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.

Hyperscalers’ Cloud Revenue and Capex Update

Taiwan Tech Weekly: Mediatek's Power Move for 2nm Chips; Yet More TSMC Pricing Power

Equity Bottom-Up

<ul>
<li>Revenue up 18% YoY. Cloud revenue up 26%. Commercial remaining obligation up 51%. Commercial bookings up 112%. AI capacity up 80% this year, will roughly double over next two years. </li>
<li>For a company with $300+bn revenue, that’s impressive. Slight irritant: $4bn loss on OpenAI in a quarter, 13% of net income gone. Is that the price of top line growth?</li>
<li>The stock is trading at 29x forward EPS, Cloud &amp; AI revenues are accelerating, but profits incl OpenAI loss are probably very thin. The cash cow will come years later. </li>
</ul>


Revenue up 18% YoY. Cloud revenue up 26%. Commercial remaining obligation up 51%. Commercial bookings up 112%. AI capacity up 80% this year, will roughly double over next two years. 
For a company with $300+bn revenue, that’s impressive. Slight irritant: $4bn loss on OpenAI in a quarter, 13% of net income gone. Is that the price of top line growth?
The stock is trading at 29x forward EPS, Cloud &amp; AI revenues are accelerating, but profits incl OpenAI loss are probably very thin. The cash cow will come years later. 


MSFT 1Q26 (Sept-25): A Huge Quarter. AI Demand Is Accelerating

Microsoft Corp

MSFT 1Q26 (Sept-25): A Huge Quarter. AI Demand Is Accelerating