Alētheia Capital

Technology Hardware – Warren Lau: American Manufacturing and TSMC We estimate that top tech hardware companies in the US have spent an aggregate of over $1 trillion on share buybacks since 2020. This is 20% more than their combined capex and accounts for 40-50% of their operating cash flow. Notably, Apple has spent an astonishing $345bn on share repurchases while only budgeting $50 bn of capex. Clearly, Apple relies on its suppliers (which are mostly based in Asia) for nearly all its productions. Similarly, some of the US chipmakers - nVidia, Broadcom, AMD, Qualcomm - spend most of their operating cash flow on buybacks as their business models do not require them to invest in capex. If we include the hyperscalers in the discussion, almost all their chips are fabricated by TSMC in Taiwan but sold and heavily utilized in the US. Read full story here: https://buff.ly/4jZkKVL For more information on our #BestGlobalTechHardwareTeam product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner

Tech Thematic Strategy | Chinese New Year? - Keith Woolcock The most important thing about DeepSeek’s release of R1 is that it is a true open-source model. Already, there are now about 1,500 versions of DeepSeek on Hugging Face, the open-source platform for machine learning models. DeepSeek is therefore forcing the hands of other model makers to follow suit or risk losing their grip on the market. Sam Altman, the head of OpenAI, admitted in a tweet that the company has been “on the wrong side of history.” Therefore, don’t be surprised if OpenAI, Meta and others match the irresistible offer being made to developers by China’s DeepSeek. You thought the pace of innovation in AI was already fast—it will get a lot faster if the world’s most advanced models go open source. Elon Musk is right; we have reached a fork in the road. Read full story here: https://buff.ly/41ewCMj For more information on our #tech #thematic #strategy product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner

Tech Thematic Strategy | Chinese New Year? - Keith Woolcock Better robots will allow China’s car makers, such as BYD and Geely to be more productive. I said that robotic innovation has been happening at an incremental rate. However, the ability to pair them up with powerful reasoning models, such as o3 or Anthropic’s Claude, would make them easier to train for new tasks. In addition, nVidia has recently launched Cosmos which enables the development of digital twins. Together with its earlier release of its Omniverse toolset, it is aimed at speeding up both the training and development of robots. These are new breakthroughs which promise to catalyse robotic development. nVidia’s CEO Jensen Huang has repeatedly stated that one day all moveable objects, such as cars, will be intelligent robots. Huang saw as early as the mid-2000s that deep learning neural networks were the wave of the future, so I suspect he is right with this latest call. Read full story here: https://buff.ly/41ewCMj For more information on our #tech #thematic #strategy product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner

Aletheia Capital's morning meeting summary (Friday 14 Feb '25): Warren Lau published a detailed preview on NVIDIA Keith Woolcock has written more on DeepSeek AI Steven Liu discussed Terumo Medical Corporation's 3Q results. We have two CONNECT events next week: Advantest's management on Monday and Jonathan Wilmot on Thursday. Link to Warren's report: https://lnkd.in/g3DqpeQk Link to Keith's report: https://lnkd.in/gNE5thva Link to Steven's report: https://lnkd.in/gkQz-7yJ For more information, contact us at info@aletheia-capital.com #AI #TechHardware #MedTech

JUST ISSUED - Preview note on NVIDIA’s full year results on Feb 27th, from the #BestGlobalTechHardwareTeam. If you are investing in the #AI space and are not subscribed to this research, you are missing out! ONE TEAM - 5 analysts with 50+ yrs experience ONE Passion - Evalue chain of Tech Hardware sector ONE FOCUS - Client service Fore more information contact us at info@aletheia-capital.com. #investments #ideas #AI

Just to brighten up your morning/afternoon/evening 😂 😂 😂   https://lnkd.in/eYdH3jB2  

Technology Hardware | AI Opportunities - Skye Chen "DeepSeek: Is it a short-cut, or are they smart?" • Based on some technical reviews of DeepSeek’s R1 and V3, we tend to believe that it stands out more for its modelling skill on cost-efficiency than solid model-training innovations and breakthroughs, engineering innovation, or solid theoretical foundations. • Furthermore, R1 is highly based on V3’s training results, which will have used large amounts of data and GPUs. • Despite such challenges however, DeepSeek's expertise in Mixed Precision Training, Mixture of Experts model, and GPU idle time reduction, has enabled them to launch an outstanding model (V3) successfully with an impressive dollar-to-performance, surprising the market. • Among these three methods, several experts agree DeepSeek’s know-how in reducing GPU idle time is most critical and enables the company to maintain its market position. Read full story here: https://buff.ly/3Qcyf6P For more information on our #BestGlobalTechHardwareTeam product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner #DeepSeek #AI #GPU #ChatGPT

Aletheia CONNECT with Advantest Aletheia Capital will be hosting a client conference call with Advantest (6857 JP): Ms Junko Oike and Ms Miwa Shirato, Corporate Strategy Group What to expect: • The Advantest team will provide an overview of Q3 FY2025 financial results as well as discuss the outlook for its business • Advantest’s record-breaking growth in SoC and Memory testers had been driven by increasing complexity from heterogeneous chiplet architecture in AI chips • DeepSeek news hit the stock, but Advantest reports no change in customer Capex plans and expects chiplet development to drive more wafer-level insertions and longer test times • Advantest is expanding in SLT systems, securing new clients with expected impact in 2H FY3/26 Monday 17 February at 3:45 pm Hong Kong time Please click here to register for the Zoom call: https://buff.ly/40RQe7s Please check our initiation report here: https://buff.ly/3WPYq7k and our recent results review here: https://buff.ly/40RQh38