Daily Brief TMT/Internet: Sino American Silicon Products, NVIDIA Corp, Dell Technologies , Huawei Technology, Red Cat Holdings , 4Paradigm and more

• Sino American Silicon Products (5483 TT) is looking to raise at least US$338m in its upcoming global depository receipts (GDRs) offering.
• In late Feb 2024, Sino-American Silicon (SAS) announced its board’s resolution to issue up to 55m common shares via a GDR offering.
• Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.

• NVIDIA’s Q2 revenue soared 122% to $30.04 billion, exceeding estimates, driven by unprecedented demand for AI-driven data center chips. 
• The data center segment grew 154% YoY, generating $26.3 billion, reflecting NVIDIA’s strong position in AI hardware with major contributions from cloud providers. 
• Despite approving a $50 billion stock buyback, NVIDIA’s shares fell 8% after-hours due to concerns over future chip supply and broader market trends, though the stock is up 150% YTD.

• AI advancements driving demand for MLCCs, leading to growth in passive component industry and shaping future technology trends.
• Super Micro Computer faces delay in annual report filing amid allegations of accounting manipulation, raising concerns in the tech market.
• Industry predictions for Semicon India 2024 and updates from Intel and Sony on upgrades in car cockpits and price increase on PS5 due to rising component costs. Taiwan drone market facing potential delay due to China’s dominance in crucial modules.

• The valuation of Huawei Technologies Co. Ltd’s smart car unit has surged to 115 billion yuan ($16 billion) only seven months after its launch, following a recent investment.

• Yinwang Intelligent Technology Co. Ltd., a wholly-owned subsidiary of Huawei founded in January, has agreed to sell a 10% stake to Avatr Technology Inc., an electric vehicle (EV) startup backed by China’s state-owned automaker Chongqing Changan Automobile Co. Ltd. (000625.SZ -1.54%) and battery giant Contemporary Amperex Technology Co. Ltd. (CATL). 

• Avatr agreed to pay 11.5 billion yuan for the stake, with the payment to be made in three installments, contingent on conditions such as the introduction of Huawei’s smart car technologies and talent to Yinwang.

• Paul Cerro, founder of the Cedar Grove Empire, discusses his investment in Redcat Holdings
• Redcat is a US-based drone manufacturer specializing in unmanned drones for military purposes
• Redcat is poised to potentially win a lucrative US Army contract, driving significant upside potential

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

• Beijing-Based 4Paradigm shares have underperformed the Hang Seng Index (+4.3%) in 2024 with shares down ~20% year-to-date. IPO investors are down ~28%.
• I expect near-term selling pressure on the stock as IPO lockup ends in September and at least 265M shares will be available for sale by the end of next month.
• 4Paradigm has made considerable progress and with a clear profitability trajectory, the stock looks undervalued relative to peers in Mainland China and worldwide.