Alphabet and Apple have cause to circle AI wagons 18 Mar 2024 The $2.7 trln iPhone-maker is in talks to license Alphabet’s artificial intelligence models, according to Bloomberg. Apple has underinvested, but Google search’s pride of place on its devices is also at risk. A deal would help both defend their turf, if regulators don’t kill it.
Biden’s subsidies are working a little too well 15 Mar 2024 The US president’s incentives for chips and clean energy have provoked a competitive scramble and raised the cost of building factories – which cuts the handouts’ real value to recipients like Intel. The risk is that investment zeal sets the scene for future gluts.
China’s new tastes will spit out more than Apple 6 Mar 2024 The iPhone maker is losing share in the People’s Republic to domestic champion Huawei. American companies in the giant market face both weakening demand and a move to homegrown brands. Chinese consumers’ shifting attitudes suggest the woes will worsen.
ASML is underplaying its strengths 24 Jan 2024 The semiconductor giant kept its 2024 outlook reined in despite hefty quarterly earnings. US and Dutch export controls that affect chipmaking tools have begun to dip into China sales. But a hefty orders backlog and rising chip demand should help the $330 bln group fly higher.
Capital Calls: Microsoft’s Russian hacker 22 Jan 2024 Concise views on global finance: The $3 trln tech firm disclosed that a nation-state hack accessed leaders’ email, saying it showed the need for potentially “disruptive” measures. It’s a worrying acknowledgement of the still-vague costs of geopolitical tensions for tech giants.
HPE’s Juniper deal magnifies power of competition 10 Jan 2024 Buying the networking-gear maker for $14 bln is designed to cash in on AI growth. Despite riding the internet boom, however, Juniper has generated less than half the return of the S&P 500 Index since its IPO 24 years ago. It’s a timely lesson on how robust rivalries erode profit.
Blockchain’s rebirth will pass United States by 19 Dec 2023 Regulators are cracking down on digital asset firms while Congress dithers over passing rules to govern them. Financial hubs like London, faster to set guidelines, will capture the value created not just by crypto, but by potentially powerful distributed ledger technology.
SpaceX beats Tesla in business model bakeoff 7 Dec 2023 Elon Musk’s rocket company is seeking a $175 billion valuation, just one-quarter as much as his electric-vehicle firm Tesla. Yet viewed from space, based on some old-school measures of competitiveness, it’s the smaller firm that has the more solid foundations.
Broadcom deal tempts a treacherously tasty trade 6 Nov 2023 The chipmaker’s $82 bln acquisition of VMware hangs by a Chinese thread. This lingering doubt has created a quirky anomaly on whether a small slug of shares winds up being bought for cash or stock, or not at all. There’s 25% upside to grab, but only for the bravest arbitrageurs.
Apple’s cash insures against exuberance 3 Nov 2023 The $2.8 trln iPhone maker’s valuation is rich even as growth slows, antitrust worries cloud its services business and trade wars threaten China sales. While investors seem as confident as ever, the company’s balance sheet suggests boss Tim Cook is exercising some caution.
Intel’s latest breakup is a test for more to come 4 Oct 2023 The semiconductor giant will hive off more of its empire with IPO plans for its programmable chip unit. Weak markets dinged its last spinoff, but this separation can flout strong profit to highlight $18 bln of hidden value. It’s a dry run for a bigger split down the road.
Fixing Intel ends with taking it apart 29 Sep 2023 The chip giant faces the existential challenge of regaining its lost lead in manufacturing. Doing so could double its $145 bln market value, but maintaining an edge requires ever more spending, fed by serving outside customers. The best way to do that: split Intel in two.
China’s next chip battle is for the bottom line 19 Sep 2023 Huawei’s new smartphone proves the country can make cutting-edge hardware despite US restrictions. But it’s unclear if semiconductor provider SMIC can scale supply. Huawei’s flashy phones have hogged the limelight: SMIC’s shrinking margins deserve the same scrutiny.
India’s laptop ban hints at limits of onshoring 18 Aug 2023 Modi’s government is restricting the import of the hardware while incentivising manufacturers to make more in the giant emerging market. It’s late, though. Dell, HP and others have diversified from China to Southeast Asia. By pushing hard, India risks upsetting its neighbours.
Hey Siri: Screen iPhone calls on Apple’s valuation 3 Aug 2023 The handset that anchors the $3 trln company is due an update soon. Loyal fans will buy it, but most customers are upgrading more slowly. The trend makes it hard to justify paying twice the multiple of earnings as five years ago, despite the record quarterly services revenue.
3D-printing takeover battle misses third dimension 10 Jul 2023 Nano Dimension raised its unsolicited bid to buy control of $1.3 bln Stratasys, making the choice for shareholders tougher. The target’s preferred deal with Desktop Metal partly hinges on elusive revenue synergies. A snubbed offer from 3D Systems may ultimately be the best option.
Apple could overcome VR’s nerd and creepy factors 6 Jun 2023 Past attempts at virtual and augmented reality failed because the devices looked embarrassing, and the firms behind these efforts seemed untrustworthy. The headset the $2.8 trillion tech company rolled out on Monday isn’t an obvious success in its current form, but Apple has a better shot than others.
Apple’s balance sheet is golden and delicious 4 May 2023 The iPhone maker ended the quarter with $57 bln of net cash, despite pledging five years ago to cut its hoard down to size. Investors ought to be glad it didn’t. Rising interest rates put Apple in a juicy position to reinvest its money and push deeper into financial services.
Capital Calls: OpenAI’s backers 1 May 2023 Concise views on global finance: The ChatGPT developer has secured $300 mln from venture giants including Andreessen Horowitz, according to TechCrunch. As it rounds up scarce funding from tech’s biggest names, competitors will find it harder to break through.
Tech giants bury mediocre results under AI hype 25 Apr 2023 Microsoft and Alphabet beat low expectations, but slowing growth and penny-pinching to juice profit don’t make for the world-changing narrative tech investors usually crave. Touting the promise of artificial intelligence scratches that itch – and supports their valuations.