Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC) – ADR, Softbank Group, Workiva Inc, Allegro MicroSystems , Vontier Corp, Credo Technology Group Holding, Power Integrations, Silicon Laboratories, Braze Inc, Soluna Holdings and more

• TSMC’s June 2024 revenue increased by 32.9% YoY, exceeding expectations with $6.42 billion. 
• It dominates with >62% of the global foundry market share, propelled by AI demand. 
• Expansion into the automotive market and new fabs in the U.S. and Japan highlight TSMC’s growth strategy. 

• Since Elliott Management emerged as a shareholder in SoftBank group last month, the share price has rallied sharply, largely driven by the further appreciation of the Arm Holding share price
• SoftBank management is currently focused on growing its Gen AI investment portfolio and appears to have shelved share buybacks for now, which is likely to disappoint minority shareholders
• Despite the above challenges and the risk of de-rating at Arm, we remain positive on Softbank shares as they trade at a historically high 54%+ discount to the estimated NAV

• Workiva’s financial results for the first quarter of 2024 showcased a generally positive trend with several robust aspects in growth and operating metrics, countered by a cautiously optimistic outlook for the rest of the year.
• The company reported a 17% increase in total revenue and a 20% rise in subscription revenue compared to the same period in the previous year, underscoring a resilient performance in the face of an uncertain economic environment.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Allegro MicroSystems has recently reported their fiscal fourth quarter and full year 2024 results, providing insights into their financial health and future expectations.
• The company managed to surpass its fourth-quarter revenue and earnings per share (EPS) guidance despite facing a challenging macroeconomic environment, highlighting the dedication and efficiency of its team.
• The fiscal year 2024 demonstrated a revenue growth of 8% and an EPS growth of 5%, with notable growth in e-Mobility at 38%, signifying strong market performance and strategic execution.

• Vontier, a prominent player in the mobility infrastructure and technology space, delivered strong performance in the first quarter of 2024, achieving the upper bounds of its core growth guidance while surpassing its profitability targets.
• The company reported a 4% increase in core sales, fueled primarily by volume growth alongside positive pricing impacts.
• Notably, the company achieved a 130 basis point expansion in margins, demonstrating effective execution and financial discipline.

• Credo’s shares have surged over 180% since NVDA’s AI earnings report in May 2023
• Despite being seen as an AI “winner,” Credo’s active electrical cable is losing market position due to networking bottlenecks in data centers
• The upcoming 800G infrastructure ramp could provide opportunities for advanced interconnects, but Credo’s shares are currently priced to perfection

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.

• Power Integrations reported a robust set of financial results for the first quarter, demonstrating resilience and strategic foresight in the face of fluctuating market conditions.
• The company’s revenue for the quarter amounted to $92 million, with a non-GAAP gross margin of 53% and non-GAAP earnings standing at $0.18 per share.
• These figures reflect a stable financial status, attuned to Power Integrations’ strategic market maneuvers and operational efficiency.

• Silicon Labs’ first quarter fiscal 2024 financial results provide a mixed picture, reflecting the ongoing dynamics in the technology sector, particularly in the semiconductor industry.
• Silicon Labs reported a revenue of $106 million for the quarter, which exceeded the midpoint of the company’s guidance and marked a 23% sequential increase.
• This performance underscores some level of recovery, especially when dissected into the contributions from its two primary business units: Industrial & Commercial, and Home & Life.

• Braze, a customer engagement platform, has documented its performance for the first quarter of fiscal year 2025, which indicates mixed outcomes amidst challenging economic conditions.
• Braze reported a revenue of $135.5 million, reflecting a 33% year-over-year increase.
• When adjusted for a $750,000 hiccup due to a service outage in April, the revenue would have been about $136.3 million.

• Soluna Cloud has entered into a three-year managed services agreement with Hewlett Packard Enterprise (HPE), with $38-80 million in expected revenue over the contract, with the first 512 GPUs available today.
• Soluna will manage a hydro-powered datacenter in collaboration with its strategic OEM partner and has secured NVIDIA H100 GPUs that will allow it to offer Generative AI workloads for enterprise customers and Generative AI labs.
• The Soluna Cloud subsidiary has been funded by a non-dilutive $12.5 million credit facility, which the company expects will be the first tranche of funding for the growing business line.