Wedbush Morning Call - Jun 27 2025 7:00AM

The Race to $4 Trillion Market Cap Has Begun With Microsoft and Nvidia Nearing

The Great Replatforming, part I – the Special Theory

Capex ROI is the trending question these days, but what does it actually mean? In a “replatforming”, capex are enablers of revenue growth and productivity enhancements, as long as they are the foundation for a good “right to make money” (a defensible competitive advantage) and meet good demand. Our “Special Replatforming Theory” looks at how it has been at play for a decade already at hyperscalers, and how we expect the next 10 years to play out, with AI bringing an even more capital-intensive model.

Thai Telcos Auction concludes, no major surprises

Thailand concluded its spectrum auction on Sunday and raised THB 41.3bn (US$ 1.26bn). Overall process was benign and results were as expected – AIS retained its 2100MHz share whilst TRUE won the 2300MHz and 1500MHz band; only the 850MHz was left unsold. Our brief thoughts below.

VIPS 2Q25 Preview: Lowering 2Q Topline Estimates

What’s New: We lower our 2Q25 top line estimates towards the lower end of the guided range as sales momentum in apparel slowed down in the month of Jun due to prolonged promotion event. Analysts: Jin Yoon

Microsoft vs. OpenAI: Implications for investors?

Press reports about ongoing negotiations between Microsoft and OpenAI have intensified in recent weeks. How much does that matter for investors in Microsoft? In this note, we lay out our understanding of the current agreement, outline what is publicly reported about ongoing negotiations, and we provide our perspective on the situation.