In today’s briefing:
- NCSoft: Corporate Split-Off of Two Divisions
- Cover Corp (TYO 5253) – High Growth Opportunity in the Expanding VTuber Sector
- Taiwan Tech Weekly: Declines With Nvidia; Taiwan’s Vietnam Shift Continues; UMC’s Outlook Improves
- Tech Supply Chain Tracker (26-Jun-2024): Taiwan uses AI for medical advancements.
- Micron Earnings – What to Expect
- AIXI: Announces numerous real-world AI applications. The company’s financial condition remains a concern.
- FormFactor Inc.: Revenue Diversification & Expansion In Enterprise & Consumer Markets! – Major Drivers
- Celestica Inc.: How Will Their Expansion in Hyperscalers and Data Center Market Impact Future Growth? – Major Drivers
- CarGurus Inc.: How Is Their International Market Expansion Progressing? – Major Drivers
- Belden Inc.: How Are They Augmenting Their Offerings Through Strategic Acquisitions? – Major Drivers
NCSoft: Corporate Split-Off of Two Divisions
- On 24 June, NCSoft announced a corporate split-off of two divisions called named NC QA Company and NC IDS Company.
- NCSoft plans to hold a shareholders meeting where to vote on the split off decision on 14 August. Effective date of the company split is scheduled for 1 October 2024.
- The consensus estimates sales of 2.0 trillion won (up 19.2% YoY) and operating profit of 272 billion won (up 155.2% YoY) in 2025.
Cover Corp (TYO 5253) – High Growth Opportunity in the Expanding VTuber Sector
- Cover Corp, a leading talent management company in the rapidly growing VTuber industry.
- They’re considered the most prestigious agency and should attract the best talent.
- Superior Underlying Performance Metrics: Cover boasts superior key performance indicators (KPIs) compared to their main competitor Anycolor, including higher engagement metrics like subscribers, hours watched, and viewership.
Taiwan Tech Weekly: Declines With Nvidia; Taiwan’s Vietnam Shift Continues; UMC’s Outlook Improves
- Taiwan Shares Fall With Nvidia… SK Hynix HBM DRAM with Global Unichip? Taiwan’s Vietnam Shift Continues… Broadcom Developing an AI Chip with Bytedance
- TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing
- UMC (2303.TT; UMC.US): The Outlook for 3Q24 Has Reached a Slightly Upside QoQ.
Tech Supply Chain Tracker (26-Jun-2024): Taiwan uses AI for medical advancements.
- Taiwan is utilizing AI supercomputers for medical and life science innovations, showcasing a commitment to technological advancement in those fields.
- Wistron is making a significant investment of $24.5M for a new factory in Vietnam, indicating a desire to expand production capabilities in the region for potential economic growth.
- Samsung is poised to overtake Apple in Taiwan’s mobile market by June, highlighting the company’s competitive edge and potential dominance in the industry.
Micron Earnings – What to Expect
- Expect Micron to report strength in AI, highlight the company’s HBM efforts, and quote McKinsey’s trillion-dollar forecast in their earnings call tomorrow
- Although Nvidia’s growth has really helped the DRAM market, along with 2023 CapEx cuts, there are important concerns of double-ordering which could lead to a collapse soon
- Semiconductor market revenues have leveled off since December 2023, hinting a return to more normal growth for the rest of the year
AIXI: Announces numerous real-world AI applications. The company’s financial condition remains a concern.
- Xiao-I (NASDAQ: AIXI) is leveraging its existing relationships and signing new clients at an impressive pace.
- The company has announced nearly a dozen new products or relationships utilizing its AI platforms in the past two months.
- Competition remains intense in the AI market and we think investors are questioning if Xiao-I has the financial capacity to remain competitive across multiple industries as private and public companies continue to invest heavily in its core markets.
FormFactor Inc.: Revenue Diversification & Expansion In Enterprise & Consumer Markets! – Major Drivers
- FormFactor delivered mixed first-quarter results for the fiscal year 2024, with its revenue closely aligning with the upper end of forecasts due to robust demand in the DRAM probe card sector, corroborated by significant advancements in setting standards for testing high-bandwidth memory (HBM).
- However, the company encountered challenges as non-GAAP earnings per share (EPS) dipped below the anticipated range primarily due to a less favorable product mix across its segments and heightened warranty costs in the Probe Cards segment.
- 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.
Celestica Inc.: How Will Their Expansion in Hyperscalers and Data Center Market Impact Future Growth? – Major Drivers
- Celestica launched the first quarter of 2023 on a robust note, demonstrating a significant enhancement in its financial metrics and strategic position.
- The firm reported revenues of $2.21 billion, surpassing their high-end guidance and representing a year-over-year increase of 20%.
- Notably, the adjusted earnings per share (EPS) reached $0.86, exceeding expectations by $0.39 compared to the prior year period.
CarGurus Inc.: How Is Their International Market Expansion Progressing? – Major Drivers
- CarGurus Inc. recently disclosed its first-quarter 2024 financial results, presenting a mixed outcome with several highlights and areas of concern.
- In terms of positives, the company reported an increase in non-GAAP consolidated adjusted EBITDA by 24% year-over-year, marking the highest first-quarter EBITDA margin in three years.
- This growth was primarily fueled by a continued expansion in the subscription base and revenue generated from its Marketplace business, which witnessed an acceleration of 12% year-over-year growth in revenue.
Belden Inc.: How Are They Augmenting Their Offerings Through Strategic Acquisitions? – Major Drivers
- Belden Inc., a global leader in signal transmission solutions, reported their first quarter 2024 financial results, demonstrating a performance that exceeded expectations amidst a challenging market environment.
- Revenue for the quarter stood at $536 million with earnings per share (EPS) of $1.24, surpassing the high end of their guidance.
- This achievement was undergirded by a sequential increase in orders by 5%, resulting in a book-to-bill ratio of 1.03, suggesting a shift toward more stable conditions.
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