Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Equity Bottom-Up

<ul>
<li>Q1’23 revenues of $6.63 billion, up 6 % YoY, down 2% QoQ</li>
<li>Q2'23 revenues of $6.15 billion at the midpoint, down 7.2% QoQ.</li>
<li>Tool push outs and cancellations are spreading to leading logic customers. That's not a good sign</li>
</ul>


Q1’23 revenues of $6.63 billion, up 6 % YoY, down 2% QoQ
Q2'23 revenues of $6.15 billion at the midpoint, down 7.2% QoQ.
Tool push outs and cancellations are spreading to leading logic customers. That's not a good sign


Applied Materials ICAPS Grows Strongly But Leading Logic Ruins The Party

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Lam Research Corporation delivered strong quarter results with revenues, operating margins, and earnings per share above Wall Street expectations.</li><li>The company's revenue for the quarter was $3.87 billion, a 27% decrease from the prior quarter, witnessing the classic cyclicality associated with the semiconductors industry.</li><li>Foundry-related system revenues reached new highs, indicating the company's continued success in both cutting-edge and specialty technology categories.</li></ul>

Lam Research Corporation delivered strong quarter results with revenues, operating margins, and earnings per share above Wall Street expectations.The company's revenue for the quarter was $3.87 billion, a 27% decrease from the prior quarter, witnessing the classic cyclicality associated with the semiconductors industry.Foundry-related system revenues reached new highs, indicating the company's continued success in both cutting-edge and specialty technology categories.

Thematic (Sector/Industry)

<ul>
<li>Q1’23 revenues of $2.43 billion, marginally above the guided midpoint $2.35 billion, down 17.5% sequentially and up 6.4% YoY.</li>
<li>For Q2’23, the company expects revenues of $2.25 billion at the midpoint, down 4% sequentially.</li>
<li>KLAC historically outperforms its peers during semi down cycles. This time will be no different.</li>
</ul>


Q1’23 revenues of $2.43 billion, marginally above the guided midpoint $2.35 billion, down 17.5% sequentially and up 6.4% YoY.
For Q2’23, the company expects revenues of $2.25 billion at the midpoint, down 4% sequentially.
KLAC historically outperforms its peers during semi down cycles. This time will be no different.


KLAC Q1'23 Earnings Report. So Far, So Good

<ul>
<li>With ~2x exposure to memory compared to its peers, LRCX is feeling the pain</li>
<li>Q1 revenues of  $3.87 billion were marginally higher than the forecasted midpoint, down 26.7% sequentially and down 4.4% YoY.</li>
<li>For the current quarter, LRCX expects revenues to decline a further ~ 20% to $3.1 billion at the midpoint.</li>
</ul>


With ~2x exposure to memory compared to its peers, LRCX is feeling the pain
Q1 revenues of  $3.87 billion were marginally higher than the forecasted midpoint, down 26.7% sequentially and down 4.4% YoY.
For the current quarter, LRCX expects revenues to decline a further ~ 20% to $3.1 billion at the midpoint.


Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>TSMC is cutting its 2023E capex plans by 12% according to Taiwan's EDN. The company will also report earnings this Thursday.</li>
<li>TSMC suppliers ASML and Lam Research will also be reporting this week. Realtek will report this week as well.</li>
<li>Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta &amp; Pegatron pair.</li>
</ul>


TSMC is cutting its 2023E capex plans by 12% according to Taiwan's EDN. The company will also report earnings this Thursday.
TSMC suppliers ASML and Lam Research will also be reporting this week. Realtek will report this week as well.
Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta &amp; Pegatron pair.


Taiwan Tech Weekly: TSMC Cutting Capex, Earnings This Week; Suppliers ASML & Lam Also Will Report

United States

Lam Research Corporation manufactures, markets, and services semiconductor processing equipment used in the making of integrated circuits.  The Company's products are used to deposit special films on a silicon wafer and etch away portions of various films to create a circuit design.  Lam sells its products around the world.

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Lam Research (LRCX US)

Applied Materials ICAPS Grows Strongly But Leading Logic Ruins The Party

Q1’23 revenues of $6.63 billion, up 6 % YoY, down 2% QoQ. Q2'23 revenues of $6.15 billion, down 7.2% QoQ.Tool push outs & cancellations spreading...

William Keating

Lam Research Corporation: Major Drivers

Lam Research Corporation delivered strong quarter results with revenues, operating margins, and earnings per share above Wall Street...

Baptista Research

KLAC Q1'23 Earnings Report. So Far, So Good

Q1’23 revenues of $2.43 billion, down 17.5% sequentially and up 6.4% YoY. KLAC historically outperforms its peers during semi down cycles. This...

William Keating

LRCX. Memory Bites. Hard

With ~2x exposure to memory compared to its peers, LRCX is feeling the pain.Q1 revenues of $3.87 billion were -26.7% sequentially and -4.4% YoY....

William Keating

Taiwan Tech Weekly: TSMC Cutting Capex, Earnings This Week; Suppliers ASML & Lam Also Will Report

Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta & Pegatron pair.

Vincent Fernando, CFA

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