Investment Rating - The industry investment rating is In-Line [8] Core Insights - Total server shipments grew 22% year-over-year (y/y) in 1Q25, primarily driven by cloud demand for both AI and general servers [1][2] - AI server shipments are expected to continue growing sequentially throughout 2025 [1][15] - High-end server shipments saw significant growth of 491% y/y in 1Q25, indicating strong demand for AI servers [12][13] Summary by Sections Overall Market Performance - Global server shipments totaled 3.9 million units in 1Q25, reflecting a slight decrease of 1% quarter-over-quarter (q/q) but a robust increase of 22% y/y [2] - The US market outperformed with shipments up 43% y/y, while Western Europe saw a decline of 7% y/y [11] Segment Analysis - High-end servers grew 491% y/y, mid-range servers increased 143% y/y, and entry-level servers rose 12% y/y [12] - The aggregate ODM direct shipments reached 1,857k units, marking a 50% y/y increase [4][14] Vendor Performance - ODM direct market share increased to 47.4% in 1Q25, up 10 percentage points from the previous quarter [15] - Major vendors like Dell, HP, and Lenovo experienced declines in market share, with Dell at 9.1% and Lenovo at 4.9% [15] Stock Implications - Preference for ODMs/OEMs over components, with specific recommendations for companies such as Giga-Byte, Hon Hai, and Quanta [7]

Core Insights - Chuck Jones has extensive experience in equity analysis and investment management, with a career spanning over 28 years in various roles, including as a Wealth Strategist at Northern Trust [1] - He has a strong focus on technology, life sciences, and venture capital, leveraging his network to meet the financial goals of clients [1] - Jones has a proven track record of outperforming industry benchmarks for six consecutive years through financial modeling and direct engagement with company executives [1] Company and Industry Focus - At Northern Trust, Jones developed a go-to-market strategy for Investment Management and Trust Services targeting Technology Executives and Private Equity Partners [1] - His previous role at Atlantic Trust involved determining technology holdings, focusing on hardware, software, services, and Internet companies [1] - Jones authored significant industry reports, including one on Internet Security Software, showcasing his expertise in the technology sector [1] - His early career at IBM included various sales and manufacturing roles, where he was involved in demand projection and production scheduling for storage systems [1]

Core Insights - Warren Buffett's investment philosophy emphasizes buying wonderful companies at fair prices, which is challenging in the AI sector due to high valuations [1] - Despite the challenges, there are valuable investment opportunities in AI stocks, particularly in companies like Micron Technology, Dell Technologies, and Alphabet [2] Company Summaries Micron Technology - Founded in 1978, Micron specializes in computer memory and storage solutions, recently launching the world's first 1-gamma memory chip, enhancing AI hardware capabilities [4] - The company's high-bandwidth memory chips achieved over $1 billion in sales for the first time in its fiscal second quarter, contributing to total sales of $8.1 billion, a nearly 40% increase from $5.8 billion the previous year [5] - Fiscal second-quarter net income doubled year-over-year to $1.6 billion, with diluted earnings per share rising to $1.41 from $0.71, and the company forecasts third-quarter revenue around $8.8 billion, up from $6.8 billion last year [6] Dell Technologies - Dell provides servers, PCs, and hardware for AI systems, experiencing strong demand for AI-optimized servers, with sales increasing 5% year-over-year to $23.4 billion in its fiscal first quarter [7] - Customer orders for AI hardware exceeded $12.1 billion in Q1, surpassing total shipments for the entire fiscal year 2025, with projected revenue for fiscal 2026 expected to reach at least $101 billion, up from $95.6 billion [8] Alphabet - Alphabet integrates proprietary AI into its products, leading to significant revenue growth, with first-quarter revenue reaching $90.2 billion, up from $80.5 billion the previous year [10] - Google Cloud's first-quarter sales grew to $12.3 billion from $9.6 billion, driven by AI advancements [9] - The company plans to invest $75 billion in capital expenditures this year, up from $52.5 billion in 2024, to further enhance its AI capabilities [12] Investment Valuation - Micron, Dell, and Alphabet are considered "wonderful companies" with strong growth and dividend payments, yet their forward price-to-earnings ratios are significantly lower than those of AI giants like Nvidia and Microsoft, indicating they are undervalued [13][15]

Core Points - AGM Group Holdings Inc. completed a share consolidation on June 3, 2025, converting 50 pre-Consolidation shares into one post-Consolidation share [1][2] - The total issued and outstanding Class A ordinary shares decreased from 98,713,955 to approximately 1,974,279, and Class B ordinary shares decreased from 2,100,000 to approximately 42,000 [3] - No fractional shares were issued; any resulting fractions were rounded down, and cash payments were made to shareholders based on the average closing prices of the shares [4] - Trading of Class A ordinary shares continues on the Nasdaq under the same symbol "AGMH" but with a new CUSIP Number, G0132V121 [5] - Registered shareholders will receive a letter of transmittal to exchange pre-Consolidation share certificates for new ones [6] Company Overview - AGM Group Holdings Inc. is an integrated technology company focused on assembling and selling high-performance hardware and computing equipment, particularly in the blockchain ecosystem [7]

Core Viewpoint - AGM Group Holdings Inc. announced a consolidation of its ordinary shares, reducing the number of shares significantly while maintaining the overall ownership percentage for shareholders [1][2][3]. Share Consolidation Details - The consolidation will convert 50 pre-consolidation shares into one post-consolidation share, resulting in approximately 1,974,279 Class A shares and 42,000 Class B shares [1][2]. - The par value of Class A shares will increase from US$0.001 to US$0.05, and Class B shares will also see a similar increase [2]. Fractional Shares and Cash Payments - No fractional shares will be issued; any resulting fractions will be rounded down, and shareholders will receive a cash payment based on the average closing prices of the shares prior to the consolidation [3]. - This cash payment will be calculated without interest and will be based on the average closing sales prices over the five trading days before the first trading day of the consolidation [3]. Trading Information - Post-consolidation trading will continue on the Nasdaq Capital Market under the same symbol "AGMH," but with a new CUSIP Number, G0132V121 [4]. - Registered shareholders will need to exchange their pre-consolidation share certificates for new ones through the company's transfer agent [5]. Company Overview - AGM Group Holdings Inc. specializes in high-performance hardware and computing equipment, focusing on blockchain-oriented ASIC chips and high-end crypto miners for Bitcoin and other cryptocurrencies [6].

Key Takeaways from the Taipei Computex Industry Overview - The report focuses on the Asia Tech Hardware industry, particularly highlighting developments from the Taipei Computex event held from May 20 to May 23, 2023. Key companies involved include Foxconn (2317 TT), Auras (3324 TT), Lite-on (2301 TT), Lotes (3533 TT), Winway (6515 TT), AVC (3017 TT), and Zhending (4958 TT) [1][1]. Core Insights - **GB300/B300 Display**: The GB300/B300 display was a focal point at the Computex, featuring computing trays with Cordelia interfaces and 20 sets of quick disconnect (NVQD). The GB300 is expected to adopt the Bianca design moving forward [2][2]. - **Component Shipments**: Component shipments for GB300 servers are anticipated to commence in Q3 2025, with limited rack shipments expected in Q4 2025. For the GB200, supply chain bottlenecks have been resolved, potentially increasing rack shipments to 7-8K in Q2 and reaching 10K in Q3 2025 [2][2]. - **Nvidia Collaboration**: Suppliers involved in the Cordelia design, such as Lotes, will continue to work with Nvidia to address issues in the new compute tray design planned for 2026 [2][2]. - **Market Confusion**: Investors expressed confusion regarding similar products from various suppliers at Computex. Inclusion in Nvidia's verified list (NVL) is crucial for securing orders, as CSPs ultimately determine key component suppliers [2][2]. - **Liquid Cooling Solutions**: Delta has gained significant traction among hyperscalers, with liquid cooling revenue expected to exceed NT$20 billion this year. Early entrants like AVC and Delta maintain healthy profitability despite competition [2][2]. Future Trends - **Datacenter Cooling Solutions**: Liquid-to-liquid (L2L) cooling and 800V HVDC are emerging as future solutions for datacenter cooling and power. New datacenters are increasingly adopting L2L solutions, while Nvidia collaborates with suppliers for 800V HVDC to support 1MW server racks by 2027 [2][2]. Investment Ratings - **Quanta Computer Inc (2382.TT)**: Rated Underperform with a target price of NT$240 [5][5]. - **Chroma ATE Inc (2360.TT)**: Rated Outperform with a target price of NT$480 [6][6]. - **Delta Electronics Inc (2308.TT)**: Rated Outperform with a target price of NT$490 [7][7]. - **Unimicron Technology Corp (3037.TT)**: Rated Outperform with a target price of NT$165 [7][7]. - **Luxshare Precision Industry Co Ltd (002475.CH)**: Rated Outperform with a target price of RMB47 [7][7]. Risks and Considerations - **Quanta Computer Inc**: Risks include higher-than-expected demand for AI servers and lower-than-expected demand for AI chips [49][49]. - **Chroma ATE Inc**: Risks include competition in the AI chip market and slower EV penetration [49][49]. - **Delta Electronics Inc**: Risks include competition in AI server power components and potential delays in the recovery of the automation market [55][55]. - **Unimicron Technology Corp**: Risks include weaker-than-expected demand for key products and margin pressures [55][55]. - **Luxshare Precision Industry Co Ltd**: Risks include competition and slower-than-expected market recovery [55][55]. Additional Insights - The report emphasizes the importance of securing orders through Nvidia's verified supplier list and highlights the competitive landscape among suppliers in the Asia Tech Hardware industry [2][2].

Investment Rating - The report maintains a "Buy" rating for Fositek with a 12-month price target of NT$836, representing an upside of 45.6% from the current price of NT$574 [10]. Core Insights - Fositek is expected to benefit from rising demand for ASIC AI servers, which is driving the penetration of liquid cooling components. The company's gross margin (GM) is projected to improve from 22% in 1Q25 to 27% by 2027 [1]. - The shift from air cooling to liquid cooling in ASIC AI servers is anticipated to enhance market opportunities, with next-generation rack-level AI servers potentially utilizing three times more quick disconnects (QDs) per tray compared to previous models [4]. - The foldable phone market is also on the rise, with significant shipments expected, including Huawei's foldable phones, which are projected to support Fositek's revenue growth in 2Q25 [7]. Summary by Sections ASIC AI Servers - The demand for ASIC AI servers is increasing, leading to a higher penetration rate of liquid cooling components. Fositek is expanding its product offerings to include rail kits and liquid cooling components, which are expected to positively impact its gross margin [1][4]. - The company's quick disconnect (QD) technology has gained traction among leading US cloud service providers, with mass production expected to start in 4Q25 [4]. Foldable Phones - The report highlights a growing trend in foldable phones, with significant shipments from major brands like Huawei and Lenovo. This trend is expected to contribute positively to Fositek's revenue in the upcoming quarters [5][7]. - The anticipated launch of more high-end foldable phones in 2H25 is expected to further support revenue growth for Fositek [7]. Financial Projections - Fositek's revenue is projected to grow from NT$8.19 billion in 2025 to NT$22.36 billion by 2027, with corresponding EBITDA and EPS growth [10]. - The report outlines a target P/E multiple of 19.2x based on peer comparisons, indicating a favorable valuation relative to its growth prospects [8].

Core Viewpoint - JP Morgan analyst Samik Chatterjee anticipates conservative earnings results for several hardware companies due to ongoing demand uncertainty and renewed tariff risks [1][2] Group 1: Company-Specific Insights - Dell Technologies Inc. is expected to benefit from AI spending and a stronger-than-expected AI market share, leading to an Overweight rating and a price forecast increase from $108 to $111 [5][4] - Hewlett Packard Enterprise Company is viewed as well-positioned for upcoming earnings, with projected revenue of $32.4 billion, reflecting an 8% year-over-year growth, and gross margins at 28.7% [9][8] - HP Inc. is anticipated to post solid second-quarter results due to strong PC demand, with a price forecast increase from $29 to $30, despite facing higher tariffs and uncertainty in future PC demand [11][10] - NetApp, Inc. is expected to see stable demand with a slight revenue beat in F4Q25E, but FY26 revenue growth is projected to be in the low-to-mid single digits due to a muted macro environment [12][13] Group 2: Market Trends and Economic Factors - The analyst notes that macroeconomic trends will significantly impact HPQ and HPE throughout the year, with NTAP showing resilience but limited revenue upside [5][6] - The upcoming earnings reports are likely to reflect management's strategies to mitigate risks for the second half of the year, especially after stronger-than-expected performances in the first half [2][3] - The tariff landscape remains a key concern, with expectations that it will affect second-quarter guidance and fiscal 2026 outlooks [6][7]

Group 1 - Harmony OS made its debut on computers, marking a significant breakthrough for domestic operating systems in the personal computer sector, enhancing Huawei's ecosystem [1] - Alibaba's Qwen3 model achieved multiple new highs in performance during global large model benchmark tests, showcasing advancements in AI technology [1] Group 2 - The launch of the Loongson 3C6000/D dual-server with 100% domestic component rate meets the computing needs of data centers and cloud computing [2] - Dameng Data's new generation distributed database has been put into use, achieving revenue and profit growth in Q1, emphasizing the importance of core technology development [2] Group 3 - SUTENG's laser radar technology has been pivotal in the smart driving industry, with multiple partnerships established this year [3] - China's new energy vehicle exports reached 642,000 units in the first four months, a year-on-year increase of 52.6%, highlighting the sector's growth [3] Group 4 - The introduction of advanced knitting technology by Xintai is expected to enhance customer loyalty and open new design possibilities [4] - Yushi Technology reported a 45% year-on-year increase in autonomous driving mileage, expanding its international projects [4] Group 5 - The introduction of a 1000-qubit coherent optical quantum computer at the Beijing Science and Technology Expo signifies a leap towards commercial viability in quantum computing [6] - The development of high-altitude wind energy systems and PHA production lines indicates significant advancements in renewable energy technologies [7] Group 6 - Blue Arrow Aerospace is rapidly producing new liquid oxygen-methane rocket engines, filling domestic technological gaps in this field [8] - The use of AI algorithms in drones has improved traffic flow and fire detection accuracy, serving over 100 cities globally [8] Group 7 - The establishment of major scientific research facilities in Shenzhen allows private enterprises to access cutting-edge research tools, enhancing innovation capabilities [9] - Financial support for private enterprises has increased, with improved access to funding and tailored financial products [14] Group 8 - The implementation of the Private Economy Promotion Law provides legal and policy support for private enterprises, encouraging innovation as a key development strategy [15]

Core Viewpoint - The article compares NVIDIA Corporation and Super Micro Computer, Inc. as key players in the AI hardware market, highlighting NVIDIA's dominance and growth potential while noting Super Micro's high-risk, high-reward profile [1][21]. Group 1: NVIDIA Corporation (NVDA) - NVIDIA is a leader in AI chips, data centers, gaming, and autonomous vehicles, with data center revenues surging 93% year-over-year to $35.58 billion in Q4 of fiscal 2025 [3][7]. - The company is launching its Blackwell Ultra and Vera Rubin platforms, expected to enhance its position as a primary AI infrastructure provider [5]. - Despite facing export restrictions on H20 chips to China, which could cost $15 billion in sales and $5.5 billion in charges in Q1 of fiscal 2026, NVIDIA anticipates revenues of $43 billion (+/-2%) in Q1 of fiscal 2026, reflecting over 65% year-over-year growth [6][7]. - NVIDIA's earnings estimate for fiscal 2026 indicates a year-over-year growth of 43%, with a stable earnings estimate revision trend compared to Super Micro [13][22]. Group 2: Super Micro Computer, Inc. (SMCI) - Super Micro's growth is driven by the increasing demand for high-performance, energy-efficient servers for AI workloads, particularly among cloud service providers and enterprises [8][9]. - The company faces near-term challenges, including delayed purchasing decisions and margin contraction due to price competition, leading to a revised revenue guidance for fiscal 2025 from $23.5-$25.0 billion to $21.8-$22.6 billion [10][11]. - The earnings estimate for fiscal 2025 indicates a year-over-year decline of 6%, while fiscal 2026 shows a growth of 36, with a highly volatile earnings estimate revision trend [13][22]. Group 3: Price Performance and Valuation - Over the past year, NVIDIA shares have increased by 42.8%, while Super Micro shares have decreased by 50.6% [16]. - NVIDIA's current price-to-earnings (P/E) multiple is 29.25X, lower than its one-year median of 37.28X, while Super Micro's P/E multiple is 16.41X, slightly above its one-year median of 16.10X [18]. - Although Super Micro appears cheaper on a P/E basis, it carries significantly more volatility and execution risk [20].