JOUMANNA: GOOD MORNING, THIS IS HORIZONS MIDDLE EAST & AFRICA. ASIAN STOCKS AFTER JAY POWELL SIGNALS AN INTEREST RATE CUT COULD COME AS SOON AS NEXT MONTH, DESPITE DIVISIONS OVER CHALLENGES IN INFLATION IN THE JOBS MARKET. THE U.S. GOVERNMENT TAKES A 10% STAKE WORTH $8.9% BILLION IN A BID TO REINTEGRATE INTEL AND BOOST DOMESTIC CHIPMAKING.EARNINGS AHEAD, IN THE SPOTLIGHT AS WE LOOK AT SOME COMPANIES RELEASING RESULTS THIS WEEK. I AM BACK IN DUBAI AFTER TWO WEEKS OFF. WE HAVE A LOT TO TALK ABOUT TODAY ESPECI ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the High Bandwidth Memory (HBM) industry dynamics, addressing investor FAQs regarding pricing, specifications, and capital expenditure implications for HBM supply and demand [1][4]. Core Insights - **Market Positioning**: The pecking order in the Asian memory space is maintained as SK Hynix (SKH) > Samsung Electronics (SEC) > Nanya Technology (NYT) [1]. - **Design Control**: NVIDIA (NVDA) is expected to take control of base die design for HBM4E, which is seen as a move to manage HBM costs and diversify suppliers [4]. - **Value Distribution**: There are two approaches for HBM4E: custom HBM die for performance differentiation and commodity HBM die for mainstream markets. Memory makers will still play a critical role in yield management [4]. - **Heat Dissipation**: As HBM4 specifications rise, heat dissipation becomes crucial, with increased reading speed requirements from ~8Gbps to 10Gbps [4]. - **Qualification Timeline**: SKH is leading the HBM4 qualification process, with customer sampling expected soon, while other competitors are slated to begin later [5]. Pricing and Revenue Projections - **HBM Pricing Outlook**: The base case pricing for HBM4 is maintained at approximately $19/GB, with a potential 30-40% premium over HBM3E expected [6]. - **Revenue Scenarios**: - Bull case for HBM revenue in 2026 is projected at $30.744 billion, while the bear case estimates $25.130 billion, indicating a potential downside of 18% [8]. - Operating profit for HBM in the bull case is estimated at $18.197 billion, with a bear case of $12.528 billion, reflecting a 31% downside [8]. Demand and Supply Dynamics - **Capex Trends**: Major cloud service providers (CSPs) are increasing their capital expenditure, which is expected to boost HBM bit demand in 2026 [6][19]. - **Bit Demand Forecast**: HBM bit demand is projected to grow from 279 million GB in 2023 to 4,161 million GB by 2027, with a potential supply surplus emerging in 2026 [19]. - **ASIC Demand Impact**: An additional 10% demand for ASIC chips could lead to a 3% increase in bit procurement demand, indicating a slight oversupply situation [6]. Market Sentiment and Stock Performance - **Memory Stock Outlook**: The medium-term outlook for memory stocks remains constructive, with expectations of gradual share price recovery as the market adjusts to ongoing operational profit growth [23]. - **Recent Performance**: SEC shares have outperformed SKH in the recent month, attributed to new foundry orders and a better-than-expected HBM outlook for the second half of 2025 [23]. Additional Considerations - **Conventional Memory Trends**: The DRAM market is expected to remain tight, with rising ASP trends noted in conventional memory, driven by strong demand from server customers [23]. - **Market Risks**: The key debate centers around 2026 HBM pricing and supply-demand dynamics, with potential negative impacts on near-term memory share prices due to the lack of new catalysts [23]. This summary encapsulates the critical insights and projections regarding the HBM industry and its key players, providing a comprehensive overview for investors and stakeholders.

Core Viewpoint - The automotive industry is experiencing significant growth driven by policy support and increasing consumer demand, particularly in the passenger vehicle and new energy vehicle segments [12][46]. Group 1: Weekly Data - In the week of August 11-17, 2025, passenger car sales reached 437,000 units, up 8.2% year-on-year and 14.2% month-on-month; new energy vehicle sales were 248,000 units, up 15.1% year-on-year and 13.0% month-on-month, with a penetration rate of 56.7%, down 0.6 percentage points [2][46]. Group 2: Market Performance - The automotive sector outperformed the market in the week of August 18-22, 2025, with a 7.2% increase in A-share automotive stocks, ranking 6th among sub-industries, surpassing the Shanghai and Shenzhen 300 index's 4.8% rise [3][12]. Group 3: Company Performance - Companies such as Xiaomi, Xpeng, and Leap Motor reported strong Q2 2025 results, with Xiaomi's automotive business gross margin increasing from 23.2% in Q1 to 26.4%, and Xpeng achieving a record gross margin of 17.3%, up 3.3 percentage points year-on-year [5][12]. Group 4: Investment Recommendations - The report recommends focusing on quality domestic companies that are accelerating in smart technology and globalization, including Geely, Xpeng, Li Auto, BYD, and Xiaomi [4][15]. Group 5: Policy Impact - The continuation of the vehicle replacement policy is expected to stimulate demand, with subsidies for scrapping older vehicles being expanded to include those meeting the National IV emission standards [14][42]. Group 6: Robotics and AI - NVIDIA's partnership with Foxconn aims to enter the AI robotics market, with plans for mass production of humanoid robots, indicating a significant shift towards embodied intelligence in the coming years [6][13]. Group 7: Motorcycle Market - The motorcycle market is expanding rapidly, with sales of large-displacement motorcycles reaching 88,000 units in July 2025, up 21.7% year-on-year, indicating a growing consumer preference for higher-capacity models [22][23]. Group 8: Heavy Truck Market - Heavy truck sales in July 2025 were 85,000 units, up 45.6% year-on-year, supported by expanded subsidy policies for replacing older vehicles, which are expected to drive demand further [26][27]. Group 9: Tire Industry - The tire industry is witnessing strong performance, with high operating rates and increasing demand, particularly for passenger car tires, as companies expand their global presence [28][29].

Vice President Pence, thank you so much for being here. Thank you both for having me on. I want to start with one of these top stories that we're following today, which has to do with the pressure campaign from the White House when it comes to the Federal Reserve.And now you told Bloomberg Television last month that the president ought to be able to express himself when it comes to the Fed. But I want to get your thoughts on these latest allegations against Fed Governor Lisa Cook. What's her level of concer ...

Market Performance - The main board led the gains with notable increases in stocks such as Yuyin Co. (+10.05%), Tianrongxin (+10.01%), Zhuoyue Technology (+10.00%), Jishi Media (+10.00%), and Kesen Technology (+9.99%) [1] - The ChiNext board saw significant growth with stocks like Beixin Source (+19.97%), Chuangyitong (+15.01%), and Meiri Interactive (+13.62%) [1] - The Sci-Tech Innovation board also performed well, with Sanwei Xinan (+20.01%), Xin'an Century (+11.00%), and Meidike (+7.25%) leading the way [1] - Active sub-industries included SW Games III (+1.64%) and SW General Publishing (+1.58%) [1] Domestic News - Shanghai Xiangyao Display Technology Co., Ltd. successfully completed a financing round of several hundred million RMB, aimed at developing MicroLED micro-display technology and expanding production capacity to meet the growing demand in the global AR+AI terminal market [1] - Chip equipment manufacturer Chip Micro announced significant market breakthroughs with its wafer-level and board-level direct-write lithography equipment, securing purchase orders from several leading domestic packaging and testing companies [1] - Vivo's Vision Exploration Edition was unveiled, featuring a Micro-OLED dual 8K display with 94% DCI-P3 color gamut coverage and professional-grade color accuracy [1] - A report from KISTEP indicated that China has surpassed South Korea in semiconductor storage technology, although Samsung and SK Hynix still maintain a leading position globally [1] Company Announcements - Century Dingli reported a total operating income of 128 million RMB for H1 2025, a decrease of 6.87% year-on-year, but a net profit increase of 160.47% to 9 million RMB [2] - Lante Optics achieved an operating income of 577 million RMB in H1 2025, a year-on-year increase of 52.54%, with a net profit of 103 million RMB, up 110.27% [2] - Xintong Electronics reported an operating income of 448 million RMB for H1 2025, a 10.85% increase year-on-year, with a net profit of 50 million RMB, up 5.83% [2] - Boch Electronic's H1 2025 operating income reached 1.103 billion RMB, a 24.89% year-on-year increase, with a net profit of 640 million RMB, up 30.32% [2] Overseas News - TrendForce research indicates that with the release of NVIDIA's GB200 NVL72 server in 2025, the penetration rate of liquid cooling technology in AI data centers is expected to rise from 14% in 2024 to 33% in 2025 [2] - According to South Korean customs data, the export value of South Korean memory chips reached 21.329 billion USD in Q2 2025, a year-on-year increase of 20.7% and a quarter-on-quarter increase of 31.8% [2] - AMD has announced the discontinuation of the B650 chipset, with motherboard manufacturers no longer able to procure it, leading to a phase of inventory clearance [2] - Google has launched the Pixel 10 series in the U.S. market, eliminating physical SIM card slots in favor of eSIM technology, allowing for the simultaneous use of two eSIMs [2]

>> THIS IS "HORIZONS MIDDLE EAST & AFRICA." OUR TOP STORIES THIS MORNING. MARKETS REMAIN IN WAIT AND SEE MODE AS CENTRAL BANKERS GATHERED IN JACKSON HOLE WITH INVESTORS AWAITING REMARKS FROM FED CHAIRMAN JEROME POWELL. FED GOVERNOR LISA COOK SAYS SHE WILL NOT BE BULLIED INTO STEPPING DOWN AS PRESIDENT TRUMP DEMANDS HER RESIGNATION OVER ALLEGATIONS OF MORTGAGE FRAUD.AND ISRAEL IS DOUBLING ITS ARMY RESERVISTS IN THE WAR AGAINST HAMAS IN GAZA, A SIGN THAT PREPARATIONS ARE UNDERWAY FOR A STEPPED-UP OFFENSIVE DE ...

Core Insights - Palantir's stock has dropped 9% on Tuesday, marking its fifth consecutive day of losses, and is down 15.5% since August 13 [1][2] - The decline is attributed to a short report from Citron Research, which claims Palantir's stock is overvalued compared to OpenAI's valuation [2] - Despite the recent slump, Palantir's shares have increased by 110% since the beginning of the year, driven by strong performance in AI tools and a significant $10 billion deal with the Army [6] Financial Performance - Palantir reported quarterly revenue of $1 billion, surpassing the milestone for the first time [5] - The company has raised its full-year revenue guidance to between $4.14 billion and $4.15 billion, up from previous expectations of $3.89 billion to $3.90 billion [6] Market Context - Other tech stocks, including NVIDIA and Meta, have also experienced declines, with NVIDIA shares slipping 3% and Meta falling nearly 2% [3] - The Nasdaq index fell 1.4% during midday trading, indicating a broader market trend affecting tech stocks [3] Industry Trends - The AI sector is experiencing volatility, with OpenAI's CEO suggesting that investors may be overexcited about AI, despite its significance [6] - The Trump administration's push for enhanced AI and chip infrastructure in the U.S. has led to increased financial commitments from major companies [7]

Core Insights - DeepSolar, a solar energy business unit of PainReform Ltd., has been accepted into the NVIDIA Connect Program, which provides access to advanced AI tools and support for developing its solar forecasting platform [1][2][6] - The DeepSolar Predict solution aims to enhance weather prediction accuracy by up to 50%, improving the reliability of solar energy output predictions [2][3] - The software platform has already shown the ability to increase energy production and reduce operational and maintenance costs by up to 30% [4] Company Developments - Participation in the NVIDIA Connect Program allows DeepSolar to leverage NVIDIA's AI frameworks and engineering support, which will aid in the development of its solar forecasting solution [2][6] - Initial engagements with photovoltaic (PV) developers and utility-scale operators are underway to test DeepSolar Predict in real-world scenarios [4] - The advancements in solar forecasting align with growing demands for intelligent asset management solutions in the solar industry, particularly as alternative energy needs increase [3][5] Industry Context - The need for accurate weather forecasting is critical for solar asset owners to balance supply predictions with market conditions [3] - Enhanced predictive capabilities from DeepSolar Predict are expected to provide advantages such as reducing imbalance penalties from inaccurate forecasts and maximizing revenue through improved energy sale timing [8] - The global solar industry is experiencing accelerated deployment, necessitating performance optimization and cost control solutions [3][5]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the Greater China Semiconductors industry, particularly in the context of AI supply chain updates and investment opportunities in the semiconductor sector in Asia [1][3]. Core Insights - The industry view has been upgraded to "Attractive" for the second half of 2025, with a preference for AI-related semiconductors over non-AI counterparts [1][3]. - Concerns regarding semiconductor tariffs and foreign exchange impacts are diminishing, leading to expectations of further sector re-rating [1][3]. - Key investment themes for 2026 are being previewed, indicating a proactive approach to future market conditions [1][3]. Investment Recommendations - Top picks in the AI semiconductor space include TSMC, Winbond, Alchip, Aspeed, MediaTek, KYEC, ASE, FOCI, Himax, and ASMPT [6]. - Non-AI recommendations include Novatek, OmniVision, Realtek, NAURA Tech, AMEC, ACMR, Silergy, SG Micro, SICC, and Yangjie [6]. - Companies under "Equal Weight" or "Underweight" include UMC, ASMedia, Nanya Tech, Vanguard, WIN Semi, and Macronix [6]. Market Dynamics - AI demand is expected to accelerate due to generative AI, which is spreading across various verticals beyond the semiconductor industry [6]. - The recovery in the semiconductor sector in the second half of 2025 may be impacted by tariff costs, with historical data indicating that a decline in semiconductor inventory days is a positive signal for stock price appreciation [6]. - The domestic GPU supply chain's sufficiency is questioned, particularly in light of DeepSeek's cheaper inferencing capabilities and Nvidia's B30 shipments potentially diluting the market [6]. Long-term Trends - The long-term demand drivers include technology diffusion and deflation, with expectations that "price elasticity" will stimulate demand for tech products [6]. - The semiconductor industry is experiencing a prolonged downcycle in mature node foundry and niche memory due to increased supply from China [6]. Financial Metrics and Valuation - TSMC's estimated revenue from AI semiconductors is projected to account for approximately 34% of its total revenue by 2027 [20]. - The report includes a detailed valuation comparison across various semiconductor segments, highlighting P/E ratios, EPS growth, and market capitalization for key companies [7][8]. Foreign Exchange Impact - The appreciation of the TWD against the USD could negatively impact gross margins and operating profit margins for companies like TSMC, UMC, and others, with a 1% appreciation translating to a 40bps GM downside [30]. - Despite these concerns, the overall structural profitability of TSMC is not expected to be significantly affected [30]. Conclusion - The Greater China semiconductor industry is positioned for growth, particularly in AI segments, with a favorable outlook for the second half of 2025 and beyond. Investors are encouraged to consider the evolving landscape and potential opportunities within this sector [1][3][6].

Core Viewpoint - BUZZ High Performance Computing, a subsidiary of HIVE Digital Technologies, has partnered with Bell Canada to create a significant sovereign AI ecosystem in Canada, leveraging NVIDIA's advanced infrastructure for AI and machine learning applications [2][5][11] Company Overview - BUZZ HPC is a wholly owned subsidiary of HIVE Digital Technologies Ltd., recognized as a Canadian AI cloud provider and NVIDIA Cloud Partner [2][8] - The company specializes in delivering enterprise-grade cloud services and large-scale NVIDIA GPU clusters, optimized for AI, machine learning, and scientific workloads [8] Partnership Details - The partnership with Bell Canada aims to provide government and enterprise customers access to NVIDIA's advanced GPU clusters, including Ampere, Hopper, and Blackwell, integrated with Bell's AI Fabric [3][4] - This collaboration will ensure nationwide access to high-performance computing resources, hosted in secure Canadian facilities that comply with data residency and cybersecurity regulations [4][11] Infrastructure Deployment - The initial deployment will start with a 5 MW infrastructure in Manitoba, with plans for expansion into other Bell AI Fabric data centers across Canada [6][11] - The infrastructure is designed to support a variety of national objectives, enhancing innovation and competitiveness in AI [6][11] Strategic Importance - The partnership is positioned to establish Canada as a leader in AI innovation while ensuring the protection of digital independence through sovereign AI infrastructure [5][11] - The collaboration combines BUZZ HPC's hardware capabilities with Bell's advanced network and data center resources, creating a comprehensive AI solution for the Canadian market [7][11]