TSMC blowout, AXTI Update, GCP Landmark Deal, China AI Development and More, APP Update

The year of alpha dispersion has continued and gone even more extreme during the week, where outperfomers like memory keep chugging along, while MAGS remain soft and software still not catching a breath. We expect this environment of alpha seeking would probably extend into rest of the year, and would strive to keep identifying new opportunities in our research.

Before we jump into weekly review, we would like to express our gratitude to the renowned Adtech industry veteran Jim Payne, for acknowledging the value of our AI Agent. As always, any feedback on the agent platform is welcomed!

This week’s reports

TSMC’s blowout results - We had our preview earlier in the week, and the actual financial results were generally in line with our expectation. What blew the mind of market is management’s uber-bullish comment on AI demand as “endless”, as well as the Capex guidance that exceeded even the most bullish investors’ expectation. We continue to believe in the strong up-cycle of SPEs like AMAT and ASML.