Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>US bans high end chip sales to China, Nvidia shares sink in reaction, as do Nvida suppliers and the overall sector.</li>
<li>Broadcom's fiscal Q3 results beat expectations and its optimistic outlook bucks the industry trend.</li>
<li>Yulon motors soars 9%; its JV with Hon Hai has received 10,000 EV pre-orders in two days.</li>
</ul>


US bans high end chip sales to China, Nvidia shares sink in reaction, as do Nvida suppliers and the overall sector.
Broadcom's fiscal Q3 results beat expectations and its optimistic outlook bucks the industry trend.
Yulon motors soars 9%; its JV with Hon Hai has received 10,000 EV pre-orders in two days.


Taiwan Tech Weekly: More Nvidia Issues, Broadcom Surprises, Yulon Soars

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<div><div><div><ul><li>On 31 Aug, Nvidia said in a regulatory filing that the U.S. has imposed new <span style="font-size: var(--content-font-size);">licensing requirements on shipments of certain advanced server GPU (A100 and </span><span style="font-size: var(--content-font-size);">H100) to China (including Hong Kong) and Russia. </span></li><li><span style="font-size: var(--content-font-size);">Nvidia may lose as much as </span><span style="font-size: var(--content-font-size);">US$400mn sales to China in FY3Q22 as a result. </span></li><li><span style="font-size: var(--content-font-size);">Nvidia’s GPU dominates the AI </span><span style="font-size: var(--content-font-size);">processor market with 80.6% market share in 2020, according to Omdia. </span></li></ul></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

On 31 Aug, Nvidia said in a regulatory filing that the U.S. has imposed new licensing requirements on shipments of certain advanced server GPU (A100 and H100) to China (including Hong Kong) and Russia. Nvidia may lose as much as US$400mn sales to China in FY3Q22 as a result. Nvidia’s GPU dominates the AI processor market with 80.6% market share in 2020, according to Omdia. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China AI – U.S. is restricting advanced GPU sales to China

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Pc Partner reported a strong set of 1H22 results last week and held a conf call with investors this week. Importantly, management sees no impact by US/China Nvidia AI situation.</li>
<li>3Q22 results will be weak as old inventory is being discounted in front of the launch of RTX 40 by <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US) in early 4Q22.</a>
</li>
<li>Stock is unlikely to rally before more clarity on inventory situation improvement, but well supported by net cash (5.4 HKD) and high interim dividend (11.4%). </li>
</ul>


Pc Partner reported a strong set of 1H22 results last week and held a conf call with investors this week. Importantly, management sees no impact by US/China Nvidia AI situation.
3Q22 results will be weak as old inventory is being discounted in front of the launch of RTX 40 by NVIDIA Corp (NVDA US) in early 4Q22.

Stock is unlikely to rally before more clarity on inventory situation improvement, but well supported by net cash (5.4 HKD) and high interim dividend (11.4%). 


PC Partner: Strong 1H22 but High Uncertainty into 2H22. Downside Supported by Cash and Dividend.

<ul>
<li>Nvidia guidance shook semiconductor stocks last week and remains an overhang this week.</li>
<li>Nvidia's outlook for its different segments may highlight longer-term industry trends, a major shift is coming in terms of semiconductor end-demand growth.</li>
<li>The latest chip prices for DRAM and SPOT are weak, but company margins and balance sheets are very strong going into the latest downturn.</li>
</ul>


Nvidia guidance shook semiconductor stocks last week and remains an overhang this week.
Nvidia's outlook for its different segments may highlight longer-term industry trends, a major shift is coming in terms of semiconductor end-demand growth.
The latest chip prices for DRAM and SPOT are weak, but company margins and balance sheets are very strong going into the latest downturn.


Taiwan Tech Weekly: Nvidia Spooking the Market, Look to Auto Demand Growth

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

<ul>
<li>WSTS June semiconductor revenues indicate the onset of a trend of flat-to-down sales</li>
<li>Recent chip company earnings calls largely project a down market in the current quarter</li>
<li>This is most likely the beginning of a 1½ -year downturn in semiconductors</li>
</ul>


WSTS June semiconductor revenues indicate the onset of a trend of flat-to-down sales
Recent chip company earnings calls largely project a down market in the current quarter
This is most likely the beginning of a 1½ -year downturn in semiconductors


Semiconductors Have Reached Turning Point

United States

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software.  The Company's products provide interactive 3D graphics to the mainstream personal computer market.

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NVIDIA Corp (NVDA US)

Taiwan Tech Weekly: More Nvidia Issues, Broadcom Surprises, Yulon Soars

Nvidia shares sink in reaction to US banning high-end chip sales to China, Taiwan's Nvida suppliers and the overall sector fall as well. Broadcom...

Vincent Fernando, CFA

China AI – U.S. is restricting advanced GPU sales to China

Nvidia may lose as much as US$400mn sales to China in FY3Q22 as a result. Nvidia’s GPU dominates the AI processor market with 80.6% market share in...

CMB International

PC Partner: Strong 1H22 but High Uncertainty into 2H22. Downside Supported by Cash and Dividend.

PC partner reported solid 1H22 results. 3Q22 outlook is weak and the inventory situation is high depressing sentiment. The downside is supported by...

Nicolas Van Broekhoven

Taiwan Tech Weekly: Nvidia Spooking the Market, Look to Auto Demand Growth

Nvidia guidance shook semiconductor stocks last week and remains an overhang this week. We also show how Automotive will become the single largest...

Vincent Fernando, CFA

Semiconductors Have Reached Turning Point

The semiconductor market is starting to change from unusual growth and record revenues to a downturn that will return it to its long-term trend. ...

Jim Handy

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