TMTB: Morning Wrap

Good morning. QQQs +11bps as China -4% on weaker trade results giving back some gains from yesterday. BTC +1%. Yields ticking up 1-3bps across the curve.

GOOGL is 4% this morning following quantum announcement yesterday during the afternoon:

In terms of impact to BTC, Bernstein says this morning Willow chip is only 105 quibits far needed from several million qubits needed to practically attack BTC’s encryption and hash algorithm.

ORCL and MDB putting a bit of a damper on sw sentiment this morning, both with their own nuances.

Let’s get straight to it…

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TSM reported a year-over-year sales growth accelerating to 34% in November, reaching NT$276.06B.

However, sales declined 12.2% on a sequential basis. This follows +29% y/y in Oct and +25% m/m. -12% m/m is below typical seasonality of flat q/q, y/y an acceleration. Wells notes the issue is this: TSM was tracking +7% ahead of H/E of Q4 revs guide assuming normal seasonality for nov/dec - now given these nov results, TSM is tracking 2% below high end of their Q4 revs guide assuming -7% m/m dec seasonality.

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ORCL: Mixed q as total revs missed and RPO declined sequentially to $97B from $99B. Q3 guide slightly weaker due to fx. CrPO accelerates to 21% from 18%