Tag: AI chips

  • DeepSeek Weighs New Funding Round Weeks After Record $7 Billion Raise

    DeepSeek Weighs New Funding Round Weeks After Record $7 Billion Raise

    Chinese artificial intelligence startup DeepSeek is already exploring another funding round, barely a month after completing its first-ever external fundraising. The move underscores the soaring capital demands of the global AI race, where companies are spending aggressively on computing infrastructure and custom chips to stay ahead.

    According to a Financial Times report, DeepSeek has begun preliminary discussions with potential investors for a new funding round that could value the company at about $71 billion before the investment. If completed, the proposed valuation would mark a sharp rise from the roughly $52 billion post-money valuation it secured after raising nearly $7 billion in late May.

    The fresh capital is expected to support expansion plans, particularly the construction of proprietary data centers and the purchase of additional AI processors needed to power next-generation models and AI agents.

    New fundraising efforts can be viewed as a large amount of money needed to build the complex infrastructure that would enable the development of cutting-edge artificial intelligence technology. Due to increased competition, more money will be spent on building computational power, not only via third-party cloud infrastructure.

    DeepSeek also builds AI chips for the inference stage, which involves the reaction of already-trained models to user queries. The firm intends to reduce its dependence on foreign hardware, optimize performance, and lower costs. It was previously reported that DeepSeek used Huawei Ascend processors alongside its existing hardware.

    DeepSeek has quickly gained a reputation as one of the most-watched Chinese AI startups because of the attention and appreciation of V3 and R1 models both internationally and among experts in the field. This success raised doubts about China’s ability to compete with leading US-based AI companies and made the startup a representative of China’s AI developers.

    With the successful completion of the proposed fundraising, DeepSeek will have significantly more financial resources to invest in infrastructure construction and chip development in the competitive AI environment.

  • Sen. Elizabeth Warren Blasts UAE Chip Export Rule as ‘Corrupt’ Over Crypto-Linked Deal

    Sen. Elizabeth Warren Blasts UAE Chip Export Rule as ‘Corrupt’ Over Crypto-Linked Deal

    Senator Elizabeth Warren has accused the Trump administration of granting favorable chip export treatment to United Arab Emirates companies tied to a disputed foreign crypto arrangement. Her criticism followed a Commerce Department rule that gives selected UAE entities easier access to advanced computing equipment.

    Commerce Eases UAE Chip Export Controls

    The Bureau of Industry and Security published the final rule in the Federal Register on July 14, taking effect on July 10. The measure removes the UAE from two restricted country groups and places it in Country Group A:5, opening access to more license exceptions. Under the change, UAE government agencies and named companies may receive certain advanced AI chips and servers without separate licenses. G42 and Core42 appear on the approved list. Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI also receive streamlined treatment for eligible operations in the UAE.

    Commerce said the policy supports military and commercial cooperation between Washington and Abu Dhabi, citing UAE trade controls, its regional security role, and a May 2025 technology framework. Existing end-user and end-use checks still apply to covered shipments.

    Warren Links Chip Rule to USD1 Stablecoin Deal

    Warren, the ranking Democrat on the Senate Banking Committee, called the arrangement a ‘corrupt deal.’ She said Commerce Secretary Howard Lutnick and Under Secretary Jeffrey Kessler should testify before the committee about the rule and related national security concerns. Her statement linked the policy change to UAE investments involving World Liberty Financial, a crypto company associated with Trump and members of his family. Warren cited reports that a UAE royal connected to G42 and MGX acquired a 49% interest in the business.

    MGX announced a $2 billion minority investment in Binance in March 2025. World Liberty co-founder Zach Witkoff later said MGX would settle the transaction with USD1, the company’s dollar-linked stablecoin. Warren also cited a reported $263 million gain for Trump linked to the wider UAE arrangement, presented as part of his reported crypto income.

    Security Questions Drive Hearing Calls

    Warren raised doubts about whether advanced US technology could reach China through UAE-linked entities. She said the policy moves forward ‘despite reported concerns’ about technology diversion and other security risks. Commerce has not accepted her claim that the rule reflects improper conduct.

    The final rule states that US officials will keep monitoring sensitive exports. BIS maintains an export-control officer in the UAE, while listed approvals do not cancel restrictions tied to prohibited users or uses. G42 and Core42’s current authorizations expire on April 6, 2027, unless BIS issues another notice.

    Meanwhile, Warren urged Senate committees to examine whether foreign crypto holdings influenced administration decisions. She also tied the dispute to pending cryptocurrency legislation, saying Congress should address presidential and family profits from digital assets before approving new rules. The Commerce Department based its decision on the UAE’s security partnership, technology safeguards, and investment ties with the United States. The published rule does not mention USD1, World Liberty Financial, or Trump family income.

  • TSMC Posts Record Q2 Revenue as AI Chip Demand Drives 36% Growth

    TSMC Posts Record Q2 Revenue as AI Chip Demand Drives 36% Growth

    Taiwan Semiconductor Manufacturing Co. reported record second-quarter revenue as demand for chips used in artificial intelligence systems lifted sales. The company generated NT$1.27 trillion, or about $39.62 billion, from April through June. Revenue rose 36% from a year earlier and came in slightly above the NT$1.264 trillion estimate drawn from 20 analysts.

    The result placed TSMC near the upper end of its official revenue forecast of $39 billion to $40.2 billion. The chipmaker supplies advanced processors to major technology companies, including NVIDIA and Apple.

    Investors now turn to the full earnings report, where profit, margins, spending and the next sales forecast will receive closer attention. TSMC gives its quarterly guidance in US dollars rather than Taiwan dollars, so currency movements can affect direct comparisons with reported sales.

    June Revenue Records Sharp Annual Growth

    TSMC generated NT$442.68 billion in June revenue. Sales rose 67.9% from June 2025 and increased 6.2% from May. The annual rise marked the company’s fastest monthly growth rate in 2026 and completed a record quarter for the Taiwan-based chip producer.

    Meanwhile, first-half revenue reached about NT$2.4 trillion, equal to approximately $74.99 billion. That figure was 35.6% higher than the same period last year. First-half sales were equal to about 63% of TSMC’s full-year revenue for 2025. TSMC originally planned the June report for Friday, July 10, but delayed the release after Typhoon Bavi closed financial markets in Taipei.

    AI Chip Orders Support TSMC Sales

    TSMC produces semiconductors designed by other companies and operates the world’s largest dedicated chip foundry business. Its production network gives the company a central role in supplying processors used by AI developers, cloud providers, smartphone makers and computer companies.

    Strong demand for high-performance computing chips has supported recent revenue growth. The brief sales statement did not show how much June revenue came directly from AI-related products. It also gave no product or customer revenue breakdown.

    Additionally, Taiwan plans to expand advanced chip packaging capacity in Chiayi Science Park. TSMC will add two more packaging plants at the site, according to Taiwan’s science and technology minister. The first facility already runs mass production, while officials expect the second facility to begin operations soon. Advanced packaging combines several chip parts for demanding AI computing systems.

    Earnings Report Shifts Focus to Outlook

    TSMC will release its full second-quarter results on Thursday, July 16. The earnings conference starts at 2 p.m. Taiwan time. Analysts expect second-quarter net profit to rise 58.8% from a year earlier, though the monthly sales statement did not include profit, earnings per share or margin figures.

    Investors will watch the company’s third-quarter revenue forecast, gross margin range and capital spending plans. TSMC previously guided for a second-quarter gross margin of 65.5% to 67.5% and an operating margin of 56.5% to 58.5%. Management did not issue updated guidance with the June sales release.

    TSMC’s Taipei-listed shares closed 1% higher on Monday before the sales figures became public. The broader Taiwan market finished the session almost unchanged. The company carried a market value of about $1.96 trillion at the time of the report, making it Asia’s most valuable publicly traded company.

  • Samsung Accelerates Yongin AI Chip Fab Opening to 2029 as SK Hynix Shares Drop After NASDAQ Debut

    Samsung Accelerates Yongin AI Chip Fab Opening to 2029 as SK Hynix Shares Drop After NASDAQ Debut

    Samsung Electronics has announced plans to begin operations at its first Yongin semiconductor factory in 2029, advancing the original target by one to two years. The accelerated timeline reflects surging demand for memory chips used in artificial intelligence data centers and aligns with South Korea’s broader strategy to expand domestic chip production.

    Samsung’s Revised Timeline for Yongin Fab

    Previously, Samsung expected the first fabrication plant at the Yongin cluster to start operations in 2030 or 2031. A company spokesperson confirmed that the facility is now scheduled to open by 2029, placing the project on a tighter schedule. The Yongin site is part of a larger semiconductor cluster south of Seoul, where Samsung plans to build six chip factories. The first plant will serve as the foundation for subsequent construction phases.

    To meet the revised date, Samsung must prepare the land and begin major construction work early. The company aims to add production capacity as technology companies increase spending on AI infrastructure and advanced memory products.

    South Korea’s Push for Chip Production Expansion

    South Korean authorities are supporting faster construction by shortening approval periods and providing earlier access to essential infrastructure like electricity and water. The national strategy targets doubling the country’s memory-chip production capacity within five years, including expedited development of Samsung and SK Hynix factories in Yongin and a new semiconductor cluster in Gwangju.

    Samsung has also outlined plans to invest 400 trillion won in semiconductor factories in Gwangju and 56 trillion won in high-bandwidth memory facilities in Cheonan and Onyang. Its domestic semiconductor program covers existing operations in Pyeongtaek and the new Yongin cluster.

    SK Hynix is similarly expanding its production network. The company plans to complete the fourth factory at its Yongin cluster by 2033, moving the target forward from 2045.

    SK Hynix Shares Retreat After NASDAQ Debut

    SK Hynix’s American depositary receipts (ADRs) debuted on NASDAQ on July 10, opening 14% above the $149 offering price at $170 and closing the session 12.8% higher. The company raised $26.5 billion from the US offering, with demand exceeding available shares by more than seven times. SK Hynix plans to use the funds for factories and equipment related to rising AI chip demand.

    However, on Monday, SK Hynix shares dropped more than 15% in Seoul as investors took profits after the NASDAQ surge. The decline marked the stock’s largest single-day drop in nearly two decades and weighed on the broader Kospi index. CEO Kwak Noh-jung noted that memory demand could outpace production capacity beyond 2030 and warned that 2027 might become the industry’s worst year for memory supply as AI customers require more advanced chips.

  • Why Nvidia’s Forward P/E Is Falling Despite Its Rising Stock Price

    Why Nvidia’s Forward P/E Is Falling Despite Its Rising Stock Price

    Nvidia shares have climbed in 2026, yet the company’s forward price-to-earnings (P/E) ratio has dropped. This seemingly contradictory trend signals that analysts expect earnings to grow faster than the stock price, potentially leaving room for further gains.

    The stock closed the latest session at $210.96, with a forward P/E hovering near 22 to 23—well below its previous reading near 40. The decline in the valuation multiple reflects surging profit forecasts driven by robust AI demand and strategic investments.

    Earnings Growth Drives Down Forward P/E

    A forward P/E ratio divides a company’s share price by its expected earnings per share over the next year. The ratio can fall even as the stock rises when earnings estimates increase at a faster rate. Nvidia’s fiscal 2027 first-quarter revenue reached $81.6 billion, up 85% year-over-year, while GAAP net income soared 211% to $58.32 billion. Diluted earnings per share jumped 214% to $2.39, pushing future earnings estimates higher and compressing the valuation multiple.

    For the fiscal second quarter, Nvidia expects revenue of $91 billion (plus or minus 2%), indicating over 11% sequential growth. The company also projects gross margins near 75%, demonstrating that higher sales have not required a sharp decline in profitability.

    AI Demand Broadens Nvidia’s Growth Base

    Morgan Stanley maintains an Overweight rating on Nvidia with a $288 price target, calling the stock its “top semiconductor pick.” Analysts note that future growth may come from a wider customer base beyond the largest cloud companies, including AI laboratories, enterprise buyers, specialist cloud providers, industrial users, and national AI projects. Nvidia has also expanded beyond graphics processors into networking equipment and central processing units, adding more revenue opportunities inside large data centers.

    However, risks remain. Export restrictions could limit sales in China, and custom chips from major technology companies intensify competition. Nvidia has excluded China data-center computing revenue from its latest quarterly forecast, indicating that trade controls remain a factor in its planning.

    Supplier Investment Bolsters U.S. Expansion

    King Yuan Electronics, a Taiwan-based Nvidia supplier, plans to invest up to $1.4 billion in a U.S. chip-testing facility. The company said the project would expand its operations and strengthen its position in the semiconductor supply chain. Although specific location, construction schedule, and customers were not disclosed, the move follows broader investment by Taiwanese chip and electronics companies in the United States as demand for AI servers and advanced processors grows.

    Nvidia’s next quarterly report will provide a key measure of whether profit growth can continue outpacing the stock price. Revenue guidance, margins, and demand outside traditional cloud customers will shape the company’s forward P/E and its trajectory in the months ahead.

  • Meta Stock Surges on AI Monetization Plans and Data Center Expansion in 2026

    Meta Stock Surges on AI Monetization Plans and Data Center Expansion in 2026

    Meta Platforms stock rebounded strongly on Friday as investors welcomed fresh details about the company’s artificial intelligence revenue strategy, data center investments, and competitive model pricing. Shares climbed approximately 6% on the day and posted a nearly 15% weekly gain—the best weekly performance since early 2024.

    The rally erased Meta’s year-to-date losses. The stock had been under pressure due to concerns over rising capital expenditure and slower-than-expected returns from AI investments. The latest updates provided Wall Street with clearer signals on how Meta intends to convert its heavy infrastructure spending into new revenue streams beyond advertising.

    Meta Explores AI Cloud Business

    CEO Mark Zuckerberg revealed that Meta is considering renting AI computing power to external customers, noting that demand for the company’s compute capacity is “so high that it may make sense” to offer access through a cloud business. While the plan remains in early stages, it could involve providing access to AI chips and servers or hosting models for enterprises that need additional computing power. This move would position Meta in direct competition with Amazon Web Services, Microsoft Azure, and Google Cloud.

    Demand for computing capacity is rising as users adopt chatbots, coding tools, and agentic systems. Meta already invests heavily in data centers to support Facebook, Instagram, advertising, and AI tools. A cloud offering could generate revenue from the same infrastructure that supports its core platforms.

    Muse Spark 1.1 Introduces Paid Model Access

    Meta released Muse Spark 1.1, a new AI model optimized for coding and agentic workloads, and introduced pricing for developer access. The company will charge $1.25 per million input tokens and $4.25 per million output tokens—significantly lower than Anthropic’s Claude Opus 4.8, which costs $5 per million input tokens and $25 per million output tokens. This aggressive pricing may appeal to developers seeking cost-effective tools for coding, workflow automation, and AI agents.

    Tokens are units of text processed by AI models. Input tokens cover user prompts and commands, while output tokens cover the model’s responses. Lower token prices help developers manage costs when applications handle large volumes of text.

    Earlier in the week, Meta also launched Muse Image, an image generation model targeting creators, advertisers, and subscription products. Together, Muse Image and Muse Spark 1.1 demonstrate Meta’s expanding portfolio of AI tools for both business users and developers.

    Data Centers and Custom Chips Shape the Spending Debate

    Meta announced a new data center in Alberta, Canada, as part of its global infrastructure build-out. The facility will support the company’s growing needs for AI training and model delivery.

    Meanwhile, Meta is advancing its custom AI chip, Iris, with production expected to begin in September. Iris is part of Meta’s effort to reduce costs and gain greater control over the hardware powering its AI systems.

    Capital spending remains a key investor concern. Meta previously guided 2026 capital expenditure as high as $145 billion, raising questions about the pace at which AI investments will generate returns. However, Bank of America analyst Justin Post noted that Meta “may have engineered significant cost savings” in data center capacity, supporting the view that the company could manage its AI build-out at a lower cost than anticipated.

    These developments—combined with AI cloud services, competitive model pricing, infrastructure expansion, and custom chip progress—have renewed investor confidence in Meta’s ability to turn its AI strategy into tangible revenue growth.

  • Today’s Tech Roundup: Meta AI Chip Production, ONGC Recruitment, European M&A Surge, Claude AI Insights, and Ethereum Rally

    Today’s Tech Roundup: Meta AI Chip Production, ONGC Recruitment, European M&A Surge, Claude AI Insights, and Ethereum Rally

    Good morning!

    Here’s your rapid rundown of some of the most important news from today on artificial intelligence, recruitment, business M&A, productivity tools, and the cryptocurrency market.

    Meta to Start Producing Next-Generation AI Chip in September

    Meta plans to roll out its next-gen AI chip in September to keep up with the organization’s increasing requirements, as AI workloads grow heavier. The company aims to increase its computational capacity and reduce reliance on other chip providers. In parallel, Meta wants to sharpen its AI capabilities while industry competition is getting increasingly intense. Read More…

    Graduate Trainee Positions Opened by ONGC for 2026

    Oil and Natural Gas Corporation (ONGC) has begun accepting online applications for Graduate Trainee positions across various engineering and geoscience streams. The recruitment process will give freshers a chance to join one of India’s largest public sector companies. Read More…

    European B2B M&A Activity at an All-Time High of $129 Billion

    Europe saw a record $129 billion in business-to-business mergers and acquisitions in the second quarter of 2026, driven by private equity transactions and strong demand for enterprise technology and industrial firms amid global economic uncertainty. Read More…

    Claude AI Review: Features, Prompts, Tips for Increased Productivity

    The Claude AI language model by Anthropic has become popular for writing, coding, research, and other professional activities. Learn about its features, prompt-writing tips, how to save tokens, and how to use the language model effectively. Read More…

    Ethereum Gains 1.58% on Improved Crypto Sentiment

    Ethereum edged up by about 1.58%, trading around $1,779, while crypto market sentiment looked a bit better. In the Ethereum price analysis, you can see hopeful investor sentiment as traders keep an eye on macroeconomic shifts, stronger institutional participation, and evolving blockchain activity for possible hints about what comes next. Read More…

  • How Carbon Nanotubes Are Poised to Transform AI Chips, EV Batteries, Healthcare, and Future Tech

    How Carbon Nanotubes Are Poised to Transform AI Chips, EV Batteries, Healthcare, and Future Tech

    Carbon nanotubes are one of the most extraordinary materials ever discovered. Despite being invisible to the naked eye, these tiny carbon structures possess remarkable strength and electrical properties that could reshape entire industries. As production techniques advance, carbon nanotubes are set to enhance AI chips, electric vehicle (EV) batteries, healthcare, and a wide array of future technologies.

    What Makes Carbon Nanotubes Special?

    A carbon nanotube is formed when a thin sheet of carbon atoms rolls into a hollow tube. Some nanotubes consist of a single layer, while others have multiple concentric layers. They are just a few nanometers wide but can grow to several centimeters in length. These structures are incredibly lightweight yet about 100 times stronger than steel on a weight-for-weight basis. They also conduct electricity exceptionally well—some behave like metals, others like semiconductors—and efficiently transfer heat, helping electronic devices stay cool during operation.

    Revolutionizing AI Chip Performance

    Artificial intelligence demands powerful computer chips, and traditional silicon is nearing its physical limits. Smaller silicon chips generate more heat and consume more electricity. Carbon nanotubes offer a solution through transistors that move electricity with minimal resistance, enabling AI chips to operate faster and more efficiently. Their superior heat dissipation also helps chips run cooler, extending lifespan and reducing energy consumption in large data centers. While commercial adoption is still in development, carbon nanotubes are emerging as a leading candidate for next-generation computing.

    Advancing Electric Vehicle Batteries

    In EV batteries, carbon nanotubes don’t replace lithium but significantly improve battery performance. They facilitate better electrical flow, leading to faster charging, increased capacity, and longer cycle life. Because only tiny amounts are needed, more space remains for energy storage, potentially allowing larger batteries without added weight. Carbon nanotubes also stabilize silicon anodes, which can store more energy than traditional graphite anodes, further boosting battery efficiency and durability.

    Transformative Healthcare Applications

    Medicine stands to benefit greatly from carbon nanotubes. They can serve as targeted drug delivery vehicles, carrying medicine directly to diseased cells while sparing healthy tissue and reducing side effects. In cancer treatment, nanotubes absorb near-infrared light and convert it to heat, which can destroy tumors with minimal collateral damage. Additionally, carbon nanotube-based sensors are highly sensitive, enabling early disease detection through tiny changes in the body. Flexible health monitors made from these materials could track heart rate, blood sugar, and other vital signs continuously.

    Remaining Challenges

    Despite their promise, several hurdles must be overcome. High-quality carbon nanotubes remain expensive to produce, and manufacturing methods need to scale while ensuring uniformity. Long-term safety studies are essential before medical applications become routine, and industry-wide quality standards are still being developed.

    The Road Ahead

    Carbon nanotubes are already used in some batteries, electronics, and composite materials. As production improves, their adoption will accelerate. Experts project the global carbon nanotube market will grow from approximately $8.8 billion in 2026 to nearly $24.5 billion by 2034, driven by AI, EVs, healthcare, electronics, and energy storage. Though tiny, carbon nanotubes hold immense potential to power faster AI, smarter medical devices, and more efficient energy systems.

    Frequently Asked Questions

    1. What are carbon nanotubes?

    Carbon nanotubes are minuscule hollow tubes made of carbon atoms. They are extraordinarily strong, lightweight, and excellent conductors of electricity and heat.

    2. Why are carbon nanotubes important for AI chips?

    They enable transistors that switch faster and generate less heat, leading to AI chips that are more powerful and energy-efficient than current silicon-based designs.

    3. How do carbon nanotubes improve EV batteries?

    They enhance electrical conductivity inside the battery, supporting faster charging, higher energy density, and longer lifespan, and also help stabilize advanced anode materials.

    4. Can carbon nanotubes be used in healthcare?

    Yes, research is exploring them for targeted drug delivery, thermal cancer ablation, ultra-sensitive disease detection, and wearable health monitors.

    5. What are the main challenges?

    High production costs, scalability issues, quality control, and rigorous safety testing are the primary barriers to widespread adoption.

  • Wall Street Today: NASDAQ Declines as DeepSeek Chip Ambitions and Samsung Selloff Weigh on Sentiment

    Wall Street Today: NASDAQ Declines as DeepSeek Chip Ambitions and Samsung Selloff Weigh on Sentiment

    U.S. stocks opened mixed on Tuesday, with weakness in chip stocks dragging down the NASDAQ Composite and S&P 500. The Dow Jones Industrial Average hovered near record levels, buoyed by gains in healthcare, financials, and select large-cap names.

    Investor attention returned to the AI trade after reports emerged that China’s DeepSeek is developing its own AI chip. The news introduced fresh uncertainty about demand for U.S.-linked semiconductor names, even as Samsung posted a strong profit update.

    NASDAQ Falls as Chip Stocks Retreat

    The NASDAQ Composite opened 161 points lower, or 0.62%, at 25,960.13. The S&P 500 fell 20.8 points, or 0.28%, to 7,516.63. The Dow Jones Industrial Average rose 48.1 points, or 0.09%, to 53,104.06 at the opening bell. Later in the morning, the Dow gave back part of its early gain and traded near the flat line. The blue-chip index had earlier touched a new all-time intraday high. The S&P 500 declined 0.5%, while the NASDAQ lost 1.3% as chip selling intensified.

    DeepSeek AI Chip Report Roils Semiconductor Sentiment

    According to reports, DeepSeek is working on its own AI chip, a move that could reduce its reliance on suppliers such as NVIDIA and Samsung. NVIDIA shares traded more than 1% lower as investors assessed the implications. The selling spread across major chip names: Micron fell about 7%, while KLA, Marvell Technology, Broadcom, and AMD also posted losses. The VanEck Semiconductor ETF dropped more than 5%, reflecting broad weakness across the sector.

    Samsung Reaction Adds to Doubts About AI Earnings Bar

    The pressure originated in Asia-Pacific markets before reaching Wall Street. South Korea’s Kospi dropped nearly 5% after Samsung Electronics fell close to 7%. Samsung reported a sharp rise in second-quarter profit, but the market focused on spending plans and demand concerns. Adam Crisafulli of Vital Knowledge noted that the Samsung reaction highlights one of the biggest risks heading into earnings season: “Q2 earnings results are likely to be quite robust on an absolute basis … but unlike with the Q1 season, expectations are presently very bullish.” His comment pointed to uncertainty about whether strong earnings alone can support AI-linked stocks, given that the S&P 500 has moved significantly higher since the first-quarter reporting season.

    Dow Holds Near Record as Investors Rotate

    While chip stocks came under pressure, investors rotated into other parts of the market. Eli Lilly gained more than 2%, while JPMorgan Chase and Microsoft also advanced. Walmart added more than 2% after announcing price cuts on products such as ground beef and Coca-Cola. The rotation helped the Dow stay near 53,000 even as the NASDAQ weakened, showing that selling was concentrated in AI- and chip-linked shares rather than across the full market.

    Apple, Rivian, Amazon, and Trade Data in Focus

    Apple drew attention after JPMorgan raised its price target to $345 from $325, maintaining an Overweight rating. Analyst Samik Chatterjee said Apple’s revenue and earnings could be better than feared, even after a 20% price increase on iPads and Macs. Rivian shares fell more than 13% in morning trading after the electric vehicle maker announced a public offering of 75 million Class A shares. The drop followed a 8.1% rise on Monday and a 19% gain last week. Amazon also stayed in focus after sources said the company planned to raise $25 billion through a bond sale; its shares gained 0.8% in premarket trading.

    Meanwhile, the U.S. trade deficit widened sharply in May. The Commerce Department reported a deficit of $77.6 billion, up from a revised $54.6 billion in April. Exports fell 3.2%, while imports rose 3.3%. Economists polled by Dow Jones had expected a deficit of $78.08 billion.

    The market now shifts its attention to upcoming corporate earnings, which will determine whether the recent rotation out of AI chip stocks is temporary or the start of a broader change in investor sentiment.

  • SK Hynix Reduces US IPO Ambition to $28 Billion as Memory Volatility Rises

    SK Hynix Reduces US IPO Ambition to $28 Billion as Memory Volatility Rises

    South Korean chipmaker SK Hynix is scaling back its US listing ambitions, trimming its target to roughly $28 billion amid growing concerns about the memory chip cycle. The company plans to offer American Depositary Receipts on the NASDAQ, aiming to raise funds for factory expansion and equipment purchases while the AI-driven demand for high-bandwidth memory continues to evolve.

    According to regulatory filings, SK Hynix will issue 17.79 million new shares via depositary receipts, with ten ADRs representing one common share. The final pricing is expected on Thursday, with trading set to begin Friday. The revised target of about 43.141 trillion won ($28.21 billion) is lower than the earlier estimate of 45.453 trillion won, reflecting recent declines in the company’s Seoul-listed shares, which fell about 4% on Monday to 2,327,000 won. Broader pressure on memory chip stocks and a dip in the KOSPI index have contributed to the cautious outlook.

    If completed, the deal would rank among the largest share sales in history, trailing only SpaceX’s record US listing last month and surpassing major offerings like Saudi Aramco and Alibaba. The proceeds will be used to expand chip facilities in South Korea and acquire advanced equipment, including ASML’s extreme ultraviolet scanners, essential for cutting-edge semiconductor production.

    SK Hynix is a key supplier of high-bandwidth memory to AI infrastructure giants such as NVIDIA and Google. The company’s stock has surged this year, buoyed by AI demand, but investors remain wary of the memory cycle’s mid-stage timing. “We expect better access, but timing of the memory cycle is equally important,” said Sundeep Gantori, chief investment officer of equities at Standard Chartered. Steve Sosnick of Interactive Brokers noted that the US listing would primarily benefit individual and smaller institutional investors seeking momentum in AI-linked stocks.

    The NASDAQ listing is expected to improve access for US investors and potentially narrow the valuation gap with rival Micron Technology. It could also pave the way for inclusion in the Philadelphia Semiconductor Index, tracked by global passive funds. Dave Mazza, CEO of Roundhill Investments, described the move as “more than a liquidity event,” emphasizing that SK Hynix has been a crucial company that most US institutions could not easily own.

    South Korea’s broader semiconductor push, including a $576 billion chip and AI investment program led by President Lee Jae Myung, underscores the strategic importance of such expansions. Lee has urged officials to expedite permits and infrastructure to support the country’s advanced industry ambitions.