Micron is up 134%

Posted on | by Leon Hinde | Leave a Comment on Micron is up 134%

MU:NAS was added to our model portfolio in March 2023 at $56 and is now up 134%. We recommend watching for the next Algo Engine buy signal.

Micron reported 50% sequential data center revenue growth in Q3, driven by AI demand. The company is well-positioned to benefit from the CHIPS Act and plans to expand its manufacturing.

    Intel Corporation

    Posted on | by Leon Hinde | Leave a Comment on Intel Corporation

    Intel Corporation – Common is under Algo Engine buy conditions.

    The launch of Intel’s Gaudi 3 AI accelerator and the reorganization of its foundry business are positive signs for future growth. During the first quarter, Intel’s revenues increased by 8.5% Y/Y to $12.7 billion.

    The launch of Intel’s Gaudi® 3 AI accelerator in Q3, which appears to be more powerful than NVIDIA’s flagship H100 GPU, should also help the company improve the performance of its data center business, revenue to total $56 bln (+3% y/y) in 2024, and jump to $65.3 bln (+17% y/y) in 2025. Adjusted EBITDA is set to total $13.8 bln (+7% y/y) in 2024, and rocket to $20.3 bln (+47% y/y).

    Intel’s revenue structure

    Effective from 1Q 2024, the company modified its segment reporting, with revenue now coming from the following business units:

    1. Intel Products

    • Client Computing Group (CCG)
    • Data Center and AI (DCAI)
    • Network and Edge (NEX)

    2. Intel Foundry

    • Intel Foundry Services (IFS)

    3. All other

    • Altera
    • Mobileye
    • Other

    Client Computing Group (CCG) – this segment generates about half of the company’s revenue. It supplies central processing units for desktop PCs and notebooks.

    Data Center and AI (DCAI) – The key products in this segment are CPUs, GPUs and Gaudi AI accelerators.This segment has accounted for just under 30% of the company’s total revenue in recent years

    Intel’s revenue structure: Intel Foundry

    Intel Foundry – the segment that includes chip manufacturing for Intel’s own needs as well as for external customers. Intel entered the market of contract manufacturing of semiconductors in 2021 as Intel Foundry Service (IFS) to capitalize on the growing demand for foundry capacity. To provide transparency in the segment’s operations, the company in its reporting separates revenue generated from external customers and revenue from inter-segment sales within Intel. As of the end of 2023, revenue from external customers totaled $953 mln (+96% y/y), or 5% of total IFS revenue of $18.9 bln (-31% y/y).

    Even though IFS revenue from external customers is relatively small, Intel has ambitious plans to expand the plants by investing its own funds and with the help of government subsidies (Under the CHIPS Act the US government has given Intel $8.5 bln in grants and the option to draw $11 bln in federal loans).

    US Interest Rates

    Posted on | by Leon Hinde | Leave a Comment on US Interest Rates

    The Fed Decision

    The Fed kept rates on hold between 5.0% and 5.25%, in-line with market expectations. As for Powell’s commentary, here are some of his key comments:

      • Rate outlook: “We are prepared to maintain the current target range for longer if appropriate … If the economy evolves going forward, the appropriate level of the federal funds rate will be 4.6% at the end of this year, 3.9% at the end of 2025 and 3.1% at the end of 2026.”
      • Rate outlook: “We believe that our policy rate is likely at its peak for this time in the cycle.

      Overall – The Fed still seeks greater confidence inflation is moving sustainably down before making its first rate cut.

      Atlassian

      Posted on | by Leon Hinde | Leave a Comment on Atlassian

      TEAM:NAS is under Algo Engine buy conditions.

      First Quarter Fiscal Year 2024 Financial Highlights:
      On a GAAP basis, Atlassian reported:

      • Revenue: Total revenue was $977.8 million for the first quarter of fiscal year 2024, up 21% from $807.4 million
        for the first quarter of fiscal year 2023.
      • Operating Loss and Operating Margin: Operating loss was $18.9 million for the first quarter of fiscal year
        2024, compared with operating loss of $34.0 million for the first quarter of fiscal year 2023. Operating
        margin was (2)% for the first quarter of fiscal year 2024, compared with (4)% for the first quarter of fiscal year
        2023.
      • Net Loss and Net Loss Per Diluted Share: Net loss was $31.9 million for the first quarter of fiscal year 2024,
        compared with net loss of $13.7 million for the first quarter of fiscal year 2023. Net loss per diluted share
        was $0.12 for the first quarter of fiscal year 2024, compared with net loss per diluted share of $0.05 for the first
        quarter of fiscal year 2023.
      • Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the first quarter of fiscal
        year 2024 totaled $2.2 billion.

      Financial Targets:
      Atlassian is providing the following financial targets that do not include any impact from the Loom acquisition, which is
      expected to close in the third quarter of its fiscal year 2024, subject to customary closing conditions and required
      regulatory approval:
      Second Quarter Fiscal Year 2024:

      • Total revenue is expected to be in the range of $1,010 million to $1,030 million.
      • Cloud revenue growth year-over-year is expected to be in the range of 25.5% to 27.5%.
      • Data Center revenue growth year-over-year is expected to be approximately 33%.
      • Gross margin is expected to be approximately 81.0% on a GAAP basis and approximately 83.5% on a nonGAAP basis.
      • Operating margin is expected to be approximately (7.5%) on a GAAP basis and approximately 21.0% on a nonGAAP basis.
        2
        Fiscal Year 2024:
      • Cloud revenue growth year-over-year is expected to be in the range of 25% to 30%.
      • Data Center revenue growth year-over-year is expected to be approximately 31%.
      • Gross margin is expected to be approximately 81.0% on a GAAP basis and approximately 83.5% on a nonGAAP basis.
      • Operating marg

      Palantir

      Posted on | by Leon Hinde | Leave a Comment on Palantir

      PLTR:NYS shares were more than 30 per cent higher after the company reported big demand for its artificial intelligence technology and gave a higher-than-expected profit outlook for 2024.

      Wedbush Securities called Palantir “an undiscovered gem and a core part of our thesis in the AI Revolution just now taking shape across the tech world”. Wedbush said it believes Palantir is on track to be included in the S&P 500.

      FY 2023 Highlights

      • Revenue grew 17% year-over-year to $2.23 billion
      • Commercial revenue grew 20% year-over-year to $1.0 billion
        • US commercial revenue grew 36% year-over-year to $457 million
      • Government revenue grew 14% year-over-year to $1.2 billion
      • GAAP net income of $210 million, representing a 9% margin
      • GAAP income from operations of $120 million, representing a 5% margin
      • Cash from operations of $712 million, representing a 32% margin
      • Adjusted free cash flow of $731 million, representing a 33% margin
      • Adjusted income from operations of $633 million, representing a 28% margin

      Mega-cap US tech: Earnings Analysis

      Posted on | by Leon Hinde | Leave a Comment on Mega-cap US tech: Earnings Analysis

      Mega-cap US tech stocks Microsoft, Alphabet, Amazon, and Meta all reported this week.

      Reneue scoreboard: Year-over-year growth Microsoft +18%, Meta +16%, Amazon +12%, Alphabet +9%.

      Microsoft

      Alphabet

      Meta delivered an incredible Q4 2023, generating $5.33 in GAAP EPS and $40.11 billion in revenue. META beat on the top and bottom lines, announced a $50 billion buyback authorization, and implemented a dividend program.

      Amazon: Fourth Quarter 2023

      • Net sales increased 14% to $170.0 billion in the fourth quarter, compared with $149.2 billion in fourth quarter 2022.
      • Full Year 2023 Net sales increased 12% to $574.8 billion in 2023, compared with $514.0 billion in 2022.
      • North America segment sales increased 12% year-over-year to $352.8 billion.
      • International segment sales increased 11% year-over-year to $131.2 billion.
      • AWS segment sales increased 13% year-over-year to $90.8 billion.
      • Operating income increased to $36.9 billion in 2023, compared with $12.2 billion in 2022.
      • AWS segment operating income was $24.6 billion, compared with operating income of $22.8 billion in 2022.
      • Net income was $30.4 billion in 2023, or $2.90 per diluted share, compared with a net loss of $2.7 billion, or $0.27 per diluted share, in 2022.
      • Free cash flow improved to an inflow of $36.8 billion for the trailing twelve months, compared with an outflow of $11.6 billion for the trailing twelve months ended December 31, 2022.

      Honeywell

      Posted on | by Leon Hinde | Leave a Comment on Honeywell

      HON:NAS

      HONEYWELL ANNOUNCES FOURTH QUARTER
      AND FULL YEAR 2023 RESULTS; ISSUES 2024 GUIDANCE

      • Fourth Quarter Earnings Per Share of $1.91 and Adjusted Earnings Per Share1
        of $2.60, Above Midpoint of
        Previous Guidance
      • Fourth Quarter Sales of $9.4 Billion, Reported Sales Up 3%, Organic1
        Sales Up 2%
      • Full Year Operating Cash Flow of $5.3 Billion and Free Cash Flow1
        of $4.3B, at High End of Previous Guidance
      • Deployed $8.3 Billion of Capital to Share Repurchases, Dividends, Capital Expenditures, and M&A in 2023
      • Expect 2024 Adjusted Earnings Per Share2,3 of $9.80 – $10.10, Up 7% – 10%
      • Vimal Kapur to Become Chairman of the Board; New Independent Lead Director Announced

      MongoDB

      Posted on | by Leon Hinde | Leave a Comment on MongoDB

      NAS: MDB is a buy with a suggested stop loss below $360.

      Third Quarter Fiscal 2024 Financial Highlights

      • Revenue: Total revenue was $432.9 million for the third quarter of fiscal 2024, an increase of 30% year-over-year. Subscription revenue was $418.3 million, an increase of 30% year-over-year, and services revenue was $14.6 million, an increase of 13% year-over-year.
      • Gross Profit: Gross profit was $325.9 million for the third quarter of fiscal 2024, representing a 75% gross margin compared to 72% in the year-ago period. Non-GAAP gross profit was $335.3 million, representing a 77% non-GAAP gross margin, compared to a non-GAAP gross margin of 74% in the year-ago period.
      • Loss from Operations: Loss from operations was $45.2 million for the third quarter of fiscal 2024, compared to a loss from operations of $82.9 million in the year-ago period. Non-GAAP income from operations was $78.5 million, compared to a non-GAAP income from operations of $19.8 million in the year-ago period.
      • Net Loss: Net loss was $29.3 million, or $0.41 per share, based on 71.6 million weighted-average shares outstanding, for the third quarter of fiscal 2024. This compares to a net loss of $84.8 million, or $1.23 per share, in the year-ago period. Non-GAAP net income was $79.1 million, or $0.96 per share, based on 82.7 million diluted weighted-average shares outstanding. This compares to a non-GAAP net income of $18.7 million, or $0.23 per share, in the year-ago period.
      • Cash Flow: As of October 31, 2023, MongoDB had $1.9 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended October 31, 2023, MongoDB generated $38.4 million of cash from operations, used $2.1 million of cash in capital expenditures and used $1.4 million of cash in principal repayments of finance leases, leading to free cash flow of $35.0 million, compared to negative free cash flow of $8.4 million in the year-ago period.