In today’s briefing:
- Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Lifenet: Oasis Management Is Now Another Major Shareholder Besides Effissimo
- Taiwan Dual-Listings Monitor: TSMC Premium Remains High; ADR Short Interest Spiked
- Taiwan Tech Weekly: Stocks At Highs & Looking for Laggards? CES 2024 to Showcase Edge AI
- Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
- Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
- Misumi Group (9962 JP): Heads up for 3Q Results in Late January
- China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC
- Alteryx Inc.: Leading the AI Revolution – Can They Sustain the Momentum? – Major Drivers
- Alibaba Group Holding Limited: Can Their Upgraded AI Model To Challenge Microsoft & Amazon? – Major Drivers
Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Long Nvidia vs. Short Basket of Taiwan AI Concept Stocks — The trade has held steady since our last piece with Nvidia outperforming the shorts slightly.
- CES 2024 will be held January 9th to 12th. It will showcase AI expanding into a wide range of Edge AI applications such as home appliances and PCs.
- One can maintain the L/S trade into CES 2024 given that the Taiwan AI Short Basket constituents are unlikely to be beneficiaries of positive news flow from the event.
Lifenet: Oasis Management Is Now Another Major Shareholder Besides Effissimo
- Oasis Management has become a major shareholder in Lifenet in November. Together with another activist investor, Effissimo Capital (the largest shareholder), they now control >30% of the company.
- Company announced some new partnerships/initiatives to drive growth but they don’t seem to be materially different from what it has been doing to turn around its declining VoNB.
- Unless we can see a sustained trend of improving VoNB, it’s difficult to justify the premium valuation vs. the other more established peer.
Taiwan Dual-Listings Monitor: TSMC Premium Remains High; ADR Short Interest Spiked
- TSMC: 9.2% Premium — Spread Fell But Remains Historically High; Short Interest Spiked for ADRs
- UMC: Trading at -1.2% Discount — Still Uncompelling, Wait for Lower Levels
- ASE: Drops to 7% Premium — Could Soon Be at a Level to Go Long
Taiwan Tech Weekly: Stocks At Highs & Looking for Laggards? CES 2024 to Showcase Edge AI
- Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
- AI PC Reality Check: PC Upgrade Cycle Ahead, But Worth a 50% 1M Acer Rally? Long Dell Vs. Short Acer
Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
- Recent results from Micron and SK Hynix did not only signal a recovery for DRAM but also for NAND flash memory. Micron expects improving NAND pricing through CY2025E.
- Latest data shows a surge in NAND pricing — 512GB NAND pricing is now up 116% from its 2023 lows.
- Silicon Motion shares are down 5% over the last year. They have been weighed down by their terminated acquisition by MaxLinear, but now could offer a laggard play.
Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
- Marvell Technology managed to surpass Wall Street’s revenue and earnings expectations, achieving a commendable revenue of $1.42 billion, marking a 6% sequential growth above the midpoint of the provided guidance.
- The data center end market witnessed revenue of $556 million in the third quarter, surpassing expectations, mainly driven by robust AI revenue.
- Despite the anticipated decline in enterprise on-premise revenue, Marvell’s diverse product portfolio, including PAM4 optical products and Teralynx Ethernet switches, contributed to the broad-based growth.
Misumi Group (9962 JP): Heads up for 3Q Results in Late January
- The gradual upward trend in monthly sales, which has continued through November, has further to go in our estimation.
- At 22x EPS guidance for FY Mar-24, the shares are at the low end of their 5-year P/E range.
- Guidance remains unchanged. 3Q results are due to be announced at the end of January
China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC
- Ministry of Finance and National Health Commission issued new policy strictly prohibiting public hospitals from borrowing to purchase medical equipment, which will change the investment logic of medical device sector.
- “PD-1+ADC” is expected to replace “PD-1+chemotherapy” as the first-line standard therapy. This will be a huge market. So, good story of ADC CDMO (such as WuXi XDC) would continue.
- The inspiration that AstraZeneca’s acquisition of Gracell brings to investors is IPO isn’t the only way for exit.Being acquired is also good, which will become more important in the future.
Alteryx Inc.: Leading the AI Revolution – Can They Sustain the Momentum? – Major Drivers
- Alteryx, Inc. delivered a solid result and managed an all-around beat in the last quarter, demonstrating commendable performance across various fronts.
- These achievements were propelled by improved sales execution and heightened customer commitment to the Alteryx platform.
- Alteryx’s Executive License Agreement (ELA) strategy, featuring simplified pricing and bundled features, resonated well with larger organizations.
Alibaba Group Holding Limited: Can Their Upgraded AI Model To Challenge Microsoft & Amazon? – Major Drivers
- Alibaba Group Holding Limited delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
- For Taobao and Tmall Group, the emphasis lies on user-centric strategies, universal market coverage, multi-tiered consumer engagement, and maintaining price competitiveness.
- The Local Services Group concentrates on location-based technology services, with Amap focusing on mobility and Ele.me on-demand services.
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