMIC), Azeus Systems Holdings, Taiwan Semiconductor (TSMC), NVIDIA Corp, Bloomsbury Publishing, Goertek Inc A and more

• DeepSeek has been the biggest story in the global markets in the past couple of weeks.
• In this insight, we discuss how the rise of DeepSeek could impact the share prices of the major AI related companies in Korea including SK Hynix (000660 KS). 
• The top five Korean companies that could be negatively impacted by the rise of DeepSeek include SK Hynix, Hanmi Semiconductor, SK Square, HD Hyundai Electric, and LS Electric. 

• SK Hynix Expects 100% HBM Revenue Growth in 2025E After a Massive 2024 — Which Means Traditional DRAM Doesn’t Matter as Much Anymore
• DeepSeek Market Fears — A Problem for HBM & Enterprise SSD Memory?
• AI Industry Opportunities Are Not a Fixed Size Pie — Will DeepSeek Impact HBM DRAM TAM? Why We Don’t Think So

• TSMC: 10.8% Premium; Taiwanese Investors Likely to Be Less Shocked by DeepSeek News?
• UMC: -7.3% Discount; The Latest Extreme Discount Cannot Be Sustained
• ASE: -10.2% Discount; This Extreme Discount Also Cannot Be Sustained

• The HSTECH index is trading higher on higher breadth and momentum in January, up 6% so far.  Analysts project an upside of 23% over 12 months.
• China’s semiconductor sector is advancing this year from AI enthusiasm and accelerated localization in the chip industry.  Semiconductor Manufacturing International Corp (SMIC) (981 HK) shares have benefited from this trend.
• Sunny Optical Technology Group (2382 HK) benefits from China’s announcement that it will subsidize more consumer products, including smartphones and new vehicles.

• Azeus Systems Holdings Ltd. (SGX: AZEUS SP) is a leading global IT solutions provider with over 30 years of experience, specializing in board governance and digital transformation solutions. The company’s flagship product, Convene, serves boardrooms and executive teams across more than 100 countries, with additional offerings like Convene AGM, Convene Records, and Convene ESG, tailored to meet specific enterprise needs.
• Two Business Segments: Azeus Products and IT Services. These segments cater to a diverse clientele with tailored solutions that address specific operational and strategic needs of Azeus’s clients. Azeus Products account for the lion’s share of revenue, at 81% as shown below.
• Convene Flagship Product: Convene is a leading board governance solution for boardrooms and executives, offering secure document sharing, real-time collaboration, voting tools, analytics, and workflow automation to streamline decision-making. Its user-friendly interface and mobile compatibility make it popular among enterprises and governments. Azeus also offers additional Convene-branded products for specific use cases.

• TSMC hit a record high average fund allocation of 9.07% at the end of last year, yet EM funds switched to a sizeable underweight of -1.47% throughout the year.
• Active UCITS funds become forced sellers as weights hit 10%, with non-UCITS selling in to strength as weights rise on strong performance.
• EM Value funds maintain an overweight in Alibaba, the only Style group to do so. Alibaba is now the most widely held stock for Value funds alongside TSMC and Samsung.

• NVIDIA, the global leader in AI hardware, has recently faced unprecedented turbulence in the market, shedding nearly $600 billion in market capitalization in a single day—an event that has sent shockwaves through the tech and investment communities.
• The catalyst for this dramatic drop?
• DeepSeek, a relatively new Chinese AI startup that has stunned the industry by developing a highly efficient and cost-effective AI model, DeepSeek R1.

• Gan is diversifying its portfolio and investing in digital and audio formats to meet changing consumer preferences
• Bloomsbury is thriving as a publisher with a mix of popular fiction titles, academic books, and digital offerings
• Bloomsbury is maintaining its reputation as a leading publisher in the industry

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.

• RaaS has published an update on data analytics company Pureprofile (ASX:PPL) following its record Q2 and H1 results and guidance upgrade.
• Q2 revenue increased 30% to $15.3m, bringing H1 revenue to $29.2m, an increase of 22% on the previous corresponding period (pcp) and ahead of our forecast for $27.6m.
• Q2 EBITDA was a record $1.7m, up 79% on the pcp and bringing H1 EBITDA to $3.3m, a 38% increase on the pcp.

• Goertek Inc A (002241 CH) is looking to raise up to US$400m in its upcoming Hong Kong IPO. The deal will be run by CICC, CSI, CMB and UBS.
• It is a world-leading provider of smart sensing interaction solutions.
• Anchored by its robust one-stop smart sensing interaction platform, the firm is dedicated to driving the transformation of next-generation smart sensing interactions in collaboration with global ecosystem partners.