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>To make my content readable, this is an optics-only earnings update.</li><li>I will discuss everything together and put together a high-level overview.</li><li>The specific things I am interested in are Marvell’s ZR and custom silicon.</li></ul>

To make my content readable, this is an optics-only earnings update.I will discuss everything together and put together a high-level overview.The specific things I am interested in are Marvell’s ZR and custom silicon.

Optics Earnings (FN, ANET, COHR, LITE, AAOI)

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.

<ul><li>If we consider 2023 as a banner year for AI technology, 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.</li><li>We reaffirm our positive stance on optical transceiver players, specifically in light of their ongoing capacity expansion and production ramp-up of the high data rate optical modules, e.g., 400G/800G products.</li><li>Among those players we favor Innolight (300308 CH, BUY) and TFC (300394 CH, NR), both of which have leveraged the AI wave effectively through 2023 and stayed on strong trajectory into 2024. </li></ul><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>

If we consider 2023 as a banner year for AI technology, 2024 is set to be another solid year for both infrastructure investments and downstream demand continue to thrive.We reaffirm our positive stance on optical transceiver players, specifically in light of their ongoing capacity expansion and production ramp-up of the high data rate optical modules, e.g., 400G/800G products.Among those players we favor Innolight (300308 CH, BUY) and TFC (300394 CH, NR), both of which have leveraged the AI wave effectively through 2023 and stayed on strong trajectory into 2024. 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.

Semi – Market Outlook on Optical Transceivers

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.

Equity Bottom-Up

<ul><li>Lumentum Holdings Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street.</li><li>Despite inventory challenges in the second half of fiscal year '23, the company achieved a 3% increase in full-year revenue from fiscal year '22.</li><li>While fiscal 2024 3D sensing revenue is projected to be lower than fiscal '23 due to market dynamics and competition, the company achieved sequential growth in Commercial lasers revenue, driven by applications in solar cell processing.</li></ul>

Lumentum Holdings Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street.Despite inventory challenges in the second half of fiscal year '23, the company achieved a 3% increase in full-year revenue from fiscal year '22.While fiscal 2024 3D sensing revenue is projected to be lower than fiscal '23 due to market dynamics and competition, the company achieved sequential growth in Commercial lasers revenue, driven by applications in solar cell processing.

Lumentum Holdings Inc.: The Game-Changing Role of VCSELs in Tomorrow's AI & ML Technologies! - Major Drivers

<ul><li>Lumentum Holdings delivered a disappointing set of results as the company was unable to meet the revenue as well as earnings expectations of Wall Street.</li><li>The company's commercial lasers business is also expanding into high-growth areas such as solar cells, advanced semiconductors, electric vehicles, and display manufacturing.</li><li>We give Lumentum Holdings Inc. a 'Hold' rating with a revised target price.</li></ul>

Lumentum Holdings delivered a disappointing set of results as the company was unable to meet the revenue as well as earnings expectations of Wall Street.The company's commercial lasers business is also expanding into high-growth areas such as solar cells, advanced semiconductors, electric vehicles, and display manufacturing.We give Lumentum Holdings Inc. a 'Hold' rating with a revised target price.

Lumentum Holdings Inc.: What Is Its Competitive Edge? – Key Drivers

Equity Capital Markets

Lumentum Holdings / Equity Capital Markets

<ul><li>Lumentum Holdings delivered a strong result in the last quarter and managed an all-around beat.</li><li>This quarter reported strong demand from customers.</li><li>Overall, the demand for the Telecom products of Lumentum remains strong, particularly in edge networking applications.</li></ul>

Lumentum Holdings delivered a strong result in the last quarter and managed an all-around beat.This quarter reported strong demand from customers.Overall, the demand for the Telecom products of Lumentum remains strong, particularly in edge networking applications.

Lumentum Holdings: R&D Expansion & Other Drivers

United States

Lumentum Holdings Inc. operates as a holding company. The Company, through its subsidiaries, supplies optical and photonic products. Lumentum Holdings serves data communications and telecommunications, networking, and life-sciences markets worldwide.

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Lumentum Holdings (LITE US)

Optics Earnings (FN, ANET, COHR, LITE, AAOI)

To make my content readable, this is an optics-only earnings update. I will discuss everything together and put together a high-level overview.

Fabricated Knowledge

Semi – Market Outlook on Optical Transceivers

If we consider 2023 as a banner year for AI technology, 2024 is set to be another solid year for both infrastructure investments and downstream...

CMB International

Lumentum Holdings Inc.: The Game-Changing Role of VCSELs in Tomorrow's AI & ML Technologies! - Major Drivers

Lumentum Holdings Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street. Despite inventory challenges in the...

Baptista Research

Lumentum Holdings Inc.: What Is Its Competitive Edge? – Key Drivers

Lumentum Holdings delivered a disappointing set of results as the company was unable to meet the revenue as well as earnings expectations of Wall...

Baptista Research

Lumentum Holdings: R&D Expansion & Other Drivers

Lumentum Holdings delivered a strong result in the last quarter and managed an all-around beat. This quarter reported strong demand from...

Baptista Research

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