Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul>
<li>This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly.</li>
<li>This is one of the 16th-best quarters in SOXX since 2002. While it’s a pretty solid showing at a 17% quarterly return, this doesn’t compare to the incredible returns in 2020 and 2023.</li>
<li>Now, the misleading thing is that SMH, a broader ETF, is up 30%.</li>
</ul>


This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly.
This is one of the 16th-best quarters in SOXX since 2002. While it’s a pretty solid showing at a 17% quarterly return, this doesn’t compare to the incredible returns in 2020 and 2023.
Now, the misleading thing is that SMH, a broader ETF, is up 30%.


Product Marketing Manager, Criat

Raghav Chandra Mathur

Product Marketing Manager

Next-Generation Credit Analytics Provider

Criat

Criat specializes in new-generation data-driven credit analytics. Leveraging our industry-leading DeepCredit analytical technologies, we produce daily-updated forward-looking credit assessment and valuation to help financial institutions stay ahead of risks. Coupled with use-case-driven applications, we extract insights, answer questions and enable smarter credit decisions.

<ul><li>Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the companies that are at the forefront of AI-related semiconductor research, development, and production.</li><li>One of the key drivers in the resurgence of new chip demand is the acceleration of upgrade demand for PCs and smartphones to meet the novel generative AI needs, while companies build up storage and data center capabilities to transition to utilizing generative AI capabilities in their operations.</li><li>However, so far, the benefit of the market rally has been disproportionately felt across the industry.</li></ul>

Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the companies that are at the forefront of AI-related semiconductor research, development, and production.One of the key drivers in the resurgence of new chip demand is the acceleration of upgrade demand for PCs and smartphones to meet the novel generative AI needs, while companies build up storage and data center capabilities to transition to utilizing generative AI capabilities in their operations.However, so far, the benefit of the market rally has been disproportionately felt across the industry.

AI-Driven Semiconductor Rally Leaves Small-Cap Chipmakers Behind

<ul><li>This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. </li><li>I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.</li><li>We are now seeing the beginning of Industrial weakening.</li></ul>

This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.We are now seeing the beginning of Industrial weakening.

Equity Bottom-Up

<ul>
<li>The sickness in Silicon Carbide started at On semi.</li>
<li>Let’s look through the results and see the drivers, the big deal, and what we should do about it.</li>
<li>The market freaked out about Silicon Carbide, specifically On semiconductor, saying that automotive demand for the year will be weaker.</li>
</ul>


The sickness in Silicon Carbide started at On semi.
Let’s look through the results and see the drivers, the big deal, and what we should do about it.
The market freaked out about Silicon Carbide, specifically On semiconductor, saying that automotive demand for the year will be weaker.


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>Wolfspeed Inc. delivered mixed results in the last quarter, with revenues above Wall Street expectations but below-par earnings.</li><li>The company's Mohawk Valley Fab, the largest fully-automated 200-mm silicon carbide fab, started shipping products and continues to ramp production, thus contributing revenue.</li><li>With customers transitioning to silicon carbide, the company continues to see growth in the traditional energy and industrial segment.</li></ul>

Wolfspeed Inc. delivered mixed results in the last quarter, with revenues above Wall Street expectations but below-par earnings.The company's Mohawk Valley Fab, the largest fully-automated 200-mm silicon carbide fab, started shipping products and continues to ramp production, thus contributing revenue.With customers transitioning to silicon carbide, the company continues to see growth in the traditional energy and industrial segment.

Wolfspeed Inc.: Is The Recent Divestment Of RF Business A Positive Development? - Key Drivers

United States

Wolfspeed, Inc. develops and manufactures semiconductor products. The Company offers silicon carbide and GaN solutions for both high power and RF applications. Wolfspeed serves customers worldwide.

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Wolfspeed (WOLF US)

Fabricated Knowledge Quarterly Review

This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly. This is one of the 16th-best quarters in...

Fabricated Knowledge

AI-Driven Semiconductor Rally Leaves Small-Cap Chipmakers Behind

Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the...

Criat

Semiconductor Cycles: Industrial and EVs

Plus my new taxonomy of cycles! Where I think each end market is in the cycle. This earnings season, Industrial semiconductor demand has been the...

Fabricated Knowledge

SiC as a Dog (Part 2)

The sickness in Silicon Carbide started at On semi. Let’s look through the results and see the drivers, the big deal, and what we should do about...

Fabricated Knowledge

Wolfspeed Inc.: Is The Recent Divestment Of RF Business A Positive Development? - Key Drivers

Wolfspeed Inc. delivered mixed results in the last quarter, with revenues above Wall Street expectations but below-par earnings. The company's...

Baptista Research

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