In today’s briefing:
- Super Micro Computer (SMCI) May NOT Be the Next NVIDIA!
- [Earnings Review] Production Surge in Guyana and Permian Aids Exxon Beat Profit Estimates
- Chinese Auto Chip Maker Black Sesame to Raise $143 Million in Hong Kong IPO
- Through The Fire And Flames
- ADEA: Streaming Loading
- Xylem Inc.: Strategic Focus On Emerging Markets & Diverse Portfolio Driving Our Bullish Thesis! – Major Drivers
- IPAR: New Line Additive to Growth
- SDRL: Pacing Out the Year
- Corning Incorporated: Strategic Pricing Developments & Expansion into Optical Connectivity Solutions for GenAI! – Major Drivers
- Boeing’s Rocky Runway: Is It Worth the Risk?
Super Micro Computer (SMCI) May NOT Be the Next NVIDIA!
- Super Micro Computer, Inc. has garnered attention with its strong financial performance in Q4 2024, reporting record revenue growth driven by its AI server and data center infrastructure solutions.
- The company’s transition to direct liquid cooling (DLC) technology and AI-focused strategies have positioned it as a key player in the rapidly evolving technology landscape.
- With a 143% year-over-year revenue growth to $5.31 billion, SMCI has demonstrated its capability to scale and meet the increasing demand for AI infrastructure.
[Earnings Review] Production Surge in Guyana and Permian Aids Exxon Beat Profit Estimates
- Exxon Mobil’s Q2 revenue grew 12.2% YoY and net profit increased by 17.3%. Revenue missed estimates by 0.4% while net profit exceeded expectations by 6.2%. v
- Exxon Mobil’s Q2 oil production hit a record high since the 1999 merger, driven by strong output in Guyana and the Permian basin.
- Exxon Mobil expects full-year expenditures to total USD 28 billion, including USD 25 billion for ExxonMobil and USD 3 billion for Pioneer.
Chinese Auto Chip Maker Black Sesame to Raise $143 Million in Hong Kong IPO
- Black Sesame Technologies Inc., a Chinese system-on-a-chip designer focused on autonomous driving systems, is seeking to raise up to HK$1.12 billion ($143 million) from its initial public offering (IPO) in Hong Kong.
- The listing will be the second IPO under the new Chapter 18C listing rules introduced in March 2023, which allow companies engaged in specialty technologies to list in Hong Kong even if they are not yet profitable or unable to meet the Main Board’s earnings requirements.
- QuantumPharm Inc., a Shenzhen-based AI drug researcher backed by Tencent Holdings Ltd., debuted on June 13 as the first, raising HK$1.13 billion.
Through The Fire And Flames
- Unforeseen Volatility: Global risk markets plummeted, driven by external factors, showing crypto’s vulnerability to broader market trends.
- Unique Opportunity: Crypto’s market fundamentals remain strong, presenting unique investment opportunities amidst the global risk asset purge.
- Macro Influences: Japan’s carry trade unwind and weak jobs report led to extreme volatility, impacting both traditional and crypto markets significantly.
ADEA: Streaming Loading
- ADEA signed several renewals in the second quarter extending out terms with current licensees and showing to investors that there is value from the portfolio of more than 11,500 patents.
- The deals ADEA signed in the quarter were not the headline grabbing nature, unlike those in prior quarters and those we expect the Company to sign in coming quarters.
- ADEA generating annual free cash flow of approximately $150 million should become a bigger factor to valuing the equity as the debt balance becomes visually smaller to investors.
Xylem Inc.: Strategic Focus On Emerging Markets & Diverse Portfolio Driving Our Bullish Thesis! – Major Drivers
- Xylem’s performance in the second quarter of 2024 has exceeded expectations across several key metrics.
- The company has demonstrated strong financial and operational results, driven by strategic initiatives and market expansion efforts, particularly with the integration of Evoqua.
- This synergy has not only strengthened their market position but also brought about cost efficiencies.
IPAR: New Line Additive to Growth
- PAR had previously issued its quarterly sales update making the second quarter results more of an update on how the business is shaping out for the remainder of the year.
- IPAR used the Q2 earnings call to disclose its intention to enter the luxury fragrance market with its own brand in 2025. Owning a brand is not new for IPAR.
- The consumer continuing to purchase fragrances undisturbed should create the opportunity to grow sales in the second half of the year ahead of new launches scheduled for 2025.
SDRL: Pacing Out the Year
- SDRL reported second quarter results with similar commentary as its peers had previously provided. Current market conditions have resulted in contract awards being delayed even though day rates hold steady
- The shift in the environment has meant SDRL is no longer expecting short-term drilling work in the second half for two of its vessels, Sevan Louisiana and West Phoenix.
- In 2025, SDRL is set to enhance its operations in Brazil with the addition of two vessels operating at high day rates.
Corning Incorporated: Strategic Pricing Developments & Expansion into Optical Connectivity Solutions for GenAI! – Major Drivers
- Corning Inc. reported strong second quarter results for 2024, surpassing its sales and EPS guidance.
- This positive performance was largely driven by the rapid uptake of its new optical connectivity products designed for generative AI applications.
- These products cater to a new network within data centers which requires significantly higher bandwidth to connect GPUs, resulting in roughly ten times more fiber connections compared to traditional setups.
Boeing’s Rocky Runway: Is It Worth the Risk?
- Boeing has long been a dominant player in the aerospace industry, but recent developments suggest that the company may be facing turbulent times ahead.
- Despite its strong market position and a robust backlog of orders, Boeing is grappling with significant technical and safety challenges that are raising red flags for investors.
- The company’s ongoing issues with manufacturing defects, regulatory scrutiny, and delays in key programs are casting a shadow over its future prospects.
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