Greater China Technology Semiconductors_ December Revenue Wrap – AI continues to dominate

Summary of the Conference Call on Greater China Technology Semiconductors Industry Overview - The report focuses on the Greater China Technology Semiconductors industry, specifically analyzing the performance of Taiwan's tech companies in December 2024 [1][2]. Key Financial Performance - December Revenue: Taiwan's tech companies experienced a 1% decrease month-over-month (MoM) but a 35% increase year-over-year (YoY). Notably, several AI server supply chain companies achieved record monthly revenues [4][2]. - Performance by Segment: - Datacenter/Smartphone Hardware and Packaging & Testing companies exceeded expectations. - Virtual Reality (VR), semiconductor materials, and thermal solutions underperformed relative to expectations [4][2]. Investment Preferences - Preferred Stocks: The report recommends stocks with strong order visibility or leading market positions, including: - TSMC - KYEC - AllRing - ASMedia - Hon Hai - AVC - King Slide - E-Ink - Accton - Wiwynn [4][2]. - Underweight Recommendations: The report identifies Nanya Technology, Macronix, and NYPCB as key underweight (UW) stocks [4][2]. Market Outlook - The overall industry view is classified as In-Line, indicating that the performance of the semiconductor sector is expected to align with broader market trends over the next 12-18 months [2][4]. Additional Insights - The report emphasizes the dominance of Artificial Intelligence (AI) in driving revenue growth within the semiconductor sector, highlighting its critical role in shaping future market dynamics [1][2]. - Analysts express a cautious outlook on segments that did not meet expectations, suggesting potential risks for investors focusing on those areas [4][2]. Conclusion - The December revenue wrap-up indicates a mixed performance across Taiwan's tech companies, with AI-related sectors showing strength while others lagged. Investment strategies should focus on companies with robust order visibility and market leadership to navigate the current landscape effectively [4][2].