Daily Brief TMT/Internet: Microsoft Corp, Nuvoton Technology, Silicon Motion Technology, Temairazu, Inc. and more

• Azure Revenue Growth: Microsoft’s Azure revenue soared 21% YoY to $26.7B in Q3 2024, driven by advanced AI capabilities and increased enterprise adoption.
• AI & Personal Computing: AI-driven Copilot+ PCs and hybrid AI solutions are reshaping the market, with AI-capable PC shipments projected to rise from 19% in 2024 to 60% by 2027.
• Gaming + Activision: The $68.7B Activision acquisition boosted gaming revenue by 51% YoY, with Game Pass subscribers exceeding 30M and expanding Microsoft’s position in cloud gaming.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• These indices are rebalanced quarterly. In this insight, we take a look at the names leading the race to become ADDs/DELs for the September 2024 index rebal event.
• T50/100 index changes can also trigger TDIV index changes. Nuvoton Technology (4919 TT) could be involved in such a move in September 2024.

• The TDIV index tracks the top 50 names in the Taiwan Stock Exchange with the highest dividend yields. It is a yield-weighted index with unique capping rules.
• In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the September 2024 index rebal event.
• We expect one deletion and we estimate the one-way capping flow to be US$289mn.

• We had a conference call with Silicon Motion; the leading global provider of NAND flash controllers and solid-state storage solutions for the consumer, enterprise, and industrial markets.
• We focus on how Silicon Motion is leveraging advantages of QLC NAND flash memory, which is becoming a critical memory solution for new AI servers, AI PCs, and AI mobiles
• Maintain Structural Long rating for Silicon Motion and $102 valuation. The company is in a leading position to benefit from the rising importance of advanced memory controllers for AI applications.

• Temairazu is a high-quality vertical SaaS company in Japan with impressive EBIT growth rates, presenting as an undervalued investment opportunity
• Japan’s software sector is flourishing with a higher number of listed companies compared to Western markets, offering fertile ground for small-cap opportunities like Temairazu
• With upcoming improvements in shareholder returns and a competitive landscape in sectors like accounting software, Temairazu has the potential to be a Japanese hidden gem for prospective investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.