Global Information Technology 7 January 2019 2019 Technology Outlook A year of new leadership We see 2 milestones in 2019: 1) BigData/IoT overtaking MCD in revenue terms, 2) 5G kicking off, helping boost the new demand cycle We expect compound-semiconductor makers to capture the most Rick Hsu incremental value from the 5G cellular upgrade (886) 2 8758 6261 We flag 4 secular themes for investment — bandwidth (5G/FO), HMI
[email protected] (3D/multi-cam), AI and density — and 15 related stock picks Robert Hsu (886) 2 8758 6251
[email protected] See important disclosures, including any required research certifications, beginning on page 115 Global Information Technology 7 January 2019 2019 Technology Outlook A year of new leadership We see 2 milestones in 2019: 1) BigData/IoT overtaking MCD in revenue terms, 2) 5G kicking off, helping boost the new demand cycle We expect compound-semiconductor makers to capture the most Rick Hsu incremental value from the 5G cellular upgrade (886) 2 8758 6261 We flag 4 secular themes for investment — bandwidth (5G/FO), HMI
[email protected] (3D/multi-cam), AI and density — and 15 related stock picks Robert Hsu (886) 2 8758 6251
[email protected] What's new: 2018 was the Year of the Dog for many tech stocks in Asia, with Daiwa’s 2019 tech picks the sector hit by turbulence caused by trade tensions, crypto volatility and Stock Ticker Rating TP* iPhone weakness, on top of investors’ inflated expectations. With expectations Bandwidth since reset, valuations rationalised, inventory manageable, and demand MediaTek 2454 TT Buy 280 Inari INRI MK Buy 2.25 diversified, 2019 should be a “refresh” year for investment with new demand SEMCO 009150 KS Buy 172,000 leadership.