Latest news with #chipmakers
Reuters
2 days ago
- Business
- Reuters
Two Chinese chip firms plan $1.7 billion IPOs, bet US export curbs to spur growth
BEIJING, July 1 (Reuters) - Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan ($1.65 billion) in initial public offerings, hoping U.S. curbs on advanced chip sales to China will boost local demand for their products, their filings show. Beijing-based Moore Threads plans to raise 8 billion yuan, while Shanghai-based MetaX seeks 3.9 billion yuan, according to their IPO prospectuses filed on Monday. Both companies intend to list on Shanghai's STAR Market, the tech-focused board of the Shanghai Stock Exchange. Their fundraising plans underscore growing efforts by Chinese chipmakers to capitalise on Beijing's push to develop domestic champions in graphics processing units (GPU), which are crucial for AI development. Reuters reported last week that Biren Technology, another Chinese AI chipmaker, raised about 1.5 billion yuan in fresh funding and was preparing for a Hong Kong IPO. Developing domestic chip champions has become increasingly urgent for Beijing, as the U.S. tightens export restrictions, with the latest rules implemented in April banning Nvidia's H20 chips, one of its most popular chips, from being shipped to China. The U.S. has also imposed restrictions since last year that prevent Chinese AI chip designers from accessing advanced global foundries like Taiwan Semiconductor Manufacturing ( opens new tab for producing cutting-edge semiconductors. Moore Threads and MetaX both cited U.S. sanctions as a major risk to their development but also emphasised the restrictions could create significant market opportunities. "U.S. restrictions on high-end GPU exports to China are prompting Chinese companies to accelerate domestic substitution processes," Moore Threads said. The company was added to the U.S. Entity List in late 2023 and is barred from partnering with TSMC. MetaX said "geopolitical pressures are forcing relevant domestic clients to use domestically-produced GPU products, which will help domestic GPU manufacturers establish closer ties with local customers and suppliers." The two firms design GPUs to compete with Nvidia products and have reported steep losses over the last three years, which they largely attributed to heavy research and development spending. Moore Threads generated revenue of 438 million yuan in 2024 but posted a loss of 1.49 billion yuan, adding to losses of 1.67 billion yuan in 2023 and 1.84 billion yuan in 2022. MetaX posted 2024 revenue of 743 million yuan against a 1.4 billion yuan loss, following losses of 871 million yuan in 2023 and 777 million yuan in 2022. "Moore Threads and MetaX are both considered leading GPU firms in China, and accessing the capital market in China would be crucial for them to continue their research and development," said He Hui, research director on semiconductors at Omdia. China's drive to achieve higher self-sufficiency in chips would help domestic GPU firms achieve economies of scale, crucial to generating higher revenue and profits, He said. Both companies were founded in 2020 by executives who previously worked at major U.S. chip firms. MetaX was founded by former AMD (AMD.O), opens new tab employees, including Chairman Chen Weiliang, who previously served as the U.S. chipmaker's global head of GPU product line design. Moore Threads was established by former Nvidia employees, including Chairman Zhang Jianzhong, who previously held the role of general manager for the AI chip giant's China operations. The two firms compete with a growing roster of domestic rivals including Huawei( Cambricon ( opens new tab, Hygon ( opens new tab and other startups.
Yahoo
4 days ago
- Business
- Yahoo
Veteran fund manager who predicted Nvidia stock rally makes surprising move
Veteran fund manager who predicted Nvidia stock rally makes surprising move originally appeared on TheStreet. Nvidia () shares climbed for five consecutive days this week, closing at a record high of $157.75 on June 27. The rally has made the AI chipmaker the most valuable company again, with a market cap of about $3.85 trillion, ahead of Microsoft () and Apple () . About three months ago, some pessimistic investors thought that Nvidia's stock had probably reached a dead end as it fell sharply amid macro uncertainties and trade policies. But the stock has gained 67% since its low in early was hit hard as the U.S. tightened export restrictions on advanced chips in April. The Trump administration said Nvidia would need an export license to ship the H20 processors to China. The H20 chip was designed under the Biden administration's rules. The chipmaker took a $4.5 billion charge in the April quarter and said it would have made an additional $2.5 billion in revenue without the restriction. Nvidia's CEO, Jensen Huang, has long warned that export controls could hurt U.S. chipmakers and even threaten the country's position as the global leader in technology. 'If we want the American technology stack to win around the world, then giving up 50% of the world's AI researchers is not sensible," Huang recently said on CNBC. Several developments have driven Nvidia's rally since its April low. The stock first began to recover after the U.S. and China agreed to temporarily pause the elevated tariffs. Sentiment improved further when the Trump administration scrapped the Biden-era AI diffusion rule, which was another export control on advanced AI chips. In May, shares got another boost from news that Nvidia would supply AI chips to Saudi Arabia's Humain, a rising tech player in the May 28, Nvidia posted strong fiscal first-quarter results. Adjusted earnings came in at 96 cents per share on $44.06 billion in revenue, beating Wall Street's estimates of 93 cents and $43.31 billion. The company guided for $45 billion in revenue for the current quarter, just under analysts' forecast of $45.9 billion. Nvidia said that number would have been roughly $8 billion higher without the ongoing export curbs to China. This week's rally was also helped by signs of easing U.S.-China trade tensions. Secretary of Commerce Howard Lutnick told Bloomberg that a trade deal with China has been finalized and signed. The deals said China would ship rare earth metals to the U.S. in exchange for "countermeasure" removal. But it's still unclear whether semiconductors are part of the deal, and chips remain a major sticking point in trade negotiations. As Nvidia shares climbed, Chris Versace, a Wall Street veteran fund manager who oversees TheStreet Pro's portfolio, just sold part of his stake during the rally. On June 26, Versace trimmed roughly 10% of the portfolio's Nvidia stake at $154.06. The gains were just over 100%.Versace began his career in equity research and now has more than 30 years of experience. He started buying Nvidia stocks in February 2024. He had predicted Nvidia's rally earlier this year, buying more shares in the dip. More Nvidia: Analysts revamp forecast for Nvidia-backed AI stock Nvidia stock could surge after surprising Taiwan Semi news Nvidia CEO sends blunt 7-word message on quantum computing "We remain bullish on the prospects for both companies, especially after Wednesday night's quarterly earnings report and lifted outlook from Micron () ," Versace wrote in a note on TheStreet Pro, adding that he still intended to hold Nvidia shares to "maximize AI and data center build out and AI adoption related returns." Versace said the sale reflected his stance as a 'disciplined investor,' adding that if Nvidia shares continue to rise and push the stock's weight back to 4.5% of the portfolio, 'we'll look to lock in additional gains.' As of now, Nvidia makes up 4.19% of the fund manager who predicted Nvidia stock rally makes surprising move first appeared on TheStreet on Jun 28, 2025 This story was originally reported by TheStreet on Jun 28, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Ambarella's Stock Pops 20% as the Chip Designer Reportedly Mulls a Sale
Ambarella shares rallied Tuesday after Bloomberg reported the company is considering a sale. Possible buyers could include rivals in the semiconductor industry or a private equity firm, the report said. In Ambarella's fiscal 2025, the company reported revenue of $284.9 (AMBA) shares surged just over 20% Tuesday after Bloomberg reported the company is considering a sale. Ambarella, which designs image-processing semiconductors for security and self-driving vehicles, has reached out to potential buyers, according to Bloomberg. Potential bids could come from a rival chipmaker or a private equity firm, although a deal may not necessarily materialize, the report said, citing people familiar with the matter. In Ambarella's fiscal 2025, which ran through January, the company reported revenue of $284.9 million and posted an adjusted net loss of $6.8 million. Analysts expect close to $350 million in revenue this fiscal year and for the company to swing to a profit of $4.2 million on an adjusted basis, according to estimates compiled by Visible Alpha. Even with Tuesday's gains, Ambarella shares have lost about 15% of their value in 2025. Read the original article on Investopedia Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNA
22-06-2025
- Business
- CNA
South Korea to raise concerns to US over potential curbs on chipmakers' China operations
SEOUL: South Korea's top trade negotiator said on Sunday (Jun 22) he would raise concerns about potential US restrictions on chipmakers in China when he meets US officials in Washington this week for the third round of technical discussions in tariff talks. "I will pass on the concerns among those in the industry and take utmost care," South Korean Trade Minister Yeo Han-koo told reporters before leaving for Washington, when asked to comment about concerns the US may adopt policies to make it difficult for foreign chipmakers to operate in China. Yeo also said Seoul may not stick to the July deadline, suggesting talks may continue beyond Jul 8 amid political and economic uncertainties in the US. South Korea, currently subject to a blanket 10 per cent tariff with a 25 per cent country-specific duty on pause for 90 days, agreed with the US in their opening round of trade talks in late April to craft a trade deal reducing tariffs by Jul 8. Yeo was appointed to the role this month by President Lee Jae Myung, who won a snap election on June 3 and said during his campaign that there was no need to rush into a trade agreement with the United States. On Sunday, Yeo added he would reach out to officials at the White House and the US Congress to discuss various trade issues, including Washington's request for South Korea to loosen rules on imports of US beef.
Malay Mail
22-06-2025
- Business
- Malay Mail
South Korea to raise concerns to US over potential curbs on chipmakers' China operations
SEOUL, June 22 — South Korea's top trade negotiator said today he would raise concerns about potential US restrictions on chipmakers in China when he meets US officials in Washington this week for the third round of technical discussions in tariff talks. 'I will pass on the concerns among those in the industry and take utmost care,' South Korean Trade Minister Yeo Han-koo told reporters before leaving for Washington, when asked to comment about concerns the US may adopt policies to make it difficult for foreign chipmakers to operate in China. Yeo also said Seoul may not stick to the July deadline, suggesting talks may continue beyond July 8 amid political and economic uncertainties in the US. South Korea, currently subject to a blanket 10 per cent tariff with a 25 per cent country-specific duty on pause for 90 days, agreed with the US in their opening round of trade talks in late April to craft a trade deal reducing tariffs by July 8. Yeo was appointed to the role this month by President Lee Jae-myung, who won a snap election on June 3 and said during his campaign that there was no need to rush into a trade agreement with the United States. Today, Yeo added he would reach out to officials at the White House and the US Congress to discuss various trade issues, including Washington's request for South Korea to loosen rules on imports of US beef. — Reuters
