Core Viewpoint - Netlist supports the U.S. government's Section 301 investigation into South Korea's trade practices, particularly regarding the misappropriation of U.S. intellectual property in the semiconductor sector [1] Group 1: Company Position - Netlist has invested hundreds of millions of dollars over 25 years in developing foundational memory technologies that are essential for AI computing platforms globally [1] - U.S. federal courts have upheld the validity of Netlist's patents, finding Samsung liable for willful infringement, with cumulative damages exceeding $420 million awarded [1] - Samsung continues to sell infringing products in the U.S. without a license, undermining American innovation and competition [1] Group 2: Industry Context - In 2025, South Korea exported approximately $173 billion in semiconductors, with DRAM and NAND memory being the largest export categories [1] - Over 70% of these semiconductors are purchased by U.S. customers, yet only about $15 billion was recorded as direct U.S. imports from South Korea [1] - The reported U.S.-Korea trade deficit of $56 billion significantly understates the actual imbalance, which analysts estimate could exceed $150 billion [1] - The global DRAM market, dominated by South Korean producers, is expected to more than triple amid the ongoing semiconductor upcycle in 2026 [1] Group 3: Call to Action - Netlist urges the U.S. Trade Representative to ensure that the Section 301 investigation addresses both unlawful IP exploitation and the structural trade mechanisms that obscure its economic impact [1]

Less than a year ago, shares of Micron Technology (NASDAQ: MU) traded below $100. At the time, Micron stock traded at about 15 times earnings, which was quite reasonable. But the cheap valuation wasn't enough to entice investors. Micron sells computer memory products, which are prone to extreme boom-and-bust cycles. When demand is strong, profits are good. But a slight miscalculation by one of the three major players often leads to oversupply, quickly dropping profits. Will AI create the world's first tri ...

Quick Read SanDisk (SNDK) surged 163% year-to-date after being spun out of Western Digital (WDC) last year shares are up 1,640%. SanDisk was the top performer in the S&P 500 last year and is once again the top performer in 2026. Goldman Sachs (GS) research shows high-bandwidth memory supply won’t ease until 2028. Demand is expanding over 20% annually. SanDisk Q3 guidance projects revenue of $4.4B to $4.8B and EPS of $12 to $14. Consensus revenue had been $4.21B. A recent study identified one single ...

Market and Performance Overview - Emerging markets advanced 4.7% in Q4 2025, finishing as one of the best-performing global equity asset classes, with the MSCI Emerging Markets Index rising 33.6% for the year, outperforming the MSCI EAFE Index (+31.2%) and the U.S. S&P 500 Index (+17.9%) [2] - Performance in Q4 was led by Korea and Taiwan, with Korean equities soaring 27.3% driven by a 50% gain in the IT sector, while Taiwanese stocks climbed 10.4% due to AI-related momentum [3] Sector Performance - The IT sector gained 16.4%, bolstered by AI-related stocks, while the materials sector advanced 11.6% as gold prices rose over 10% and copper prices hit record highs [6] - Energy, financials, and industrials sectors outperformed the index, while consumer discretionary, communication services, health care, and real estate underperformed [6] Company Highlights - SK Hynix saw its shares soar over 80% in Q4 and nearly tripled for the year due to increased demand for DRAM and NAND memory, particularly for AI workloads [7] - Samsung Electronics also experienced strong performance, benefiting from memory shortages that enhanced pricing power [7] - Taiwan Semiconductor, a leading manufacturer of high-end chips for Nvidia, significantly outperformed the benchmark [7] Regional Contributions - Significant contributors included China's Sieyuan Electric and Korea's HD Hyundai Electric, supporting AI data center buildouts [10] - Capitec Bank in South Africa delivered strong financial results, while Titan, an Indian jewelry retailer, showed encouraging performance despite India's overall underperformance [10] Detractors - Alibaba and Tencent surrendered gains due to a broader rotation out of China, while Contemporary Amperex Technology also faced declines [11] - MercadoLibre remained weak amid competition concerns in Brazil, and Apollo Hospitals detracted due to its large portfolio weight in a lagging Indian market [12] Portfolio Positioning - The strategy added four new positions, including Raia Drogasil and Nu Holdings in Brazil, while exiting positions in B3 S.A. and Proya Cosmetics [13][14][17] - Upgraded exposure in Indonesia by replacing PT Bank Rakyat Indonesia with PT Bank Central Asia, which has a strong deposit franchise [15] Outlook - The emerging market recovery is viewed as being in its early stages, with appealing valuations and supportive macroeconomic drivers [18] - Anticipated increased foreign investments into EM equities, driven by lower valuations and stronger economic growth [19] - The Chinese economy shows signs of increased stability, with improved trade relations and a more optimistic outlook [20] - Emerging markets offer opportunities in world-class companies with technological innovation, particularly in sectors like industrial automation, e-commerce, and fintech [21] - India remains a focus due to its large population and status as the fastest-growing major global economy, despite challenges faced in 2025 [22] Portfolio Highlights - The ClearBridge Emerging Market Strategy outperformed its benchmark in Q4, with gains across five of the nine sectors invested [23] - Stock selection in IT and industrials sectors contributed positively, while communication services and an underweight in materials detracted from performance [24] - Leading contributors included SK Hynix, Samsung Electronics, and Capitec Bank, while Tencent, Alibaba, and MercadoLibre were primary detractors [25]

Core Viewpoint - Both Micron Technology and Microsoft are positioned for potential rebounds despite recent declines in their stock prices, with Micron benefiting from strong demand for high-bandwidth memory and Microsoft facing challenges but maintaining a strong overall business outlook [1][2]. Micron Technology - Micron is experiencing a significant demand for high-bandwidth memory (HBM), with its entire 2026 HBM supply already sold out, indicating robust market conditions [5]. - The total addressable market for HBM is projected to grow at a compound annual growth rate of approximately 40%, expanding from $35 billion in 2025 to $100 billion by 2028 [5]. - Micron's shares are currently trading at a low valuation of 12 times forward earnings, which may present an opportunity for substantial growth if the company achieves strong revenue and earnings growth in the upcoming quarters [8]. - The demand for DRAM and NAND memory is also strong, leading Micron to negotiate multi-year supply agreements, which is a shift from past practices [7]. Microsoft - Microsoft is currently valued at a historically low earnings multiple, despite being a leader in the cloud sector [9]. - The company has faced challenges, including lower-than-expected revenue growth in its Azure cloud unit and increased capital expenditures, which have raised concerns among analysts [10]. - Competition is intensifying, particularly with the adoption of Microsoft 365 Copilot not meeting expectations and rival AI models gaining traction [11]. - Despite these challenges, Microsoft's business remains strong across various sectors, with CEO Satya Nadella highlighting the significant growth potential in AI diffusion and the total addressable market [13]. - Over the long term, Microsoft is expected to be a more significant winner, as historical trends show that buying Microsoft shares during significant declines has been rewarding for long-term investors [15].

Market Overview - U.S. stock futures are showing a modest rebound with S&P 500 futures up approximately 0.3-0.4% following a significant selloff on Tuesday where major indexes recorded steep declines [1][2] - The S&P 500 plunged 2.1% to 6,796.86, the Dow Jones Industrial Average shed 1.8% to 48,488.59, and the Nasdaq Composite dropped 2.4% to 22,954.32, with technology stocks contributing significantly to the losses [2] Geopolitical and Economic Factors - Escalating geopolitical tensions, particularly surrounding President Trump's demands and tariff threats, are creating a risk-off sentiment among investors [3] - Gold prices have surged past $4,800, gaining between 1.7% and 2.2%, as investors seek safe-haven assets amid uncertainty [4] - The 10-year U.S. Treasury yield is around 4.29%, its highest since August, but has eased slightly to 4.28% after touching a five-month high [4] Corporate Earnings - A busy day for corporate earnings is expected, with major companies like Johnson & Johnson, Charles Schwab, and Prologis reporting their financial results [7] - Netflix's stock fell over 5% despite surpassing sales and earnings expectations for Q4 FY25, while it revised its bid for Warner Bros. Discovery to an all-cash offer [8][9] - In the technology sector, Nvidia and Apple saw declines of 4.4% and 3.5% respectively, while SanDisk's stock rose over 90% this month due to demand in the AI sector [10] Sector Highlights - HCL Technologies announced a strategic partnership with Carahsoft Technology Corp to enhance digital transformation initiatives in the U.S. public sector [11] - Crude oil prices are easing, with Brent crude futures down 1.2% to $64.16 per barrel and U.S. West Texas Intermediate crude falling 1% to $59.76 per barrel, influenced by expectations of rising U.S. crude inventories [12]

Core Insights - The most durable AI investments will be driven by companies integrated into AI adoption and monetization trends, rather than short-term earnings spikes [1] - 90% of AI investors plan to hold or buy more AI stocks in the next year, highlighting a strong long-term interest in the sector [1] Micron Technology - Micron's Q1 fiscal 2026 earnings show a 57% year-over-year revenue increase to $13.6 billion and a 167% year-over-year EPS surge to $4.78, driven by high demand for DRAM and NAND memory from data center and AI customers [3] - The high-bandwidth memory (HBM) market is expected to grow from $35 billion in 2025 to $100 billion in 2028, with Micron holding a 21% market share, providing strong revenue visibility and pricing power [4] - Memory is becoming a strategic component for AI systems, with increasing memory content per device across various applications, positioning Micron as a potential long-term earnings compounder [5] Alphabet - Alphabet is effectively monetizing its AI technologies on a global scale, contributing to its growth prospects [6] - Both Micron and Alphabet have experienced significant share price gains in 2025 while maintaining reasonable valuations relative to their future growth potential [6]

Core Insights - Micron Technology, Inc. is the largest memory company in the US and a leading global supplier of DRAM, NOR, and NAND memory, recognized for delivering strong shareholder returns [1] Company Overview - Micron Technology specializes in memory solutions, including DRAM, NOR, and NAND, positioning itself as a top player in the global market [1] Market Position - The company has established itself as a leader in the memory industry, noted for its competitive performance in terms of shareholder returns [1]

Core Insights - Micron Technology, Inc. has been highlighted as a significant player in the AI stock market, with UBS analyst Timothy Arcuri raising the price target to $295.00 from $275.00 while maintaining a "Buy" rating, citing stronger DRAM/NAND pricing and tightening supply as key factors for long-term margin expansion [1][4] Pricing Trends - The fourth-quarter 2025 industry contract pricing for DDR memory is expected to increase by approximately 35% quarter-over-quarter, up from a previous estimate of 21%. NAND pricing is projected to rise about 20% quarter-over-quarter, an increase from the earlier projection of 15% [2] - For the first quarter of 2026, DDR memory contract pricing is forecasted to increase by another 30% quarter-over-quarter, while NAND pricing is expected to rise by 20% [2] Supply Dynamics - A significant undersupply in DRAM and NAND memory is anticipated to persist until the first quarter of 2027 and the fourth quarter of 2026, leading customers to secure volumes and contract pricing earlier in the quarter [3] Earnings Projections - The analyst has revised EPS estimates higher, projecting EPS of approximately $38 for C2027E, which supports the new price target of $295. The revenue and earnings expectations for Micron's fiscal first quarter remain unchanged, as they are considered well ahead of the company's guidance, primarily driven by improved pricing [4]

Core Viewpoint - Sandisk (SNDK) shares have increased approximately 435% since June, with analysts projecting further upside due to strong demand from data centers and artificial intelligence, alongside a significantly undersupplied NAND memory market [1][3]. Industry Insights - The NAND market is expected to tighten further due to the increasing demand from artificial intelligence data centers, which are beginning to consume a substantial portion of global memory and flash production capacity [2]. - Analysts predict that NAND will be in undersupply by 2026, with some estimates extending this undersupply to late 2027, indicating a bullish outlook for SNDK stock [3]. - The demand for NAND is anticipated to rise as artificial intelligence continues to drive the need for data centers, which are essential for data storage, speed, and performance [4]. Market Demand - There are approximately 3,000 data centers in the U.S., and a report from McKinsey estimates that $5.2 trillion will be required for AI infrastructure investments by 2030, further increasing the demand for NAND memory in an already constrained market [5]. - McKinsey's analysis suggests that the demand for AI-ready data center capacity will grow at an average rate of 33% annually from 2023 to 2030, reflecting an ongoing trend that will further boost NAND demand [6]. Company Performance - In its latest quarter, Sandisk reported an adjusted EPS of $1.22, exceeding estimates by $0.33, and revenue of $2.31 billion, which represents a year-over-year increase of 22.6% and surpassed expectations by $160 million [7].