Daily Brief TMT/Internet: Verisilicon Microelectronics S, NVIDIA Corp, SK Inc, Paramount Skydance, ROHM Co Ltd and more

• There could be up to 4 constituent changes for the STAR&CHINEXT 50 Index in December. The announcement of the changes will be made after market close on 28 November.
• There will be between 0.1-0.35x ADV to trade in the changes but some of the forecast adds will have same-way flow from passive trackers of other indices.
• The forecast adds outperformed the forecast deletes in July and August before giving up all the gains (and more) in a near one-way move over the last month.

• NVIDIA has secured unprecedented demand visibility with a reported USD 500 Billion order book for its next-gen AI chips, solidifying its position as the keystone of the AI industrial revolution.
• The company’s financial health highlighted by a USD 48.3 Billion net cash balance and strategic capital return, affirming confidence that structural growth will outweigh geopolitical risks.
• Following a period of short-term volatility and profit-taking, the confluence of long-term structural catalysts suggests the stock is poised to resume a higher trajectory and trading range.

• This week buyback‑burn names in focus; committees start debates, traders eye five bills’ overlap: retroactive cancellation of both new and legacy treasury stock.
• Grace period ranges from immediate to five years, but four of five bills cluster at one year; market treating one‑year retroactive cancellation as base case.
• Usual suspects in play: holdcos, financials, and >30% treasury stock names. Hard‑line Assembly stance means loopholes unlikely; grace‑period noise not driving near‑term price action.

• New Leadership, New Strategy: The August 2025 merger of Paramount Global and Skydance Media, creating Paramount Skydance (PSKY), marks a pivotal moment. Led by CEO David Ellison, the new entity aims to blend Paramount’s iconic content library and distribution network with Skydance’s modern production prowess and tech-focused approach. The strategy centers on revitalizing key franchises, achieving profitability in the Direct-to-Consumer (DTC) segment, and realizing significant cost synergies, now targeted at $3 billion.
• Navigating a Shifting Media Landscape: PSKY operates in a highly competitive and rapidly evolving industry characterized by the secular decline of linear television and the intense ‘streaming wars’. The company’s success hinges on its ability to grow its Paramount+ streaming service profitably while managing the decline of its traditional cable and broadcast assets. Management has signaled a focus on technology improvements to enhance user experience and reduce churn on its streaming platforms.
• M&A Remains a Key Theme: The formation of Paramount Skydance is a major act of consolidation, but the company remains a subject of further M&A speculation. As noted by Smartkarma analyst Baptista Research, the company is already contemplating an ambitious bid for Warner Bros. Discovery. This highlights the industry-wide pressure to scale up to compete effectively with larger, well-capitalized rivals, including tech giants like Apple and Amazon.

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• ROHM is demonstrating a significant turnaround, returning to profitability in Q1FY25 after a challenging FY2024, driven by structural reforms, improved demand, and cost controls.
• The company is a key player in the high-growth Silicon Carbide (SiC) power semiconductor market, which is critical for electric vehicles (EVs) and energy-efficient applications, representing a major growth catalyst.
• Despite the positive outlook, the stock trades at an attractive valuation of approximately 0.8x Price-to-Book, though it faces significant risks from macroeconomic headwinds, weak demand in China, and geopolitical tensions.

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