Technology / Semiconductor / Internet Research

Nicolas Baratte

Nicolas Baratte has been a financial analyst since 2000, covering the Semiconductor sector and Global Technology. Nicolas has worked on the sell-side for JPMorgan, CLSA. On the buy-side for a Tiger fund and Prudential. Nicolas has covered semiconductors, Asian hardware and components, and the Global Tech supply chain. Nicolas lives mostly in Taiwan, sometimes in France and is in New York regularly.

AI Is a Bubble, Again? Stocks Aren’t Expensive. Hyperscalers’ Future Revenue Tells a Different Story

Google: Now You Can See AI’s Revenues, Profits, ROI

Microsoft: Cloud and AI Revenue Accelerating, Capex Will Increase in FY27

SK Hynix: A Little Miss and a Big Correction

Intel 2Q26: Big Beat Led by AI Data Center and Improving Foundry Execution

Equity Bottom-Up

<ul>
<li>2Q26 revenue up 20% YoY. Operating profits up 43% YoY. The revenue backlog is exploding, up 150% YoY. This quarter demonstrates the impact of AI Capex on AWS growth/margins.</li>
<li>AWS Annualized Run rate is at $169bn. CEO suggests that AWS could become a $ 1 trillion business.</li>
<li>Consensus could be a bit low on revenue growth, high-teens looks more likely than low-teens. Margins expansion is ok. Stock trading at 23.4x 2027 EPS, 18x 2028.</li>
</ul>


2Q26 revenue up 20% YoY. Operating profits up 43% YoY. The revenue backlog is exploding, up 150% YoY. This quarter demonstrates the impact of AI Capex on AWS growth/margins.
AWS Annualized Run rate is at $169bn. CEO suggests that AWS could become a $ 1 trillion business.
Consensus could be a bit low on revenue growth, high-teens looks more likely than low-teens. Margins expansion is ok. Stock trading at 23.4x 2027 EPS, 18x 2028.


Amazon 2Q26: After Google and Microsoft, Another Cloud Acceleration: Growth Higher, Margins Higher