Silver Sunrise Euro TMT Daily: EU TMT Sector Specialist Commentary

Research evidence excerpt

Silver Sunrise Euro TMT Daily: EU TMT Sector Specialist Commentary

riorated. Instead, investors increasingly view the next 8-10 weeks as a challenging period from a

positioning and risk-management perspective rather than the start of a structural downturn. Following an exceptional run

across the group, many feel valuations have been pulled forward significantly, with investors increasingly underwriting

earnings and demand 12-24 months out. As a result, while companies may continue to execute well fundamentally as we

head into earnings, however there is less conviction that strong results alone will be enough to drive another leg higher over

the summer. Seasonality is also becoming an increasingly important consideration. Once we get earnings out the way,

conference activity slowing and news flow typically lighter through August, many investors are questioning whether they

want to carry elevated gross exposure through a period where catalysts become scarcer. Several investors seem to believe the

strategy may be to participate through earnings, take profits (hopefully) into any post-results strength and look to rebuild

exposure into September as conference season begins.The principal source of investor nervousness is not around near-term

semi fundamentals but around the AI demand narrative underpinning the sector.

RESEARCH SNIPPETS

• Nemetschek - CEO virtual fireside discussion - key takeaways: AI opportunity and organic growth trajectory in focus-

Joseph George Read Full Note Here

• Hemnet -Published listings decline -9% yoy in June: An encouraging improvement, but on easier comps- Marcus Diebel

Read Full Note Here

• Prosus & Naspers - KPI Radar - Discounts narrowed post the results, unlisted NAV improves- Marcus Diebel Read Full

Note Here

Events