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.

Equity Bottom-Up

<ul>
<li>Short note on Capex (going ballistic), revenue growth (accelerating), margins resilient (so far) but CFO pointed to margins erosion in 2026. </li>
<li>Revenue growth is accelerating (2025 22%, 1Q26 30%) but OPEX will increase by ~40% in 2026. CFO says that Operating Profits will increase YoY but implies that Operating Margins decline. </li>
<li>Calculations below. 30% revenue growth will lead to “only” 15% growth in Operating Profits in 2026. The stock is trading at 22x 2026 EPS, average valuation. </li>
</ul>


Short note on Capex (going ballistic), revenue growth (accelerating), margins resilient (so far) but CFO pointed to margins erosion in 2026. 
Revenue growth is accelerating (2025 22%, 1Q26 30%) but OPEX will increase by ~40% in 2026. CFO says that Operating Profits will increase YoY but implies that Operating Margins decline. 
Calculations below. 30% revenue growth will lead to “only” 15% growth in Operating Profits in 2026. The stock is trading at 22x 2026 EPS, average valuation. 


Meta: Higher Capex, Higher Growth, Margins Holding up for Now. But CFO Gave Us 2 Warnings.