Daily Brief TMT/Internet: Tencent, Novatek Microelectronics Corp, Texas Instruments, Amazon.com Inc, Lions Gate Entertainment and more

• On February 15, OpenAI, Google and Amazon launched respective AI advances in video LLM (SORA), long text (Gemini 1.5), and text-to-speech (BASE) abilities. The evolution speed of AI inspired awe;
• We estimate rival equivalent of SORA, delivered over cloud, will appear in 4-6 months of time but on-device version will take years.
• We suggest 2C AI applications, especially video, will be the prime beneficiary

• Novatek’s share price has surged by more than 15% in four days due to the news of Novatek’s alliance with ARM to develop Neoverse V2.
• While the decision on whether the iPhone 16 will feature OLED technology is still pending, the general sentiment is optimistic.
• Novatek is set to leverage Intel Corp (INTC US)’s 12nm capacity through United Microelectron Sp Adr (UMC US) in the near future.

Key points

• TI has continued to innovate in analog chip design over time
• Their chips are used in a variety of industries including automotive, industrial, and consumer electronics
• TI’s analog chips are found in a wide range of products from smartphones to medical devices

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.

• Amazon.com Inc (AMZN US) will replace Walgreens Boots Alliance (WBA US) in the Dow Jones Industrial Average (INDU INDEX) at the close on 23 February.
• Passives will need to sell a lot of Walmart (WMT US) following the 3:1 stock split and buy a lot of Amazon.com Inc (AMZN US). 
• Given the ad hoc nature of the rebalances and the short timeline between announcement and implementation, the stocks could move over the rest of the week.

Key points

• Recommendation to short Lions Gate with 40-70% upside potential
• Unsustainable leverage and expected earnings misses cited as reasons for shorting
• Studio’s underperforming content and high debt levels are key concerns for investors

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.