In today’s briefing:
- TSMC: Trading as if Valuations Don’t Matter
- Tech News This Week. ASML, TSMC, Intel, SiC Capacity, MCU in China
- Taiwan Tech Weekly: IPhone 16 Sales Surge in China; Samsung’s Strength Diluted Against TSMC’s Focus
- TSMC Shares Surge 11% as Q3 Earnings Soar on AI Demand, Revenue Up 39% YoY
- Accenture plc: How Is Its Approach Towards Strategic Bolt-On Acquisitions Working Out? – Major Drivers
- Five9 Inc.: An Insight Into Its Competitive Advantage & Go-To-Market Strategy! – Major Drivers
- Tech Supply Chain Tracker (19-Oct-2024): ATE Energy boosts green energy & marine projects in PH.
- Micron Technology Inc.: Tackling The Shifts in Customer Demand & Evolving Market Dynamics! – Major Drivers
- Paychex Inc.: These Are The 4 Biggest Reasons For Our Pessimism! – Major Drivers
- RingCentral Inc.: Strategic Global Service Provider Partnerships
TSMC: Trading as if Valuations Don’t Matter
- Shares of Taiwan Semiconductor (TSMC) – ADR (TSM US) surged on a robust results and raised revenue outlook, driven by strength in AI related demand.
- Markets are overlooking the fact that many AI companies and solutions are unnecessary, unsustainable and will lead to blowups and consolidation.
- We make the case for why TSMC is over valued and investors will likely get better entry levels.
Tech News This Week. ASML, TSMC, Intel, SiC Capacity, MCU in China
- The price of ASML EUV machine is increasing as thruput (wafer / hour) is increasing.
- TSMC 3nm is fully booked in 2025. Here is the list of clients / chips.
- SiC and MCU over-investments in China? Very likely. China is limiting SiC investments.
Taiwan Tech Weekly: IPhone 16 Sales Surge in China; Samsung’s Strength Diluted Against TSMC’s Focus
- Hua-Where? Hua-Who? Report: Apple’s iPhone 16 Pro & Pro Max Sales Surge 44% in China; A Strong Start Amidst Competition
- Samsung Under Siege: Facing Major Challenges Across Verticals as TSMC Tightens Foundry Grip
- TSMC 3Q24: Guidance Remains Strong; Explains Why AI Demand Not Overhyped; Stay Long… TSMC is Working with All AI Innovators
TSMC Shares Surge 11% as Q3 Earnings Soar on AI Demand, Revenue Up 39% YoY
- TSMC reported Q3 revenue of NT$759.69 billion, marking a 39% year-over-year increase, surpassing the guidance range of NT$724-750 billion, driven by strong AI demand.
- The company’s net income reached NT$325.3 billion, up 54% from last year and exceeding LSEG’s estimate of NT$300.2 billion, reflecting strong operational performance.
- TSMC’s gross margin improved to 57.8%, an increase of 4.6% from Q2, highlighting enhanced profitability from advanced chip production amid growing AI applications.
Accenture plc: How Is Its Approach Towards Strategic Bolt-On Acquisitions Working Out? – Major Drivers
- Accenture recently reported its fourth quarter result for fiscal 2024, showcasing a mixture of strengths and setbacks.
- As a multinational professional services company known for its capabilities in digital, cloud, and security, Accenture’s continued focus on embracing technological transformations, particularly Generative AI (GenAI), and adapting to market demands are pivotal points observed from the earnings report.
- 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.
Five9 Inc.: An Insight Into Its Competitive Advantage & Go-To-Market Strategy! – Major Drivers
- In the latest earnings discussion of Five9, Chairman and CEO Mike Burkland relayed a mixed set of results, presenting a blend of successes and challenges.
- The company achieved an annual revenue run rate exceeding $1 billion, primarily driven by a 21% year-over-year growth in LTM Enterprise subscription revenue.
- Alongside, the adjusted EBITDA margin improved sequentially to 17% of revenue, contributing robustly to a strong LTM operating cash flow of $126 million, which is 13% of revenue.
Tech Supply Chain Tracker (19-Oct-2024): ATE Energy boosts green energy & marine projects in PH.
- ATE Energy is leading green energy and marine projects in the Philippines to support sustainability efforts and protect the environment. Taiwan is seeking to import green energy from the Philippines to meet its goal of achieving net-zero emissions by 2050.
- The US faces challenges in expanding nuclear power as part of its efforts to reach net-zero emissions targets. Japan and Taiwan are teaming up to produce the Lean3 EV, promising a compact design and high efficiency for urban areas.
- The new iPad mini features advanced Apple Intelligence technology with four major upgrades for top-tier performance and functionality. Joo-Sun Choi is returning to Samsung’s DS division after a successful term as SDC president. Taiwan is focusing on low-carbon power to drive industrial growth, while ESL adoption is on the rise with retailers like Simple Mart Taiwan and Walmart leading the way in a retail revolution for lower prices.
Micron Technology Inc.: Tackling The Shifts in Customer Demand & Evolving Market Dynamics! – Major Drivers
- Micron Technology’s fiscal fourth quarter 2024 earnings call underscores a period of noteworthy developments and strategic pivots, reflecting both positives and challenges that face the company.
- The call, led by Sumit Sadana and other executives, provided insights into various aspects including demand trends, inventory levels, operational execution, and financial outlook which are critical for understanding Micron’s trajectory and market dynamics.
- 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.
Paychex Inc.: These Are The 4 Biggest Reasons For Our Pessimism! – Major Drivers
- Paychex, a leading provider of payroll, human resource, and benefits outsourcing solutions for small-to-medium sized businesses, commenced fiscal year 2025 with a quarter that both showcased resilience and drew attention to some of the challenges the company faces.
- During the earnings call for the first quarter ended August 31, 2024, which featured CEO John Gibson and CFO Bob Schrader, the company outlined various facets of its performance and forward-looking statements.
- 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.
RingCentral Inc.: Strategic Global Service Provider Partnerships
- RingCentral’s performance in the second quarter of 2024 has displayed robust financial health and an evolving strategic direction, revealing both strengths and potential areas of concern.
- The company reported a 10% year over-year increase in total revenue amounting to $593 million, surpassing its guided range.
- This growth appears primarily driven by the success of its new products, notably RingCX, which is signaling strong market acceptance.
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