Daily Brief TMT/Internet: SK Hynix, MongoDB , Photronics Inc, Dingdong Maicai, Hon Hai Precision Industry and more

• SK hynix derived ~25-30% of revenues from AI in 2024 (HBM, LP-DDR, eSSD). AI revenues will double in 2025. SK hynix’s lead, both roadmap, manufacturing, qualifications extends to 2026.
• AI high growth also allows SK hynix to lower its exposure to commodity PC, Mobile, consumer segments. Hence, margins likely continue to increase in 2025-26.
• Sk hynix’s lead over Samsung is sustainable for at least 2025-26.  AI-related ASP / margins aren’t cyclical, unlike commodity memory. The stock trades at a miserable 6x 2025 EPS.

• MongoDB (MDB US) and Biogen Inc (BIIB US) are the main candidates for deletion based on their current and previous-review ranking.
• Ansys Inc (ANSS US) is expected to be deleted from the index by June 2025 following its $35bn acquisition by Synopsys Inc (SNPS US). 
• United Airlines Holdings (UAL US) and Alnylam Pharmaceuticals (ALNY US) are currently the main candidates for addition, thus the first in line to replace Ansys Inc (ANSS US).

• Recommendation to build a long position in Photronics ($PLAB) due to significant positive changes and strong fundamentals
• Stock is undervalued with potential for buyout or take-private deal, offering a margin of safety and high return on invested capital
• Possibility of management tapping into buyback program adds to the investment potential for Photronics

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Author recommends investing in DingDong Limited (DDL) to play a recovery in China
• DDL has shown promise with consecutive quarters of operating profits despite China’s economic issues
• Investment thesis is based on potential for DDL’s stock to rise for every 1% increase in operating margins, without assuming further margin expansion

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• China’s wafer foundry industry is set to experience substantial growth by 2025, presenting opportunities for technological advancements and innovation within the sector.
• TSMC’s focus on COUPE technology in silicon photonics demonstrates their commitment to driving advancements in the field and maintaining a leading position in the industry.
• The introduction of Samsung’s GenAI smartphones 2.0, equipped with AI agents, showcases a new level of integration and innovation in mobile technology, promising an enhanced user experience.