The sirens are wailing in Santa Clara. It may be the CEO of Rolls Royce who is evoking the “burning platform” meme from Nokia in 2011 (see here) but it looks to me like Intel may be in even worse shape. Intel reported a truly awful set of numbers, declined to guide for 2023 and appears to be losing market...
The inevitable slowdown. Microsoft reported good results that were spoilt by a slowdown in the cloud meaning that growth going forward is going to be lower which in turn raises questions over the valuation. FQ2 2023 revenues / ADJ-EPS were $52.7bn / $2.32 compared to consensus at $52.9bn / $2.30. This represented growth of 7% YoY in constant currency terms...
This is not a simple $10bn investment. Microsoft is deepening its ties with OpenAI which looks to me to be mostly about cementing Azure’s edge over AWS in that Microsoft has exclusive access to the hottest AI property on the market right now. Microsoft has said that it is making a “multiyear, multibillion-dollar investment to accelerate AI breakthroughs” and that...
ChatGPT comes down to earth while Tesla goes underground. ChatGPT & AI in general had a bad week last week with a series of blunders that once again demonstrate that the machines are far too stupid to do anything that could be remotely described as intelligent in human terms. ChatGPT kicked off the series of howlers with a series of...
Hastings ends on a bounce. Netflix announced good results at the same time that its long-term founder and CEO stepped down to be replaced with two co-CEOs which is never a good idea. Q4 2022 revenues / EPS were $7.85bn up 5% YoY (constant currency) / $0.12 below forecasts of $7.85bn / $0.5 but critically subscribers positively surprised. During Q4...
The end for HoloLens? Part of Microsoft’s 5% workforce reduction includes “changes to our hardware portfolio” which probably does not mean Xbox or Surface meaning that it is almost certainly HoloLens that is taking the hit throwing Microsoft’s Metaverse ambitions into even more uncertainty. HoloLens was once a trailblazer launched in 2015 demonstrated by Joe Belfiore shooting aliens behind a...
Apple’s incremental reality The new reality of the Metaverse appears to have caused Apple to delay its AR headset and although the media still expects it to release a VR-like device this year, I continue to think that there is only downside and no upside in releasing any VR or AR devices before 2025. Apple also updated its Mac lineup...
ChatGPT has Google needlessly rattled. Google has published a thinly veiled push-back against the notion that ChatGPT is a threat to its core search business demonstrating that ChatGPT has made Google nervous. I continue to think that there is no way that ChatGPT is in a position to replace Google anytime soon and so this is more of a PR...
3D without glasses – The great debate. Ever since the TV makers’ disastrous attempt to get us all watching 3D TV at home, 3D outside of the cinema has been plagued by the question of whether it is a solution looking for a problem. The notion of wearing 3D glasses at home is well and truly over meaning that if...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Semiconductor Equipment – Geopolitics
China makes all the difference. The ideological struggle between the USA and China is making itself felt especially in the semiconductor industry where it has hit Lam Research hard but, as of yet, left ASML unscathed. Lam Research reported a disappointing set of results, reduced forecasts and cut staff while ASML reported a record order backlog and forecast a 25%...