Maison Solutions

Oh look, a new UDN article about $Taiwan Semiconductor(TSM.US) COUPE + AI optical markets.

Institutional investors are optimistic that Taiwanese companies:

FOCI (3363), and MSScorps (6830) are expected to benefit

But... that "Institutional" should be changed to retail investors on X?

For FOCI: "Its FAU products have been developed in cooperation with TSMC for at least three years, and the specifications have been promoted to 1.6T, 3.2T, and the subsequent mass production schedule has become the focus of market observation."

For MSS: "cut into the silicon photonics and CPO detection analysis, the main "light loss detection" technology ... and launch of the silicon photonics test platform, lock in research and development, engineering verification, failure analysis and a small number of diverse test applications."

These are still two extremely small companies... and things like MSS weren't even mentioned by GS, despite the news claims about relations.

So feels like X found this early, mainstream institutions are likely about to enter after seeing this sort of confirmation.

Source: Serenity

Monitoring the situation for you (testing/yields edition):

$Viavi Solutions(VIAV.US) and $Formfactor(FORM.US) earnings: Extremely Bullish

So what does this mean?

Names like $Onto Innovation(ONTO.US) / $Camtek(CAMT.US) go brr. Throw in $TOWA (6315), since there's indication of aggressive memory production ramp.

Names like Msscorps / $Keysight Tech(KEYS.US) should go brrr.

Broader upstream yields, test, validation, and inspection for both memory + optical ecosystem go heavily BRRR. And it's a leading indicator for $Coherent Corp.(COHR.US), $Fabrinet(FN.US), $Lumentum(LITE.US), and others if they're ramping up production.

For $Viavi Solutions(VIAV.US):

-> $406.8M vs. $393M (beat) 42.8% Y/Y growth.

-> $.27 EPS vs $0.2-$0.24

Guidance was $427m-$437m, indicating acceleration.

For $Formfactor(FORM.US):

-> $226M, 32% Y/Y, $.56 EPS vs. $.45

-> margins increased a TON to 49% (which indicates pricing power).

-> Guidance was $.61 EPS, midpoint ~$240m revenue.

"Record demand for High Bandwidth Memory (HBM) and stronger "Foundry & Logic networking applications"

Basically the smaller yields/test ecosystem in general. BRRR.

Source: Serenity

"Silicon photonics scaling hits wafer testing bottleneck"

- $Formfactor(FORM.US) (helps that ficontec left), $Aehr Test(AEHR.US)

- Over in Taiwan MPI (6223), MA-tek (3587), MSScorps (6830)

- Then large cap Cap - $Teradyne(TER.US), Advantest (6857)

Are some decent exposure off the top of my head if you’re curious.

I’ll make a deeper dive ETF for you all soon.

Source: Serenity