This weekly newsletter pulls together summaries of the top ten most-read Insights across Tech Hardware and Semiconductor on Smartkarma.
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1. 2025 High Conviction: AI Chip Spend Slows
- AI spending is fueling today’s semiconductor market, as generative AI demand falls into place
- Hyperscale datacenters are doing the bulk of today’s spending as they invest in advance of demand
- These investments are falling into question, and spending is likely to level off or drop in 2025, leading to a dramatic semiconductor downturn
2. Earnings: ENTG, ALAB, LSCC, SITM, QCOM, MCHP, WOLF, ARM, ACLS, AAOI, ANET, LITE, COHR
- Entegris Inc (ENTG US) – Memory spending is happening next year, but MSI remains weak.
- Astera Labs (ALAB US) – This is now the second way to play a levered Trainium ramp, as they have extensive content with Amazon.com Inc (AMZN US).
- Lattice Semiconductor (LSCC US) – Standard kitchen sink; I like the stock long-term.
3. Silergy (6415.TT): It Will Grow in 4Q24, While Auto Is Expected to Grow to 15% by the End of 2025.
- In the 3rd quarter of 2024, revenue was NT$4,284 million, the gross margin (GM) was 55%, the operating profit margin (OPM) was 24%, and the net margin was 15%.
- The Gen-4 product line is ramping up and is expected to contribute around 4% of total revenue by the end of 2025.
- Chinese current economic stimulus programs may impact demand in the Consumer segment.
4. Silicon Wafers Q324 Area Shipments, Revenue, EBIT, Outlook & More
- Silicon wafer area shipments in Q324 amounted to 3,214 million square inches (MSI), up 5.9% QoQ and up 6.8% YoY,
- Q324 saw the combined revenues from the top four players in the segment reaching $2.5 billion, up 0.5% QoQ and up 6.5% YoY
- Top 4 EBIT amounted to just $337 million, up 1.5% QoQ but down 38.9% YoY.
