Daily Brief TMT/Internet: NVIDIA Corp, KCE Electronics PCL, Advanced Micro Devices, Mediatek Inc, United Microelectron Sp Adr, Samsung Electronics, Liberty Latin America , A10 Networks, Nec Networks & System Integr and more

• Nvidia’s H20 and upcoming B20 were launched to comply with China export controls, and have remained successful due to deficiencies and supply issues for Huawei’s Ascend AI accelerators.
• However, Nvidia’s China success will be short-lived due to increasing LLM compute requirements and no method for it to offer a more performance dense offering due to export controls.
• Not only will Huawei’s upcoming Ascend AI accelerator mitigate this issue, but it will likely also aim to address some of the other deficiencies of the Ascend platform too.

• The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
• In this insight, we take a look at the potential ADDs/DELs for SET 50 during the index rebal event in December 2024.
• At present, we see 3 ADDs and 3 DELs but since the reference period is yet to start, the rankings can fluctuate significantly before the base date.

• Q224 revenues of $5.8 billion, +5.5% QoQ, +9% YoY and $100 million above the guided midpoint
• AMD forecasted current quarter revenues of $6.7 billion at the midpoint, up 15% QoQ and about the same YoY.
• AMD shares are up 9% in premarket trading, hardly the response one expected from a good but not amazing report. But why?

• Mediatek 2Q24 Earnings Beat Expectations; Strong Mid-Term Revenue Guidance Maintained
• 2Q24 Global Smartphone Market Witnessed Best Growth in Three Years
• Repeats Strong Mid-Term Guidance; Continues to Signal Revenue Strength for 2025E & 2026E. Maintain Structural Long Rating.

• 3Q24 Sales: NT$123.5-132.4 billion, down 3% to up 4% QoQ, up 12-24% YoY. 4Q24 is expected to be a slower quarter based on current expectations.
• Advanced 3nm technology can support SP, tablets, and other end devices. AI-powered functions like ARM-based CPU or EV will bear fruit in 2025.
• The GPU has partnered with NVDA. Auto chips partnered with NVDA will be shipped out later in 2025. They will power MTK’s CPU and ISP in conjunction with NVDA’s GPU.

• 3Q24 guidance: Shipment up mid-single digits QoQ; ASP: Remains firm in USD; GM: around mid-30%. (Consensuses were high single digits.)
• Has provided a 22nm HV solution for high-end OLED DDI to high-end SP, and expects to reach high-volume production in 2025.  
• Cooperation with Intel Corp (INTC US) is progressing well, targeting MP for 14nm in 2027.

• CoSAI is a collaboration between tech giants like Intel, Google, and IBM to drive innovation in the automotive industry.
• Knobs and buttons are making a comeback in car interfaces, reflecting a trend in automotive design for more tactile controls.
• Apple opposes Tata-Vivo partnership as Vivo marks its 10th anniversary in India, while Biden admin shows support for CHIPS Act to boost packaging and testing industry.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Liberty Costa Rica’s ESG as “Adequate”. The score mirrors our assessment of parent Liberty Latin America (LLA), which discloses ESG-related information on a consolidated basis, without meaningful details on the bond-issuing credit pools that we cover (C&W Communications and Liberty Puerto Rico). 

We assess LLA’s Social and Governance pillars as “Strong” and “Adequate”, respectively, offsetting the “Weak” Environmental score. Controversies are “Immaterial” and Disclosure is “Adequate”. 

• ATEN reported Q2 results with greater success in winning enterprise orders while North American service providers limited their spending. 
• Over the past year, ATEN has shifted more of its sales and marketing effort to winning enterprise customers, which should have more of a meaningful benefit to recurring revenue. 
• ATEN reported revenue of $60.1 million compared to our forecast of $62.7 million. The second quarter results were lower than first quarter numbers, which is rare to see for ATEN.

• Q1 progress rates versus full-year forecast: 25.7% for orders, 21.7% for revenue, 8.2% for operating profit, 8.4% for net income.
• Orders: JPY97.5bn (+1.0% YoY); Revenue: JPY79.1bn (+10.4% YoY); Operating profit: JPY2.4bn (+113.2% YoY); Net income: JPY1.5bn (+734.1% YoY).
• Segment performance: DX Solutions orders +18.6% YoY, Network Solutions orders -3.3% YoY, Environmental & Social Solutions orders -11.9% YoY.