Core Insights - The global smartphone market saw a 3% year-on-year revenue growth in Q1 2025, driven primarily by Apple, vivo, and non-top five brands [2][3] - The average selling price (ASP) increased by 1% to $364, marking the highest Q1 record, attributed to a continued trend towards high-end devices [3] Regional Market Performance - **China**: Smartphone sales increased by 2.5% year-on-year in Q1 2025, supported by government subsidies [7] - **United States**: Smartphone sales revenue declined by 2% year-on-year, primarily due to weakness in the high-end market, where sales dropped by 4% [15] - **India**: Smartphone shipments decreased by 7% year-on-year, but Apple achieved a 29% growth, marking its highest Q1 shipment record in India [19][20] - **Vietnam**: Smartphone shipments fell by 5% year-on-year, with Apple experiencing a 37% increase in shipments, maintaining a strong market presence [24] Brand Performance - Among the top five smartphone brands, only Apple and vivo reported revenue growth [3] - Huawei led the market with a 28.5% year-on-year revenue increase, achieving its highest market share since 2021 [14] - Xiaomi also saw double-digit growth, benefiting from a broader product range and government subsidies [14]

Jensen Huang, co-founder and CEO of Nvidia Corp., speaks during a news conference in Taipei on May 21, 2025. I-hwa Cheng | Afp | Getty ImagesReplacing Nvidia is a tall order. While Chinese competitors are years behind the company's cutting-edge technology, many analysts and insiders warn they are catching up, thanks to U.S. export restrictions.U.S. chip restrictions on the sale of advanced semiconductor technology, especially those used in artificial intelligence, have been rolled out over several years, wi ...

Investment Rating - The report maintains an Equal Weight (EW) rating on Chinese equities within the Emerging Markets (EM) and Asia Pacific ex-Japan (APxJ) framework, reflecting a balanced outlook amid structural improvements and macro challenges [3][22][39]. Core Insights - The report highlights a structural improvement in the Chinese equity market, particularly since the second half of 2024, driven by a bottoming-out of Return on Equity (ROE), government support for private sectors, and the emergence of technology leaders in AI, Tech, and Smart Manufacturing [2][11][42]. - Index targets for June 2026 have been raised, with projected upside of 3% to 5% for major indices such as MSCI China, Hang Seng, HSCEI, and CSI300, reflecting improved earnings and valuation forecasts [2][19][30]. Summary by Sections Structural Improvements - The report notes that structural improvements in the Chinese equity space are sustainable, supported by corporate self-help initiatives, shareholder return enhancements, and a favorable government stance towards private sectors [2][11][42]. - The MSCI China's ROE has improved from 9.8% in mid-2023 to 11.9%, with expectations to exceed 12.0% by the end of 2026 [47]. Market Dynamics - Recent partial de-escalation in US-China tariff tensions has alleviated investor concerns, contributing to a more favorable outlook for Chinese equities [12][19]. - The offshore market is preferred over the onshore A-share market due to a stronger CNY and less exposure to macro-deflationary sectors [4][39]. Sector Preferences - The report advises a balanced investment approach, favoring high-quality large-cap internet and tech leaders while underweighting energy and real estate sectors [5][40]. - Key trades for the second half of 2025 include increasing exposure to Hong Kong/ADR versus A-shares and selectively investing in Chinese AI/Tech leaders [41]. Earnings Outlook - Corporate earnings are showing signs of stabilization after a prolonged downward revision cycle, providing a cushion as global growth slows [13][14]. - The report anticipates moderate earnings growth for 2025 and 2026, with nominal GDP growth forecasted at 3.7% and 3.6%, respectively [23][17].

The biggest overhang on Nvidia Corporation's (NASDAQ: NVDA ) near-term performance remains the evolving regulatory deadlock that the U.S. seeks to hold over China. This follows earlier investor angst about AI spending fatigue, which America's largest hyperscalers have dispelled in theAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expres ...

Core Insights - Apple has launched its next-generation infotainment system, CarPlay Ultra, which is now available in new Aston Martin models in the U.S. and Canada, and will also be available for existing vehicles through a software update [1] - The global infotainment industry is projected to grow at a CAGR of 7.2% from 2025 to 2032, reaching $58.18 billion by 2032, with CarPlay being a leading choice among automakers [2] Company Performance - Apple is experiencing sluggish demand for the iPhone, particularly in China, with a year-over-year sales decrease of 2.3% in Q2 of fiscal 2025, although overall iPhone sales increased by 1.9% to $46.84 billion in the same quarter [4] - Apple shares have declined by 16.6% year-to-date, underperforming peers such as Dell Technologies, HP, and Alphabet [5] - The Zacks Consensus Estimate for Apple's fiscal 2025 earnings has decreased by 0.8% to $7.12 per share, indicating a growth of 5.48% from fiscal 2024 [12] Services Growth - Apple's Services revenue grew by 11.6% year-over-year in the fiscal second quarter, with expectations for continued low double-digit growth in the upcoming quarter [10] - The company has surpassed 1 billion paid subscribers across its Services portfolio, more than doubling its subscriber base in four years, driven by the expanding content of Apple TV+, Apple Music, and Apple Arcade [11] Valuation and Market Position - Apple stock is currently considered overvalued, with a forward 12-month P/E ratio of 27.89X compared to the sector's 25.5X and other competitors [14] - The stock is trading below the 200-day moving average, indicating a bearish trend [17] - The company faces challenges from stiff competition in China and higher tariffs, which are expected to increase costs by $900 million, impacting near-term growth prospects [19]

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the **AI infrastructure industry**, particularly focusing on partnerships between the **US** and the **Middle East** that are expected to benefit companies involved in AI infrastructure such as **DELL**, **ANET**, **SMCI**, and **CSCO** [2][10]. Core Insights and Arguments - **Partnership Announcements**: Recent partnerships worth several billion dollars between the US and Middle Eastern countries have been announced, enhancing visibility into the demand for Sovereign AI infrastructure, which had previously been underestimated due to lack of traction [2][10]. - **Investment Opportunities**: The US is set to receive significant investments from Saudi Arabia, including **$600 billion** announced on May 13th, which includes **$20 billion** for data center and energy infrastructure by **DataVolt** and **$80 billion** in technology investments across various companies [5][9]. - **AI Diffusion Rule Changes**: The US Department of Commerce rescinded the AI Diffusion rule, which would have imposed chip export restrictions, indicating a shift in regulatory landscape that could impact AI technology distribution [5][10]. - **NVIDIA's Export Agreement**: The US and UAE have agreed on a deal allowing **NVIDIA** to export **500,000 H100 GPUs** annually to the UAE, with **100,000 GPUs** allocated to **G42** for AI weather forecasting solutions [5][6]. Important Partnerships and Deals - **DataVolt and SMCI**: DataVolt announced a **$20 billion** deal with **Super Micro** to deliver GPU platforms for AI campuses in Saudi Arabia and the US [9][10]. - **Cisco Collaborations**: Cisco has entered into agreements with **G42** and **HUMAIN** to enhance AI infrastructure and explore cybersecurity solutions [9][10]. - **NVIDIA and HUMAIN Partnership**: NVIDIA will collaborate with HUMAIN to build AI factories in Saudi Arabia, deploying significant data center capacity supported by NVIDIA GPUs [9][10]. Market Sentiment and Future Outlook - The recent announcements are expected to improve investor sentiment towards AI infrastructure, especially following a series of negative headlines in the sector [2][10]. - The diversification of customer demand for AI infrastructure beyond US neo-clouds is highlighted, with companies like **SMCI** expanding their customer base [10][14]. - US hyperscalers such as **Google**, **Microsoft**, and **Oracle** are also participating in Middle Eastern investments, indicating a robust future demand for AI servers in the region [10][14]. Potential Risks - There are concerns regarding potential security risks associated with the KSA+UAE/US AI partnership, particularly regarding GPU diversion to China and unauthorized model use. However, these risks are expected to be mitigated by the operational control of US hyperscalers [14][10]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future prospects of the AI infrastructure industry, particularly in the context of US-Middle East partnerships.

Apple's competitors in the large-sized foldable device market may not be limited to Huawei. My research indicates that Amazon is also internally developing a similar product, which has not yet officially kicked off. If development progresses as planned, it is projected to enter mass production in late 2026 or 2027. (Apple’s 18.8-inch foldable device is slated for mass production in late 2027 or 2028.) ...

Investment Rating - ASPEED: Overweight (O/W) with revised 2Q revenue guidance [3][4] - SHIFT: Upgraded to Overweight (O/W) with price target raised to Y1,900 [5] - Silicon Motion (SIMO): Gaining market share in client SSDs and mobile controllers [6] Core Insights - ASPEED has revised its 2Q revenue guidance upward to NT$1.9-2 billion from NT$1.7-1.8 billion, driven by robust demand in CSP across China and the US [4] - The company anticipates a slowdown in 2H due to limited visibility in 4Q, projecting a 15% revenue increase for FY25 [4] - SHIFT is making good progress in project assignments for newly hired talent, indicating strong operational momentum [5] - SIMO is breaking into enterprise and automotive sectors, with expectations of continued share gains in mobile controllers and SSDs [6] Detailed Highlights - ASPEED expects to regain market share from Intel's Oak Stream with the AST2700, supported by a shortened launch schedule and enhanced security features [4] - The company is targeting 3-4 million mini-BMC shipments for FY25, with a forecast of 300-400k PFR chips for Tier-2 customers [4] - SHIFT's enterprise controller is set to ramp in 2H25, with confirmed design wins from Tier-1 customers in the US and China [9] - SIMO aims to increase its client SSD market share from 30% to 40% over the next three years, driven by new product roadmaps [9] - The automotive sector is projected to contribute over 10% of revenue for FY26-27, with design wins from major automotive manufacturers [9] - NVDA's Computex keynote highlighted advancements in ASIC integration and the introduction of new products like CuLitho and GB200 [10]

On Thursday, May 15, arguably one of the most important data dumps of the quarter occurred -- and it's possible you missed it. May 15 marked the deadline for institutional investors with at least $100 million in assets under management (AUM) to file Form 13F with the Securities and Exchange Commission. A 13F allows everyday investors to track which stocks Wall Street's leading money managers bought and sold in the most recent quarter (in this instance, the first quarter of 2025). Although 13Fs have their li ...

Core Viewpoint - Tencent has a strong inventory of chips to navigate through US chip sale restrictions and is focusing on executing its AI strategy despite the dynamic situation [1][2]. Group 1: Chip Inventory and Strategy - Tencent's president, Martin Lau, stated that the company has a "pretty strong stockpile of chips" acquired previously to manage US chip restrictions [1]. - The chips will be utilized in projects that can generate immediate returns, particularly in Tencent's advertising business [1]. - Lau emphasized that the company is exploring the right solutions to ensure its AI strategy remains executable [1]. Group 2: Training Large Language Models - Lau mentioned that Tencent will not require a large number of chips to enhance the performance of its large language models, as companies are moving away from the traditional scaling law [2]. - The company can achieve good training results with smaller clusters, indicating potential in post-training processes that do not necessitate large clusters [3]. - Tencent has enough high-end chips in its existing inventory to continue training models for several more generations [3]. Group 3: Market Context and Competitors - Nvidia announced new export licensing restrictions for chips sold to China, which may impact its inventory and financials, with a potential charge of up to $5.5 billion [4]. - Analysts believe that the new restrictions will not hinder China's AI progress, suggesting that banning the H20 chip would be counterproductive and could benefit Chinese competitors like Huawei [5].