Recreation is really expensive. Deteriorating financial performance and large capital raises are the flavour of the day in the Chinese semiconductor sector as manufacturing at low yields and recreating technology that it no longer has access to is taking a big toll on the sector. Semiconductor Manufacturing International Company (SMIC) reported weak results where its gross margins were below 20%...
Turns the corner but no one is listening. Ouster reported good results and strongly signalled that it has turned the corner, but the uninhabited conference call gave a strong impression that no one cares. Q3 revenues / net income were $22m / LOSS$35m which were ahead of both the company’s guidance and my own expectations. Given how little this stock...
The next 2-3 years look pretty good. Arm reported good results but the variation in the timing of deals closing being recognised as revenue meant that guidance for the next quarter was a little bit lower than had been forecast. FQ3 revenues / Adj-EPS were $806m / $0.36 which was nicely ahead of expectations of $740m / $0.26 as licensing...
OpenAI makes its play for the AI ecosystem OpenAI is seeking to capitalise on its early lead in AI and change a chatbot into a digital environment where developers go to develop their AI models that they can then sell to their customers using OpenAI’s store. This has all the hallmarks of the moves 10 years ago by Apple. Google,...
Bubble valuations but real use cases. As more and more models are released by companies, start-ups and open source, the harder they will have to work to attract users meaning falling prices which is what I think will burst the bubble. With valuations in nosebleed territory and governments falling over themselves to be involved in AI, there is very little...
Incremental improvements and growth. Apple reported reasonable results but concerns around its business in China and an accounting abnormality took their toll on the share price which fell by 3.6% in after-hours trading. Revenues / EPS were $89.5bn / $1.46 just ahead of estimates at $89.3bn / $1.39 but that was where the good news stopped. iPhone and Services were...
Qualcomm signals the worst is over. Qualcomm reported good results signalling that the worst is over leaving a flat short-term outlook and a longer term that is full of opportunity. FQ4 revenues / Adj-EPS were $8.64bn / $2.02 which was still meaningfully down YoY but crucially, better than expectations which were for $8.51bn / $1.92. This marginal beat of...
Cruise is mostly punished for bad behaviour. Although there was most certainly a technology failure, Cruise is off the roads mostly because the California DMV thinks that it failed to fully disclose data around an incident involving a pedestrian in a move that will delay the journey to autonomous driving yet again. Cruise has had its licence to operate in...
M3 does not wipe the floor with Elite X. Apple launched its next series of M-chips but even though they will all be made on the new 3nm TSMC process, the degree of improvement over M2 is lower than I was expecting keeping Elite X very much in the game. Apple held a short event where it launched its M3...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Nvidia – The moat
Nvidia makes the moat even bigger. Nvidia has launched an update to the H100 which offers mostly incremental improvements, but the cadence of new products combined with the power of CUDA leaves Nvidia looking pretty much unassailable for now. At the Supercomputing show, Nvidia unveiled its latest processor the H200 which is the first chip of its type to make...