Tech, AI and Semiconductor Industry News: July Week 4

1. Market

i. Nvidia Shares Jump 13%, Boosting Market Value by $330b

[UPDATED] Nvidia achieved a historic one-day gain in stock market value, adding approximately $330 billion. This follows substantial investments in artificial intelligence (AI) by Microsoft and an optimistic forecast by Advanced Micro Devices (AMD) for its AI chip sales. Nvidia’s stock surged nearly 13%, driven by expectations of continued high demand for its processors.

Despite a slight decline in Microsoft’s stock, Nvidia’s valuation soared to $2.88 trillion, making it the third most valuable company on Wall Street. The PHLX chip index also increased significantly, reflecting renewed confidence in the AI sector. Microsoft’s increased capital expenditure, driven by the need to expand its data centres for AI, further benefits Nvidia, given Microsoft’s substantial demand for Nvidia’s AI chips. AMD’s upward forecast for AI chip sales further fuelled the rally. Nvidia’s market value now stands at $2.88 trillion, solidifying its position as Wall Street’s third most valuable company.

Implications: The explosive growth in Nvidia’s stock underscores the pivotal role of AI technology in shaping market dynamics.

Read the full article about the tech market’s dynamics.

ii. Donald Trump Welcomes Chinese Automakers’ Investments

What: Despite historically opposing electric vehicles (EVs), Donald Trump is now inviting Chinese carmakers to establish manufacturing plants in the US. This shift aims to prevent cheap Chinese EVs from flooding the US market by promoting domestic production and creating American jobs. His approach diverges from traditional Republican views and acknowledges China’s significant role in the global EV market. However, this proposition faces resistance due to national security concerns and existing tariffs on Chinese EVs.

Implications: Trump’s plan could open doors to Chinese investments in this sector, expedite the US transition to EVs, and bolster the future landscape of American manufacturing and job creation.

Read the full paid article about Trump’s invitation to Chinese carmakers.

iii. Major Chinese Tech Giants Try Out New National Cyber ID System

What: China is testing a national cyber ID system involving over 50 popular apps, including WeChat and Taobao. This system, proposed by the Ministry of Public Security and the Cyberspace Administration of China, allows users to create virtual IDs for secure account registration and login. The virtual IDs aim to reduce the overcollection of personal information by platforms while maintaining user anonymity.

Implications: The implementation of China’s national cyber ID system aims to enhance data security and privacy by reducing excessive personal information collection. While the system promises simplified authentication and improved data security, it raises concerns about increased surveillance and privacy implications.

Read the full paid article about China’s internet ID.

2. Business Moves

i. SK Hynix to Build US$6.8b Chip Plant at Yongin

What: SK Hynix, the world’s second-largest memory chipmaker, announced a US$6.8 billion investment in its first chip plant and business facilities at a new semiconductor cluster in Yongin, South Korea. This strategic investment seeks to meet the rising demand for AI semiconductors and ensure future growth. The Yongin cluster, set on a 4.2 million sq m site, will eventually house four chip plants and over 50 small local firms. The initial investment will fund the first plant’s utilities, business support and facilities through 2028. This development follows SK Hynix’s recent announcement of a US$3.87 billion investment in an advanced packaging and R&D facility in Indiana.

Read the full article about Hynix’s South Korea plant.

ii. Black Sesame Plans to Raise Up to US$143m in Hong Kong IPO

• IPO Details: Black Sesame plans to sell 37 million shares at HK$28 to HK$30.3 each.
• Revenue and Losses: In 2023, the company’s revenue nearly doubled to US$43 million, though losses widened to 4.86 billion yuan.
• Strategic Moves: The company plans to establish an R&D centre in Hong Kong and is collaborating with Baidu on intelligent car systems.
• Market Position: Black Sesame is viewed as a competitor to major firms like Nvidia and Qualcomm, contributing to China’s technological self-sufficiency.
• Funding History: The company has raised US$695.8 billion from notable investors, including Nio Capital and Xiaomi Ventures.

Read the full paid article about Black Sesame’s Hong Kong IPO.

3. People Moves: HK Polytechnic University

What: Hong Kong Polytechnic University recruited Yang Hongxia, China’s prominent AI scientist with experience at Alibaba Group and ByteDance. Yang, now a professor in the Department of Computing, specialises in generative AI and decentralised computing. Yang’s background includes significant contributions to AI at Alibaba and ByteDance, and her move aligns with a broader trend of Chinese AI professionals returning to academia or joining AI startups in China.

Implications: Yang Hongxia’s appointment demonstrates the Hong Kong government’s strategy to transform the city into a technology hub by attracting and leveraging top AI talent and leverage their leverage strong research capabilities.

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Image Sources:

• Automotive News
• Xinhua