35 Burst results for "Chipmaker"
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"And I'm Brian Curtis in Hong Kong. Let's check this hour's top business stories and the markets. China renaissance says it has learned that its top executive Balfour is cooperating in an unspecified investigation. But the firm suggests that it has not been in touch with Bao and does not know where he is. The well-known executives disappearance has raised speculation of increased scrutiny on the finance industry. We asked Bloomberg Sophia orti Costa if this might be seen as a warning to the industry. I don't know whether it's a deliberate warning, but it's certainly being read as one that the crackdown on private enterprise is an over. And we had this kind of assumption that big tech was finally safe. And this is a banker that's very, very well connected to all the tech deals that have been made in the past few years. Is the crackdown now coming, not just for the companies involved in the big tech sector, but also the deal makers, the finance industry, the investment, the money that's invested here. And this is really a warning sign. Meantime, several big lenders in China have requested more information. They include the bank of communications, China citic bank, and China merchants bank. We're getting word that the so called fab four chip group has held a meeting of senior officials to talk about semiconductor supply. Bloomberg's Denise Pellegrini has the story. The February 16th video meeting of the alliance of the U.S. Taiwan, Japan and South Korea focused on supply chain resilience and sources say the group also called the chip for talked about an early warning system to ensure steady supply, but did not talk about export controls. Taiwan and South Korea agreed to focus on manufacturing Japan on materials, the U.S. on its role as a major market. And the Biden administration has been trying to get global partners to agree to curb sales on advanced chip equipment to China. So China can't challenge U.S. dominance globally so easily. And Taiwan is home to the world's largest contract chipmaker and president syen has pledged in the past to make sure partners have ample supply of what she is called democracy chips. In deal news, Pfizer is said to be in talks to acquire BioTech firm C gen. The Wall Street Journal says the talks are at an early stage. It would be a move by Pfizer to add a promising class of targeted cancer therapies. C gen as a market value of some $30 billion. And in the markets in Asia Heidi Laos sheriffs have jumped as much as 20% in Hong Kong, the restaurant chains projected 2022 net profit topped expectations. Asian equities are falling for the most part this morning. We see the hanging index trading down about a half of 1%. The CSI 300 down about two tenths of a percent, and also selling in Tokyo with an EK has dropped about two tenths of 1%. Dollar yen, one 36, 36. And the yield on the ten year treasury coming down just a little to 3.93%, while the two year yield is at 4.82%
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"A look at market action Brian Curtis there. What are you seeing? Well, we have a host of issues playing into weakness in equity markets for sure. We talked a lot about that dug in the first hour and we'll get to more of it coming up. Ace shares are down and the futures are down. Right now we've got the nikkei opening off off four tenths of 1%. The ASX 200 in Sydney down a little more than 1% and some pretty heavy selling in Seoul to the Cosby trading down 9 tenths of 1%. There was a lot of selling on Wall Street late last week that helped lead the way on this. We had more hot inflation data at the center of that. An unexpected acceleration of the personal consumption expenditures price index. That's a key fed gauge. And market pricing now reflecting U.S. rates to peak at 5.4% this year, and we're hearing from a lot in the marketplace that it could even be higher. We had yields on ten year treasury issues and jumping 7 basis points while the two year up 12 basis points and just in the opening trades here right now the tenure is yielding 3.92% just down one basis point. And WTI crude 76 57. The yen inching higher after a big drop late last week. We'll get you details on that and take a closer look at the Hong Kong and China markets for the future sit down in 15 minutes. Doug. All right, Brian, thanks. Well, let's begin with the so called fab four. No, we're not talking about The Beatles. We're talking about the semiconductor industries for largest host countries. The group held its first meeting of senior officials to talk about global chip supply, and we have Bloomberg's Denise Pellegrini tracking developments. The February 16th video meeting of the alliance of the U.S. Taiwan, Japan and South Korea focused on supply chain resilience and sources say the group also called the chip for talked about an early warning system to ensure steady supply, but did not talk about export controls. Taiwan and South Korea agreed to focus on manufacturing Japan on materials, the U.S. on its role as a major market. And the Biden administration has been trying to get global partners to agree to curb sales on advanced chip equipment to China. So China can't challenge U.S. dominance globally so easily. And Taiwan is home to the world's largest contract chipmaker and president syen has pledged in the past to make sure partners have ample supply of what she is called democracy chips. Denise Pellegrini Bloomberg day vacation. Well, in India, the G 20 meetings have wrapped up with no consensus agreement we have more on that from Bloomberg's Ivan man. The world's top finance chief has failed to agree on a final statement that's because Russia and China disagree with two paragraphs on the Ukraine war, that happened clear by all other members. German finance minister Christian linner said a shift in attitude by China was very regrettable. There was also some disagreement on debt restructuring and obligations by various kinds of creditors, but on most other topics participants seem to be aligned. Leaders called fighting inflation, a top priority. In Hong Kong, I'm Ivan Mann, Bloomberg daybreak Asia. China renaissance says it's missing chairman bauchan has been assisting in an unspecified Chinese investigation. Let's get more from Bloomberg's David inglis. China renaissance says it has learned that Bao is cooperating in the probe. But in a statement, the firm suggests that it has not been in touch with bow and does not know where he actually is. The well-known executive disappeared earlier this month, unnerving China's business elite. Bao has been the go to financier for some of the country's biggest companies and his disappearance has raised speculation of increased scrutiny for the nation's finance industry. Several big lenders have requested more information, they include bocom, China citic bank, and China merchants bank. In Hong Kong, I'm David ingles, Bloomberg, daybreak Asia. 5 minutes past the hours we update global
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"And I'm Karen Marshall, U.S. stock index futures are lower this morning after a grim quarterly forecast from chipmaker Intel right now S&P futures are down about 11 points or 8 quarter percent down futures little change NASDAQ futures down half percent or 56 points and we check the markets all day long here on Bloomberg. The decks in Germany is up about two tenths of a percent, ten year treasury down 1130 seconds, yield 3.53%, they yield on the two year 4.20%. Nymex crude oil up 1.2% of 97 cents at $81 98 cents a barrel. Comex gold down about a tenth of a percent on a dollar 80 at 1944 90 announced. The Euro 1.0894 against a dollar, British pound 1.2379, the yed one, 29.72, and Bitcoin is down half percent at about 22,000 $950. We're watching shares of Intel, of course, they're down about 9% this morning. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world, Michael. Thank you very much, Karen 5, fired Memphis police officers have been charged with murder and other crimes in the killing of Tyree Nichols. The black motorist died three days after a confrontation with the officers who are also black during a traffic stop. Video of the incident will be released tonight. Hong Kong will ban CBD starting Wednesday labeling it a dangerous drug derived from the cannabis plant. It was previously legal in Hong Kong. In the NBA, the next beat the Celtics in overtime, one 21 17, the nets lost. In the NHL, the Devils and bruins lost, the capital was won in a shootout with the penguins
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"Sound on with Joe Matthew. Wall Street plays an outsized role in trying to influence the elections. That's nothing new. So where's the money going, with less than two weeks devoting Bloomberg China basic is up next on the fastest hour in politics after we check in on Wall Street. We've got a lot to cover right now with Charlie palette Trump. I thank you very much, Joe Matthew Amazon, Apple, Intel very much in the microscope after hours. Let us begin with Amazon.com, shares our plunging 14% in extended trading, got to keep it locked in to Bloomberg radio to find out how Asian markets react tonight and of course how this all plays out in tomorrow's session. Amazon projected sluggish sales for the holiday quarter was the ecommerce giant contends with slower growth and consumers who've been cutting their spending in the face of economic uncertainty again after ours, Amazon down 14%. Apple is reporting lighter iPhone and services revenue than analysts had hoped for last quarter. That's raising concerns about two areas of were expected to be highlights, Apple after ours now down by about 2.7%. Intel higher in late trading, the chipmaker pledge to slash costs as it weathers a persistent slump in computer demand Intel up by 4%. S&P 500 Index down today for a second session, it dropped 23 points down 6 tenths of 1%, caterpillar up by 194 points up by 6 tenths of 1%, pushing higher by caterpillar, it shares rallied 7.7%, nez stacked down 1.6% today meta platforms weighing on tech shares. We have meta down by 24.6%. Ten year yield 3.94% of two year 4.33% spot gold 1663 the ounce, West Texas intermediate crude up 1.3%, 89 O 8 a barrel, very briefly a federal appeals court has rejected former president Trump's request to reconsider a ruling that his tax returns must be disclosed to a congressional committee. I'm Charlie palo Pato
TIME's Top Stories
"chipmaker" Discussed on TIME's Top Stories
"A number of other major chip manufacturers, including global foundries and Samsung, have also suggested they may apply for funding to build or expand U.S. facilities in February. The commerce department said in a September 6th strategy report that it will prioritize investments in projects that connect workforce training dollars to quality jobs that exceed the local prevailing wage for an industry in the region. The commerce department declined to comment on how expected layoffs could impact funding decisions, but did say that more information on specific guardrails and restrictions will be included in the funding application. Some members of Congress raised these exact concerns during the negotiation process, including senator Bernie Sanders of Vermont, who described the program as a corporate giveaway. Over the last 20 years, the microchip industry has shut down over 780 manufacturing plants in the United States. And eliminated 150,000 American jobs, while moving most of its production overseas after receiving over 9 and a half $1 billion in government subsidies and loans. Sanders said in July, before the Senate voted in favor of the bill. In order to make more profits, these companies took government money and used it to ship good paying jobs abroad. Others say the law will restore American leadership in the semiconductor industry. After losing manufacturing to Taiwan and China, where the vast majority of advanced semiconductors and mature nodes are now made. There's also a national security risk of relying on foreign nationals for chips, especially for military equipment, and the funding program could create millions of jobs, a senior adviser at the commerce department, told time. This is not a blank check for companies, commerce secretary Gina raimondo said at a White House press briefing on September 6th. She added that the commerce department would use its authority to reclaim the money if recipients failed to start their project on time, failed to complete their project on time, or failed to meet the commitments that they've made. But even if, until does slash thousands of jobs this month, it's possible the company hires them back, or hires even more employees after receiving the federal subsidies, says bob Johnson, the lead analyst for semiconductor capital spending at Gartner, who has studied the industry for roughly 50 years. It's a question of timing. It takes 18 months to two years to actually get the physical factories in place, during which time the jobs you're supplying are construction jobs, not fab operators. He tells time. The overall economy may also start looking better in two years when the factories are built as semiconductor companies are currently battling excess supply and decreased demand. Johnson says, it'll last about a year, and then everything will return to more normal.
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"On that red screen there and the equity trading with Bloomberg, equities reporter, Jess men, Jess, what do you have? Paul, I'm taking a look at Delta Air Lines this morning, ticker symbol D, L, shares rose as much as 4% pre market after the airliner said it sees making a profit in the final months of the year outpacing those Wall Street expectations, the company did say it has been helped by a resurgent in international travel and the strongest recovery rates for corporate sales since the pandemic began. And moving over and looking at closer looking more closely at Walgreens ticker symbol W, BA shares had gained about 1% after the drugstore chain's fiscal fourth quarter results came in better than expected while its annual forecast came in above forecast boosting investors hopes the shares were about up about 4% pre market after falling nearly 40% through Wednesday's close and obviously we have to talk about what we're seeing in the technology space, especially with the NASDAQ 100 turning sharply lower like you mentioned, Paul, pre market after those CPI numbers. So I'm taking another look at what's happening with chip makers this morning. So Applied Materials ticker symbol a.m. AT shares were down more than 4% after the chipmaker did cut its earnings forecast after obviously the semiconductor industry is reacting to the Biden administration's new restriction on doing business with China and obviously that sector being impacted by what's happening with the rape picture when we're talking about what's happening with especially with inflation and the direction of that. And then also looking at U.S. listed shares of Taiwan Semiconductor manufacturing ticker symbol TSM, the briefly rose those shares about 2% of the company did report third quarter earnings that did beat expectations, though it also cut its full year capital expenditure for 2022 and a move that analysts expect will weigh on the semiconductor capital equipment companies. And now those shares are down nearly 1% pre market Paul. All right, good stuff, Jess met and Bloomberg, equities, reporter, we appreciate that with some kind of inflation print there, creating. Yeah, a really wild one. I think what's interesting here is that the estimate for CPI has been 8.1% for two months now, and for two months in a row, we have missed that estimate. Of course, we didn't remember a very similar equity reaction last month when the estimate was 8.1%. It came in at 8.3%. A lot of people saying that that margin of deceleration and inflation would be just as there. We could hit 8.1% this time, and even this time, Paul, we're missed the mark. Yeah, exactly. Again, looking at the ten year treasury surging 4.05% here, just some big moves here. The future is equity futures were up 1% before the print. And the S&P equity features are now down about 2%. So a big, big move on this inflation data. This segment of Bloomberg surveillance is brought to you by cone Resnick, advisory assurance tax. Their game changers and ESG awards honors companies making an impact through environmental social and governance strategies, meet the winners at Cohen Resnick dot com. Want to bring on Vince Cigna. He's a macro strategist trader type. He's sitting in front of his 7 screens, his Bloomberg terminal tracking all the markets. Vince, the markets were quick to react here to what was hotter than expected inflation print. Yeah, no, I mean, a large part of the big reaction, I think, is simply because we were pretty well bid going into the number, which was a little confusing to be honest. I mean, equities were trading and have been trading in the last debut 36 hours. More often of what's going on in the UK than what's going on in the U.S. and the CPI number brought us back home. So what do you do in this environment? I mean, to put on my Tom Keene hat here, he loves to talk about the second derivative. And the problem Vince correct me if I'm wrong is that the deceleration in inflation is just not fast enough. It's not decelerating quickly enough, and that's kind of seems like pairing opposite words together. But I think you get my point. So what do you do if it's taking too long to get to the estimates? Well, I mean, there's two problems. Right now, the inflation situation is structural. It's not being caused by excess demand. It's being caused by a lack of supply. And so what we're seeing is you look at the airline industry for instance where they can raise prices because they don't have pilots and equipment to carry what is the demand for the product. You look at what was the large part of the CPI increase today. And it's a little bit of a lagging indicator, which is rent. And you have landlords raising lens to try to make up for the forbearance that went on during the pandemic. So all of these things are sort of systemic and structural that are really supply related and you have a fed trying to crush demand in order to have that basically be the cure for the supply issue. I don't think that's going to work. I think they're going to push us into a recession. And potentially, if I say the word stagflation, if they do it incorrectly, which would bring us to the vote, which is exactly opposite of what Alice trying to do. So we think about the Federal Reserve. Is it safe to say the markets are telling us, all right, 75 basis points in November meeting and maybe even 50 to December meeting? Is that kind of the new consensus? Well, the swaps markets now pricing at 75 for both. So we're in it. And just to give you an interesting headline, social security announced their cost of living a cold this morning. 8.7% for next year. That's the highest since 11.2 in 1981. So basically, you're going to see wage inflation is not going to keep pace with 8.7%. I mean, certainly minus. And so what do you do about that? What does the fed do about that? You look at yourself and you say, well, they have to raise rates because they have to try to crush them in. Well, demand is being kind of crushed on its own, if you will. And I don't see the again. I just think there have been too aggressive they're not giving what they're doing at opportunity to win its way through the market. And if you look at housing, we saw mortgage rates yesterday hit 7%. That is clearly having a significant impact on the housing market. And what happens with the housing market? That's where that's where consumers really feel their wealth. They don't really feel it in the equity market as large. That's the pension funds do. And the wealthy do. But large part of Americans look at their homes and when their homes are going up, they see wealth. Well, with mortgage rates of 7% of their home prices are going to be going up so much. So that's going to change the sentiment of inflation. Well, Vince, you were talking about the trade
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"Still actually pretty good about things. And video gave a forecast for revenue in its fiscal second quarter that fell far below an earlier estimate due to a weaker outlook in the gaming industry the chipmaker is known for making high end graphics cards that are used in gaming Nvidia shares down now by 8%. Those meme stocks back big time today, case in point, bad bath and beyond surging 38.7%, AMC entertainment holdings up 14.5% while GameStop up now by ten and a half percent. One O two on Wall Street, time now for the market drivers report with a focus on American depository receipts, and here she is. Abigail too little. Thanks, Charlie, and there's some significant underperformance for most of the ADRs we follow closely starting it with China tech. Even with U.S. yields lower something that typically helps tech stocks makes them look a little bit cheaper, most of these China tech ADRs are down sharply can duo duo, JD.com, Alibaba Baidu all down by about one to 4%. Now, not helping those names at least from a perception standpoint, Japan SoftBank, the holding company, it posted a record $23.4 billion loss on plunging portfolio valuations, but that ADR interestingly enough is down just slightly, turning to Europe, the intact this ADR is down 9% on a disappointing earnings report as vaccine orders led to sales and profit short of analyst estimates and then finally rounding it out, some European tech ADRs are modestly including SAP, Nokia and Ericsson, Charlie. Okay, I thank you very much, Abigail, Doolittle, deal news, lots of deals on this Monday Whirlpool buying in sync curator that is Emerson Electric's waste disposal business and a $3 billion transaction Whirlpool down 1.9% Emerson down .7%. Recapping NASDAQ has just turned lower down less than one tenth of 1%. We've got the S&P down three points down one tenth of 1% the hour up 19 up one tenth. I'm Charlie palette that is a Bloomberg business slash. This is balance and power with David Weston. Putin still wants to destroy Ukraine and he's going to make another attempt to take here. It's only a matter of time. The United States and our allies have to continue to tighten up on sanctions with regards to Russia. Where the world of politics meets the world of business. Things like fuel and housing costs are some of the biggest drivers of inflation. The reality for Democrats is people can not coalesce or think about who might come after Biden. Balance of power we've given Weston on Bloomberg radio. Another historic piece of legislation heads toward President Biden's desk. The Supreme Court's abortion decision shows up in midterm elections and China keeps up the pressure on Taiwan even as its own economy shows weakness from the Bloomberg interactive broker studio in New York
Techmeme Ride Home
"chipmaker" Discussed on Techmeme Ride Home
"Has more details on the forthcoming so called pro Apple watch that we should see released in a matter of months at this point. Sources say the new pro watch will have a roughly 7% larger screen. A new design and a new case with more durable, probably titanium to make it more rugged. Quote, as I've written several times, the new high end pro watch will pack in a larger display, longer battery life, perhaps multiple days on one charge via the new low power mode, and a body temperature sensor. There's more though. I'm told that the high end model is going to be a good bit bigger than the standard Apple watch. Big enough that it might only appeal to a subset of customers. The screen will be about 7% larger and the device will have a fresh look. The first time the company has introduced a new Apple watch design since 2018. It will be an evolution of the current rectangular shape and not circular. It also won't have those rumored flat sides for those who will undoubtedly ask. In terms of materials, the watch will have a more durable formulation of titanium to make it extra rugged. In a rare move, Apple issued a 59 page report to proclaim its leadership in health technology. The company this past week put out an in depth report detailing every health and fitness related feature its launch to date for the iPhone and Apple watch, the underlying message, where a strong contributor in the health space and anyone who says otherwise is wrong. I've never seen apple put out a report like this, and it raises the question of who the audience is supposed to be. In any case, the Apple watch has a lot of potential as a health tool, the Holy Grail will be for the company to introduce a watch with a body temperature sensor. Glucose monitor and blood pressure checker. That will take time. The temperature feature should appear in this year's models, but the blood pressure technology probably will arrive until 2025, and the glucose feature may not be ready until near the end of the decade, end quote. Intel plans to manufacture chips for Taiwanese chip designer, MediaTek, the first major partnership that Intel has been able to score for its new Intel foundry services initiative, quoting the register. The American x86 giant is expected to announce media tech as a marquee customer for Intel foundry services Monday, more than a year after the chipmaker rebooted the business to compete with Asian foundry giants, TSMC, and Samsung as part of CEO, pat gelsinger, comeback plan. Media tech was the fourth largest fabulous chip designer in 2021, larger than AMD, but smaller than Broadcom Nvidia and Qualcomm.
CNBC's Fast Money
"chipmaker" Discussed on CNBC's Fast Money
"Stocks and send the NASDAQ higher by a percent and a half. The S&P and Dow following suit, but now in the after hour session, we guidance from Nvidia sending shares of the chipmaker tanking, could that be the news to take air out of the market tomorrow? Well, this reignite those fears about technology, the fears about a change in the environment, a change in terms of how we should value these companies Dan. Yeah, well, let's be very clear. That guidance was not particularly bad and they used the sort of Mulligan that you might have expected, right? Supply chain issues as it relates to Russia and then the continued COVID lockdowns in China. So I think we all could have expected that. If you look at the guidance that they gave, it's not really that bad for Q two. I think the issue why this stock is probably down in the aftermarket that investors in this environment have been conditioned to shoot first and ask questions later and that's probably what's going on. I think it is lows in the aftermarket was down 10%. Again, this is not a whole heck of a lot of volume, so it's not really indicative of that. But here's a stock that's been cut in half. It trades well above a market multiple. It trades about 12 times sales and if those sales were set to decline, let's say greater than what the company decided to, you would see this thing probably making new 52 week lows and be rerated, like almost every other great gross stock in this environment. Yeah. All righty cut in half. I think that's key. Tim Seymour, we've seen is, you know, a stock can come out like this. It's already been cut in half. It's already been beaten down. And yet, it still manages to drag the entire sector lower. We saw it with snap, snap, a much smaller company than Nvidia. And that took Apple down the next day. Yeah, I like those data center revenues. It actually, I think, is a pretty good read on some of the broader players in the space, but obviously we also saw that these numbers have taken down AMD. Micron mar vell, and so they're trading as a group. I do think that the outlook here is decent. I think, you know, it's waiting to hear some more. I think the gaming revenue is of a concern. The multiple isn't terrible. It's obviously great relative to itself. It's somewhere around 20 times forward. What we forget here is that this was a stock that was from February of 2020 to even where it traded up to. It's pulled back 51%, but it moved 500%, essentially in two years, two and a half years. It's a dynamic here where I think people have to understand what to pay for these stocks at this point. There was nothing bad. I think relative to the environment we're in and what these guys said about China and Russia as Dan pointed out, like I don't think these are reasons you go out and sell this company. I do think it is a case where we still need to wait and see what the multiple should trade for. I don't think this would be a snap moment for a couple of reasons. One, it was up going into this print. So if you take that out, it really hasn't moved that much. But what was so amazing about snap was how quickly the business deteriorated from April 21st until May 21st ish give or take. And so Nvidia, we haven't heard from them since a couple of months. So this isn't a huge move off of where they were. I think it comes back to the point Tim Dan and making about what's the right multiple used to be these kind of companies traded at peak and trough multiples. This one's been at a sky high multiple for quite some time, but not a lot to hate, I think, in this earnings release. So it's all a matter of what do we pay for these sorts of companies. Guy, you had an interesting tweet. I think it was, I want to say it was a couple days ago about Tesla. Tesla reporting a great quarter and what is the stock done since then? Just gone lower. Yeah. Traded up to ten 80 that day in the after hours. I know Dan talked about it a lot. He got a lot of ads on the Twitter, and it subsequently traded down to $600. I mean, you can do the math that's a pretty significant move. I'm looking at Nvidia here, though, and I'm sort of scratching my head. I know it was up 8 bucks or 9 bucks during the day, so it's given that back a little bit more, but that second quarter guide, $8.1 billion, I think, consensus was about $8.4 billion. I thought this quarter was okay. Again, I find myself surprised at the reaction in the stock in the after hours. I would submit you could buy the stock here, but you know, the market's doing strange things. I don't think it was that bad as to have this move. The move to me is not commensurate with the guide, just my opinion. Let's get some more details on the quarter. The conference call, by the way, is also just underway. Christina parks and Neville is following the story. Christina. Yeah, so.
The Breakdown with NLW
"chipmaker" Discussed on The Breakdown with NLW
"Use referral code breakdown to support the show. There were many other things that happened on the institutional side of the market this week. Certainly given that this hasn't been the narrative for quite some time, right? Goldman Sachs became the first major U.S. bank to do a crypto over the counter transaction, with galaxy digital as their counterparty. Interestingly, as basic as this seemed, many financial publications said that it was likely to open up the Bitcoin and crypto space and get more banks comfortable with this type of transaction. So I guess we'll have to see. Ray dalio's Bridgewater associates is according to reports published by coindesk on the verge of investing in a crypto fund, which would be its first deployment into the crypto space. Cowan a prominent investment bank has created a digital assets division, change street is investing in a new lending protocol based on the near protocol, chipmaker Qualcomm has created their own metaverse fund, the $100 million Snapdragon metaverse fund, but it's focused on a different part of the metaverse. So this is focused on a little bit heavier technology around augmented and virtual reality. Quote, it will establish a grant program for software developers creating virtual and augmented reality content in fields such as gaming, health and wellness media entertainment and education as well as content targeting businesses. And then, of course, there is Exxon, not exactly an institution, but certainly a big corporate. Again, according to reports on coin desk, ExxonMobil is running a pilot program using excess natural gas that would otherwise be burned off from North Dakota oil wells to power cryptocurrency mining operations and is considering doing the same at other sites around the globe according to people familiar with the matter. The oil giant has an agreement with Crusoe energy systems to take gas from an oil well pad in the backend shale basin to power mobile generators to run Bitcoin mining servers on sites at the people, who asked not to be named because the information isn't public. The pilot project which launched in January 2021 and expanded in July uses up 18 million cubic feet of gas per month that would have otherwise been burned off or flared because there aren't enough pipelines. Still in the realm of unconfirmed but seems pretty solid, and if indeed, accompany the size and significance of Exxon is thinking about how Bitcoin integrates into their natural gas process, you have to think that that is going to have ramifications for the rest of the industry. So that's a little whistle stop tour of the institutional side of the crypto industry. What about what's going on in geopolitics? Well, in addition to the general view of Russia and Ukraine that we just discussed with Larry Fink, we've also got two really significant events in the energy space that have implications for the U.S. dollar as you heard yesterday if you listen to my show. The first is that China and Saudi Arabia are accelerating their conversations about pricing oil in the yuan. Right now, 80% of the world's oil is priced in dollars, Saudi Arabia's economy and currency are pegged to dollars. And this has been the way of the world since 1974 after negotiations with president Richard Nixon. This is why we call it the petrodollar system. However, these days, China consumes 25% of Saudi's oil output and is pushing hard for the yuan to be the settlement currency for more international trade. In Russia, Vladimir Putin is biting back at sanctions by forcing what Russia calls hostile states to pay for their energy from Russia in rubles. These are contracts that were formerly priced in dollars or Euros that Putin is now saying they will not fulfill unless those countries, many of whom are lined up against Russia because of its belligerence in the Ukraine, instead pay in Russia's national currency. The exact currency that sanctions are trying to tank. A Russian state official also offhandedly mentioned that if they needed to price things in Bitcoin they would as well. So, you know, there's that. Bringing it back more domestic in terms of inflation in the macro scene, the big thing this week was Jerome Powell discussing 50 basis point rate hikes, which, while not seemingly very aggressive given the fact that inflation is at 8% or more based on even official numbers, it's pretty significant in historical context, given that we haven't seen a 50 basis point rate hike in a single meeting since March of 2000, subsequent to which the dotcom bubble was burst and we went into recession. Also a bit of an interesting narrative watch in the macro space, there is lots of chatter around how stocks are indeed inflation hedges, and that's why they continue to be buoyant despite all of this volatility. And then let's close out with our industry and obviously one of the big themes for 2022 is the relationship between governments and crypto and boy was that on display this week. Florida's governor Ron DeSantis said that he had directed the state to explore accepting crypto for tax payments. He said this is part of a larger discussion around signing a bill that would have a financial literacy requirement for graduating from high school. The Austin Texas government is exploring something similar around tax payments. Meanwhile, up north, New York State is moving closer to a moratorium on proof of work mining. The specifics of that moratorium have gotten a little less aggressive than they were before, but obviously not something that those of us in New York at least are overly thrilled about. In India, the finance Bill which includes extremely high crypto taxation is moving forward while in Thailand. They are outlawing cryptocurrency for payments, not for use as a speculative asset or a tradable asset, but just for payments starting April 1st. In what could either be a small deal or a pretty big deal El Salvador has delayed its Bitcoin Bond saying it's not the right time based on global market volatility. Now the reason this could be a big deal versus not such a big deal is that many countries, many jurisdictions are looking at the El Salvador experiment with keen eyes. For some, they're wondering if that's a type of policy they would pursue. For other international actors, such as the IMF, they're watching to see if this El Salvador Bitcoin thing represents a real threat to the way that the global monetary order is set up now. If the Bitcoin Bond delay is just about what they say it's about, global market volatility, which obviously there is right now, then it probably doesn't have any real impact one way or another on the success of the overall experiment. If, on the other hand, they're finding much less demand for this thing than they thought, or they're running into logistical or technical issues, that could be a different story. The Bank of England has outlined a framework for regulating crypto, which people are now poring over. And an official in Malaysia has said that the government should recognize Bitcoin as legal tender. And then, of course, on top of this, the industry continued to move forward as it always does as the cap end to a story from last week we got bored ape yacht club parent and now crypto punk IP owner as well you go labs, formally announcing their $450 million fundraise. This Friends, as I have said, is the year of absolutely everything and this week was no exception. For now I want to say thanks again to my sponsors next to IO, arculus, and FTX, and thanks to you guys for listening. Until tomorrow, be safe and take care of each other. Peace. Hey breakdown listeners come join coin desks consensus 2022. The festival for the decentralized world this June 9th through the 12th in Austin, Texas. This is the only festival showcasing and celebrating all sides of blockchain, crypto ecosystems, web three, and the metaverse, and is designed for crypto newbies, investors, entrepreneurs, developers, and creators. Don't miss speakers like Kathy wood, SPF, CZ, punk 6 5 two 9 and Joe lubin to name just a few. Use code breakdown to get 15% off your pass at coin desk dot com slash consensus 2022..
Daily Tech Headlines
"chipmaker" Discussed on Daily Tech Headlines
"For it also revised its EV guidance, now expecting EVs to make up 50% of global sales by 2030. FCC chairwoman Jessica Rosen morsel announced that mobile world Congress that the U.S. will hold a 5G auction for 2.5 gigahertz mid band spectrum in July for better coverage over long distances and the ability to carry lots of data. T mobile is reportedly very interested as it already uses a lot of the 2.5 gigahertz spectrum and could use this to expand 5G service. Rows and morsel is looking ahead to a 6 G rollout, which he says should be handled differently than 5G meta president of global affairs Nick cleggs had Instagram will let users in Ukraine and Russia switch to encrypted messaging, something already available in WhatsApp and messenger. Also said it will demote post with links to Russian state media on Facebook and Instagram. Google began removing user submitted locations in Google Maps within the borders of Russia, Ukraine and Belarus, and will pause new edits. The company said this was done out of an abundance of caution. Google also blocked apps connected with the Russian media outlets RT and Sputnik from the Google Play Store. Apple also made these apps unavailable in the App Store outside of Russia. Apple also confirmed it stopped all sales of products from its online store in Russia. Nvidia announced we are aware that a threat actor took employee credentials and some Nvidia proprietary information from our systems and has begun leaking it online. The attackers have told Nvidia to pay a ransom or the leak all the data publicly and video says it became aware of the attack on February 23rd and has no evidence that's related to the war in Ukraine. Meta released its Facebook widely viewed content report for Q four 2021, it shows that 51.1% of feed content comes from friends and follows an 85.4% of content views come on posts with no links. YouTube was at the top viewed domain in Facebook with 184 million views followed by TikTok with 139.7 million. The most widely viewed page was removed for violating community standards, it's unnamed and had 121.8 million views. Netflix intends to acquire another game developer looking to scoop up the Finland based next games in a €65 million deal. The company previously worked on these Stranger Things puzzle tales RPG, as well as two Walking Dead based mobile games. The universal styles initiative or USI announced version two of its specification, adding support for things like NFC wireless charging, in cell display panels, better tilt support for writing, and an expanded color palette to over 16 million colors. The USI open standard allows for a single stylus to work across multiple touch enabled devices, including Chromebooks. According to the IDC's monthly mobile phone sales tracker, in Q four 2021, media tech chips, I kind of for 48.1% of all Android phones sold in the U.S., beating out Qualcomm's 43.9% market share. Sales of the galaxy a 12, galaxy a 32 and G pure, made up 51% of media tech devices sold. Counterpart research shows a different market share for media tech in.
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"In getting everything from new cars to furniture is more than just an inconvenience that's boosted inflation It's also national security as well Pat gelsinger is CEO of chipmaker Intel and his company is backing that up with plans to spend $20 billion to build two new chip making plants as part of a complex near Columbus Ohio When we have 80 plus percent of the world's supply in Asia Floyd that's not very comfortable for national security That he says is why he's been pushing Congress to approve federal aid to chip makers to build more plants in the U.S. He says Intel has plans in Europe too I've set a moonshot objective where U.S. gets back to 30% over the next decade in Europe gets back to 20% So we're looking at 30 20 50 A commerce department survey of businesses around the world found those ass say the plans won't ease the short term chip shortage but will help long-term Joan Donoghue Bloomberg radio Wake up and text text and eat Text didn't catch the bus Text and miss your stop Text and be late to work Sorry Text didn't work Text and pretend to work Text and X surprised when someone calls you out for not working Who me Text and meet up with a friend you haven't seen in forever Hi Oh hey Text and complain that they're on their phone the whole time Text and listen to them complain that you're on your phone the whole time Text in whatever But when you get behind the wheel give.
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"Cars to furniture is more than just an inconvenience that's boosted inflation It's also national security as well Had gelsinger CEO of chipmaker Intel and his company is backing that up with plans to spend $20 billion to build two new chip making plants as part of a complex near Columbus Ohio When we have 80 plus percent of the world's supply in Asia Floyd that's not very comfortable for national security That he says is why he's been pushing Congress to approve federal aid to chip makers to build more plants in the U.S. He says Intel has plans in Europe too I've set a moonshot objective where U.S. gets back to 30% over the next decade in Europe gets back to 20% So we're looking at 30 20 50 A commerce department survey of businesses around the world found those ass say the plans the short term chip shortage but will help long term Joan doniger Bloomberg radio For the Jewish communal fund Noel Spiegel former senior partner with Deloitte and tosh and past JCF president discusses the advantages of a donor advised fund over a private foundation There's a lot involved in having a private foundation You need to engage attorneys You need to engage accountants file tax returns at JCF all of that is done for you You don't have to get involved in anything other than making your contribution to your fund and then determining which grants that you want to make A JCF fund may be opened with a minimum $5000 contribution of cash or appreciated securities and can be used as an alternative to or together with a private foundation If you have a foundation you have to list all of the contributions that you made Potentially anybody because the information is public can find out exactly which organizations of foundation has made charitable contributions to Let JCF simplify your philanthropy and protect your privacy Learn more about JC F's private client group at JCF and Y dot org.
Daily Tech Headlines
"chipmaker" Discussed on Daily Tech Headlines
"Contract fabs like TSMC, Samsung foundry and global foundries are expected to make up 35% of this. Researchers at cortical labs announced they created so called mini brains of up to 1 million living human brain cells on a microelectronic array and successfully trained these to play a simplified version of Pong with no opponent. The researchers note the cells were able to learn the game and roughly 5 minutes compared to 90 minutes on an AI system. Bloomberg's Mark gurman strongly believes Apple will launch a new external monitor. This would be a lower cost monitor compared to the existing pro display XDR. This comes as IDC reports that PC monitor shipments decline for the first time in 5 consecutive quarters. Doubt 7.2% to 34.8 million units. Sidewalk lab CEO Dan doctoroff is stepping down for health reasons relatedly said walk labs at its products, pebble, mesa, delve, and affordable electrification will be folded into Google doctor off wrote in a blog post Thursday. He added that Google parent company Alphabet will spent outside walks of Canopy buildings as an independent company. Oracle announced it intends to acquire the electronic medical records company Cerner in an all cash deal worth $28.3 billion. The deal is expected to close in 2022 and would be oracle's biggest acquisition. ByteDance launch a new stand-alone shopping app in China called Dorian box aimed at Gen Z shoppers. Similar to ByteDance's fano platform in Europe, Dorian vox pulls in videos focused on fashion and style from the main doy an app with tabs to order items featured in videos. According to documents obtained by Finland's national public broadcasting company, Yale, meta employs 11 people in Berlin for Finnish language moderation on Facebook. The documents also show better has not developed finish language automated moderation for hate speech, violent content, or nudity. Automated moderation systems do look at content published in Finland in other languages, which meta estimates is about a 5th.
Bloomberg Radio New York
"chipmaker" Discussed on Bloomberg Radio New York
"Even so Powell has bipartisan Senate support and is likely to be confirmed again if President Biden picks him after this term expires in February And muniz when it comes to evergreen it's facing another bond interest payment today and the developer has so far given no sign of payment on a different bond that was due last week Bloomberg's Rosalind shin has more The world's most indebted developer needs to pay a $45.2 million coupon on Wednesday That's for a dollar bond that matures in 2024 The payment has a 30 day grace period before default can be declared Meanwhile some holders also maintain ever ground is a guarantor of a dollar bond that matures Sunday Sources told us they're forming a committee to press their claims in the event of a default separately evergreen has made no public statements on an $83.5 million coupon due last week at least several holders said they hadn't received a payment In Hong Kong and roslin Bloomberg daybreak Europe And finally in top corporate news micron and peers including Samsung electronics and Western Digital fell after the U.S. memory chipmaker delivered a weak forecast coarsely sails will be about $7.65 billion missing the $8.57 billion consensus micron said that the situation will improve in the coming months when the shortage of parts across the industry eases off And at those are a few of our top stories most of interest this morning Yeah really interesting that micron story particularly flagging weak demand which is something we haven't seen referenced recently from the chipset Caroline thank you Let's get the leading global news flow.
60 Minutes
Chip Shortage Highlights U.S. Dependence on Fragile Supply Chain
"Car companies across the globe have had to idle production and workers because of a shortage of semiconductors often referred to as microchips or just chips there the tiny operating brains inside just about every modern device like smartphones hospital ventilators even fighter jets as we first reported in may the pandemic sent chip demand soaring unexpectedly as we bought computers electronics to work. Study and play from home but while more and more chips are needed in the us. Fewer and fewer of them are manufactured here. Intel is the biggest american chipmaker its most advanced fabrication. Plant or fab for short is located outside phoenix arizona. New ceo pat gelsinger invited us on a tour to see how incredibly complex the manufacturing process. Is i we had to suit up to avoid contaminating. The pfaff head cover on bunny suit zipped goggles gloves ready to go. I'm christine everything in this environment is control together. We stepped into a place with some of the most sophisticated new technology on earth. To ask you why. We're all yellow yellow filters remove light rays that are harmful to the process overhead a computerized highway transport's materials from one machine to the next the process involves thousands of steps where layer upon layer of microscopic circuitry is etched onto these silicon implants. That are then chopped up into chips. That will end up in. Say your computer. Making just one can take six months.
Squawk Pod
"chipmaker" Discussed on Squawk Pod
"I'm andrew along with becky. Quick and joe kernan the chinese cracking down on tech companies and is taking a toll. The world's largest maker. Taiwan semiconductor has now overtaken ten. Sent to become asia's most valuable firm china's regulatory crackdown. And just the past few months slamming the valuations of tencent and alibaba while chipmaker stocks have been gaining amid the global shortage as of this morning to on semi had a market cap of five hundred. Thirty eight billion dollars. That's followed by ten senate five hundred thirty six billion in alibaba with four hundred seventy two billion dollars and alibaba shares dropped nearly five percent just yesterday hitting its lowest level since october of two thousand nineteen. So you could you joe. We always talk about whether you're missing the train or the trains left the station..
Techmeme Ride Home
U.S. Agrees to Remove Xiaomi From Blacklist After Lawsuit
"Us has agreed to remove. Xiaomi from the blacklist that could have restricted american investment in jami following xiaomi's lawsuit earlier this year quoting bloomberg. The chinese smartphone had sued the government earlier this year after the us defense department under former president. Donald trump issued an order designating the firm as a communist chinese military company which would have led to a delisting from us exchanges and deletion from global benchmark indexes. The defense department has now agreed that a final order vacating the designation quote would be appropriate according to a filing to the us courts tuesday jami which makes robot vacuum cleaners electric bikes and wearable devices alongside smartphones had been an unexpected target for the trump administration co founded by billionaire entrepreneur. Lee jun more than ten years ago with us. Chipmaker qualcomm as one of the earliest investors. The company has insisted it's not owned or controlled by the chinese military court in march cited with jami and the lawsuit and placed a temporary halt on the ban. us district judge rudolph contreras said. At the time jami was likely to win a full reversal of the ban as the litigation unfolds and issued initial injunction to prevent the company from suffering quote irreparable harm and quote. Now this does not mean that suddenly will be able to buy top of the line. Xiaomi phones easily here in the us even though jami just past apple for number two market share in europe. The phones are not designed or designated for the us market. Though today i learned it is possible to buy asia my phone if you're in the us and use it on us networks though you have to jump through some quite considerable hoops. Also jami does have a whole array of laptops and fitness bands and traffic centuries that are more available than i thought. Just a quick amazon
Daily Tech Headlines
Renesas says normal production at fire-hit chip plant to take 100-120 days
"The japanese auto chipmaker rene select chronic. Said that it now estimates three to four months to recover full chip making production following a fire at the factory on march thirteenth. The company still aims to resume some production in about a month and seeks to make up lost production at other facilities
Reset
We don't have enough computer chips
"The pandemic cause lots of shortages from personal protective equipment to laptops bicycles but one supply shortage. Could slow down the economy for months. Even after covid is gone. That's the global shortage of chips. Not lay's chips but semi conductor chips the types of silicon power everything from our computers to our cars recode rebecca. Hi awhile has been covering the shortage. Hair becca hey so. This feels like the sort of niche problem. But semiconductors are in everything so tell me what exactly a semi conductor is. Semiconductors or ships are basically the building block of all the devices that we're using today. You know the computers in your refrigerator or the computers in your car phones and many computer. All of that is being made with these tiny little chips. That are powering these technologies and the really important. because we don't just need them for entertainment. We need them to work and learn and especially during the pandemic when we're doing all of these things from home and you not only have your devices at school or your office. Many people also have a full second Electronics setup at their house and what kind of problems is a chip shortage. Going to cause like talk me through. How does this play out in in the world that we experience in the world. We care about in everyday life so broadly. The increase in demand for electronics in general means that we don't have enough chips actually make those electrons so if you weren't getting a laptop on time or a phone on time that you really needed that's how it would affect you. But in the united states there's this particular challenge that's popped up with the automakers. Obviously automakers are really important and the shortage in chips is actually delaying production of cars and some models from gm or actually not going to be running with an advanced fuel technology system right now because the carmakers can't get the chip that they need so we're seeing idle workers in the united states. Some workers being laid off because of this chip shortage. But you know it's not just cars. Samsung is talking about delays with their phones their medical device makers who have asked for help because they also are worried about the chip shortage. So this is really a very very big issue for all sorts of things that we do told about why this is happening. And how did covid cause or accelerate the shortage in the first place so the primary cause for the shortage is the increase in demand in an industry. That isn't that flexible. In terms of how much it can make talking to semiconductor. They say the lead time can be you know over twenty twenty five weeks to make one of these chips so it's not an an industry that can just flip. The switch in terms of of making more another challenge is that we're dealing with incredibly complicated supply chains and there are just a few companies that have the infrastructure and very very expensive infrastructure to make these chips but they need to get materials from other companies. There's also a he does some trump tara trade policies that are making the market. Even little bit more constricted. The us has not really developed a very strong backup system of its own supply. Chain has just twelve percent of global manufacturing in the sector and you used to have nearly forty percent back in the nineteen nineties so we really haven't focused on our own. Us domestic manufacturing of these chips. Which sort of is making a lot of people nervous right now. Especially you know the car makers but you know all sorts of Device makers in the united states right now and. What can we do about that. We can't go back from twelve percent of forty percent overnight. What are people who think about the future of the auto industry governors people who have jobs and the line people who have angry customers calling. What are they doing about this. The biden administration has ordered a giant review of the semiconductor supply chain part of a broader effort. That he's focused on and focus on his campaign as well to sign a boost the resilience of us supply chains. And for you know. We're in the midst of this now. But there's going to be one hundred day review of the semiconductor supply chain. And that's doing a lot of research with all the different chipmakers trying to figure out like where you get these components. What happened in this disaster scenario and really scoping out what this actually looks like. There is legislation that some people say really needs to be funded. That would actually incentivize building. High tech manufacturing in the united states for chips hasn't been funded yet. But that's something that some chipmakers really really wanna see but you know taking the step of the us government actively incentivizing companies to go away from building these trips abroad where it is cheaper. And they've done so for economic reasons and having them chips in the united states. That's a pretty big statement and that's going to be a lot of money and it doesn't always work out. well you could end up with empty factories factories. That aren't being used three years or five years down the line and for customers. What can we do beyond expect our products to take longer to get to us. You know in the gm case you might get that product but you might not get it with a feature that you really wanted mentioning the advanced fuel technology system which means that if you were trying to buy one of those gm trucks you might be paying a little bit more for gas in. That just might be the compromise. But you know it's a reminder to really pay attention to supply chain
Techmeme Ride Home
Hack of video security company Verkada exposes footage from 150,000 connected cameras
"First up. Packers say they breached over cada accessing the feeds of one hundred and fifty thousand surveillance cameras inside clinics police precincts jails schools even cloudflare's offices and tesla facilities. The hackers say they also have access to the full video archive of all cada customers. Today i learned that verekauta is a startup that sell security cameras that customers can access from the web in its last funding round. It raised eighty million dollars at one point. Six billion dollar valuation quoting bloomberg. The data breach was carried out by an international hacker collective an intended to show the pervasiveness of video surveillance and the ease with which systems could be broken into said tilly cottman one of the hackers who claimed credit for breaching the san mateo california-based ver- cada cottman who uses they and then pronouns previously claimed credit for hacking chipmaker intel and carmaker nissan cottman said their reasons for hacking our lots of curiosity fighting for freedom of information and against intellectual property a huge dose of anti-capitalism and a hint of anarchism. And it's also just too much fun not to do it and quote cottman said. Their group was able to obtain root access on the cameras. Meaning they could use the cameras to execute their own code that access could in some instances allow them to pivot and obtain to the broader corporate network of ver- catis customers or hijack the cameras and use them as a platform to launch future attacks obtaining this degree of access to the cameras didn't require any additional hacking as it was built in feature cottman said. The hackers methods were unsophisticated. They gained access to through a super admin assistant allowing them to peer into the cameras of all of its customers. Cohen said they found a username and password. For an administrator account publicly exposed on the internet after bloomberg contacted ricotta. The hackers lost access to the video feeds archives. Cottman said the hack quote exposes. Just how broadly we're being surveilled and how little care is put into at least securing platforms used to do so pursuing nothing but profit cottman said. It's just wild. How can just see the things we always knew are happening but never got to see quote cottman said. They gained access to data system on monday morning and quote
Marketplace Tech with Molly Wood
The chip shortage is a manufacturing problem that wont be easy to solve
"Here's what's going on. With the chip shortage thing. I among us chipmakers only intel fabricates. Its own chips in the us. The rest contract with big companies mostly in taiwan or korea which are known as fabs the biggest tsmc in samsung. Their facilities are incredibly expensive and take years to build and even upgrade now add in pandemic lots of people at home buying computers tablets phones throw in the pandemic slowing down. The actual manufacturing and there aren't enough chips for cars medical equipment or all those other devices last week. President biden requested thirty seven billion dollars from congress to kick start the domestic supply chain for chips on shell. Sag covers the semiconductor industry at more insights and strategy. I asked him. If that'll be enough. I think thirty seven billion dollars is very likely a down payment. I'm not really sure it's enough because ultimately if we want to move enough chip producing capacity to the us There needs to be a considerable monitor investment to incentivize the tsmc's in the samsung zoo world to do that. So the companies that develop chips in the united states many of them all contract with the same foundry right. Tsmc so it's not like they're completely in charge of their own supply. They are constrained by how many chips say. Emc can produce and what other arrangements. It has to sell tips to other companies exactly. So there's there's tsmc the samsung and there's global foundries Those are like the bigger ones. Tim is their provider of everyone. Silicon and based on the customer relationship that accompany house with tsmc ultimately determines what priority they get in that pecking order of. What's available and then tell me about intel does have its own foundry but it doesn't seem like that's going that well yeah. They had some of their own challenges with these new or process nodes and they've been struggling to overcome them and they just recently got a new ceo and they're really aggressively pushing for resolving these issues But they've they've shown that they've been able to overcome some of their challenges and increase their supply because they had shortages of their own prior to the pandemic And now they seem to be kind of getting back on track to a degree but ultimately intel is only producing intel products. This is a complicated problem to solve. Do you think that there is a best solution like do. We just have to wait out. Covert it in this shortage and beef up. Companies like tsmc or is the intel model of companies producing their own chips. Going to be the future. I think there is a valid concern in wanting to have a certain percentage of chip capacity in the us. We have to just figure out what is the right number. For how much chip capacity. We need in the us and how much we as us. Taxpayers are willing to front that bill to ensure that national security level of chips. Apply right because it will most likely come down to a minimum necessary investment. Because i just don't think that it makes sense for the us to try to replicate what tsmc incur and samsung have done in korea and taiwan. Because it's double digit billions and that's just a short term cost. What is and this is just out of curiosity in some ways. What is the role. What role does apple play. I mean i wasn't apple like pretty early to go fabulous and maybe kickstarts some of this trend and then now apple is like intel creating its own chips for many of its products and building this kind of big apple only business. I'm just kind of curious about where they sit in this whole landscape. It's interesting because like you said apple is fabulous and they do. They do design their own chips but they ultimately still do depend on. Tsmc to those trips. And i believe they are number one customer but they do have a role in the industry where they they do influence. What kind of tools are necessary for the fabs to purchase Materials and new technologies are being adopted because ultimately you know what apple wants does drive how the market moves in terms of sensors and and chips. So i think apple's influence is one its size They do influence how much industry will grow and they also influence what kinds of technologies get adopted because their scale make make certain types of technologies profitable And i think with this trip shortage. You're seeing apple not really talk about it very much at all. Because they're kind of the first ones in the pecking order and I think that they've anticipated chip demand just enough that they probably don't really have much to be worried about. So and the pecking order
Odd Lots
This Is How the World Ended up with a Shortage of Semiconductors
"Show tracy long time ago now feels like we had the joke about. Should we just turn this into a semiconductor podcast. Yes and you've you've really run with that joke okay. The thing is is he can't escape it like we keep things like know we liked. I started talking about is like this is like an interesting topic for us but it turns out little. Did we know when we first started covering this story on the podcast which i was last october last november that actually it would blow up into this huge issue. Semi conductor manufacturing became like essentially. Nash topic of national news. Far outside the sort of like the niche audience right. Semiconductors secretly rule. All our lives. And i'm i'm joking. Obviously but nowadays everything is so high tech that there are a lot of appliances that you wouldn't necessarily think of that have chips in them So smartphones computers things like that obviously but also lots of cars And i saw one headline float by. I haven't had a chance to read it yet but something about aluminum producer's warning of downturn So chips are everywhere. And i think were really starting to realize how important they are and also how important chipmakers are of course as we've been discussing there's a limited number of Right so anyone who sort of listened to our series. We started talking about the decline of intel. We talked about why. Us manufacturing in general is sort of Gone away and we talked of course about the dominant role of taiwan semi. And it's like almost like again. It was not intentional. But now there's like this huge thing and everyone is waking up to how dependent we all are on taiwan semiconductor and a few other major Fabs and it's a it's become a legit. Us national security question. We know the biden administration is looking at it and you know looking at different ways to reduce us dependent so we really can't get away from the story and obviously we're going to be talking about it again today and i bet it won't even be the last time we talk about it. Thank you might be right on that one. So i'm really excited because actually we're going to be Going back to our very first guest to Gave us sort of great overview. Some of the best Clear english descriptions of the challenges of chip manufacturing and it was the first one everyone should go back. And listen to that one. Then talking about the decline of intel. But we're going to zoom out a little bit and look at the acute that the world is facing right now. Why are so many companies struggling with their ability to source chips and then the longer term issue of this is scarce capacity is scarce and even if we get through this current phase there is going to be still this sort of perhaps a dangerous over reliance on a few manufacturers that our capacity limited so a very excited. We're going to be speaking again. Second time on the show. Stacey raskin his managing director senior analyst. Use semiconductors at bruce dean research Stacey thank you so much for coming back on lot at stake. Tastic be back. Thank you for having again. What's it like you know. You're like a star now. Because one point semiconductors were just like this thing that maybe investors mostly cared about but it really does feel like an you know. Correct me if i'm wrong but it really does feel like in the last few months. Everybody is now obsessed with this story. I think i may have mentioned this last time. I was on but i. There's one reason. I love this space. It's literally ground zero for everything that's been going on. And it's it's you know it's not just the last few months the trade and that briar s and then the the the burgeoning geopolitics and now obviously the shortages. And everything else like. It's and you remember. I mean like the global electronic like enterprise. I mean it's like a four or five trillion dollar industry worldwide. If you add up all the pc's and and and and all of the consumer electronics and then all the services and software and everything that goes with it trillions and trillions of dollars in it all rests on semiconductors semi's or the fundament of all of that like we don't have any of that without semiconductors and so i think it's a phenomenal place to to spend time and it's job security for me so that's yeah that's that's the most important
90.3 KAZU Programming
How Car Makers Collided With a Global Chip Shortage
"Automakers around the world are being hobbled by something thinner than a piece of paper. A chip shortage is shutting down auto factories, sending workers home and halting productions on several car lines. NPR's Ryan Kyle off reports on how we got here. Cars these days are basically two ton computers on wheels. So when auto production first shut down at the beginning of the pandemic, it meant a lot of extra computer chips sitting around At the same time, we were all sitting around, working from home and schooling from home and attending weddings from home. We all needed new computers. Every school kid needed a chromebook. There's the new PlayStation five, according to Kristin G check of the Center for Automotive Research. Chipmakers pushed their extra supply into all our new TVs and smart speakers and Internet connected washing machines. Whatever device you're hearing, this story on probably contains a computer chip. Meanwhile, auto sales rebounded way faster than anyone predicted, says Patrick Manzi, with the National Auto Dealers Association. Most of us did not expect this. The sails right in April, fell to the lowest on record, at least back to the seventies. Since we've been tracking this When carmakers suddenly needed chips again. Those supply lines were spoken for. Switching them back takes time up to six months to reallocate capacity. So now carmakers have a dire short term need that can't be addressed in the short term. Manzi expects global production to drop by about a million cars this quarter. It's it's It is a non trivial amount for American auto workers at idled plants. That means up to 25% pay cuts for the duration. The effects will trickle down through the massive cottage industry of car parts suppliers and everyone they employ at the car lot, Manzi says. There will be vehicles to buy. It just may be a little bit more difficult to find that exact specifications that you're looking for. If you wanted the red one with the leather. Maybe they only have the gray one with the leather, right. Now President Biden is stepping in Ordering a review and to expanding chip manufacturing in the U. S. Instead of Taiwan and Korea. Treating chips is essential American goods crucial to so many things we use every day. That new American factories would take years to bring online. In the meantime, the shortages spreading, disrupting supplies for cell phones and laptops. Analysts say it likely get worse before it gets better. For consumers. It's probably a good time to drive carefully and try not to drop your cell phone.
Tesla Daily: Tesla News & Analysis
Assessing Semiconductor Supply Issues, Giga Berlin Battery Update
"Everybody robbing our here and today we're going to be talking about the semiconductor supplier issue that has been affecting the automotive industry as a whole and we do have a few other topics to go through as well. This is a live episode because after we go through this. I do have some thoughts to share. But i thought it'd be best shared live so we're gonna do the kind of normal episode structure But it will be live so bear with me as always but we'll get into it will start off just looking at the stock today so finish down five point three percent to eight hundred and four dollars eighty two sons. I compare to the nasdaq which is on the video. But down a quarter of a percent so it was a tough day for tesla today especially relative to the broader market other automakers. Did you know at least the ones. I looked at fare worse than the market today as well thing. Gm ford were right around down to percents neo. Probably in that ballpark as well So i don't know that this drop was entirely isolated to tesla but certainly tussle moved a little bit further perhaps related to the supply of semiconductor. So let's move into that topic For whatever reason. I've had i don't know fifty to one hundred people. Ask me about this over the last two days whether that's in the youtube comments or on twitter or on patriae on a lot of people for some reason seem to be incredibly interested in this in the last forty eight hours even though this has been something that's been discussed in the automotive industry since back in mid december And tesla has already talked about it a little too so we'll go through tussles comments. I'm here as well. So essentially what's going on. I'll go into some links here in a second. But what's going on here is that there is the semiconductor supply shortage which is a factor of multiple different things that factored into it so primarily what has been driving it is two things the pandemic and then the rise in some areas of consumer electronics. So the work from home movement during the pandemic has caused increase supply for things like laptops and stuff like that. That people are upgrading for working from home. The five g cycle with phones has caused an increase from what i gather in semiconductor needs and then the next generation consoles with the xbox one whatever it's called now and the bs five launching those things have worked together to create more more demand in the consumer electronics base and then in the automotive space because of the shutdowns that were experienced in the first half twenty twenty the a lot of automakers cut their orders or their contracts with semiconductor suppliers to help get through that period of time. So what that is caused. Is those autumn those suppliers to necessarily want to cut production. And things like that. They worked through Their safety stocks. So let's let's get into you some comments here from Chipmakers the first one. That i wanna look here. This is from microchip technology. So this is from a couple of weeks backer. Just not only one week back. But they kind of talk about how they got into the situation that they're in In terms of semiconductor in the automotive supply chain so they're talking about how their customers generally pulled back very hard. During the pandemic there was no backlog visibility in this environment. They had no choice to down inventories and safety stock to protect themselves from what looked like severe economic contraction and they saw similar similar actions from their suppliers that worked that they were together for Actually producing their semiconductors so they said during his time no one in the industry was adding capacity. Obviously given the uncertainty about win things would recover And that uncertainty extended significantly as the bottom of market as well so one of the things that they talk about here. That will come back. A little bit later is that they're offering this microchip. Preferred supply program called bs to offer the prioritized capacity to companies. That are willing to work with them. To order. twelve months of continuous non cancelable non reschedule will supply So they're not guaranteeing capacity for that but they're prioritizing people that are willing to make those longer term commitments and because if we rewind it back to the for salvatore nineteen because other because a lot of other because a lot of automakers were uncertain about their demand they were unwilling to give a lot of certainty to these two suppliers. So that's kind of brought the semiconductor situation into where it is today and they're trying to work through this now and that's impacting. A lot of different automakers couple other quotes here just from people in the industry so this one is from continental Major supplier in the space. They're talking about lead. Times for semiconductors saying what with lead times of six to nine months. The semiconductor industry has not been able to scale it fast enough to meet this unexpected growth. In automotive demand which really is a return to previous levels not necessarily new growth than they continue saying quote the bottlenecks from the semiconductor industry expected to continue well into twenty twenty one causing major disruptions and continentals production. So that gives us a bit of a timeline in terms of how this issue looks. We don't necessarily have a scale from that. Then let's move into one of their quote here. This is from Tmc one of the obviously major manufacturers. I think they do like seventy percent of some semiconductors or something like that so specific to their automotive customers They continued to decrease demand for cms t s emcees semiconductors in third quarter of two thousand nineteen. The chipmaker only began to see southern recovery automotive orders in the fourth quarter. Their ceo said earnings call earlier this month
Daily Tech News Show
Apple reportedly developing next-gen ultra-thin displays for AR devices with TSMC
"Nikei sources say that apple partnered with chipmaker. Tsmc to develop micro. Ola displays would displays built directly onto chip wafers for use in our future. Headsets that displays underdevelopment are less than one inch in size with mass production estimated several years away the beta for iowa's fourteen point five adds accident hazard and speed check reporting to apple maps. A new report button is available in the bottom tray of maps to report incidents and voiced support for siri is available as well and analysis by cambridge university university although they probably have anniversaries also estimates that bitcoin mining consumes roughly one hundred twenty one point three six terawatt hours of electricity per year which would make a top thirty energy consumer if it were used by country however for context the researchers noted that electricity consumed in the us by always on inactive could power the bitcoin network for year. I liked that comparison there. It's like yeah that sounds bad but then also that Following its launch in australia. Google new showcase launched in argentina and the united kingdom offering now includes free and paywall two articles for more than one hundred twenty uk and forty argentinian outlets bringing its total to four hundred fifty publications twitter announced monetize daily active users increased twenty seven percent on the year in. Its q four to one hundred ninety two million but missed analysts expectations of one hundred ninety three point. Five million with growth slowing for the third consecutive quarter. Twitter also said wednesday it suspended more than five hundred accounts and reduced certain hashtag visibility in india to comply with several orders from the indian government amidst farmers protests on agricultural reforms in the country. The twitter accounts are only being blocked in india and don't include news media entities. Journalists activists were politicians who have twitter accounts and twitter. Cfo ned siegel said on cnbc. Wednesday that people removed from its platform are not allowed to come back and that applies to president donald trump. Even if he ran for office again. All right let's talk a little bit more about what twitter is planning jack dorsey. He's been talking a lot about decentralisation over the past couple of months what did he say. This time scott feels like every time i'm on the show. There's something about his little idea but on this same call with investors on tuesday twitter ceo. Jack dorsey explained how it's internet project or internal project rather called blue sky and this something. He first announced wave back in december of two thousand nineteen Could create a decentralized social network to give people more choice over their twitter twitter experience Dorsey said twitter might create multiple rhythms for you to choose from offer them alongside those made by others a sort of marketplace on a lot of detail beyond that but dorsey feels Choice like this would not only help out business. But dr more people into participating in social media in the first place Decentralisation could also help twitter address concerns about moderation neutrality. all that kind of stuff Pretty fascinating idea I i still hope he does it with partners. And not just a a twitter store with algorithm skins. Well i mean it sounds like it's it's a combination of both the way twitter sees it happening. The company itself would say all right. You might want this experience. We have enough user feedback to know that some users are frustrated with the kind of stock twitter experience and using hashtags and maybe Filtering out certain keywords or searching for users or topics isn't enough for you you want twitter built a certain way and we can do that for you but then the company saying also third party developers might have some really great ideas and we welcome those algorithms as well as long as you know people wanted that. Could this be something that people would potentially pay for in the future. I would think yes. Yeah although i mean his focus on decentralisation implies that this would be something out in the wild right to the for longtime twitter's been talking about maybe we'll partner up with an existing decentralized solution which there are a few out there like mastodon. And i think that's a really really interesting way to approach this to say what if we decentralized twitter and differentiated twitter is just one of the better ways to talk with folks but like you said scott. He thinks that would help drive more people into participating if there was a federation so to speak that mastodon is that right now but twitter isn't part of mastodon so you don't have enough people using it so it doesn't get that momentum that it needs if twitter gets behind something like that whether it's mastodon or something else then suddenly it's got momentum and if you could say like well what i would like is a more environmental spin on this. I want a more libertarian. Spin you know wanted to promote things that are more about molecular biology promote scientists. I want i want to have a spiritual issues in christianity. Promoted more you you could have that and still everybody be participating in the same network and to his point about moderation neutrality. If you're the one picking the algorithm then you might have issues with how that particular algorithm works. But there'd be less burden on twitter or any other participant to be the person in charge of deciding what gets promoted and what doesn't because you'd have a lot of different approaches to it
Daily Tech News Show
Apple, TSMC teaming up on AR headset displays
"Apple partnered with a chipmaker. Tsmc to develop micro. Ola displays would displays built directly onto chip wafers for use in our future. Headsets that displays underdevelopment are less than one inch in size with mass production estimated several years
Mac OS Ken
Apple supply chain in spotlight as world runs out of semiconductors
"This time last year. We were just starting to grapple with how kobe nineteen would affect the supply chain. Some things never change. It seems apple three dot. Org ran part of a piece from bloomberg on monday pointing to a serious supply chain shortage for. Semiconductors apple will probably be fine though bloomberg points out. Even the cupertino company said recently that sales of some new iphones were hemmed in by a shortage of components. Whatever trouble apple has others will likely be harder. Hit quoting bloomberg auto and electronics makers that cut back drastically in the early days of the outbreak are now rushing to re up orders. Only to get turned away because chipmakers stretched to the max supplying smartphone giants like apple. The hardest hit will be carmakers seems. Gm has had the mothball three plants in north america. According to the report while ford is bracing for a twenty percent drop in near-term output quoting bloomberg again chip shortages are expected to wipe out sixty one billion dollars of sales for automakers alone but the head to the much larger electronics industry while tough to quantify at this early stage could be far larger.
WSJ Tech News Briefing
A Chip Shortage Is Hurting Car Makers. Other Industries Could Be Next.
"Four and said yesterday that it's cutting production of it's at one fifty pick-up trucks which is a pretty big deal at one. Fifty are the company's biggest moneymaker and the top selling vehicle in the us. The news comes just a day. After general motors said that it would be temporarily closing down some of its factories. Both companies say they're taking these actions because of an ongoing shortage of semiconductors for more on what's causing the chip shortage and why the auto industry is getting hit so hard we turn to our reporter as hey thanks for coming back on the show here. Okay so i. I want to understand how we got here in terms of the shortage and from what i understand. This is both a supply problem and a demand problem. Let's start with the demand side. Why so many people want and need chips right now. There's an incredible amount of demand right now for chips all all types of chips whether it's from the automotive industry from electronics industry people making smartphones printers. Hard drives computers. Everything basically all these things need chips and all. These areas are experiencing very high demand. Right now i mean. People are buying more and more computers laptops. Because they're they're working from home that's still going on. People are demanding more and more of these kinds of devices and so that's putting a lot of stress on the makers of these devices. Who obviously see. There's a huge opportunity here because there's so much demand but there's also not quite enough chips in some cases to satisfy that demand. Yeah and let's talk about the reason for that. Why are semiconductor producers. Having such a hard time filling that really high demand one major issue is that it takes time for semiconductor manufacturers to put a production line in place and get ready to produce chips. Chips are very complicated manufacturing or some of the most intricate and difficult to make things in the world. And so you can't just turn around. It's not like unutterable. You can't turn around tomorrow and say hey gimme this complicated chip with the five billion transistors on it. Companies need time to get an order. Fine the capacity to do it somewhere factories and or contracted out somebody else. And then make the chip. And so there's a mismatch between the repentiti with which demand has returned and the time it takes for a chipmakers to get up and running and make these chips and we've been following issues with the supply chain in the pandemic as well particularly in china early on does that play a role here to this pipeline has been kind of twisted and turned in all kinds of different ways during the pandemic and it still hasn't recovered from from that many companies pulled back or you know a lot of workers were forced to kind of not come in transportation. God disrupted and all this other stuff. That's still having an impact because you know there's a lot of inventory issues. Inventories aren't built up as much and the supply chain just isn't as flexible as you'd like it to be quite yet. It hasn't quite learned all the lessons lessons from this pandemic right particularly with such a complicated product. So i think that brings us to this issue with vehicles first and foremost. Why do automakers even need chips. What do they use them for. Chips are increasingly for cars. I mean tesla's probably the most kind of province example of car where you see a lot of ships you've got a big display in the interior. You've got all kinds of systems doing automation monitoring all kinds of things that require advanced processing power chips provide and many other more. Traditional carmakers are following suit. They're using more chips. They're using more complicated kind of semi autonomous. Kinda driver assist technologies things like that. They're just more chips in cars. These days and there are more complicated. More advanced ships in cars these days and so for automakers and their suppliers chips are basically like gold as you alluded to earlier. A lot of other industries depend on chips as well. Why are automakers in particular being hit so hard as opposed to others. It was really the speed with which the car industry came back. I mean demand had been very depressed during the coronavirus time which is still going on but in the depths of it demand. An automotive for for autos was really really low. And it just came back so quickly if you wanna if you see as an automaker whereas pirated the automaker is really that things might improve in the near term okay. You're then you go to your suppliers your chipmakers and you say okay. I need this product like as soon as you can. They're going to be like this is gonna take us a few months to to make right and so they're just surging demand for for cars that in particular even more demand in cars than in a lot of other places that the chipmakers can't really meet that demand in in a very quick way. So had they fix this. How does the semiconductor industry go about resolving the shortage. I mean executives. I've talked to you in this industry. Basically the chip industry say it's just gonna take time. i mean. they need time. They have the capacity to handle what these carmakers want. But they can't do it overnight and they just it just needs to take a quarter or two or even more to fully resolve kind of how long it takes depends on how much the demand keeps going up keeps skyrocketing. Then you have further issues down the road but folks who i talked to you the ministry say it's it's just gonna take. They need more time to supply chipmakers and in some cases very much prioritizing the automaker because they realized that they're in such dire straits and in the meantime in those intervening quarter or quarters are longer. What kind of impacts could we see for companies and for consumers. It remains to be seen exactly. I mean clearly. A an impact in the auto industry. But this kind of broader chip shortage easily could impact other parts of the electronics industry. We've already seen some companies talking about their shortages of components. Go into hard drives. And that could down the line have an impact on computer makers and things like that. So those things haven't quite materialize in same way. That problems for automakers have but there are signs that we could see some more things down the road for other parts of the computer electronics industry and that could make things more expensive for consumers right it could. I mean it's already making things more expensive for the consumers of these chips. You know. there's a lot of chipmakers have raised their prices and so that has to be passed on in some way either by the manufacturers getting their margins were consumers getting hit. And you know how that plays out. I'm i'm not sure but there's gonna be some impact.
KOMO
"chipmaker" Discussed on KOMO
"You can also find For information that coma news dot com compose Ryan Yamamoto. There's a report that the Trump administration is cutting off supplies to Chinese telecom giant Wall way This is, according to Reuters. The Commerce Department is telling suppliers including US based chipmaker Intel that it's revoking certain licenses to sell the wall way. The company is the world's biggest telecom equipment maker, and the Trump Administration considers it a national security threat. Come on news time to 50. It's time for an update on our propel insurance business news. Here's Jim. We may not replace all of the jobs lost since the pandemic hit the U. S last March, But 2021 should nevertheless see the economy add more jobs than any other year on record dating back to 1939. Estimates from my HSE market have us nonfarm payrolls increasing by 6.7 million this year Last year the U. S had a net job loss of 9.4 million. Rollerball smartphone, bigger and even fancier televisions and a $300 lipstick mixer. Those just a few of the products rolled out last week at the CS Show, LG Elektronik showed off a phone with a re sizable screen. It's called the LG Rollerball. Screen could be extended to make it a tablet and saying that people who want to stream Netflix on the go but also wanted tablet that can fit in their pockets. Meanwhile, TV makers touted 80 Inch displays with eight K resolution. Yeah, Loreal has a lipstick mixer that uses artificial intelligence to identify color and mixes it at home for you all for 300 bucks. That's your money. Now. Money news to 20 and 50 past. The hour of traffic Update is next. Why not start.
Rick Hamada
Intel Ousts Chief Executive Bob Swan
"In Intel stock is jumping after the chipmaker ousted its chief executive, Bob Swan. It will be replaced by BM where Chief Pak Gil singer activist hedge fund third point Hazard Sweeping Changes to revive in tells fortunes
WSJ What's News
Qualcomm CEO Steve Mollenkopf is retiring, current president to take over
"Chipmaker. Qualcomm says it ceo. Steve mollenkopf is stepping down. in june. he led the company through its multipurpose period including a long running legal battle with apple. Over qualcomm's patent licensing practices sent an antitrust case from the federal trade commission. Cristiano amman. Who has been at the forefront of the company's efforts to become a central supplier in the shift of five g technology has been named as mollenkopf
Movie Talk
US blacklists top Chinese chipmaker, alleging military ties
"Top chipmaker. More on that story from John Scott move will limit the semiconductor manufacturing international corporations access to advanced US technology because of its alleged ties to the Chinese military. Commerce Secretary Wilbur Ross says his agency won't allow such technology, too. Helped build the military of an increasingly belligerent adversary as him, I see has previously said it has no ties to the Chinese government. Commerce is putting more than 60 other firms on the so called entity list or allegedly being involved with the Chinese military and other issues. John Scott reporting on Wall Street this week
The Business of Esports
Nvidia's Graphics Cards Drive Growth
"Let's talk about invidia guys and video. In the news this is a huge story. from venturebeat and the headline is and videos. Q3 revenues rise fifty seven percent to four point seven three billion as gaming and data center. Stay strong huge numbers And a huge sort of just increase in revenue given the size of invidious business. Right this is not like a small startup that has grown fifty seven percent The article goes on and talks about earnings per share and things like that But basically the thrust of it is gaming and their new. gp's used their new graphics. Cards drove much of this growth. That basically they're they can't keep anything in stock they continue to be out of stock This surprising for anyone. This story is i. it's quite pod like they're bigger than intel right now from a market cap. I was staggered by like normally when you see fifty seven percent growth. It's like three million dollars face or like this is like a billion dollar base at. It's you know what stunned me about. This story is not that their business had improved. Because obviously there are a lot of factors that would lead you to think they would have another strong quarter. It's that it had capacity to improve this much right like i. i would have told you that. A billion dollars the business. It would like there. Wasn't this much headroom to add to this. But i think it does show look one is interesting. That data centers are a piece of this results. Right we can't say this is entirely gaming driven so we do call up fundamentally. I think it's next generation cards and consumer adaptiveness in this environment. Like it's unbelievable how much that's proven to be corporate results. I just unbelievable to me. Lindsay are you. Are you surprised at all. I mean i don. I don't know how much you followed the hardware market or has anyone been trying to buy an nvidia graphics card over the last like two months but in some ways the user experience has been very telling like in probably could have predicted the stock price increase. Yes so i'm invidia has actually been in the news as a chipmaker completely. Different reason in the policy world in a not so good ones are gonna glaze right over that i have to be the news good ball but no as someone who has been looking at graphics cards seeing that they're completely sold out everything and just the fact that the home pc market i think has grown since coronavirus i. It's not surprising at all in videos. The top dog and they also just acquired when someone starts with an a. Dna acquire the other chipmaker. This i think they were talking about buying arm. I don't know if the deal is done. Arm arm makes is like a cpu or chip architecture Which is interesting because the there may be. You know if nvidia gets into sort of the cpu market or at least like a total system on a chip kind of solution where you have cpu and gp one same silicon. That could be interesting like And especially also because apple is now producing laptops with their own arm based yet so it seems they can do no wrong and if you look at the stock price it seems like they can do no wrong. We're where does nvidia end up. William in your mind like two or three or five from now like even continue this kind of gross well it. It's a challenge. Because this is you know it's not partly it's just. It's just a cycle in the chip business. And you do well like when it's almost like there's console cycles and console sales spike in those years chip cycles so i do think it's. It's not like they're going to sustain this result. Quarter to quarter right like. It's not like this. There is gonna be a tail off. It's natural. I think navidi is even messaging that right now. Like hey guys you know. Don't don't expect results desist. But i do think that for nydia. The path forward is through something like the arm. Acquisition right like the way for them to sustain this level of growth and success is basically to position themselves as the like the v. computing company. That's it. They have to be a solution where they start looking at more integrated software solutions more like expand their category of products right and they have to really be entering across the hardware market and my prediction for sort of new video on the back of these results as they have the resources in the success. I expect you see them. Moving into other types of chips in development. And i wouldn't even be surprised to see to be moving into actual or some types of actual hardware production like beyond the what they do already. Yeah they do. They do but expand expanding that like expanding our hardware lights more
MarketFoolery
Nvidia Crushed Earnings Estimates. Its Stock Is Slipping
"It was another big quarter for invidia. Third quarter profits and revenue both higher than expected for the chipmaker shares. Down a little bit today though. I'm assuming it is around the guidance. They gave on their data center division. Which to be fair they came out and said yeah. This number's going down. I always caution people not to spend too much time worrying about what happens right around earnings with companies and i think in twenty twenty and we've gotten the exact wrong lesson whenever companies beat by just a little bit. Their stock goes up twenty percent whenever they lose by a little bit. Their stock goes down twenty percent. That's actually weird. That's actually weird. It doesn't usually work that way. You're exactly right. That generally speaking stocks are driven by guidance. So now they've reported those earnings those are in the bag but invidious stock has gone up by two hundred and thirty billion dollars market cap this year. Two hundred and thirty billion. So what happened on this day is is is is really nothing there. Crushing it on certain fronts. Their chips are in the twitch by nintendo which sold seven million units last. You know they're they're absolutely doing great. So the earnings report was fabulous. The stock doing. There's probably the stock was ahead of itself and that's all you need to know.