In today’s briefing:
- Astera Labs IPO Valuation Update: Multiples Appear Rich, Limited Post-IPO Upside
- Baidu Inc.: Are Its Investments In Gen AI and LLM Paying Off? – Major Drivers
- Tokyo Electron (8035): Q3 FY03/24 Update
- Monolithic Power Systems: Increasing Power Requirements for Newly Introduced AI Products Changing The Game! – Major Drivers
- Autodesk Inc.: Implementation of The New Transactional Model A Potential Game Changer? – Key Drivers
- Nutanix Inc.: What Are The 3 Biggest Challenges On Its Path? – Major Drivers
- Hewlett Packard Enterprise (HPE): Hybrid Cloud Growth & Transition To An As-a-service model! – Key Drivers
- Elastic N.V.: Will The Growing Demand For Hybrid Search Last? – Key Drivers
- NetApp Inc.: Will Their Investment In AI Technology Pay Off? – Key Drivers
- NetEase Inc.: How The Company Has Built A Robust Gaming Ecosystem! – Major Drivers
Astera Labs IPO Valuation Update: Multiples Appear Rich, Limited Post-IPO Upside
- Astera Labs, which offers connectivity solutions tailored for AI accelerators, GPUs, FPGAs and other high-performance computing platforms, announced terms for its IPO today.
- California-Based semiconductor company plans to raise ~$392M by offering ~14.8M shares at a price range of $27 to $30. Selling stockholders offer ~3M shares of common stock in this IPO.
- At the midpoint of the proposed price range, Astera Labs would command a fully diluted market value of $5B, above their last private round of $3.15B.
Baidu Inc.: Are Its Investments In Gen AI and LLM Paying Off? – Major Drivers
- The recent earnings of Baidu indicated solid performance for the fiscal year 2023.
- An extremely neutral analysis reveals several positives.
- The total revenue for Baidu Core’s total revenue for the year increased by 8% year-over-year, indicating strong financial resilience.
Tokyo Electron (8035): Q3 FY03/24 Update
- Tokyo Electron (8035 JP) is a global manufacturer of semiconductor production equipment (SPE).
- In FY03/23, the company posted revenue of JPY2.2tn, operating profit of JPY617.7bn, recurring profit of JPY625.2bn, and net income attributable to owners of the parent of JPY471.6bn.
- Tokyo Electron Limited announced revisions to its full-year earnings forecast for FY03/24.
Monolithic Power Systems: Increasing Power Requirements for Newly Introduced AI Products Changing The Game! – Major Drivers
- Monolithic Power Systems (MPS) enters 2024 with a cautiously optimistic outlook, following a record revenue of $1.82 billion for the full year of 2023, marking its 12th consecutive year of revenue growth.
- The highlights of MPS’ performance in 2023 were the consistent execution, continuous innovation, and robust customer focus.
- However, the visibility beyond the current quarter remains limited due to uncertain customer ordering patterns reflecting overall economic uncertainty.
Autodesk Inc.: Implementation of The New Transactional Model A Potential Game Changer? – Key Drivers
- Autodesk demonstrated strong performance in the fourth quarter and full year results of fiscal 2024 with 14% constant currency revenue growth in Q4.
- The report reflects Autodesk’s resilience and discipline manifested through its subscription business model, product diversification, and robust customer base.
- The company’s diversified consumer base spans various regions and industries, enabling balanced growth.
Nutanix Inc.: What Are The 3 Biggest Challenges On Its Path? – Major Drivers
- Over the quarter, Nutanix reported record revenue of $565 million, which surpassed guidance expectations, as well as an impressive annual recurring revenue (ARR) increment of 26% YoY reaching $1.74 billion.
- Besides solid financial performance, the company also accomplished its first GAAP operating profitability in Q2 which showcased the effective workings of their subscription model.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Hewlett Packard Enterprise (HPE): Hybrid Cloud Growth & Transition To An As-a-service model! – Key Drivers
- Hewlett Packard Enterprise (HPE) reported that its Q1 2024 revenues did not meet expectations, mainly due to softening in the network industry and the timing of several large GPU acceptances.
- Reported revenue was lower than anticipated largely because of softening demand industry-wide for network, and the timing of several large GPU acceptances was shifted.
- Additionally, HPE did not have the supply of GPU it desired, which constrained revenue growth.
Elastic N.V.: Will The Growing Demand For Hybrid Search Last? – Key Drivers
- Elastic’s Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a testament to the continued traction in the cloud and consolidation under the Elasticsearch platform.
- Strong sales were driven by customer interest in Generative AI, with the platform being leveraged to develop Generative AI applications, providing an appreciable advantage relative to pure-play vector database vendors.
- Another key factor was platform consolidation, with customers choosing Elasticsearch to displace incumbent solutions for multiple use cases, underscoring the platform’s import within the IT infrastructure context.
NetApp Inc.: Will Their Investment In AI Technology Pay Off? – Key Drivers
- NetApp Inc.
- reported a decent performance in Q3 FY ’24.
- During this quarter, revenue grew above the company’s guidance, driven by the momentum of their expanded all-flash product portfolio.
NetEase Inc.: How The Company Has Built A Robust Gaming Ecosystem! – Major Drivers
- The NetEase Q4 earnings revealed several strengths and weaknesses in the company.
- On the positives, NetEase reported a 7% increase in total net revenue for 2023 to RMB 103.5 billion (USD 14.6 billion), driven by momentum across its businesses.
- The revenue growth was attributed mainly to increased revenue contribution from the launch of new games such as Justice Mobile, and sustainably developed titles like Egg Party.
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