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GOOG Q2 result-top 10 holding--AI acceleration

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  GOOGL Q2 RESULT My thoughts To cut to the chase, the most important conclusion to come to regarding GOOG is whether the massive capex will deliver attractive returns. The most recent result showed some promising signs, but the comment that capex will again significantly increase into 2027 will push out any hard conclusions. Traditionally, the market has priced stocks higher when we can see a peak in the capex cycle, and that may be the case here, even if the returns are attractive. The Q2 results were strong, with revenues up an astonishing 24%, with the highlights being a huge acceleration in GCP (AI infrastructure and cloud) revenues of +82% and margins much higher. Of course, this is where the bulk of capex is going, so it is reassuring to see strength here. Search is also accelerating, which can be traced to Gemini’s integration with search, and it appears that GOOG has found the way to monetise AI-initiated queries. YT was solid and is integrating with Gemini as well. ...
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TSMC 2Q 26-top 10 holding--Insatiable demand part 2

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  TSMC Q2 RESULT SUMMARY My thoughts Another strong result from TSMC, with the enormous AI spend driving results. TSMC raised capex from US$54B to a midpoint of $62B, as can be seen in the chart below, which is about double the average of the previous 5 years. TSMC expect revenue growth to be substantial on the capex. TSMC guided for a fall in GM as the effects of the dilution of the 2nm investment, as well as the impact of foreign FABs. Having said that, TSMC has a record of doing better as capacity utilisation and cost control have offset the dilutions in the past. TSMC also indicated that non-AI demand is suffering due to the higher costs involved, but AI is more than filling the gap. As can be seen in the chart below, High-Performance Computing, mainly North American clients, is driving demand. TSMC conceded that some judgement is required to estimate true demand a few years out and realise that clients may be too bullish. They do not want TSMC chips going into invent...
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ASML Q2 2026 result-top 10 holding--Insatiable demand part 1

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  SUMMARY OF ASML RESULTS CALL My thoughts Exceptionally strong results as ASML customers (eg TSMC), responding to huge demand from their customers (GOOG, AMZN, Meta etc). The rate of growth is better than expected as both memory and logic are now dramatically increasing volumes. Litho intensity is also increasing with more advanced nodes coming on, and lastly, installed base upgrades are increasing as customers want more from machines already in use. Installed base revenues as a percentage of the total equalled all-time records this half, and they are high margin.  Not long ago, there was some scepticism that litho intensity would increase and that memory demand would emerge and installed base demand would increase. Now all are firing.   ASML states that their customers are signing longer-term contracts and have visibility that was not there before, giving confidence to expand production that should last several years. ASML plans to add 30% capacity in 2027 for low...
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