Daily Brief TMT/Internet: Nec Networks & System Integr, Microstrategy Inc Cl A, LG CNS, Novanta , Blackline Inc, Mediatek Inc, NVIDIA Corp, Dell Technologies , Xiaomi Corp, GLOBALFOUNDRIES and more

• Yesterday, NEC Corp (6701 JP) extended its Tender Offer to buy controlled subsidiary Nec Networks & System Integr (1973 JP) for another 10 days. It did not have enough shares.
• As discussed here 4wks ago, then here yesterday, NEC might not get enough shares unless it offers a higher price. There’s a reason. It is not a high enough price. 
• METI Fair M&A Guidelines and Guidelines for Corporate Takeovers define fair. Guarantees of a floor price and a fair allocation of synergies. One is questionable. The other is not there.

• Mike Green explains how leveraged products on MSTR resemble a short straddle in their rebalancing requirements
• The two times leveraged long products, MSTU and MSTX, are unique due to their large size and underlying asset volatility, creating potential volume amplifying feedback loops
• The leveraged complex has contributed to the large premium of MSTR to the value of its bitcoin holdings, impacting ETFs forced to use options market due to limited leverage from swap providers

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• LG CNS (LGCNSZ KS) is looking to raise around US$850m in its upcoming Korea IPO. 
• LG CNS is a South Korean information technology company. The firm primarily provides comprehensive digital transformation services and solutions backed AI, big data, and cloud.
• In this note, we look at the firm’s past performance.

• Novanta Inc.’s third quarter of 2024 results reflect a mixed performance driven by a challenging macroeconomic environment, customer-related timing issues, and some positive business developments.
• The company reported revenue of $244 million, an increase of 10% year-over-year, though organic growth was flat.
• Adjusted gross margins were 46%, a slight decline from the previous year due to the dilution from the Motion Solutions acquisition, although core business margins improved by 70 basis points.

• BlackLine’s recent quarterly performance showcases a mix of both robust achievements and ongoing strategic challenges.
• The company, co-led by Owen Ryan and Therese Tucker, has demonstrated its ability to exceed revenue and profitability targets, reflecting effective strategic execution.
• A significant achievement this quarter was the record free cash flow generation, indicating strong financial health and potential for reinvestment in growth initiatives.

• Mediatek’s Apple Watch Win Highlights Smartwatch Market Opportunity; Breakthrough Into Apple’s Supply Chain
• MediaTek’s Role in Apple Watch Connectivity; Mediatek’s TSMC Relationship to Provide a Lasting Advantage
• Mediatek Rallied But Remains Below Highs; Significant Upside Remains — Maintain Structural Long

• NVIDIA Corporation, the global AI and semiconductor powerhouse, has found itself in the crosshairs of China’s antitrust regulators.
• Amid an escalating tech war between the U.S. and China, Beijing’s State Administration for Market Regulation has launched an investigation into NVIDIA’s compliance with antimonopoly laws concerning its $6.9 billion acquisition of Mellanox Technologies in 2020.
• This probe comes on the heels of the U.S. imposing stricter export controls on advanced semiconductor technologies, further intensifying the global tech rivalry.

• Interview with Michael Dell, founder of Dell Technologies, discussing his journey and insights in the tech industry
• Dell started his tech career at a young age, working in a Chinese restaurant and later upgrading computers
• Dell shares his thoughts on entrepreneurship, technology development, and the future impact of AI in various industries

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• US increases tariffs on tungsten, wafers, and polysilicon in Section 301 Trade Action against China by Trade Representative, impacting global trade.
• Challenges facing semiconductor industry highlighted by Intel and Microchip cases under CHIPS Act, affecting technological development.
• Apple and Broadcom collaborate on custom AI chip, enhancing ASIC capabilities, while Tesla resumes search for showrooms in India. Xiaomi aims for premium market in India as smartphone sales slow.

• GlobalFoundries’ third-quarter fiscal year 2024 results provide a comprehensive overview of its financial performance and strategic initiatives.
• The company reported revenue of $1.739 billion for the quarter, reflecting a 7% sequential growth, albeit a 6% decline year-over-year.
• This revenue growth is commendable given the challenging industry conditions with lower factory utilization levels around mid-70s.