Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Silicon Motion Technology / Equity Bottom-Up

<ul>
<li>3Q24 Beats Consensus; Gross Margin Continues Recovery Despite Weakness in Overall Memory Market</li>
<li>Sees Near-Term Weakness in PC &amp; Smartphone Markets; Sees NAND Market Tightening by Mid-2025E</li>
<li>Despite Near-Term Memory Cycle Concerns, Structural Revenue Growth Drivers Remain in Place</li>
</ul>


3Q24 Beats Consensus; Gross Margin Continues Recovery Despite Weakness in Overall Memory Market
Sees Near-Term Weakness in PC &amp; Smartphone Markets; Sees NAND Market Tightening by Mid-2025E
Despite Near-Term Memory Cycle Concerns, Structural Revenue Growth Drivers Remain in Place


Silicon Motion Warns Near-Term Weakness in PC/Smartphone Memory Market; But Remain Structurally Long

<ul>
<li>Silicon Motion reported 2Q24 results on Friday, describing strong demand for NAND flash controllers driven by the PC industry and improving demand from the smartphone industry.</li>
<li>The company expects industry NAND flash pricing to continue improving into 2025E. Moreover, SIMO expects to expand its market share for NAND flash controllers by year-end.</li>
<li>Maintain Structural Long rating for SIMO. The recent share price decline is painful for holders however share weakness is an accumulation opportunity with an investment view to mid-2025E.</li>
</ul>


Silicon Motion reported 2Q24 results on Friday, describing strong demand for NAND flash controllers driven by the PC industry and improving demand from the smartphone industry.
The company expects industry NAND flash pricing to continue improving into 2025E. Moreover, SIMO expects to expand its market share for NAND flash controllers by year-end.
Maintain Structural Long rating for SIMO. The recent share price decline is painful for holders however share weakness is an accumulation opportunity with an investment view to mid-2025E.


Silicon Motion 2Q24 Results Take-Aways: Strong Growth & NAND Flash Market Share Gains Expected

<ul>
<li>
SK Hynix expects continued AI/server memory strength despite global uncertainty -- Expects 2025E HBM revenue to double YoY.</li>
<li>
PC and smartphone memory demand experienced moderate recovery -- Supported by China stimulus and AI-featured product cycles.</li>
<li>
Continue to view SK Hynix shares in more favorable position vs. Nana Tech shares -- Especially in a scenario of global economic weakness.</li>
</ul>



SK Hynix expects continued AI/server memory strength despite global uncertainty -- Expects 2025E HBM revenue to double YoY.

PC and smartphone memory demand experienced moderate recovery -- Supported by China stimulus and AI-featured product cycles.

Continue to view SK Hynix shares in more favorable position vs. Nana Tech shares -- Especially in a scenario of global economic weakness.


Memory Monitor: SK Hynix Signals Resilient AI Demand Ahead; Nanya More Exposed to Global Downturn

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

<ul>
<li>Leaked Mediatek Chip Specs? -- Talk of a "Qualcomm Killer"</li>
<li>Hon Hai in the New York Times -- Why Foxconn is Investing in Texas &amp; Thailand</li>
<li>TSMC's Arizona 4nm Production On Track to Start 2H25E -- Still Expected to Be 30% Higher Cost vs. Taiwan and That's Okay</li>
</ul>


Leaked Mediatek Chip Specs? -- Talk of a "Qualcomm Killer"
Hon Hai in the New York Times -- Why Foxconn is Investing in Texas &amp; Thailand
TSMC's Arizona 4nm Production On Track to Start 2H25E -- Still Expected to Be 30% Higher Cost vs. Taiwan and That's Okay


Taiwan Tech Weekly: Leaked Mediatek Specs Spur Talk Of "Qualcomm Killer"'; TSMC on Track in Arizona

<ul>
<li>Micron's latest results show a clear improvement in the Memory cycle. The company's gross margin increased and guided for a further strong margin increase next quarter.</li>
<li>Micron increased its overall DRAM industry growth forecast while maintaining its NAND flash forecast. Micron reiterated expectations for FY2025E to deliver record revenue for the company, with improving profitability.</li>
<li>Positive news for fallen Memory industry shares -- Within our Memory universe we have Structural Long ratings for Micron Technology (MU US), SK Hynix (000660 KS), and Silicon Motion Technology (SIMO US).</li>
</ul>


Micron's latest results show a clear improvement in the Memory cycle. The company's gross margin increased and guided for a further strong margin increase next quarter.
Micron increased its overall DRAM industry growth forecast while maintaining its NAND flash forecast. Micron reiterated expectations for FY2025E to deliver record revenue for the company, with improving profitability.
Positive news for fallen Memory industry shares -- Within our Memory universe we have Structural Long ratings for Micron Technology (MU US), SK Hynix (000660 KS), and Silicon Motion Technology (SIMO US).


Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded

Taiwan

Silicon Motion Technology Corporation is a semiconductor company that designs, develops, and markets semiconductor products for the multimedia consumer electronics market. The Company's products include controllers used in mobile storage media and multimedia systems on a chip.

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Silicon Motion Technology (SIMO US)

Silicon Motion Warns Near-Term Weakness in PC/Smartphone Memory Market; But Remain Structurally Long

3Q24 earnings beat expectations with improving gross margins despite memory market weakness. Anticipates short-term challenges in PC and...

Vincent Fernando, CFA

Memory Monitor: SK Hynix Signals Resilient AI Demand Ahead; Nanya More Exposed to Global Downturn

SK Hynix anticipates strong AI/server memory demand despite global uncertainty. SK Hynix shares positioned favorably vs. Nanya Tech shares,...

Vincent Fernando, CFA

Taiwan Tech Weekly: Leaked Mediatek Specs Spur Talk Of "Qualcomm Killer"'; TSMC on Track in Arizona

Leaked Mediatek chip specs hint at potential rival to Qualcomm's flagship chips; Foxconn investing in Texas & Thailand; TSMC's Arizona production...

Vincent Fernando, CFA

Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded

Micron's latest results show improved margins and growth forecasts, signaling positive news for Memory industry shares.

Vincent Fernando, CFA

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Silicon Motion Warns Near-Term Weakness in PC/Smartphone Memory Market; But Remain Structurally Long

​3Q24 earnings beat expectations with improving gross margins despite memory market weakness. Anticipates short-term challenges in PC and...

Vincent Fernando, CFA

Silicon Motion 2Q24 Results Take-Aways: Strong Growth & NAND Flash Market Share Gains Expected

​Silicon Motion sees strong demand for NAND flash controllers from PC and smartphone industries. Expects pricing to improve into 2025E and market...

Vincent Fernando, CFA

Memory Monitor: SK Hynix Signals Resilient AI Demand Ahead; Nanya More Exposed to Global Downturn

​SK Hynix anticipates strong AI/server memory demand despite global uncertainty. SK Hynix shares positioned favorably vs. Nanya Tech shares,...

Vincent Fernando, CFA

Taiwan Tech Weekly: Leaked Mediatek Specs Spur Talk Of "Qualcomm Killer"'; TSMC on Track in Arizona

​Leaked Mediatek chip specs hint at potential rival to Qualcomm's flagship chips; Foxconn investing in Texas & Thailand; TSMC's Arizona production...

Vincent Fernando, CFA

Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded

​Micron's latest results show improved margins and growth forecasts, signaling positive news for Memory industry shares.

Vincent Fernando, CFA

3Q24 earnings beat expectations with improving gross margins despite memory market weakness. Anticipates short-term challenges in PC and...

Silicon Motion sees strong demand for NAND flash controllers from PC and smartphone industries. Expects pricing to improve into 2025E and market...

SK Hynix anticipates strong AI/server memory demand despite global uncertainty. SK Hynix shares positioned favorably vs. Nanya Tech shares,...

Leaked Mediatek chip specs hint at potential rival to Qualcomm's flagship chips; Foxconn investing in Texas & Thailand; TSMC's Arizona production...

Micron's latest results show improved margins and growth forecasts, signaling positive news for Memory industry shares.