YB new stock pitches (Wed, Feb 25)

Huntington Ingalls Industries, Inc. (HII): American shipbuilders - The US’s shipbuilding capabilities are a shadow of what they once were, and there is strong political interest in reviving the sector for national security reasons; Huntington Ingalls benefits from higher spending on vessels and naval systems, which will keep its shipyards busy for years to come.

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MediaTek Inc. (2454.TW), a fabless semiconductor designer with $19 billion in FY25 revenue split across mobile phones (59%), smart edge platforms (37%), and power ICs (5%), is pivoting from a cyclical mobile-focused company to an AI infrastructure player. The company is partnering with Google on Tensor Processing Units (TPUs), including the 3nm TPU v7, with mass production expected in FY2026, and management projecting cloud ASIC revenue scaling from approximately $1 billion in 2026 to potentially $10 billion by 2028 as they target 10-15% share of the $70 billion cloud ASIC market (versus near-zero today). MediaTek leads in Edge AI through its Dimensity 9500 flagship mobile chips with advanced 3nm architecture and dual-core NPU, dominates Android tablets and Arm-based Chromebooks, and collaborates with NVIDIA on the GB10 Grace Blackwell Superchip for the DGX Spark AI supercomputer and automotive AI applications. The stock currently trades at approximately 25x P/E and 4-5x P/S, valued like a cyclical mobile semiconductor supplier, significantly below AI infrastructure peers Broadcom and Marvell at 60-70x P/E and 10-15x P/S. Near-term risk includes potential 10-15% decline in handset business due to elevated DRAM prices constraining smartphone production volumes in 2026. The base case projects $32 billion revenue in three years from 5-6% CAGR in the existing $19 billion core business plus the Google ASIC ramp, with additional upside from potential hyperscaler wins with Amazon or Microsoft not embedded in the base case, creating a valuation re-rating thesis if MediaTek successfully transitions from cyclical mobile supplier to structural AI infrastructure enabler.

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Galantas Gold Corporation (GAL.V), trading at a $75 million Canadian market cap, is a junior gold miner undergoing a transformation from explorer to multi-asset producer through strategic Chilean acquisitions. The company recently acquired the Indiana Project in Chile, a past-producing gold and copper asset with a Preliminary Economic Assessment (PEA) due shortly and management targeting production restart by year-end, which could serve as a near-term catalyst with strong exploration upside for resource expansion. The Andacollo project acquisition adds significant scale, hosting over 2 million ounces of gold in Measured and Indicated categories and more than 5 million ounces in Inferred categories (historic estimates), representing a cornerstone asset with potential for substantial re-rating if moved back toward production. These South American assets complement the company's flagship Omagh gold project in Northern Ireland, which has demonstrated production capability, established infrastructure, and substantial exploration potential across its land package. The stock has experienced a surge in trading volume and a breakout above key resistance levels, with the investment thesis centered on multiple production pathways, significant resource scale, and rising market momentum across multi-jurisdiction assets, positioning the company for potential substantial upside if management executes on stated timelines.

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