Tech Hardware and Semiconductor

Revenue for November 2023 was NT$206.03 billion, a decrease of 15.3% MoM, and down 7.5% compared to the year ago period.
Based on the guided midpoint, December revenue will show a further 20% MoM decline
We estimate FY2023 revenues of $68.8 billion, down 9.4% YoY.

2. Taiwan Dual-Listings Monitor: TSMC Premium at an Extreme; ASE Dropping Lower and Lower

TSMC: 10.4% Premium — Decent Level to Short the Spread At
ASE: 6.2% Premium — Wait for 5% as the Level to Go Long the Spread
UMC: Trading at 0.8% — Wait for 1.5% or Higher

3. MediaTek (2454.TT): The WiFi 7 Chip Competition Is Likely to Become Fierce in 2024.

The WiFi technology was dominated by Broadcom Corp Cl A (BRCM US), but Mediatek Inc (2454 TT) has to break into the PC and smartphone markets in 2024F.
There are speculations that Apple might use MediaTek’s WiFi 7 solution in 2024F or consider MediaTek as a potential chip provider.
MediaTek will be using 6nm technology for WiFi 7, replacing the current 28nm technology used for WiFi 6.

4. Rohm (6963 JP): Government Subsidy for Power Device Project with Toshiba

Rohm’s share price was up 6% on Friday, December 8, on the news that the Japanese government will subsidize its collaboration with Toshiba in power semiconductors.
The subsidy will amount to one-third of the ¥388.3 billion yen the two companies plan to invest in Silicon Carbide and Silicon devices for the electric vehicle and other industries.
Rohm hit bottom on October 31, management cut FY Mar-24 guidance on November 1 and the market is now looking to recovery. Toshiba will be delisted on December 20.

5. AMD. With FY23 Revenues Set to Fall ~4% YoY, Is The Party Over?

AMD’s resurgence against a dominant Intel saw the company grow annual revenues >4x between 2017 and 2022
FY 2023 revenue is likely to be down roughly $1 billion or ~4% YoY.
We expect a combination of renewed Data Center market share growth plus a grand entrance into the AI acceleration segment will restart the party all over again in 2024.

6. Taiwan Tech Weekly: AI Plays Weak Despite Strong Taiwan Tech Market Performance

Overall, it was a strong week for Taiwan Tech. TSMC and Mediatek showed strong performances, as well as key names we like such as Yageo and Himax.
AI-Related Taiwan plays showed relative weakness. This weakness interestingly happened during a week when NVIDIA Corp (NVDA US) performed well.
According to insight provider Patrick Liao, MediaTek WiFi 7 chip competition is likely to become fierce in 2024.

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Dec 10

Weekly Top Ten Tech Hardware and Semiconductor – Dec 10, 2023

By Smartkarma Content | Tech Hardware and Semiconductor

1. Taiwan Tech Weekly: TSMC Extending Lead Vs. Samsung with 3nm Tech; Hon Hai Result Positive for Apple

Is TSMC Leaving Samsung in the Dust with its New 3nm Process Technology?
Our Pick Himax a Top Loser… Apple Lens Supplier, Yageo Peer, and Taiwan AI Chip Designer Top Winners
Positive Sign for Apple Revenue — Hon Hai November Revenue Higher Than Expected, Guides for Better December

2. MediaTek (2454.TT): Rebounding from Cycle Bottom.

Mediatek Inc (2454 TT) has rebounded from the bottom of the cycle, and it will be able to reach more than 20% YoY in 2024F.
The demand for 4G and 5G Smartphone SoC will be split around 55/45 by shipment volume, with Taiwan Semiconductor (TSMC) (2330 TT) being the primary supplier for MediaTek.
The MediaTek Dimensity 6000 series will be the new flagship product line in 2024F.

3. Semiconductor Events Deserving Your Attention @6/12/23

Global semi sales for October 2023 amounted to $46.6 billion, an increase of 3.9% MoM but still down 0.7% compared to the year-ago period
Global semiconductor equipment billings amounted to $25.6 billion in Q323, down 11% YoY and down 1% QoQ
China is on track to maintain the global #1 semi WFE spender slot for the fourth year in a row and by the widest margin ever.

4. Hamamatsu Photonics (6965 JP): Buy into Current Weakness

The shares are down 27% from their May high, largely discounting excessive inventory and a decline in profits that is likely to continue through next March or June.
Inventory adjustment, the revival of semiconductor, factory automation and medical related demand, plus the leveling off of depreciation, should enable a return to growth after that.
Projected valuations are at the low end of their 10-year ranges. Buy into the current weakness, keeping in mind that 1Q results are likely to be weak.

5. Cerebras. G42 Deal Is A Life Saver. Or Is It?

~$900 million supercomputer deal is off the charts compared to all previous deals
Without the deal, Cerebras would likely soon have run out of cash. With the deal, Cerebras is effectively working as a supercomputer contractor for G42 for the next several years
Three supercomputers to be built in the US, we suspect the remaining six to be built in the UAE. That’s likely to raise some eyebrows.

6. Stories Behind the Reported Nov 2023 Taiwan Semi/Tech Sales

More clear y/y improvement for 8/12″ raw wafer, WiFi IC, GaAs RF/VCSEL, and memory vendors but more y/y deterioration for OLED/LCD driver, LCD panel, design service, equipment/materials, and foundry vendors.
GaAs RF and gaming GPU card vendors showed very impressive y/y sales growth of 54% and 63%, respectively. ABF substrate vendors showed the weakest sales decline of 34% among all.
Except A Data (+2.5% m/m) and Phison Electronics (+5.6% m/m) might see stronger share price to reflect stronger November sales, most of others see good/bad news in the price already.

7. GUC (3443.TT): Why the Company Did Show a Bit Cautious Attitude with the Market Price?

On December 8th, GUC reached its daily limit at the closing price, but the company did not consistently demonstrate an agreeable attitude.
The “AI” is an explicit knowledge for today, while GUC is a company of project based.
GUC’s monthly revenue decreased by 22.15% YoY in November 2023.

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Dec 03

Weekly Top Ten Tech Hardware and Semiconductor – Dec 3, 2023

By Smartkarma Content | Tech Hardware and Semiconductor

1. Semiconductors. The Downturn Is Over. Or Is It?

Global semiconductor sales have increased MoM for seven months in a row. PC & Smartphone unit shipments have bottomed and are on the rise. Memory has bottomed.
Silicon wafer inventories are piled high, ASML, TEL facing down zero growth in 2024, foundry utilisations are (mostly) in the doldrums with further ASP cuts looming on the horizon.
Multiple data points suggest we’ll still be talking about this downturn well into 2024

2. TSMC (2330.TT; TSM.US): 2024 High Conviction for Upside >15% YoY

TSMC is expected to experience growth of ~15% YoY in 2024F.
TSMC’s N3 is expected to dominate the market in 2024F, with applications in CPU, GPU, smartphone SoC, and more.
We also estimate that the N2 pilot run will begin in 4Q24.

3. TSMC: Defensive AI Play in Long Upward Re-Rating Trend?

By Douglas O’Laughlin, Fabricated Knowledge

We believe TSMC represents defensive exposure to AI for investors concerned that many other AI-related stocks’ valuations may be too high.
While one may think TSMC seems too obvious as a play, we note that the stock is up only 4.5% over the last six months.
We view TSMC as trading at an inexpensive valuation; even a cheap valuation should our hypothesis that the stock is structurally re-rating upwards turn out to be true.

4. Nvidia’s China Problems, Applied Materials, and Microsoft’s Accelerators

Nvidia’s quarter was surprising to me because it was boring. There were a few incremental pieces, but the big news was everything to do with China.
As you know, there was another round of export restrictions with a myopic focus on AI Accelerators.
This impacted results and the outlook.

5. Memory Monitor: Micron Expects 2025E to Be Best-Ever for Memory; But Valuations Have Run Up a Lot

Memory names have rallied strongly, with Nanya Tech outperforming since the start of November.
DRAM bottomed and NAND flash prices have jumped. Micron says that 2025E could be a record year for the Memory industry.
High valuations make near-term upside for Memory names uncertain. For Long/Shorts one can consider Long Micron vs. Short SK Hynix or Long Micron vs. Short Nanya Tech.

6. Micron. The Rally Is Premature

Improving outlook with Q1F24 revenue forecast slightly above the high end of the guided range
2024 is being positioned as a “recovery year”, helping reset investor expectations about the nature and speed of the recovery
Micron’s share price typically rallies strongest into record revenue years. 2024 will not be a record revenue year. As such, we think the present rally is premature.

7. Taiwan Dual Listings Monitor: Spreads Generally Trading in the Middle of Their Ranges

TSMC: 8.2% Premium — Still Best to Wait for Better Levels
ASE: 6.4% Premium — Wait for 5% as the Level to Go Long the Spread
ChipMOS: -0.5% Discount — Stay Long the Spread if You Started at -2.0%

8. UMC (2303.TT; UMC.US): There Is a Greater Chance for a Rebound in 2Q24F.

Although it is still early to determine the extent of the utilization rate that could be reached in UMC for 2Q24F, there is a greater chance for a rebound.
UMC’s high-end technology, specifically 28nm, has a utilization rate of over 80% in 4Q23F.
MediaTek is UMC’s largest client, dominating in WiFi, TV SoC, Bluetooth, and other areas.

9. Taiwan Tech Post-Earnings Takeaways: Semis Margins Underestimated? Hardware 2024E Forecasts Ramped

Taiwan Tech companies beat analyst expectations by a high rate in the latest quarter
Semiconductors: Consensus could be underestimating a margin rebound for 2024E
Hardware aggregate forecast earnings growth increased significantly for 2024E as compared to just three months ago

10. Taiwan Tech Weekly: Taiwan AI Top Losers; Dell to Provide PC/Server Color; Post-3Q Results Takeaways

Taiwan AI Plays Top Losers Recently, Dell Results Coming Today U.S. Time to Provide Color for PCs and Servers
Taiwan Tech Post-Earnings Takeaways: Semis Margins Underestimated? Hardware 2024E Forecasts Ramped
Nanya, Yageo Top Gainers; We Rate the Stocks Outperform and Structural Long Respectively

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Nov 26

Weekly Top Ten Tech Hardware and Semiconductor – Nov 26, 2023

By Smartkarma Content | Tech Hardware and Semiconductor

1. As Expected from Our Earlier BOM/CoWoS Analysis, Consensus to Raise Nvidia Estimates Inevitably

Nvidia reports/guides a better than expected 3Q/4Q23 sales, margin, and EPS on stronger AI GPU sales growth of nearly 3x.
Nvidia reports a healthy 3.04 MOI, down 5% q/q and down 37% y/y and contributes nicely to account for 9% of TSMC sales.
In spite of concerns on good news priced in, seasonal weaker 1Q24, and MI300X/ASIC alternative AI solutions, we expect more raise to come in 2024-2025E.

2. NVIDIA. Another Beat & Raise, Yet Shares Slide. But Why?

Q3FY24 revenues of 18.1 billion, up 34% QoQ and up a staggering 206% from the year ago period. It was also ~$2 billion higher than the guided number
NVIDIA’s current quarter forecast was for a further revenue raise of almost $2 billion with gross margins staying roughly flat at 74.5%
Share price reaction was negative, closing down 2.5% the following day. But why?

3. A Turnaround Story for Intel by Accelerating 3nm Outsourcing to TSMC?

By offering 15k and 30k/m 3nm capacity by 4Q24/4Q25 to Intel, TSMC will see Intel becoming one of its top 3 customers by accounting for 12% of TSMC 2025 sales
By leveraging 3nm outsourcing, Intel will have incremental sales/capacity growth of 19-20% per year by accounting for 28%/44% of sales in 2024/2025, beating consensus’ 14%/9% y/y sales growth for 2024/2025.
We estimate 30-35% 5 years EPS CAGR for Intel, driven by TSMC’s 2/3nm foundry support, lower cost and process R&D, lower capex and depreciation cost, and AI PC CPU launch.

4. Nvidia Still Cheap: Enterprise AI Next Driver to Kick-In; Adjusting Our Taiwan AI Plays Short Hedge

By Douglas O’Laughlin, Fabricated Knowledge

Nvidia’s street-beating results indicate strong growth to continue; Generative AI demand will next expand from startups, consumer internet, and cloud service providers increasingly to enterprise AI-linked demand.
Nvidia is not expensive despite recent market concerns. We believe Nvidia can meet or even beat its current calendar year 2024 earnings expectations and forward PE is cheap.
Short a basket of Taiwan AI concept stocks vs. a core Nvidia long position rather than take profits in Nvidia. We have swapped one Taiwan stock in our short basket.

5. OpenAI Boardroom Battle: Safety First

OpenAI was founded in 2015 by investors, including Elon Musk, Reid Hoffman, Peter Thiel, AWS, and YC Research.
The goal was to pursue Artificial General Intelligence (AGI) safely for the benefit of humanity.
There was an initial pledge of $1 billion, but the money that came in was $100 million from Elon Musk and $30 million from Open Philanthropy.

6. TSMC (2330.TT; TSM.US): N2 Technology Is Scheduled in 2025F.

TSMC’s N2 technology is currently undergoing verification for a 256Mb SRAM, and it will be implemented in Hsinchu and Kaohsiung, Taiwan.
The TSMC N3 technology capacity was 65kwpm in 3Q23, and the current version is N3B, which were adopted by Apple for the iPhone 15 this year.
Both N3E and N2 only have 20 layers EUV masks.

7. Taiwan Tech Weekly: Nvidia Results Today; Taiwan Market Surged But Why It Might Be Still Underowned

Nvidia Results Today U.S. Time — Taiwan Market Surged Recently on Improving AI/Semiconductor Expectations and Potential for Easing U.S.-China Tensions.
Taiwan: Underowned, Yet Gaining on Peers. Our Fellow Insight Provider Analyzes Why Taiwan Might Still Be Underowned.
Asia Geopolitics: Following Biden-Xi Meeting, Asia Is a Safer Place For Now.

8. Taiwan Dual Listings Monitor: TSMC Premium Slumps; CHT & ChipMOS at Rare Opportunity Levels

TSMC: 7.4% Premium — Previous Short Has Worked, Now Wait For Better Levels
ChipMOS: -2.0% Discount — Good Level to Go Long the Spread
CHT: -1.2% Discount — Good Level to Go Long the Spread

9. Q323 Memory Segment Review, Outlook

Q323 DRAM revenues amounted to $13.210 billion, up a robust 19.25% QoQ, but still down 27% from the year-ago period.
In the case of NAND, Q323 revenues amounted to $9.3 billion, up 4% QoQ but down 31.7% YoY.
All memory players remain loss making. We don’t anticipate a return to black until Q224.

10. What Oct US SEMI Equipment and Sep SIA/WSTS Global Sales Tell Us?

SEMI reports Oct front/back end equipment billings decline of 14% and 18% y/y, respectively, which was improved from 18% and 24% y/y decline in September, implying early signs of recovery.
WSTS/SIA earlier reported September sales of US$44.89bn, up 1.9% m/m and down only 4% y/y (vs. 16% decline in June), suggesting semi sales y/y improvement and pass the cycle trough.
We are positive on SOX INDEX likely to break new high of over 4,000 in six months and expect PC/smartphone/training AI semi and DRAM semi/equipment vendors to outperform in short.

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Nov 19

Weekly Top Ten Tech Hardware and Semiconductor – Nov 19, 2023

By Smartkarma Content | Tech Hardware and Semiconductor

1. Taiwan Dual Listings Monitor: TSMC ADR Spread at Decent Short Level; UMC ADR Short Interest Soaring

TSMC’s ADR premium is 10.4%, this is a decent level to short it based on the historical trading range.
UMC’s ADR premium is near a good level to short the spread but one should wait for it to rise above 1.5% in our view.
UMC ADR short interest continues to trend higher; TSMC ADR short interest continues to fall.

2. Takeaways After Global Semi Equipment Model Updated and Our View on 2024/2025

Takeaways: 1. Semi equipment vendors beat 4Q23E; 2. China and DRAM customers stronger ; 3. Margin stable due to lack of depreciation; 4. Top four controls over 90% of shares;
More takeaways: 5. Semi equipment companies’ share price performance should lag behind foundries, foundries should lag behind fabless customers; 6. China semi equipment vendors outperforming global peers on local replacement;
Estimating a flattish global semiconductor equipment sales growth for 2023 and 2024 but expecting a double digit y/y sales growth of 17% for 2025 and 10% for 2026.

3. Semiconductor Events Deserving Your Attention @ 13/11/23

TSMC Reported October revenues of NT$243.20 billion, an increase of 34.8% QoQ and an increase of 15.7% YoY.
According to IDC, worldwide smartphone shipments amounted to 302.8 million units in Q323, still down 0.1% YoY, but up ~14.1% sequentially.
Silicon wafer area shipments for Q323 amounted to 3,010 MSI, down 19.5% YoY & down 10% QoQ. Why are wafer shipments declining when key end markets are in recovery mode?

4. Silicon Wafers. SUMCO Sounds The Alarm As Inventory Continues To Climb

Global silicon wafer area shipments declined 10% QoQ in Q323 but customer inventory remains at historical highs and is showing no signs of declining
SUMCO’s Operating Profit forecasted to fall by ¥8.6 billion QoQ in Q423
The company vowed to make “substantial” production cuts in a bid to bring their inventory situation under control.

5. Taiwan Tech Weekly: AI Names Rally But Nvidia Long/Short Still Working; Hon Hai & Asustek Take-Aways

Earnings season wrapping up — Hon Hai & Asustek recently reported… Some AI names rallied hard but our Nvidia L/S trade still working
Hon Hai’s margin expansion story is finally starting to be realized. Stock’s perceived political risk could be an opportunity.
How Asustek plans to take the lead globally in AI PCs; Gaming PCs will be the first key battleground. MSI could be an interesting play on Asustek’s recent strong performance.

6. Screen Holdings (7735 JP): FY Guidance Up, 2H Guidance Down

By Douglas O’Laughlin, Fabricated Knowledge

The share price has risen by more than 20% in the past month as 1H results beat guidance, FY guidance was raised and the yen weakened.
The 2-for-1 stock split may also have attracted retail investors. But the new FY guidance implies lower 2H guidance.
The outlook is for higher but volatile sales and profits. Valuations are reasonable but not compelling. Wait for a pullback.

7. Semiconductor Cycles: Industrial and EVs

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.

8. How Asustek Plans to Take the Lead Globally in AI PCs; Gaming PCs First Key Battleground

Asustek reported results on November 13th that beat analyst expectations thanks to a major margin rebound. The stock soared post results.
Asus plans to be the first company globally to release an AI PC, leveraging extensive AI R&D across different devices as well as its leading market share in gaming PCs.
However, gaming PC competitor MSI is already moving fast; Shows how gaming PCs are likely to be the first AI PC battleground. Long Asustek, remains preferred over Acer.

9. Silergy (6415.TT): Silergy Expect to Grow Slightly in 4Q23F.

The inventory adjustment of consumer electronics products is nearing completion and industrial products will end later.
Silergy Corp (6415 TT)‘s short-term growth momentum comes from the demand of new smartphone, while its long-term growth momentum comes from the automotive, new energy and high-performance computing area.
In 1H24, the pro forma gross profit margin can be maintained at around 50%.

10. Hon Hai’s Margin Expansion Story Finally Starting to Be Realized? Results Imply Yes

Hon Hai beat expectations yesterday when it reported thanks to higher than expected margins. Gross margin rose to its highest level since 2018, hitting 6.7%.
The company has maintained its 2025E 10% gross margin target and implied that 2024 will see significant margin improvement as new higher margin businesses ramp up revenue contribution.
Two key market concerns: News of Chinese government investigation and political risk given Mr. Gou running for president. Company said operations continue as normal. Hon Hai remains a Structural Long.

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Nov 12

Weekly Top Ten Tech Hardware and Semiconductor – Nov 12, 2023

By Smartkarma Content | Tech Hardware and Semiconductor

1. Taiwan Tech Weekly: Positive Signs for Memory, PC, Smartphones; Key Autos & Display Color This Week

Last week global heavyweights AMD, Samsung, and Qualcomm delivered good news, including for the Memory, PC, and Smartphone industries. Taiwan company results supported their views as well.
Looking ahead, Novatek, Asustek, and Himax are set to release in Taiwan. Combined with NXP abroad, this will provide color on display demand, automotive, and servers/PCs.
A new Chinese memory chip maker just received major government investment, with an IPO of its related company planned.

2. UMC. Automotive Weakness Prolongs Downturn

Q323 revenues of NT$57 billion, up 1.4% QoQ but down 24.3% YoY. For 2023 YTD, revenues have amounted to NT$167,575 billion, down 20.5% YoY.
Net income was NT$15.97, essentially flat QoQ. Gross margin came in at 35.9%, also flat QoQ. Utilisation for the quarter was 67%, down from 71% in the prior quarter.
Utilization set to further decline to low 60% levels in Q423, the lowest since the downturn began.

3. GlobalFoundries Pops On Q323 Earnings. But Why?

Q323 revenues of $1.85 billion, flat sequentially but down 11% YoY. Net income was $249 million, up 5% sequentially but down 26% YoY.
At a midpoint of $1.85 billion, forward guidance is once again flat sequentially. Overall it was a solid report with guidance slightly better than UMC delivered last week.
Despite the solid quarter, the company’s outlook for 2024 was bleak with a 50% CapEx cut, LTAs under mounting pressure & ominous-sounding LTA “True Up” on the horizon.

4. HHGrace. Yikes! Things Just Got Really Ugly

Revenues of US$568.5 million, down 10% sequentially and down 9.7% YoY, at the bottom of the previously guided range.
Net loss of $25.8 million compared to a profit of $7.8 million in the previous quarter and $65.5 million in the year ago period.
With current quarter gross margins in the 2-5% range, HHGrace has flipped from best in class in H123 to the worst in class now.

5. SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality

Reports emphasizing that SMIC fell short of 3Q expectations don’t make much sense. The real test starts this quarter with 7nm smart phone processors for Huawei in mass production.
Profits are under pressure from low capacity utilization, rising depreciation and continued high investment. Cash flow is adequate. The balance sheet is sound.
The share price dropped 6.8% on Friday after rising 44% from late August to early November. 4Q guidance points to near-zero operating and net profit. Recovery will take time.

6. SMIC (981.HK): Probably A Double U-Shape Correction for Around 2 Years Until the End of 2024F.

Based on the some judgments, SMIC consider it will be relatively flat demand in 2024F.
SMIC took into consideration geopolitical instability and allowed equipment vendors to submit orders in advance.
Currently, only a few manufacturers are stockpiling smartphones in response to this wave. The overall industry remains relatively stable.

7. Takeaways Post Our Global Foundry Model Updated and Initial View on 2024

Takeaways post model updated: 1. most foundries miss 4Q23 but y/y decline to decelerate; 2. y/y sales passed the trough but utilization later; 3. wafer shipment down 18-20% in 2023;
More takeaways: 4. different mix with different price; 5. some are defensive this year, some might have larger upside for 2024; 6. gross margin still falling and capex cut needed.
Automotive/Industrial lags only not beginning of the fall: Smartphone, pc, consumer/IOT foundry orders might recover earlier than automotive/industrial for 2-3 quarters, resulting fablesses in these area to outperform.

8. Why Is Vanguard Semi Becoming to a Bad Student, Cyclical or Structural?

Shortage/Oversupply, price hike/cut, automotive/industrial demand and inventory corrections are still cyclical. Gross margin should double from 22-24% now once utilization returning to 100% and no more free wafer by 2025.
LCD driver foundry is facing a structural competition as China panel customers are building a local supply chain.
Attractive below NT$70 as: 1. inventory correction should be done by 2Q24; 2. global 8″ foundry sales y/y improvement began 3Q23; 3. closing to cyclical low P/BV of 2.5x.

9. With No Surprise, Diodes Guides Automotive/Industrial Semi Demand to Fall over 20% Q/Q

Like other automotive/industrial semi vendors, Diodes guides 4Q23 sales of 20% q/q and 35% y/y decline (miss by 21%) and weaker gross margin/operating margin of 35%/7% (miss by 5ppts).
The company sees 4Q23 sales decline of 20% mainly from 19% of automotive and 26% of industrial customers due to customer inventory cut coupled with year-end distributor inventory management.
We expect this adjustment for automotive/industrial IDMs to last for at least 6 months and suggest our clients to avoid these names unless valuation becoming attractive.

10. What Early Indicators from the Reported Oct 23 Taiwan Semi Sales

More y/y improvement (or decline deceleration) for PC/server, power management IC (PMIC), CMOS sensor/touch controller, GaAs RF/VCSEL, gaming GPU card, memory, and foundry vendors
GaAs RF/VCSEL and gaming GPU card vendors saw very impressive sales growth, driven by new phones introduction and rush orders to use NVIDIA RTX 4090 gaming card for AI training.
Stronger than expected Oct for TSMC and Gigabyte might drive 4Q sales and near term share price upside; Visera, Andes Tech, and AP Memory might see sales and price downside.

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