Daily Brief TMT/Internet: Softbank Group, Taiwan Semiconductor (TSMC) - ADR, Arlo Technologies Inc and more

In today’s briefing:

Softbank Group – Vision Fund: Gains on Dollar Basis in Q3 but Stronger Yen Points to Quarterly Loss
Taiwan Tech Weekly: Signs TSMC Winning the 3-Nm Battle Vs. Samsung, Apple Bargaining Down Suppliers
ARLO: Discounts and Subscriber Growth

Softbank Group – Vision Fund: Gains on Dollar Basis in Q3 but Stronger Yen Points to Quarterly Loss

The Vision Fund public portfolio closed Q3 in the black as gains for Didi and AutoStore offset weakness for Asian investments Goto and Coupang. We have included updated tables inside
On a yen basis, however, Softbank will likely post a Q3 segment loss for Vision Fund as a weaker dollar more than offsets the local currency gains.
SBG shares have traded close to the 35% discount to NAV level since end-November but that could expand if sentiment on China weakens or tech valuations remain volatile

TSMC’s revenue could drop in the near-term due to customers cutting orders, however full year 2023E growth still likely thanks to advanced chips.
Samsung has guided staff internally for a major slump in its semiconductor unit’s operating profit.
Apple is pushing for price cuts amongst its suppliers due to weak end demand for its products.

ARLO spent the fourth quarter adjusting to a tough consumer environment with deep discounts to clear out channel inventory.
ARLO had already provided quarterly revenue guidance taking into consideration the discounting and promotions that would run during the quarter.
Paying subscriber count rising remains the value proposition in owning shares of ARLO. Quarterly adds closer to what ARLO has been achieving would be a positive for the stock.

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