Technology Sector 02 (Jun 16 - Dec 24)

[behappyalways]

How Tap-to-Pay Works | The Tech Behind | WSJ
https://m.youtube.com/watch?v=S7dWigI7Soc&t=305s

[winston]

You Want to Own These Stocks Right Now

by Brett Eversole

Netflix fell 76% from its 2021 peak to its 2022 low… Microsoft dropped 38%… Amazon slid by more than 50%… and even Alphabet fell 44%.

This tells us that last year’s crash is probably over. And we’re already seeing that bullish pattern take hold this year… The Nasdaq is up 21% year to date.

First, the bottom is almost certainly in for tech stocks. The rally has been too strong and has lasted too long for a reversal to be likely.

Second, while the 2023 gain has been big so far… it could be much higher by the end of the year.

We’re still well below the average gain of 33.7% that we saw among winning years in cases like these. And another knockout year of 50%-plus gains is entirely possible, given the strength in the Nasdaq.

Source: DailyWealth.com

https://dailytradealert.com/2023/05/23/ ... ed-assets/

[behappyalways]

Exposing the shady scene of the shoe snatching program, sports majors are busy promoting mechanism-resistant sneakers scalpers

揭露搶鞋程式黑幕 運動大廠忙推機制阻球鞋黃牛｜FOCUS午間新聞 20230608 @tvbsfocus

https://m.youtube.com/watch?v=X2gPZ708A-Y

[winston]

China+1 : reshaping Asia’s trade paradigm - Regional Technology
s
Capex growth for Asia ex-China (AxC) is estimated at 3% to 7% from 2022 – 2027. This is a stark contrast vs contraction of 16.8% for China


Global players including Applied Materials, GlobalFoundries, Micron, Soitec, UMC, TSMC, Lam Research, Infineon, Intel, Apple, have expanded or looking to expand into AxC. Investments into this region is expected to gather momentum, unlocking new revenue streams for companies in this region.

Trade diversification will benefit the entire supply chain, key suppliers for these players: ASML, KLA, Teradyne, Texas Instruments

Source: DBS

https://www.dbs.com/insightsdirect/scre ... rtid=40164

[winston]

US TECH & INTERNET – BIGGER IS BETTER

Going forward, the cloud and artificial intelligence (AI) commercial ecosystem could evolve around 3 layers – cloud infrastructure services, AI foundation model providers, and software/applications.

Due to high capital costs, barriers to entry for AI cloud infrastructure is likely to remain high and dominated by hyperscalers – Amazon (AMZN; AMZN US), Microsoft (MSFT; MSFT US) and Alphabet (GOOG; GOOG US).

With high investment costs and data quality being the determinants of the quality of AI foundation models, we see this ecosystem layer to be dominated by large-cap technology companies and some startups who have partnered with major players.

The software and applications layer will be very competitive due to lower barriers to entry, and we believe the companies that will prevail will be those that can provide differentiated service offerings and capture customer relationships.

Given the speed at which big-tech companies have moved on AI initiatives, we believe their dominance within their core markets will remain intact and could be enhanced as they leverage on AI technology to pull themselves ahead of competition over the long term.

However, due to an uncertain macro environment, many client companies also are not looking to expand their investment spending budgets. Hence, monetisation of AI technologies in the near-term could be elusive, which could lead to investors disappointment.

However, in the long-term we remain strong believers of the long-term positive structural impact that AI has on technology companies.

Broadly speaking, US internet and software companies have reported 1Q23 results that have outperformed expectations.

While a positive surprise, it is important to note that revenue growth in 1Q23 continued trending lower and guidance for 2Q23 suggests that slower revenue growth persists.

Post 1Q23 results, we think that FY23 earnings expectations for US large-cap software and internet companies are consistent with a weak macro environment.

Recent share price rallies within these sectors have been relatively narrow and concentrated in mega-cap tech companies – we think the hype around AI and expanding FY24 earnings forecasts have driven these rallies.

If a weak macro environment persists or deteriorates into FY24, we could see some risks around FY24 earnings growth expectations (and share prices) which are higher than FY23 and suggesting an economic recovery.

Overall, after overlaying the long-term structurally positive AI theme over the more uncertain near-term outlook, we remain positive on the software and internet sectors as beneficiaries from AI-driven demand over the long-term.

However, we express our concerns for the near-term outlook with a preference for the internet over the software sector, and also being selective in our preferences for our AI beneficiaries – preferring large-cap internet and software companies due to strong balance sheets and resilient cash flows to weather the economic uncertainty while benefiting from potential upside due to the AI theme. We like AMZN, GOOG and Salesforce (CRM; CRM US).

Cloud and AI ecosystems could evolve to be dominated by big-tech companies in the infrastructure and foundation model layers, while software/application layer is likely to be very competitive

Investor expectations could be disappointed in the near-term, but we remain positive over the long-term on the structural impact of AI on businesses

1Q23 earnings outperformed and FY23 earnings expectations look in line with the current weak macro environment. Some risks remain with FY24 forecasted earnings suggesting an economic recovery which may be uncertain

Prefer internet over software sector, and large-cap companies with strong balance sheets and resilient cash flows to weather economic uncertainty.

Source: OCBC

[winston]

China’s internet firms rebound with profits up by nearly 50 per cent this year as broader economic recovery lags

The leap in profits came with a nearly 3 per cent uptick in revenue for China’s internet industry, improving from the 1 per cent decline for 2022

China‘s tech industry has rebounded from a two-year crackdown from Beijing, but economic growth is still slower since the country loosened Covid controls

by Ann Cao

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... gn=3226293

[behappyalways]

TikTok is not dead?; "Little Yellow Book" became popular in the United States! Facebook was stolen. "Buyers" came to the door

TikTok不死? 「小黃書」在美爆紅! 臉書被盜.「買家」找上門｜秦綾謙｜FOCUS全球新聞 20230704@tvbsfocus

https://m.youtube.com/watch?v=dj_6FEjh960

[behappyalways]

Defeating supercomputers? Quantum computer craze has become a hotspot in technology warfare

打敗超級電腦? 量子電腦熱潮來襲成科技戰熱點 ｜FOCUS午間新聞 20230706 @tvbsfocus

https://m.youtube.com/watch?v=np6-UTWNcl4

[winston]

US tech giants rely on China for a significant percentage of total revenues

https://twitter.com/scienceisstrat1/sta ... 5700039684

[behappyalways]

US tech vs China tech, year to date.
https://twitter.com/SofiaHCBBG/status/1 ... 8686739456