Daily Brief TMT/Internet: Tencent, Taiwan Semiconductor (TSMC) – ADR, Hang Seng China Enterprises Index, Vanguard Intl Semiconductor, Apple , Advanced Micro Devices, Cerberus Cyber Sentinel, Sps Commerce, AutoStore Holdings Ltd and more

• The recent spike in Asian currencies is driving foreign institutional flows into Asian equities. Currency appreciation is usually a lead indicator of FII flows, implying that this enthusiasm may continue. 
• The markets that were sold down the most are attracting the most flows and could continue to do so. India, Taiwan and to a lesser extent, Korea qualify.
• Domestic sectors like Chinese internet, restaurant chains, athleisure; Indian private banks, consumer discretionary, hospital chains could gain. So could defensives with high dividend yields, e.g. Korea and Chinese utilities, telecom.

• TSMC’s Next Generation 2nm Node is Experiencing Unprecedented Customer Demand
• Showdown Heats Up Between Qualcomm & Mediatek’s Next Generation of Mobile Phone SoCs — And All Roads Lead to TSMC’s Process Technology
• Hyperscale Capex Is Maintained or Increased No Cuts or Postponement Capacity Constrain at AMZN GOOG

• We analysed the earning revision of component stocks of HSCEI in the past month.
• We tabulated stocks with the top impact on index’s EPS, stocks’ EPS revision, and revenue revision.
• We highlighted EPS revision on CCB, Sinopec, BOC, Petrochina, CNOOC, China Overseas, Ping An.

• 2Q25 outlook: Wafer shipments are expected to grow +3~5% QoQ, ASP is expected to increase +0~2% QoQ and Gross margin is projected at 27~29%.
• 2Q25 by platform: PMIC to see significant growth; discrete to grow in low single digits; DDIC to remain flat.
• The 2024 annual dividend policy is maintained at NT$4.5 per share.

• Apple (AAPL US) started a mild pullback after releasing its earnings on May 1st. We think this pullback may be a BUY opportunity.
• Some analysts believe the Trump administration’s tariffs will ultimately prove transitory. While near-term impacts are surely expected for Apple (AAPL US) , they’re probably short-term in nature.
• Our model suggests a potential buying opportunity in Apple (AAPL US) may be approaching. This insight outlines the tactical considerations behind that view.

• Good 1Q25, revenue +36% YoY, EPS +55%. Complicated 2-3Q ahead due to US export restrictions cutting down revenue by 1.5bn. This is a one-off. Ignoring this, underlying growth looks strong.   
• AMD is gaining share in PC and Server, incl enterprise. GPU offering is still behind Nvidia but improving with MI350 in mid-25, MI400 mid-26. MI400 should be on-par with NVDA.
• The stock is down -45% from Jan-24. Trading on low multiples versus historicals: 17x 2026 EPS or more than -1 stdev below avg. Buy!

• Zacks Small-Cap Research Note for CISO Global, Inc. (CISO)

• Zacks Small-Cap Research Note for CISO Global, Inc. (CISO)

• SPS Commerce delivered a strong performance in the first quarter of fiscal year 2025.
• The company’s revenue grew by 21% year-over-year to $181.5 million, marking its 97th consecutive quarter of revenue growth.
• Recurring revenue also saw a 23% increase, underscoring the stability and consistent demand for SPS Commerce’s solutions.

AutoStore is a structural growth story in a cyclical market. The mechanisation and automation of warehouses is a structural trend because labour in developed markets is becoming increasingly expensive, largely because the available workforce is shrinking. However, these are large capital projects and customer willingness to invest is sensitive to economic certainty and cycles. Recent tariff moves have left certainty in short supply and, as investing in new warehouse automation can be easily deferred, the impact has been obvious. Management believes it is at the bottom of an unnecessary cycle.