Abstracts of MPS (MPWR) Note • Initiate Buy | TP $1,706
• Key position in AI power (GPU + ASIC) on Strong demand + VPD module uplift + firm pricing from DrMOS shortages
• Storage / enterprise data / auto design wins → broad recovery
• EPS forecast: $28 (2026E) / $49 (2027E)
• Target based on 35x 2027E P/E • GPU power surging (H100 → B200 → Rubin) + higher density per rack
• Conventional power delivery hits limits → strong demand for high-phase PoL VRMs (12V→1V)
• AI 12V-1V power TAM set for strong growth amid tight supply
• Differentiated tech: leading BCD process + Intelli-Phase + DPPM architectures
• Enterprise Data sales expected +153% / +81% YoY in 2026E/2027E • Long-term capacity target lifted well above $6bn
• New product ramps unlocking SAM in storage, communications & automotive
• Initial high-speed DDR5 orders secured
• Sampling high-voltage AC-DC for 800V data-center architectures
• Automotive: >1,500 new sockets shipped YTD (ADAS + in-vehicle electronics) #MPS# #MPWR#

Abstract of PCB Sector & Initiation & Updates 🔥 Initiating & Transferring PCB Coverage: •Initiating CO-TECH. (8358 TT / Buy / TP: NT$480): Share px -54% since June, Margin ramp-up in 4Q26, expansion of HVLP3/4, and px hikes. •Raise TP: EMC (2383 TT / Buy / TP: NT$6,538): Google share gains, product mix upgrading toward M7+/M8+. •Raise TP: Kingboard Laminates (1888 HK / Buy / TP: HK$60.8): E-glass and FR-4 price hike cycle, expansion of high-end copper foil capacity. •Raise TP: Zhen Ding Technology (4958 TT / Buy / TP: NT$729): Market share gains in VR200, leveraging MSAP, ABF supercycle. ☀️ AI Server PCBs: •Nvidia Vera Rubin: PCB content per GPU $750 (vs. $400 for GB200). •Google TPU v8t/v8i: PCB content $800–$1,000 (vs. ~$700 for v7). •TAM Expansion: AI server PCB TAM projected at $13B in 2026 and $29B in 2027. •Zhen Ding benefits from Nvidia platform gains + mSAP dominance in optical modules/CPO. •mSAP Shortage: 2027 capacity constraints due to 800G optical switch and yield limits ☀️ CCL Dynamics: FR-4 Prices doubled to ~RMB 300 since mid-2025; upcycle extends through end-2027/2028. ☀️ Upstream Supply Shortage: •E-Glass Gap: ~15% shortage; requires 3,000 new machines, but Toyota's annual output is only 2,000 units (fully booked till 2028). •HVLP4 Foil: Year-end 2026 capacity at ~1,200 tons/month with a 400+ ton shortage. #PCB# #ZDT# #NVDA# #msap# #ABF# #EMC#

Abstracts of Addressing Recent Debates on LT Capex and NVDA Platform Content Away from Memories • Recent CSP Earnings Review on Capex: Amazon to $220bn, Google $195-205bn, Meta $130-145bn • U.S. CSP capex forecast at $0.8tn/$1.2tn / $1.4tn in 2026/2027/28 (+45% / +20% YoY in 27/28), supported by healthy balance sheets • Capex growth expected to moderate to +20% / +15% YoY in 2028/29 as CSPs prioritize returns & FCF & uncertainties over AI model competition • Top 5 debt issuance seen at $257bn / $419bn in 2026/27 (31-35% of capex), still manageable • Cumulative debt issuance could reach ~$421bn by 2028, yet remains well-supported • Balance sheets stay very healthy (ex-Oracle): net leverage only ~0.5x (EBITDA basis) by 2028/29 • Net debt-to-equity ratio projected at just 18% by 2029 despite heavy capex

• Reiterate our July 2’s report of Nvidia cutting memory: Vera CPU SOCAMM from 192GB → 96GB → selective SKUs to 64GB by 1Q27
• Rubin Ultra HBM stepped down from 384GB to 192GB/256GB (HBM4/4E); 8-Hi design finalized, yet 12-Hi remains on line up
• Competitors already on lower configs: AMD MI450 Custom and Google TPU Humufish already 8-Hi
• Scale-up expanding via NVL576 w NPO optics to offset reduced memory content
• Nvidia platform OE shipments estimated at 5.8m / 8.1m units in 2027/28
• Still positive on AI trends; prefer GPU / CPU / Optics, cautious on memory commodities
 Recommendations: 1) Nvidia GPU: NVDA (Buy), Hon Hai (2317 TT), SMCI (Buy) 2) CPU: INTC (Buy), AMD (Buy), ASE (3711 TT, ASX, Buy) 3) Optics NPO: LITE (Buy), MRVL (Buy), SMTC (Buy), TSEM (Buy), Bizlink (3665 TT Buy), Browave (3163 TT) #capex# #NVDA# #RUBIN# #Memory# #HBM#

Earnings Takeaways- Tower Semiconductor (TSEM) • 2Q26 revenue $460mn (+24% YoY), GP +72%, OP +125%; EPS $0.79 a beat, driven by higher utilization, better mix & accelerating silicon photonics demand
• 3Q26 guide: record $520mn (+31% YoY, +13% QoQ) suggests a strong growth 
• The co targets sequential revenue & profit improvement through 2026
• Raised 2026/27 EPS to $4.5 / $10; Maintain Buy, TP $260 (26x 2027E)
• $1.3bn contract SiPho revenue locked for 2027 from hyperscalers
• 2028 wafer order commitments expected to exceed 2027 levels
• Additional new SiPho customer qualifications underway
• Leading specialty foundry for NPO (near-package optics); CPO longer-term
• Capacity ramp focused on Japan Fab 7; NPO volume ramp expected 2H27 #TSEM# #Towersemi#

Earnings Takeaways- AMD • Raised 2026/27 EPS by +8%/+23%; TP lifted from $640 → $700 on 45x 2027E or 31x 2028E • After-hours weakness as market digests high expectations despite solid results • 2Q26 revenue $11.5bn (+50% YoY) in line; EPS $1.66 slightly above consensus
• 3Q26 guide: $13bn revenue above consensus, GM 56% soft
• Mgmt sees datacenter >100% YoY growth in 2027 (CPU + GPU)
• MI450/MI455X on track. Helios ramping in 3Q/4Q26 with further step-up in 1Q27 • We see Helios rack supply chain build plan ROBUST (>20k racks 2H26-27) 
• MI500 expected to outperform Nvidia’s Rubin Ultra in hardware performance

• Business tracking well ahead of long-term model (>35% revenue CAGR, EPS >$20)
• Strength from AI GPUs (MI450/Helios/MI500) + server CPU TAM/share gains
• Margin wise, AI GPU margins to stay below corporate avg due to large-memory strategy, while CPU and Embedded recovery are positive drivers #AMD#

Earnings Takeaways - MTK (2454 TT) * 2Q26 revenue NT$152.2B (+2% QoQ, +1% YoY) was above guidance. * 2Q26 GM/EPS in line: 46.2% GM; EPS NT$15.28. * Smart Edge +19% QoQ, offsetting smartphone weakness. * 3Q26 guide: Revenue NT$152.2–159.8B (flat to +5% QoQ) better than recent broker’s -5% but inline with us * 3Q26 GM: 46.0% ±1.5%, inline. * Maintain Buy: TP NT$6,420 * ASIC guidance raised: 2026 from $2B to >$2B. * 2027 ASIC share target: Raised to 15–20% (from 10–15%). * We estimate Zebrafish shipments to be 2–3 months earlier than Sunfish * MTK’s Triggersfish to drive inference share gains with larger SRAM (4x 250MB) in 2028 * Reit SpaceX is the likely 2nd datacenter ASIC customer * We est. MTK’s Icefish is by now the only official v10 project. * Smartphone better than feared; 2nm SoC to drive share gains in Android’a Ultra models #MTK# #Mediatek#

Earnings Takeaways Note - FORM * 2Q26 beat across the board: Revenue $258.2M and 53.3% GM exceeded expectations * 3Q26 guided to ~$270M revenue with margins expanding to 54%. * AI recovery gaining traction: AI probe card share continues to rise, with stronger CPU and CPO demand supporting the next growth leg. * Rubin & Intel are key catalysts: Expect 10%+ share on Nvidia Rubin, further gains with Rubin Ultra/Humusfish, while Intel’s 18A ramp drives server CPU probe card demand and 20–30% pricing upside from node migration. * HBM to reaccelerate: Memory mix shifts toward DDR in 3Q26, but HBM revenue is expected to reach a record high in 4Q26 with next-gen AI platform ramps. * CPO momentum accelerating: Management expects CPO revenue to hit the high end of FY26 guidance by 3Q26, driven by Triton adoption and insertion leadership. * Valuation: Shares have corrected 38% from the peak and now trade at 25x 2027E P/E (vs. 33x/42x for MPI/Technoprobe), offering an attractive risk/reward. #FORM# #Formfactor#

Earnings Note - AAPL Downgrade from Buy to Hold: * Valuation looks full after a 19% outperformance vs. Nasdaq in the past month; upside appears limited. * F3Q26 beat, F4Q26 guide softer: Revenue $109.4B (+16% YoY) and EPS $2.03 (+30% YoY) topped expectations, but F4Q revenue growth guidance of 9–11% YoY and 47–48% GM came in slightly below consensus. * iPhone remains the growth driver: iPhone revenue grew 22% YoY, Mac +29% YoY, while iPad and Services were softer than expected. * Apple expects broader Apple Intelligence rollout this fall alongside new OS releases and Siri AI enhancements. * iPhone 18 Pro demand risk: Higher 2nm silicon and DRAM/NAND costs could drive a $250–300 price hike for iPhone 18 Pro/PM, creating demand uncertainty despite resilient iPhone 17 builds. iPhone 18 Pro/PM suggests limited spec upgrade for consumers. * Still constructive on Fold: Expect the iPhone Fold (~7M units) to support the 2H26 product cycle, but remain cautious on mainstream iPhone 18 Pro demand due to limited hardware upgrades. #AAPL#

Earnings Takeaways Note - ASE (ASX US, 3711 TT) * Reiterates Buy; TP lowered to NT$754. * 2Q26 inline: Revenue NT$191bn (+10% QoQ, +27% YoY), EPS NT$4.8 (+48% QoQ, +177% YoY). * Strong 3Q26 guidance: Revenue +21–22% QoQ, led by EMS +40% QoQ and ATM +11–13% QoQ. ATM margin to reach 28–29%, supported by AI-driven LEAP demand, high utilization, and pricing. * LEAP (advanced packaging) outlook raised: Mgmt believes LEAP revenue run rate is ahead of guidance and guide it to DOUBLE in 2027. * We lift 2026/27E LEAP revenue increased to US$3.8bn/7.7bn (vs. prior US$3.6bn/6.4bn). * AMD Venice (~5–5.5M CPUs supply chain builds) and Nvidia Vera to support Full Process growth in 2027z * Capex raised by another US$2bn. * we maintain 2.5D capacity forecast: 15K/45K/55K WPM by end-2026/27/28. #ASE# #ASX#

Earnings Takeaways - QCOM * Maintain Hold; TP cut to $186 on handset weakness and limited near-mid term datacenter visibility. * F3Q26 mixed: Revenue $9.9bn (-6% QoQ/-4% YoY) slightly beat; non-GAAP EPS $2.21 slightly missed consensus. * F4Q26 guidance: Revenue $9.7–10.5bn, EPS $2.05–2.25; below recent buy-side chatters (~$11bn revenue). * Android headwinds continue with elevated wafer inventories and faster-than-expected decline in Apple modem revenue. * Co reaffirmed FY27/FY29 datacenter revenue targets of $5bn/$15bn+, with hyperscaler engagements and custom silicon programs progressing. * AI250 gains traction with four major U.S. CSPs, but the high LPDDR5 prices remain a key concern, limiting cost competitiveness. * Custom silicon on track; wafer production has started, with AWS expected to be the first wafer-based customer. * CPU roadmap remains a longer-term story; still years away. #QCOM#

Earnings Takeaways UMC (2303 TT, UMC) * Maintained constructive view despite lower TP; >90% UTR guidance and firm pricing support margin expansion into 2027, yet higher depreciation a partial offset * Raised 2026 capex to US$2bn, driven by Singapore fab cleanroom and 12A P7/P8 shell construction. * Product upgrade (22/28nm, AI, optics) remains the key earnings driver, with AI revenue targeted to exceed US$1bn within 3 years. * Foundry landscape remains favorable as Samsung scales back mature nodes while AI/optics demand stays strong. * Intel collaboration remains on track, with tape-out expected in 2027 on Intel 12; we removed our previous expectation for Intel 3/4 due to lacking engineering power for leading nodes * 3Q26 guidance: shipments +high-single digit QoQ, firm ASP, GM in the mid-30%, UTR >90%. Celestica (CLS US) * Strong beat-and-raise: raised 2026 revenue outlook to US$20.5bn and EPS to ~US$11.3, reflecting improving AI demand visibility. * 2027 revenue expected to grow >65% YoY, driven by hyperscaler AI deployments. * CCS remains the growth engine (+84% YoY), benefiting from 800G/1.6T networking and AI compute platform demand. * Google TPU share loss is largely priced in, with upside from other hyperscalers and AMD programs. * Neutral #UMC# #CLS#

AMD AI Takeaways Note •AI accelerator market now seen at $1.4T by 2030 (up from $1T prior). We also raises forecast to $1T by 2028, backed by our bottom-up analysis •Server CPU TAM also boosted to >$220B by 2030. Agentic AI expected to be ~50% of TAM, with CPU:GPU ratio tightening toward 1:1. •MI455X is a major leap: 34x higher throughput & 18x lower token cost vs MI355X. Already outperforming Nvidia B200 in some LLM inference. •MI500 brings optical interconnects, ahead of Nvidia Rubin Ultra in key areas (HBM, 4-die package, scale-up domain). •Venice CPU strongest for AI workloads: 2.2x/2.0x higher throughput vs competitors. We estimate ~300k CoWoS builds expected in 2027 → big ASP uplift. 📈 No change to estimates and TP #AMD# #AdvancingAI#

Takeaways of Intel (INTC) 2Q26 earnings note •TP to $136 (5x 2027E BVPS / 34x 2028E EPS) •2Q26 the strongest rev growth in 15+ years of $16.1B, beat estimates (consensus $14.3b, GFe $14.8b) •Strong 3Q guidance of Rev $16.3b (vs consensus $15.1b, GFe $16.2b). GM guide of 42% (vs consensus 40%, GFe 42.2%). Foundry Accelerating: •Foundry business gaining strong traction with sound execution •18A yields ahead of internal targets; Panther Lake inline with our ~80% view •Intel 18A-P entered risk production — competitive node for external customers (e.g. Apple M-series highlighted in Dec 2025) •14A clear timeline: PDK 0.9 by Oct, risk production + external customer volume in 2H28 •Robust pipeline, especially Apple smartphone & server CPUs •Aggressively raising 2026 capex >$20B, with significantly higher 2027 capex — big capacity buildout for 14A/18A/Intel 3, inline with our earlier note of a Big Lift in Capacity •On track for profitability in 2H27 driven by yield + scale Other Highlights: •Upward EPS revisions (+3% 2026E / +11% 2027E) 🆚 Per our earlier TSMC (2330 TT) Downgrade note on July 16, we note that TSMC’s capex acceleration was late in this AI cycle, leaving room for Intel, which also backed by Made in U.S. and improving execution. #Intel# #INTC# #Semiconductors# #Foundry#

WSJ: Anthropic will purchase up to 2 gigawatts of AMD’s latest-generation chips starting in the first half of 2027. AMD will also invest up to $5 billion in Anthropic—its first check into the AI firm. ===> ✔️ The 2GW Scale larger than that of Meta/OAI in 2027 ✔️ No AMD warrants 📈📉Near term positive news out but the deal is positive Of course, have to wait offical announcement

Abstract of AMD note TP increased to $640 (based on 45x 2027E EPS or 32x 2028E EPS), with EPS revised up by +2%/+11% for 2026E/2027E. Advancing AI & Customers: AMD is expected to unveil Anthropic as its third GW-level customer, likely exceeding Meta/OpenAI deal scales in 2027, alongside Microsoft's deployment of the Helios rack-scale solution announced on July 20. As such, we believe 2027 its GPU demand visibility is 40–50% above current CoWoS supply, suggesting room for upward revision. GPU Roadmap: AMD is narrowing the hardware gap with the MI450X and pulling ahead of Nvidia with the MI550X (featuring a 4-die package and larger HBM). Datacenter CPU & Venice: Venice's strong CPU cycle, driven by a robust supply chain build plan of ~5m in 2027 and higher server CPU TAM, is expected to lift datacenter CPU ASPs by 30–35% YoY in 2027. Near term likely a price hike in late-3Q26. Upcoming Earnings: The earnings call on Aug 4 is anticipated to be a non-event with 2Q/3Q revenue expected at $11.4bn/$12.2bn and 3Q margin moving higher. #AMD# #AI#

Abstract of MRVL (Buy) Earnings Preview, QCOM (Hold) Initiation MRVL (Buy) Earnings Preview 🚀 •Maintain Buy & $280 TP •F2Q27E: Expect +12% QoQ revenue, ~59% non-GAAP GM (vs. Street 58.8%) •F3Q27E: +13% QoQ revenue (vs. consensus +11%), GM 58.9% (vs. 58.3%) •Likely raise to FY27 guidance; upside seen to FY28 revenue & FY29 custom ASIC target •FY27E/28E/FY29E EPS: $4.2 / $7.6 / $14 •FY29 ASIC revenue: $15bn+ (guidance $10bn+), powered by Google CXL/DPU, one ver of Trainium 4 & Maia 300 QCOM (Hold) 💤 •Initiated Hold: DC business partially priced in since Investor Day •Mgmt targets $5bn/$15bn DC revenue in FY27/FY29; we model $4.7bn/$8.8bn in FY27/28 •AI250 competitiveness vs. GPU limited by high LPDDR5 pricing & inferior scale-up •CPU ramp (2028) still far away •Custom Silicon can leverage its high wafer allocation •Handset remains a drag; Android recovery overly optimistic amid high wafer inventory & weak sell-through •Smartphone share pressure continues from competitors’ effort to gain OPPO/vivo Ultra models •FY26E/27E EPS: $10.7 / $11.3 → TP $203 (18x) #MRVL# #QCOM# #Semiconductors#

Abstracts of TSMC, ASML Earnings Notes TSMC (TSM) D/G to Hold, Taking the High Road in AI Cycle * Earnings & Guide: While TSMC’s Q2 earnings were inline (margin slightly below bulls), the company raised its full-year rev and capex. * The key highlight was taking the high road in margin management (by not to be aggressive in pricing), geo-expansion (by further capex investment in Arizona) and backend flexibility (by supporting customers’ backend at EMIB). * As said in our preview note on July 7, TSMC’s capex acceleration began in 2025, 1.5–2 years after the AI cycle took off, implying that share loss or demand overflow to competitors; that said, to catch up in capex in 2026-2027; together with prudent pricing, TSMC could be one of the few AI semi companies that won’t see margin expansion in coming quarters. This will lead to lower valuation multiple. ASML Earnings, Guidance Raised * Q2: ASML delivered a strong beat, with Q2 revenue of €9.3 billion and a 54% gross margin, exceeding guidance. * Guidance Raised: The company raised its full-year 2026 revenue outlook to €43–45 billion (from the previous €36–40 billion range). * Growth Drivers: Robust demand from both logic and memory customers. * Capacity Expansion: ASML announced plans to increase capacity by ~30% annually for both its EUV and DUV immersion systems through 2027, with potential further expansion in 2028. Stay positive #AI# #ASML# #TSM# #TSMC#

Abstract - Semtech (SMTC) Initiated Buy on 1.6T and NPO • Initiates with Buy, $180 PT (25x FY28E P/E). • Transitioning from an analog chip company to an AI interconnect beneficiary w portfolio spanning ACC, TIA, drivers, lasers and NPO analog solutions. • Guides FY27 AI revenue >$350M; we forecast $466M (FY27E) → $1.22B (FY28E), driven by 1.6T. • Google TPU expansion to be a key catalyst for CopperEdge ACC. • NPO adoption could be the next major growth leg beyond 2027 as DSP removal increases analog content. • Believes NVIDIA and leading CSPs are evaluating NPO deployments. • NPO market size : we forecast 38M NPO optical engines in 2028, suggesting a multi-billion-dollar TIA/driver TAM • Acquisition of HieFo strengthens its laser portfolio and expands optical content opportunities. #AI# #Semiconductors# #OpticalNetworking# #SMTC#

Tech Monthly Wrap Up • Market : From “Sizzling” ➜ “Unwind” ➜ “Consolidation.” • After SOX and tech names corrected, valuations have reset with likely stabilized volatility, shifting the market from “unwind” to “consolidation.” • QTD, market is rotating out of 2Q outperformers (ie memory, MLCCs, PCB upstream). • Near-term events: TSMC & ASML earnings likely mild positive ones. Investors focus more on CSPs on AI/capex. • We continue to expect AI spending to accelerate. Top-5 CSP capex could reach ~$1.2T by 2027 (+43% YoY). Top-5 Neoclouds could double YoY in 2027 • Open-source models are gaining traction, but Third-party data still points to strong ARR by Anthropic suggesting sustained spending shares. • For price hike theme, we prefer CPU, ABF substrates, mature-node foundries, OSAT, and wafers, as market could focus on “rate”. #tech# #SOX# #AI#