In today’s briefing:
- Not Every Cloud Has A Silver Lining: Some Cloud Offerings Are Set To Soar Despite Slowdown
- Japan Equities | Stocks Surge; Food & Tech Sectors Rally
- More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction
- More China-U.S. Flights Unlikely to Bring Down High Ticket Prices
Not Every Cloud Has A Silver Lining: Some Cloud Offerings Are Set To Soar Despite Slowdown
- Amazon’s cloud market share is roughly the sum of Microsoft and Google market share put together. Microsoft’s market share is twice that of Google.
- After stupendous growth over the last five years, cloud business continues to grow but at a slowing pace. Amid tech spend cuts, not every cloud vertical is set to grow.
- Those cloud providers enabling AI workloads are primed to soar despite shrinking cloud budgets.
Japan Equities | Stocks Surge; Food & Tech Sectors Rally
- Market Watch: Japanese surge as the US maintains interest rates and Bank of Japan only makes minor adjustments to YCC
- Major Movers: Food companies were the big winners this week with all benefitting from strong overseas earnings
- Activist Watch: Strategic Capital lift their stake in Toa Road by 1pt to 10.3%
More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction
- During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.
- A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low.
- China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.
More China-U.S. Flights Unlikely to Bring Down High Ticket Prices
The number of weekly flights between China and the U.S. will increase again next month, sparking hopes that more supply will put downward pressure on sky-high ticket prices.
But industry insiders warned that the cost of a ticket won’t drop significantly anytime soon, as low travel demand means American airlines are taking a “cautious” approach to resuming operations.
From Nov. 9, Chinese carriers will be able to operate 35 weekly round-trips to the U.S., according to a U.S. Department of Transportation order issued Friday.
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