Frank Lee 2.8 2 ideas

Nvidia reported a "clear beat and raise" with revenue up 70%+ YoY and strong forward guidance. HSBC maintains a Buy rating (Price Target $295). The stock pullback/fluctuation is due to a lack of *new* narrative (still Hyperscaler dependent) rather than fundamental weakness. Margins remain constructive despite rising memory costs. Fundamental strength remains intact; the valuation is supported by earnings growth, making it a buy on dips, though the "free ride" re-rating phase is over. Failure of enterprise demand to materialize after the hyperscaler build-out; geopolitical risks regarding China (though viewed as "optionality" only).

HSBC downgraded Synopsis to a "Hold" rating last week. Unlike pure software, Synopsis is semi-related, but faces a "transition year" with little growth outside of acquisitions. It has significant exposure to China and Intel Foundry (low visibility). Dead money for now due to geopolitical overhang and customer concentration risks (Intel/China). Unexpected clarity or recovery in Intel's foundry business.