1. ASML is at the forefront of the supply chain with increasing demand for its EUV technology; 2. ASML's monopoly on EUV technology positions it for strong long-term gains with rising AI chip demand; 3. ASML's EUV sales are growing despite declines in DUV equipment shipments to China, with a positive outlook for 1Q25 sales.
Recent #investment news in the semiconductor industry
1. Freeport-McMoRan is a leading global producer of copper, gold, and molybdenum; 2. Despite a fire at a new project in Indonesia, FCX received a 6-month permit to export copper concentrate, yet the stock remains weak; 3. The stock has lagged recent rallies in gold and copper prices, and is actually down ~11% over the past year.
➀ Softbank has announced the planned acquisition of Ampere Computing for $6.5 billion in cash;
➁ Ampere Computing will retain its name and product lines such as AmpereOne and Ampere Altra;
➂ The acquisition is expected to close in the second half of 2025, with major investors selling their stakes.
➀ AI has become an ever-accelerating treadmill, with costs increasing exponentially.
➁ Jensen Huang highlighted the need for significantly more computation power due to agentic AI, with a requirement 100 times greater than last year's expectations.
➂ Nvidia is increasing its GPU generation frequency to keep pace, as the AI treadmill is driven by new iterations with enhanced capabilities, such as Perception, Generative, Agentic AI, and the upcoming Physical AI.
1. Energy Transfer LP demonstrated strong growth potential with record EBITDA and DCF in FY2024, driven by high volumes and strategic investments in the Permian Basin and NGL exports. 2. Despite missing Q4 expectations, ET's extensive natural gas pipeline network and rising natural gas power demand position it well for future growth and stable DCF. 3. ET's valuation is attractive, trading at a discount with a high dividend yield, declining debt-to-equity ratio, and significant upside potential based on EV/EBITDA.
1. Tempus AI's financials have significantly improved with positive cash flow expected by year-end and strong revenue growth projected for FY25. 2. Q4FY24 saw record revenues with a 35.8% YoY growth, driven by a 44.6% YoY growth in the Data & Services segment. 3. FY24 revenues hit an all-time high of $693.4 million, with major agreements signed and the launch of the AI-enabled health app, Olivia. Management guides for $1.24 billion in 2025 revenues, a 79% YoY growth.
1. Maintain a buy rating on QCOM, considering shares significantly undervalued despite recent underperformance and solid earnings growth; 2. Qualcomm's Q1 FY 2025 results were strong, driven by robust returns from its QCT portfolio, with notable growth in IoT and automotive segments; 3. Risks include competition, uncertainties with Huawei, and potential margin pressures from rising manufacturing costs.
1. Realty Income offers a strong 6% monthly dividend yield; 2. Supported by a $50 billion market cap and a diversified portfolio of over 10,000 properties; 3. The company has expanded domestically and internationally, enhancing its AFFO per share by 4.8% YoY.
1. Despite exceeding profit expectations, NVIDIA has experienced a correction due to trade uncertainties. 2. The company's Blackwell chip deliveries are set to increase in 2025, potentially boosting earnings and sales growth with the expansion of the generative AI market. 3. NVDA's dominant market share in data center GPUs and substantial profit growth make it an attractive long-term investment.
➀ The legendary futures trader Guo Yanchao enters the chip industry, investing in Beijing Chenzhi Semiconductor Technology Co., Ltd., and stirring up the chip market.
➁ The shift to centralized architecture in automotive electronics is challenging the current landscape, with domestic players struggling to replace imported central domain controller chips.
➂ Chenzhi Semiconductor, with its high-level ASIL-D automotive chips and experienced team, aims to compete with international giants and become a key player in the domestic substitution of chips.
1. MPLX, formed by Marathon Petroleum, has grown into a significant midstream player with strong profitability metrics. 2. The company's 'NGL wellhead to water strategy' aims to integrate its NGL system with significant CapEx and returns. 3. Despite high valuation, MPLX boasts top-tier margins and a 6.8% distribution yield, with risks including dependency on Marathon Petroleum and the transition to greener energy.
1. Broadcom offers balanced exposure to AI and traditional semiconductors; 2. The recent market sell-off presents a buying opportunity with Broadcom's stock down 30%; 3. Strong Q1 2025 earnings with 25% revenue growth and 45% EPS growth; 4. Risks include revenue concentration from major tech customers and potential reduced compute demand.
1. Airbnb's business model is exceptional, generating significant cash flow with minimal capital expenditures; 2. The company's ability to earn interest on customer prepayments and its strong cash position highlight its financial strength and operational efficiency; 3. Expansion into new markets and adjacent businesses offers substantial growth potential.
➀ The UK Space Agency (UKSA) has achieved a record six-month period for contract wins involving the European Space Agency (ESA).
➁ The agency highlights a significant increase in funds for ESA programmes, with an additional £112 million (€134 million) in contracts for the UK space sector between June 2022 and December 2024.
➂ The UK now receives 99p back in contracts for every £1 invested, after overheads, marking an improvement from the previous 93p.
1. Nvidia faces increasing competition from companies like DeepSeek and AMD; 2. NVDA's business model focuses on advanced GPUs and data center products; 3. Despite strong financial performance, NVDA's gross margins have declined and the gaming segment has seen revenue losses; 4. The analyst maintains a bullish view on NVDA, setting a target price of $164 for 2027.
1. FS KKR Capital offers high dividend income and upside revaluation potential; 2. The company's non-accrual percentage increased slightly in the last quarter; 3. Shares are trading at a discount to NAV and are expectedly cheaper than other BDC investment options.
1. TSMC dominates the semiconductor market with advanced 3 nm chips, crucial for AI, robotics, and defense. 2. The stock's recent 20% drop offers an excellent entry point, with TSMC outperforming the S&P 500 over the last 10 years. 3. TSMC's solid financials include a 59% gross margin, 49% operating margin, and a strong balance sheet with $76.3 bn in cash.
➀ TSMC and Intel are reportedly still working on a potential joint venture to run Intel's manufacturing capacity;
➁ The joint venture would involve leading American fabless chip designers such as AMD, Broadcom, Nvidia, and Qualcomm;
➂ The initiative is in response to a request from President Trump's administration to strengthen Intel and ensure continued American control.
1. The REIT market is vast and versatile, with over 200 companies in the US alone investing in 20 different property sectors. 2. Some REITs like Iron Mountain (IRM) are best suited for growth. 3. The article highlights two exceptional REITs for investment.
1. Google's profitability and strong balance sheet provide an advantage over unprofitable AI startups threatening its search business; 2. AI presents an opportunity for Google to strengthen its non-search businesses and create a new market leader; 3. Google has a proven track record of achieving market leadership, as seen in its leadership in products like YouTube, Google Workspace, Cloud, and Android; 4. Compared to its peers in the 'Magnificent 7', Google is the cheapest stock to buy, making it an attractive investment, especially for value investors.