Tech Hardware and Semiconductor

Weekly Top Ten Tech Hardware and Semiconductor – Jun 16, 2024

This weekly newsletter pulls together summaries of the top ten most-read Insights across Tech Hardware and Semiconductor on Smartkarma.

Receive this weekly newsletter keeping 45k+ investors in the loop

1. Taiwan Dual-Listings Monitor: TSMC Historically Extreme Premium Continues; CHT at Short Level Again

By Vincent Fernando, CFA, Zero One

  • TSMC: +21.3% Premium; Trading at New +15-25% Range This Year
  • ASE: +12.7% Premium; We Continue to View 14%+ as Fresh Short Level
  • CHT: +1.2% Premium; Good Level to Short Relative to History

2. Crypto Datacenters NAV

By Douglas O’Laughlin, Fabricated Knowledge

  • There’s a gold rush in the world of AI for not just GPUs, but for datacenters and the power connections that supply them.
  • Imagine this, you just bought 100,000 GPUs from Nvidia and you don’t have a place to put them or the power to feed them.
  • Not being first to market is a huge cost, as the GPU pay back times are very quick right now even for the H100.

3. Global Semi Sales YTD 2024 & Outlook: The Good & The Not So Good

By William Keating, Ingenuity

  • Global semi sales for April ’24 were $46.4 billion,  +15.8% YoY & +1.1% MoM
  • WSTS now forecasts a 16.1% increase in 2024 semi sales, up from 13.1% in their previous forecast
  • We think the WSTS forecast for Memory is too high & their forecast for Logic is too low. Excluding memory, the WSTS forecast reflects just 3.1% growth in 2024.

4. Computex 2024 & The Drama Of The CoPilot+ PC Launch

By William Keating, Ingenuity

  • Intel, AMD & Qualcomm all lined up in support of Microsoft’s CoPilot+ PC program during the Computex 2024 keynotes last week.  
  • While Qualcomm is all in and AMD mostly too, Intel’s support is more passive agressive in nature. We outline how & why this is the case
  • On Friday June 7, reacting to customer feedback, Microsoft announced that their CoPilot+ Recall feature will now become disabled out of the box by default. Ouch!

5. Taiwan Semis May ’24 Revenue Roundup. Looking Good Across The Board

By William Keating, Ingenuity

  • ASPEED blazing a trail with 92.9% YoY revenue growth in May
  • Quanta, WiWynn, TSMC and Nanya all > 30% YoY revenue growth in May
  • TSMC looking likely to exceed 30% YoY revenue growth in 2024

6. Intel Warns That Its Foundry Strategy Is “Highly Risky” & Its Success Is “Highly Uncertain”

By William Keating, Ingenuity

  • Intel’s 2023 10K includes two new risk sections relating to its foundry plans and Smart Capital approach to funding them. 
  • It labels its foundry plan as “Highly Risky” and rates its chances of success as “highly uncertain”
  • They also helpfully warn that they have “limited experience” with the third party foundry business, just FYI

7. Taiwan Tech Weekly: Apple Unveils New AI Capabilities at WDC; PC Makers Feel the Love from Chip CEOs

By Vincent Fernando, CFA, Zero One

  • Apple Announces New AI Features at WDC; Shares Surge to New All-Time Highs
  • Top Movers: Major Computex Exhibitors See Share Prices Fall Despite Strong Presence
  • Computex 2024: Chip Companies Notably Competing to Win PC Makers

8. TSMC (2330.TT; TSM.US): CoWoS Demand Continues to Increase in 2024.

By Patrick Liao

  • The yearly growth target could approach 25% YoY in 2024.
  • TSMC’s CoWoS demand continues to rise, with capacity expected to increase by approximately another 5% in 2024.
  • TSMC’s stock price has risen by 55% in Taiwan and by 66.3% in US markets this year. We believe it has the potential to continue increasing further.