Core Viewpoint - Kiwoom Securities predicts that Samsung Electronics' high bandwidth memory (HBM) shipments will triple next year compared to this year, maintaining a "buy" rating with a target price of 140,000 KRW [2] Group 1: HBM Market Outlook - HBM sales for major ASIC chips are expected to significantly increase in Q1 2025, with mass production of HBM4 for Nvidia's Rubin platform starting in Q2 [2] - Samsung's HBM business revenue is projected to reach 26.5 trillion KRW next year, representing a 197% year-on-year growth [2] - If competitors face delays in HBM4 supply, Samsung's revenue could see further upside [2] Group 2: New Customers and Market Expansion - Meta is expected to become a new HBM customer by transitioning from LPDDR5 to HBM3e with the release of MTIA v3 next year [3] - Amazon is anticipated to steadily increase its HBM usage in 2025 based on this year's figures [3] - Samsung's stock price is expected to benefit from rising general DRAM prices and increased HBM shipment forecasts, leading to a continued upward trend [3] Group 3: Competitive Positioning - Samsung's valuation is noted to be the lowest among the three major DRAM manufacturers, which could drive differentiated stock price increases due to the aforementioned factors [3]

Core Insights - The article highlights the rapid expansion of AI Server demand, leading major Cloud Service Providers (CSPs) to significantly increase their capital expenditures, projected to exceed $420 billion in 2025, representing a 61% year-over-year growth compared to the combined capital expenditures of 2023 and 2024 [2] - It is anticipated that the total capital expenditure of the eight major CSPs will reach over $520 billion in 2026, marking a 24% increase from 2025, as they shift their spending focus from revenue-generating equipment to assets like servers and GPUs to strengthen long-term competitiveness [2] CSP Capital Expenditure - The demand for the GB200/GB300 Rack AI solutions is expected to grow beyond expectations, with significant interest from major North American CSPs and companies like Tesla, Coreweave, and Nebius for cloud AI leasing services [5] - CSPs are expected to expand their deployment of the GB300 Rack solutions in 2026, transitioning to the NVIDIA Rubin VR200 Rack solutions in the latter half of the year [5] In-house Chip Development - North American CSPs are intensifying their AI ASIC development to enhance autonomy and cost control in generative AI and large language model computations [6] - Google is collaborating with Broadcom on the TPU v7p, expected to ramp up in 2026, while AWS is set to launch the liquid-cooled version of Trainium v2 by the end of 2025, with Trainium v3 expected to enter mass production in early 2026 [6][7] - Meta is enhancing its collaboration with Broadcom, anticipating the mass production of MTIA v2 in Q4 2025, while Microsoft plans to produce Maia v2 with GUC's assistance, although its timeline is lagging behind competitors [7]

Summary of Conference Call Notes Industry Overview - The conference call focuses on the ASIC (Application-Specific Integrated Circuit) market dynamics, particularly involving major players like AWS, Google, Microsoft, and META, with projections extending into 2026 and beyond [1][2][5]. Key Company Insights AWS - AWS has resolved issues with Trainium 3 and continues to secure orders from downstream suppliers. The development of Trainium 4 has commenced, with expectations for a contract signing soon [2][5]. - The specifications for AWS's TPU chips are significantly higher than competitors, with TPU v6p and TPU v7p expected to have ASPs of US$8,000 and higher, respectively [2]. Google - Google is progressing steadily with its TPU series, with TPU v6p featuring advanced specifications including multiple compute and I/O dies. The company is anticipated to become a top customer for GUC due to its rapid ramp-up in CPU development [2][10]. - The revenue from Google's 3nm server CPU is expected to contribute to GUC's revenue sooner than previously anticipated, moving from Q4 2025 to Q3 2025 [10]. Microsoft - Microsoft is working on its Maia v2 ASIC, with a target of ramping 500,000 chips in 2026. However, the project has faced delays, pushing the tape-out timeline from Q1 2025 to Q2 2025 [3][4]. - The allocation of chips has shifted, with expectations of 40-60k chips for MSFT/GUC and 400k chips for Marvell in 2026 [3]. META - META is transitioning from MTIA v2 to MTIA v3, with expectations of ramping 100-200k chips for MTIA v2 and 200-300k chips for MTIA v3 in 2026 [2]. Non-CSPs - Companies like Apple, OpenAI, and xAI are entering the ASIC server market, with many expected to tape out in 2H25 and ramp in 2H26. These companies are likely to collaborate with Broadcom for high-end ASIC specifications [7][8][9]. Financial Projections - GUC's FY25 revenue is expected to exceed previous forecasts, driven by contributions from Google and crypto projects. However, concerns remain about FY26 growth without crypto revenue, with a projected 50% YoY growth in MP revenue [10][11]. - The revenue contribution from various ASIC projects in 2026 includes significant figures such as US$16,756 million from TPU v6p and US$2,616 million from Trainium 3 [18]. Additional Insights - The competitive landscape for ASIC design services is intensifying, with Broadcom and MediaTek entering the fray alongside existing players like Marvell and GUC [4][15]. - The potential impact of geopolitical factors on HBM2E clients was discussed, highlighting the resilience of Faraday in the face of possible restrictions [14]. Conclusion - The ASIC market is poised for significant growth, driven by advancements in technology and increasing demand from both CSPs and non-CSPs. Key players are adapting their strategies to navigate challenges and capitalize on emerging opportunities in the sector [1][5][7].