In today’s briefing:
- NVIDIA Q3FY25 Growth Story Still On Track But Heed The Flaws In Jensen’s GenAI Vision
- Kioxia IPO Preview
- Kioxia (285A JP): Early Christmas with IPO Approval, Grinch Steals Fast-Entry
- Tuya Inc – Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners
NVIDIA Q3FY25 Growth Story Still On Track But Heed The Flaws In Jensen’s GenAI Vision
- NVIDIA this week reported Q3FY25 revenues of $35.082 billion, up 17% QoQ, up 94% YoY and a full $2.5 billion above the guided midpoint.
- Looking ahead, NVIDIA is forecasting revenues of $37.5 billion, up ~7% sequentially. Gross margins to decline slightly to 73%.
- Contrary to Jensen Huang’s vision, the existing $1 trillion worth of data centers do not need to be “modernized” into AI factories. This is pure fantasy.
Kioxia IPO Preview
- Kioxia plans to complete its IPO on 18 December, valuing Kioxia at 750 billion yen ($4.8 billion), down nearly 50% from the initial market value estimates about 2-3 months ago.
- Kioxia had revenue of 909.4 billion Yen (up 84.6% YoY) and EBITDA of 449.6 billion Yen in 1H FY24, driven by the recovering demand for data center and enterprise SSDs.
- As of 2Q 2024, Samsung Electronics was the largest player in the global NAND Flash market with a 36.9% market, followed by SK Group (22.1%), and Kioxia (13.8%).
Kioxia (285A JP): Early Christmas with IPO Approval, Grinch Steals Fast-Entry
- Kioxia Holdings (285A JP) is scheduled to be listed on 18 December 2024, at the prime market of TSE at an expected valuation of ~$4.9bn.
- The security’s low free float is the main cause of Fast-Entry rejection by both global indices and quarterly exclusion from the one global index.
- Quarterly inclusion to the other global index is forecasted for June 2025 following the 3-month minimum trading requirement.
Tuya Inc – Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners
- Temasek-Backed 65 Equity Partners bought 13% stake in Tuya, implying a total investment of US$100 million (or S$134M).
- The fund’s mandate is to support high-growth, mid-cap companies seeking a listing on the Singapore Exchange (SGX).
- The listing will benefit Tuya by providing easy access to capital. Tuya will be able to use stock as a currency to fund its expansion plans in Southeast Asia.
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