Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), MoneyHero , Microsoft Corp, Emerald Holding , Kuaishou Technology, SK Hynix and more

• 2025 could be thorny for Asian equities. The main themes – “Trump turmoil”, a slower Fed and a “stronger for longer” Dollar and continued AI boom – have mixed implications.
• China’s policy articulation to support consumption departing from earlier supply-side measures, would be an important investment driver. India, though expensive, has a few “unloved” sectors that investors should focus on.
• Based on our five investment themes, we identify five high quality liquid top picks in Asia – two listed in Hong Kong and one each in Taiwan, India and Korea. 

MoneyHero’s Q324 results show revenues up 6% y-o-y (9M24 +18%) and a smaller adjusted EBITDA loss, as expected. The important element of the narrative, though, is the emphasis on driving revenues in higher-margin product areas and increasing operating efficiency within the business. Group CFO Hao Qian has resigned to return to China, with the group FD, Danny Leung, stepping up on an interim basis. The market opportunity remains substantial, and with customer data now on a unified platform, MoneyHero is well placed to deliver improved outcomes for both providers and end consumers. Our forecasts are updated to show more moderate top-line growth through FY26e, generating stronger margins.

• Microsoft’s aggressive acquisition of nearly half a million Nvidia AI chips underscore the tech giant’s all-in commitment to artificial intelligence (AI).
• As AI reshapes industries, Microsoft has found itself playing catch-up against Google, Amazon, and Meta, all of whom have already developed custom AI chips.
• By investing heavily in Nvidia’s cutting-edge Hopper GPUs, Microsoft has managed to build out a formidable AI infrastructure but at a significant cost.

• Investors pushed up EEX due to bullish trading recommendations by Nomura
• Nomura may have miscalculated net buying needed, leading to stock correction
• Correction in EEX is now seen as overdone, presenting undervalued opportunity for short-term trades and long-term investments

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.

• On December 16th, Kuaishou launched a subscription service for its micro drama channel, we believe it marks a key step towards improving monetization;
• The penetration rate of heavy micro drama users on the platform has steadily increased, and leveraging their loyalty and monetization efficiency may improve with the subscription model.
• The new model could better help mitigate the macroeconomic risks posed by advertising and the content quality risks of its long-tail partners.

• Merck to establish new advanced materials center in Japan, expanding global presence in innovative materials science field.
• Global smartphones market projected to see growth in 3Q 2024, suggesting sustained demand and continuous innovation in tech sector.
• US government unveils quadrennial supply chain review to enhance national security and boost domestic production, with focus on semiconductor manufacturing.