Core Viewpoint - NVIDIA's entry into the CPU market with its DGX Spark has faced significant delays, raising concerns about its ability to compete against established players like Intel and AMD [1][10][16]. Group 1: Product Launch and Specifications - NVIDIA's DGX Spark, featuring the GB10 Grace Blackwell chip, was initially set to launch in July 2025 but has been delayed, with new expected shipping dates pushed to September 15 [3][4]. - The GB10 chip boasts a performance of approximately 1000 TOPS (FP4) and includes 128 GB of LPDDR5X unified memory, designed to meet the demands of AI model inference [4][9]. - The device is capable of running AI models with parameter scales of up to 200 billion at FP4 precision and 100 billion at FP8 precision, making it suitable for deploying specialized AI models [4][9]. Group 2: Production Challenges - High integration levels in the GB10 chip, which combines multiple cores and a GPU, have led to lower yield rates during mass production, complicating the manufacturing process [7][10]. - The production process involves complex steps, such as the CoWoS-L packaging by TSMC, which requires precise temperature control and can lead to delays if any step encounters issues [7][10]. Group 3: Market Competition and Pricing - The pricing for the base model of the GB10 is reported to be around £3600 (approximately 33,000 RMB), which, while lower than traditional NVIDIA DGX systems, may still be prohibitive for many developers [9][10]. - AMD has launched its Threadripper 9000 series processors, capturing a significant market share, with AMD's server CPU share reaching 39.4% in Q1 2025, indicating strong competition for NVIDIA [11][16]. Group 4: Software Ecosystem and Compatibility - NVIDIA faces significant challenges in building a software ecosystem for its Arm architecture CPUs, as many applications are not optimized for this architecture, leading to performance issues [14][20]. - The success of the GB10 will depend on NVIDIA's ability to ensure that essential software runs smoothly on its platform, as poor user experience could undermine its performance advantages [18][20]. Group 5: Strategic Partnerships and Future Outlook - NVIDIA's strategy includes collaborating with major PC manufacturers like ASUS and Dell to mitigate risks and share benefits, but delays have strained these partnerships [20][21]. - The company must consider forming closer alliances with software developers and operating system providers, such as Microsoft, to enhance the availability of native Arm applications and improve overall ecosystem compatibility [20][21].

Group 1 - The Russian National Space Corporation's president announced that the International Space Station will operate at least until 2028, with a possibility of extending to 2030 [1] - Media reports indicate that MediaTek's CEO expects the first batch of 2nm chips to begin trial production in September, with a projected revenue decline in Q3 due to earlier demand responses [2][1] - China successfully launched the Pakistan Remote Sensing Satellite 01 using the Kuaizhou-1A rocket, marking the 29th flight of this rocket [1] Group 2 - Arm's CEO revealed that the company is investing in developing its own chips, which has led to a disappointing forecast for the next fiscal quarter and an 8.65% drop in stock price [1]

Core Viewpoint - The competition for TSMC's CoWoS capacity is intensifying as major tech companies, particularly NVIDIA, are vying for advanced packaging technology to support their AI strategies. [1] Group 1: Market Demand and Growth - Global demand for CoWoS is projected to reach 1 million wafers by 2026, indicating a robust growth of 40% to 50% in the cloud AI semiconductor market. [1] - NVIDIA is expected to consume 595,000 wafers, capturing approximately 60% of the total global demand. [2][4] - The capital expenditure of cloud service providers (CSPs) is rising, with Google increasing its 2025 budget from $75 billion to $85 billion, further accelerating investments in 2026. [1][5] Group 2: Company-Specific Insights - NVIDIA's total demand for CoWoS wafers is forecasted at 595,000, with 515,000 wafers sourced from TSMC, primarily for its next-generation Rubin architecture chips. [2][4] - AMD is projected to secure 105,000 wafers, representing about 11% of the market share, with 80,000 wafers produced by TSMC for its MI355 and MI400 series AI accelerators. [2][4] - Broadcom is anticipated to demand 150,000 wafers, accounting for 15% of the market, mainly for custom chips for major clients like Google and Meta. [2][4] Group 3: Financial Implications for TSMC - TSMC's CoWoS monthly capacity is expected to increase significantly from 32,000 wafers in 2024 to 93,000 wafers by the end of 2026, driven by strong customer demand. [7] - AI-related revenue is projected to constitute 25% of TSMC's total revenue by 2025, positioning the company as a key beneficiary in the ongoing AI wave. [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The value of the company's innovative drug platform is gradually becoming apparent, with multiple leading technology platforms established, focusing on oncology, immunology, and degenerative diseases, indicating potential for revaluation [5][6] - The innovative pipeline provides expectations for international expansion, granting the company new valuation flexibility [6] Summary by Relevant Sections Market Performance - Closing price as of July 16, 2025, is 49.30 CNY, with a total market capitalization of 9,921.98 million CNY [3] Earnings Forecast and Valuation - Projected revenues for 2025-2027 are 1,684 million CNY, 2,071 million CNY, and 2,650 million CNY, respectively, with year-on-year growth rates of 19.68%, 22.98%, and 27.96% [7] - Expected net profit for the same period is 107 million CNY, 207 million CNY, and 346 million CNY, with significant year-on-year growth rates [7] - Price-to-earnings ratios (P/E) for 2025-2027 are projected at 93.02, 47.97, and 28.69, respectively [9] Innovative Pipeline - The company has developed several innovative drugs targeting significant medical needs, including GB18 for cancer cachexia, GB12 for atopic dermatitis, and GB20/GB24 for inflammatory bowel disease, all showing promising clinical progress [8][21][35] - GB18, targeting GDF15, has received IND approval in both China and the US, with a favorable competitive landscape and high clinical success probability [21][30] - GB20 and GB24, targeting TL1A, are positioned to address the growing market for inflammatory bowel disease, with significant patient numbers projected [35][39] Investment Logic - The company is expected to maintain high growth rates in overseas sales, particularly with the commercialization of key products in the EU and emerging markets [11] - The innovative drug development pipeline is progressing positively, with potential for significant valuation increases through successful business development (BD) transactions [11][19]

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]

Core Viewpoint - MediaTek, a leading IC design company in Taiwan, reported a strong revenue performance for April, with a monthly revenue of NT$48.754 billion, marking a 12.93% decrease month-over-month but a 16% increase year-over-year, achieving the second-highest record for the same month in history [1] - The company anticipates a revenue range for Q2, calculated at an exchange rate of 1 USD to 32.5 TWD, between NT$147.2 billion and NT$159.4 billion, indicating a potential quarterly decrease of 4% to an increase of 4%, and a year-over-year growth of 16% to 25% [1] Group 1 - MediaTek's cumulative revenue for the first four months reached NT$202.067 billion, reflecting a year-over-year increase of 15.15%, setting a new record for the same period [1] - The company projects a gross margin of 45.5% to 48.5% and an expense ratio of 27% to 31% for the upcoming quarter [1] - The appreciation of the New Taiwan Dollar against the US Dollar is expected to reduce the company's profit by NT$44.897 million and NT$31.382 million for the years 2023 and 2022, respectively, for every 0.1% increase in the exchange rate [1] Group 2 - MediaTek's CEO expressed confidence in long-term growth opportunities despite current market uncertainties, focusing on growth areas such as AI, data centers, and automotive sectors, which are still in the early stages of market development [2] - External analysts believe MediaTek's financial forecasts align with market expectations, driven by the Smart Edge Platform and the increasing market share of power chips in consumer electronics, automotive, and data centers [2] - The geopolitical tensions, particularly regarding US-China relations, may benefit MediaTek's market share as flagship chips like the Dimensity 9400+ are set to launch, potentially increasing demand for MediaTek's mobile chip business [2]

Investment Rating - The report maintains a "Buy" rating for the company [5][6][17] Core Viewpoints - The company reported a 2024 annual revenue of 1.407 billion yuan, an increase of 11.75% year-on-year, and a net profit of 31.48 million yuan, up 116.54% year-on-year. In Q1 2025, revenue was 354 million yuan, down 1.97% year-on-year, but overseas sales grew by 84.33% [1][5] - The innovative platform is entering a harvest phase with significant potential for overseas expansion, particularly with the GDF-15 target candidate drug GB18, which has shown promising results in preclinical studies for treating cancer cachexia [2][3] - The company has established overseas sales channels in over 70 countries and regions, with a 2024 overseas revenue of 224 million yuan, a year-on-year increase of approximately 61.96%. The target for 2025 is projected to be between 415 million and 692 million yuan [4] Financial Performance - The projected revenues for 2025-2027 are 1.812 billion, 2.192 billion, and 2.718 billion yuan, respectively. The expected net profits for the same period are 143.32 million, 227.17 million, and 310.19 million yuan [5][10] - The company has a total market capitalization of approximately 7.618 billion yuan, with a current price of 38.16 yuan per share [6][7] Product Development - The GB18 drug candidate has received acceptance from NMPA for clinical trials, and its preclinical data shows superior efficacy in improving muscle wasting compared to competitors [3] - The company is also developing several other innovative products in the preclinical stage, including GB10, GB12, and GB20, which have high innovation potential [3] Market Potential - According to WHO data, there were 20 million new cancer cases globally in 2022, with approximately 9 million patients affected by cachexia, indicating a large market opportunity for the GDF-15 target drug [2] - The company has signed strategic partnerships with various pharmaceutical companies to expand its overseas business foundation [4]

Investment Rating - The report maintains a "Buy" investment rating for the company, indicating a positive outlook for future performance [10]. Core Views - The company has shown significant improvement in financial performance, achieving a revenue of 1.407 billion yuan in 2024, a year-on-year increase of 11.75%, and a net profit of 31 million yuan, up 116.54% year-on-year [6]. - The first quarter of 2025 saw a revenue of 354 million yuan, a slight decrease of 1.97% year-on-year, but net profit increased by 106.21% to 26 million yuan, indicating strong profitability despite revenue fluctuations [6]. - The company is actively expanding its international presence, particularly in the EU, with overseas sales revenue reaching approximately 224.37 million yuan, a year-on-year growth of about 61.96% [7]. - The integration of AI in drug development is enhancing the efficiency and quality of new drug research, with several innovative projects underway [8]. Financial Performance Summary - In 2024, the company achieved a gross margin of 68.69%, which slightly decreased by 2.10 percentage points year-on-year, while the expense ratio improved significantly by 28.13% to 63.37% [6]. - The projected revenues for 2025, 2026, and 2027 are 1.884 billion yuan, 2.298 billion yuan, and 2.700 billion yuan, respectively, with expected year-on-year growth rates of 33.9%, 22.0%, and 17.5% [11]. - The net profit forecast for the same years is 141 million yuan, 207 million yuan, and 338 million yuan, reflecting substantial growth rates of 347.1%, 47.2%, and 62.9% [11]. Strategic Initiatives - The company is focusing on enhancing its international marketing structure and expanding its product offerings in key disease areas, which is expected to bolster its market position [7]. - The company has received GMP certification and market approval for its paclitaxel product in the EU, marking a significant milestone in its international expansion efforts [7]. - Ongoing collaborations and innovative drug development projects are expected to yield new therapeutic options, particularly in oncology and autoimmune diseases [8][9].