HXSCL prezzo delle azioni, notizie, grafici, ricerca sulle azioni, profilo.

 (HXSCL) Azioni Citazioni e riassunti delle notizie

SK Hynix is a semiconductor supplier with around 65%-70% of its revenue from DRAM and 25%-30% of its revenue from NAND flash. SK Hynix is the second-largest DRAM supplier globally with approximately 31% market share and the second-largest NAND supplier globally with approximately 19% market share. SK Telecom, the largest telecom carrier in South Korea, became the largest shareholder in 2012 and currently holds 20% of SK Hynix's shares.

SK HYNIX INC S/GDR 144A by SK Hynix, Inc.

SK Hynix Inc

In a market landscape clouded by <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40199294/wall-street-rebounds-after-selloff-vix-falls-dollar-surges-against-yen-whats-driving-marke">recession fears, sell-offs and rebounds</a>, Macquarie has identified 10 Asian stocks it believes are primed for a comeback. 
Amidst the turmoil of declining global markets, these stocks have weathered the impact of the recent drawdown and are now positioned as <a href="https://www.benzinga.com/markets/asia">top buying opportunities</a>.
Macquarie&#8217;s list of &#8220;highest conviction&#8221; stocks includes semiconductor giants:
<ul>
<li>Taiwan Semiconductor Manufacturing Co Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>)</li>
<li>SK Hynix Inc (OTCPK: HXSCF) (OTCPK: HXSCL) and </li>
<li>Alchip Technologies Ltd (OTCPK: ALCPF).</li>
</ul>
These companies reflect a bullish stance on the technology sector despite current concerns surrounding Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), <a href="https://www.cnbc.com/2024/08/07/macquarie-names-10-asia-stocks-that-have-borne-the-brunt-of-sell-off.html">reported</a> CNBC.
Other notable names include: 
<ul>
<li>Hitachi Ltd (OTCPK: HTHIF) (OTCPK: HTHIY)</li>
<li>NEC Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NIPNF#OTC">NIPNF</a>)</li>
<li>Wiwynn Corp. </li>
<li>Sugi Holdings Co Ltd </li>
<li>Daiichi</li>
<li>Sankyo Co Ltd (OTCPK:DSKYF) (OTCPK:DSNKY), and </li>
<li>HD Hyundai Electric. </li>
</ul>
These selections underscore Macquarie&#8217;s confidence in Asia&#8217;s ability to weather global market challenges.
According to Macquarie equity strategists led by Peter Williamson, &#8220;As stock pickers, we focus on a basket of stocks that we believe will emerge from the current drawdown, and which will present a buying opportunity for investors as this bout of volatility subsides.&#8221;
Read Also: <a href="https://www.benzinga.com/news/24/08/40169330/nvidia-microsoft-apple-amazon-erase-1-1-trillion-in-monday-sell-off-bubble-burst-or-market-correctio">Nvidia, Microsoft, Apple, Amazon Erase $1.1 Trillion In Monday Sell-Off: Bubble Burst Or Market Correction?</a>
Why These Stocks? They maintain robust fundamental growth drivers, making them compelling choices for long-term investors, the strategists say.
These companies can withstand emerging macro uncertainties, such as a recession or the unwinding of the Japanese yen carry trade. 
The week opened with Japan&#8217;s stock market <a href="https://www.benzinga.com/markets/equities/24/08/40152271/mohamed-el-erian-grant-cardone-and-matt-weller-warn-of-deepening-global-market-selloff-as-yen-ri">taking a nosedive of over 12%</a> on Monday before rebounding slightly. The S&amp;P 500 too, experienced its worst single-day performance in nearly two years, plummeting 3% in one day.
The technology and banking sectors saw significant declines as investors scrambled.
Macquarie&#8217;s strategy reflects a calculated gamble on the resilience and potential growth of Asian markets. 
While market volatility persists, Macquarie&#8217;s conviction in these stocks provides a potential pathway to profits for savvy investors.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/08/40215270/japans-nikkei-lifts-asia-europe-gains-crude-oil-and-dollar-advance-global-markets-today-while-us-sle">Japan&#8217;s Nikkei Lifts Asia, Europe Gains; Crude Oil And Dollar Advance &#8211; Global Markets Today While US Slept</a></li>
</ul>

Analyst Color

Asia

Equities

Long Ideas

News

Global

Markets

Analyst Ratings

Trading Ideas

ALCPF

DSKYF

DSNKY

HTHIF

HTHIY

HXSCF

HXSCL

NIPNF

NVDA

Recession-Resilient Asian Stock Picks: TSMC, SK Hynix Among This Analyst's Top 10

Samsung Electronics Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) has appointed a new head for its semiconductor division, aiming to address the &#8220;chip crisis&#8221; and compete in the AI chip market.
What Happened: Samsung has named Young Hyun Jun as the new chief of its semiconductor division, effective immediately, Reuters reported. Jun, who previously led the future business planning unit, is expected to help Samsung catch up with its competitors in the AI chip market.
Analysts believe that this move is a response to the increasing demand for high-end chips, particularly in the AI sector, where Samsung has been trailing behind companies like SK Hynix.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38930747/bitcoin-ethereum-dogecoin-shoot-up-on-one-of-the-best-days-for-crypto-in-2024-amid-ether-e?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Shoot Up On One Of The Best Days For Crypto In 2024 Amid Ether ETF Approval B</a>
Jun, 63, has a strong background in the memory chip business, having previously led Samsung&#8217;s memory chip business from 2014 to 2017. He also served as the CEO of Samsung SDI, the company&#8217;s battery arm, from 2017 to 2022.
Why It Matters: Samsung&#8217;s decision to appoint Jun comes in the wake of its efforts to revamp its chip manufacturing. In March, Samsung <a href="https://www.benzinga.com/news/24/03/37651170/samsung-shifts-gears-with-new-chip-tech-to-compete-in-nvidias-ai-chip-dominance">adopted a new chip-making technique</a> to enhance its position in the high-end chip market, a move that was previously advocated by SK Hynix.
SK Hynix, a key supplier to NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), also <a href="https://www.benzinga.com/markets/asia/24/04/38423130/nvidia-supplier-sk-hynix-sees-first-profit-in-5-quarters-credits-ai-chip-demand">reported its first profitable quarter</a> in five, attributing the turnaround to soaring demand for AI chips. The company&#8217;s strong performance was driven by its leadership in AI memory technology, particularly high-bandwidth memory, which is crucial for AI chipsets.
Meanwhile, Samsung and the broader South Korean semiconductor industry have experienced substantial growth, marking a significant rebound in production and shipments. In November, chip production surged by 42% compared to the previous year, the highest <a href="https://www.benzinga.com/government/23/12/36408195/south-koreas-semiconductor-surge-samsung-and-sk-hynix-shatter-records-with-unprecedented-production">increase since early 2017</a>. Simultaneously, shipments experienced an 80% rise, the most significant gain since late 2002.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38908102/dogecoin-rises-4-45-amidst-anonymous-120-million-doge-transfer-to-robinhood?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Dogecoin Rises 4.45% Amidst Anonymous 120 Million DOGE Transfer To Robinhood</a>
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Tech

SSNLF

Samsung Appoints New Semiconductor Chief Amid 'Chip Crisis' And AI Boom

<a href="https://www.wsj.com/tech/nvidia-partner-plans-4-billion-investment-in-indiana-4a094ace" title="https://www.wsj.com/tech/nvidia-partner-plans-4-billion-investment-in-indiana-4a094ace">https://www.wsj.com/tech/nvidia-partner-plans-4-billion-investment-in-indiana-4a094ace</a>

Wall Street Journal Reported SK Hynix To Invest Roughly $4B; Build Advanced Packaging Factory For Its High-bandwidth Memory Chips In West Lafayette, IN

The AI sector is currently the hottest in the market, and Fidelity International is advising investors to consider indirect plays in addition to the obvious choices, such as NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
What Happened: Fidelity International, a financial services firm, has suggested that investors explore other avenues to capitalize on the AI boom. The firm highlighted that AI&#8217;s benefits may not be immediately apparent to investors in certain stocks, <a href="https://www.cnbc.com/2024/03/15/look-beyond-nvidia-to-ride-the-ai-wave-there-are-other-potential-winners-fidelity-says.html">reported</a> CNBC on Thursday.
"Rather than focusing on so-called hot AI stocks – because names that are big today may not be the winners of tomorrow – investors may consider the many indirect beneficiaries, or diversified businesses, where the benefits of AI may not be immediately obvious to investors," Fidelity said in its report.
These indirect AI plays include semiconductor foundries, packaging technology companies, and memory companies, according to the firm&#8217;s report. Fidelity also drew parallels between the current AI hype and the dot-com bubble, suggesting that the AI sector may follow a similar trend.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37682250/dogecoin-to-the-moon-elon-musk-just-broke-his-long-silence-on-doge-and-if-tesla-will-accep?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Dogecoin To The Moon&#8217; — Elon Musk Just Broke His Long Silence On DOGE And If Tesla Will Accept The Good Boi Anytime Soon</a>
Despite Nvidia&#8217;s significant gains, Fidelity pointed out other stocks in the AI-related sectors that have also seen substantial growth. For example, shares of Taiwan Semiconductor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), the world&#8217;s largest contract foundry and a supplier to Nvidia, have surged over 50% in the past year.
In the meantime, South Korea&#8217;s leading memory chip manufacturers, Samsung Electronics Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) and SK Hynix (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HXSCL#OTC">HXSCL</a>), have experienced significant increases, with Samsung surging over 25% and SK Hynix by approximately 100%. 
These memory chips play a crucial role in training extensive language models like ChatGPT, enabling them to efficiently process vast datasets and produce responses that closely resemble human language when interacting with users.
Why It Matters: Nvidia has been at the forefront of the AI revolution, with its graphics processing units being used to train and run AI models. The company&#8217;s shares have soared by almost 280% in the past year.
Nvidia is expected to make further announcements at its <a href="https://www.benzinga.com/news/24/03/37709737/nvidia-eyes-future-dominance-aims-high-with-ai-woodstock-event-and-bold-revenue-projections">annual AI conference</a>, the Nvidia GTC, which could potentially stabilize the stock&#8217;s recent volatility and continue its significant upward trajectory.
Despite Nvidia&#8217;s dominance, some experts have expressed caution about the AI sector, warning of a potential bubble. Gene Munster, a tech venture capitalist, noted that there was talk of an <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37005660/no-imminent-ai-bubble-burst-says-munster-we-are-at-the-start-of-3-5-year-tech-run">AI bubble six months ago</a>, but most of the high-profile mega-cap tech stocks have rallied since then.
On the other hand, Torsten Sløk, the chief economist at Apollo Global Management, warned that the current <a href="https://www.benzinga.com/startups/24/02/37338210/apollos-chief-economist-sounds-alarm-on-ai-bubble-warning-its-bigger-than-the-1990s-tech-bubble">AI bubble is bigger</a> than the 1990s tech bubble, raising concerns about the sustainability of the AI sector&#8217;s growth.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37710319/forget-doge-shiba-inu-this-is-elon-musks-new-favorite-meme-coin-that-could-soon-explode-an?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Forget Doge, Shiba Inu: This Is Elon Musk&#8217;s New Favorite Meme Coin That Could Soon Explode, Analyst Predicts</a>
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 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/kaustubh-bagalkote" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Kaustubh Bagalkote</a> 
 
 
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 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
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Nvidia Isn't The Only AI Contender, Fidelity Suggests Investors Look Beyond 'Hot AI Stocks': 'Names That Are Big Today May Not Be The Winners Of Tomorrow'

In a recent development, shares of Apple&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) suppliers took a hit following Barclays downgrade of the tech behemoth due to a potential decrease in product demand in 2024.
What Happened: CNBC<a href="https://www.cnbc.com/2024/01/03/shares-of-apple-suppliers-fall-after-barclays-downgrades-iphone-maker.html"> reported</a> on Tuesday that the shares of suppliers associated with Apple in Asia experienced a drop after the Barclays downgrade. Taiwan Semiconductor Manufacturing Company (TSMC), a top-tier manufacturer of advanced processors for companies such as Apple and Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), saw a more than 2% decline in shares during morning trading. Foxconn (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), a major Apple supplier and the world&#8217;s largest electronics contract manufacturer, also experienced a 1.33% drop in shares.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/23/12/36430587/will-this-meme-coin-make-you-rich-avalanches-mystery-collection-could-change-your-fortune?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Will This Meme Coin Make You Rich? Avalanche&#8217;s Mystery Collection Could Change Your Fortune</a>
Moreover, tech and chip stocks such as Samsung Electronics and SK Hynix (OTC: HXSCL) dropped over 2%, while LG Electronics fell 1.78%, leading to a 1.85% drop in South Korea&#8217;s Kospi. This situation developed after Barclays demoted Apple&#8217;s stock to underweight on Tuesday and lowered its price target to $160 from $161, citing weak iPhone 15 sales and a potential decrease in demand for iPhone 16 and other products. Consequently, Apple&#8217;s shares ended the day 3.58% lower.
Despite the downgrade, experts in the industry maintain that Apple&#8217;s suppliers continue to see strong growth. 
&#8220;There&#8217;s still 200 to 300 million iPhones that get replaced onto 5G, at least for the next 24 months,&#8221; stated Ray Wang of Constellation Research on CNBC&#8217;s &#8220;Street Signs Asia.&#8221; 
In a report dated Jan. 3, UBS claimed that TSMC is &#8220;poised for a strong rebound in 2024&#8221; and sustained a buy rating, albeit with a lowered price target.
Why It Matters: Apple&#8217;s $85 billion services business faces potential impacts from <a href="https://www.benzinga.com/government/24/01/36463729/apples-85b-services-business-in-crosshairs-of-legal-and-regulatory-rulings">a series of legal and regulatory rulings</a> expected in 2024. Furthermore, Apple&#8217;s stock was <a href="https://www.benzinga.com/news/24/01/36453039/why-is-apple-stock-sliding-tuesday">downgraded by Barclay</a>&#8216;s analyst Tim Long from Equal-Weight to Underweight, resulting in a lower price target.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36445025/crypto-experts-eye-sky-high-bitcoin-values-in-2024-whats-driving-the-bullish-predictions?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Crypto Experts Eye Sky-High Bitcoin Values In 2024: What&#8217;s Driving The Bullish Predictions?</a>
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 Engineered by 
 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
 Pooja Rajkumari</a> 
 
 
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 The GPT-4-based Benzinga Neuro content generation system exploits the 
 extensive Benzinga Ecosystem, including native data, APIs, and more to 
 create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
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General

AAPL

HNHPF

Apple Suppliers See Share Price Drop As Barclays Downgrades iPhone Maker

Bank of America has highlighted five global stocks poised to profit as the application of artificial intelligence (AI) continues to burgeon. The bank projects significant growth potential for &#8220;end-device AI,&#8221; a deviation from the current server-based systems.
As per a&nbsp;CNBC&nbsp;<a href="https://www.cnbc.com/2023/10/11/bank-of-america-these-6-global-ai-stocks-are-hidden-gems-with-great-potential.html">report</a>, the bank made these predictions in&nbsp;a recent note titled&nbsp;&#8220;End-device&nbsp;AI: Great potential with hidden&nbsp;gems awaits.&#8221; It anticipates that&nbsp;customized and private AI services&nbsp;could be delivered directly to users&#8217; end devices, transforming smartphones, tablets, cars, and more.
The BofA analysts, led by Brad Lin, compared &#8220;end-device AI&#8221; to&nbsp;the AI assistant used by&nbsp;&#8220;Iron Man,&#8221; J.A.R.V.I.S. They forecast&nbsp;a 96% compounded annual growth&nbsp;rate for foundries and a&nbsp;105% growth rate for chipmakers&nbsp;from 2023-2025, reaching over $14&nbsp;billion in revenue.
See Also:&nbsp;<a href="https://www.benzinga.com/markets/equities/23/10/35136955/walgreens-reportedly-confronts-impending-staff-walkout-is-your-local-pharmacy-shutting-down-next?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Walgreens Reportedly Confronts Impending Staff Walkout — Is Your Local Pharmacy Shutting Down Next Week?</a>
According to the note, &#8220;We&nbsp;expect more generative AI-ready chip&nbsp;launches in late 2023 and new&nbsp;end-product announcements during CES and&nbsp;MWC in early 2024 to&nbsp;be key catalysts.&#8221;
The report listed&nbsp;Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>),&nbsp;MediaTek Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MDTKF#OTC">MDTKF</a>),&nbsp;Nordic Semiconductor (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NDCVF#OTC">NDCVF</a>),&nbsp;SK Hynix Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HXSCL#OTC">HXSCL</a>), and&nbsp;Renesas Electronics Corporation (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RNECF#OTC">RNECF</a>)&nbsp;as major potential beneficiaries.
Bank of America predicts that automakers will leverage&nbsp;advanced end-device AI capabilities from&nbsp;Qualcomm&#8217;s&nbsp;Ride platform for in-car services.&nbsp;Similarly, it expects MediaTek to implement generative AI functions into its upcoming flagship smartphone chips.
Read Next:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/10/35139582/dogecoin-co-creator-elon-musk-blast-sec-for-denying-inherent-value-of-cryptos-return-all-t?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Dogecoin Co-Creator, Elon Musk Blast SEC For Denying Inherent Value Of Cryptos: &#8216;Return All The Taxes…You Renesas Electronics Corporation</a>
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 Engineered by 
 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
 Pooja Rajkumari</a> 
 
 
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 The GPT-4-based Benzinga Neuro content generation system exploits the 
 extensive Benzinga Ecosystem, including native data, APIs, and more to 
 create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
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Media

MDTKF

NDCVF

QCOM

RNECF

Bank Of America Identifies 6 Global AI Stocks As 'Hidden Gems' With Great Potential

<ul>
<li>Synopsys, Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/snps#NASDAQ">SNPS</a>) reached scale for AI-driven chip designs as major semiconductor customers registered the first 100 commercial tape-outs with the&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/02/n30760384/ai-designed-chips-reach-scale-with-first-100-commercial-tape-outs-using-synopsys-technology" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">company&#39;s autonomous design system</a>.&nbsp;</li>
<li>Synopsys&#39; recent customers, including&nbsp;STMicroelectronics NV&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stm#NYSE">STM</a>) and&nbsp;SK Hynix Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>), saw significant productivity and a PPA uplift.</li>
<li>The companies charted a new design course using reinforcement learning-enabled design tools on the cloud and on-premise.</li>
<li>STMicroelectronics taped-out using Synopsys DSO.ai coupled with Synopsys Fusion Compiler and Synopsys IC Compiler II physical implementation tools.</li>
<li>&quot;Using the Synopsys DSO.ai design system on&nbsp;Microsoft Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>)&nbsp;Azure, we increased PPA exploration productivity by more than 3x, allowing us fast implementation of a new Arm core while exceeding power, performance and area goals,&quot; said Philippe d&#39;Audigier, system-on-chip hardware design director at STMicroelectronics.&nbsp;</li>
<li>Junhyun Chun, head of SoC (System on Chip) at SK Hynix, said, &quot;Synopsys DSO.ai brings a huge amount of design team efficiency, giving our engineers more time to create differentiated features for our next generation of products. It&#39;s also driving fantastic results as demonstrated in a recent project where DSO.ai delivered a 15% cell area reduction and a 5% die shrink.&quot;</li>
<li>Jean Boufarhat, corporate vice president of engineering, Azure said, &quot;With AI-powered chip design on Azure, companies can leverage cloud-scaling to boost productivity and optimize very large solution spaces like high-performance computing.&quot;</li>
<li>Price Action:&nbsp;STM shares trade lower by 1.05% at $49.00 premarket on the last check Wednesday.</li>
</ul>

MSFT

SNPS

STMicroelectronics Taps Synopsys' AI Chips For Cloud Scaling

<ul>
<li>South Korea&#39;s chip production decreased for a fourth consecutive month in November, sliding 15% year-on-year for its most significant drop since 2009, Statistics Korea found.&nbsp;</li>
<li>South Korea&#39;s chip output was down 11% M/M as semiconductor inventories surged over 20% Y/Y, reflecting a supply glut as high inflation hit global demand for technology products after a two-year boom during the pandemic, Financial Times&nbsp;<a class="editor-rtfLink" href="https://www.ft.com/content/fd9dd8a4-eef2-44a1-9748-c66e50b2ca6c" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reports</a>.</li>
<li>South Korea is a leading producer of microchips with companies like&nbsp;Samsung Electronics Co, Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ssnlf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SSNLF</a>) and&nbsp;SK Hynix Inc&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hxscl#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HXSCL</a>).</li>
<li>&quot;The slowing global economy&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/12/30201510/chipmakers-struggle-with-inventory-buildup-on-pandemic-demand-correction" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">and large inventories have hit demand</a>. Customers are not buying chips as demand has collapsed,&quot; said JJ Park, an analyst at JPMorgan in Seoul told FT.&nbsp;</li>
<li>&quot;Inventory destocking will be completed throughout next year, and the market could rebound in 2024.&quot;&nbsp;</li>
<li>Chipmakers slashed investment plans&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/11/29771757/lack-of-supply-cuts-from-samsung-could-lead-to-higher-inventory-build-up-for-micron-analyst-says" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">to adjust to the oversupply</a>.&nbsp;</li>
<li>SK Hynix, U.S. rival&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mu#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MU</a>), and Japan&#39;s Kioxia Holdings cut spending.</li>
<li>Industry leader Samsung stuck to its past strategy of increasing capital spending during the&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/12/30200557/samsung-eyes-production-ramp-at-leading-chip-plant-as-rivals-curtail-ambitions" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">downturn to grab market share</a>, analysts said.</li>
<li>&quot;Samsung is back-stabbing its fellow oligopoly competitors,&quot; Dylan Patel, chief analyst at semiconductor research group SemiAnalysis, wrote. &quot;Samsung is looking for a Pyrrhic market share victory.&quot;</li>
<li>Samsung&#39;s increased capital spending and chip production will&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/12/29970059/vietnam-wins-additional-investments-from-samsung-lg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">exacerbate the global oversupply</a>, analysts have warned.</li>
<li>&quot;The oligopoly is broken, as Samsung&#39;s new chair wants to eat market share,&quot; Patel noted, warning of &quot;pure carnage&quot; in the DRAM (dynamic random-access memory) market.</li>
<li>Samsung will likely announce&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/22/10/29430631/samsung-clocks-4-revenue-growth-in-q3-sees-recovery-in-2023-second-half" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">weaker fourth-quarter earnings next week</a>.</li>
<li>Photo by Pierre Lecourt via Flickr</li>
</ul>

Inflation Hits South Korean Chip Production; Samsung Braces To Win Market Share Capitalizing On Downturn

<ul>
<li>SK Hynix Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) called the U.S. semiconductor embargo on China &quot;painful&quot; as it slashed its 2023 capital expenditure, the Financial Times&nbsp;<a class="editor-rtfLink" href="https://www.ft.com/content/4fe91d82-4a83-4ae3-840d-321c3dd54148" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reported</a>.</li>
<li>The Chinese chipmaker cut its Capex guidance by more than 50% after reporting a 60% drop in third-quarter operating profit due to higher inflation and sluggish global growth, missing market expectations.</li>
<li>Due to the restrictions, SK Hynix expected difficulties upgrading its plant&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/10/29197739/us-china-tensions-aggravate-chinese-chipmakers-bleed-as-us-sharpens-its-knives" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">in Wuxi, China</a>.&nbsp;</li>
<li>The Wuxi plant accounts for nearly half of SK Hynix&#39;s production of D-Ram chips used in computers, smartphones, and servers.&nbsp;</li>
<li>The chipmaker followed rivals, including U.S.-based&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mu#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MU</a>) and Japan&#39;s Kioxia Holdings, cutting production after memory chip prices slid about 20% in Q3.</li>
<li>SK Hynix would gradually reduce output, starting with lower-margin products, as the industry confronted &quot;an unprecedented deterioration in market conditions.&quot;</li>
<li>SK Hynix won a one-year exemption from the US restrictions.</li>
<li>SK Hynix warned against its struggle to bring the most cutting-edge technology into China, which could increase production costs.</li>
<li>Analysts expect the Wuxi factory&#39;s competitiveness against&nbsp;Samsung Electronics Co, Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>) and Micron Technology to significantly weaken in two to three years if SK Hynix cannot ship EUV machines to China.</li>
<li>Chinese chipmaker&nbsp;Yangtze Memory Technologies Corp&nbsp;ousted American employees in core tech positions following the U.S.&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/10/29375322/chinese-top-chipmaker-retaliates-by-firing-us-employees-in-core-tech-former-ceos-position-remain-und" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">embargo on China</a>.&nbsp;</li>
<li>YMTC&#39;s longstanding CEO Simon Yang, a U.S. passport holder, stepped down ahead of the sanctions reportedly triggered by Washington&#39;s increasing pressure on the company.&nbsp;</li>
<li>Yang transitioned from the Chief role in late September to Deputy Chair. His current position in the company remained undecided.</li>
<li>Price Action:&nbsp;MU shares traded higher by 0.46% at $56.12 on the last check Wednesday.</li>
</ul>

Government

Regulations

SK Hynix Set To Lose Edge Versus Micron and Samsung As US Embargo Weighs, Analyst Says

<ul>
<li>Samsung Electronics Co, Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ssnlf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SSNLF</a>) bagged a one-year immunity from the new U.S. embargo on exports of advanced chips and related equipment to China.</li>
<li>The U.S. Department of Commerce allowed Samsung to continue receiving chip-making equipment and other items needed to maintain its memory-chip production in China, the Wall Street Journal&nbsp;<a class="editor-rtfLink" href="https://www.wsj.com/articles/samsung-gets-one-year-exemption-from-new-u-s-chip-restrictions-on-china-11665639994?mod=hp_lead_pos3" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reported</a>.</li>
<li>Samsung operated chip facilities in two Chinese cities.</li>
<li>Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/10/29230444/taiwan-reasons-why-it-is-futile-for-us-and-china-to-harm-tsmc" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Taiwan Reasons Why It Is Futile For US And China To Harm TSMC</a></li>
<li>&nbsp;SK Hynix&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hxscl#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HXSCL</a>) and&nbsp;Intel Corp&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/intc#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">INTC</a>) also disclosed winning a one-year exemption against the embargo.</li>
<li>Samsung dominated the production of DRAM and NAND flash memory chips.&nbsp;</li>
<li>Samsung operated a NAND flash memory-chip plant in Xi&rsquo;an and a chip-packaging facility in Suzhou.</li>
<li>As of the second quarter of this year, Samsung accounted for 43.5% of global revenue for DRAM and roughly one-third of global revenue for NAND flash, according to TrendForce.</li>
<li>Shares in top Chinese chipmakers shed $7.7 billion in market value on October 10, as new U.S export&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/10/29197739/us-china-tensions-aggravate-chinese-chipmakers-bleed-as-us-sharpens-its-knives" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">controls kicked in</a>.</li>
<li>Top U.S. lawmakers had urged the Biden administration to blacklist Chinese semiconductor company&nbsp;Yangtze Memory Technologies Co&nbsp;for allegedly violating export&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/09/28945453/pressure-mount-on-us-to-blacklist-this-top-chinese-chipmaker-" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">controls by supplying</a>&nbsp;Huawei Technologies Co, Ltd.</li>
<li>Photo by Pierre Lecourt via Flickr</li>
</ul>

BABA

INTC

Samsung Wins One-Year Relief From New US Chip Embargo

U.S. chipmaker&nbsp;KLA Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/klac#NASDAQ">KLAC</a>) agreed to discontinue offering some supplies and services from Wednesday to China-based customers.
The embargo extended to South Korea&#39;s&nbsp;SK Hynix Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) in compliance with recent U.S. regulations,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/world/china/exclusive-kla-stop-sales-service-china-comply-with-us-export-curbs-source-2022-10-11/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters</a>&nbsp;reported.
The Biden administration launched a sweeping set of export controls to restrict China&#39;s progress in advanced chip manufacturing.
Shares in top Chinese chipmakers shed $7.7 billion in market value on October 10, as new U.S export controls restricted the sale of semiconductors made with U.S. technology unless vendors obtain&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/10/29197739/us-china-tensions-aggravate-chinese-chipmakers-bleed-as-us-sharpens-its-knives" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">an export license</a>.
The controls also barred U.S. citizens or entities from working with Chinese chipmakers without explicit approval and limited the export of manufacturing tools that would allow China to develop its equipment.
China is KLA&#39;s most prominent geographic market, generating $2.66 billion in sales, or nearly 30% of its total revenue in the last fiscal year that ended in June.
KLA&#39;s legal department emailed China informing that it shall stop sales and service to &quot;advanced fabs&quot; in China for the technology of NAND chips with 128 layers or more, DRAM chips 18nm and below, and advanced logic chips.
KLA&#39;s top management instructed it to relax for a couple of months. KLA would also stop supplying China chip plants owned by&nbsp;Intel Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>) and SK Hynix, the world&#39;s second-largest memory chipmaker.
Along with&nbsp;Lam Research Corp&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/lrcx#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">LRCX</a>) and&nbsp;Applied Materials Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/amat#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AMAT</a>), KLA is among the top U.S. toolmakers now required to halt shipments to wholly Chinese-owned factories producing advanced chips.
In September, the U.S. restricted sales of&nbsp;Nvidia Corp&#39;s&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/nvda#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">NVDA</a>) high-performance AI chips for servers, the A100 and H100, to China and Russia, citing&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/09/28885987/nvidia-amd-analyst-slashes-price-targets-within-a-week-after-suggesting-workaround-over-china-ban" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">national security concerns</a>.&nbsp;
The U.S. also urged&nbsp;Advanced Micro Devices, Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/amd#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AMD</a>) to stop exporting its MI250 chips to China.
Price Action:&nbsp;KLAC shares traded lower by 2.92% at $290.60 premarket on the last check Tuesday.
Photo by Henrix_photos via Pixabay

AMAT

KLAC

LRCX

US China Chip War: KLA Relaxes Chip Supply To China

Chip-related stocks, including Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)-supplier Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>) and Samsung Electronics Co Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>), tanked on Tuesday morning as traders and investors returning from holiday digested the&nbsp;Biden administration&rsquo;s new curbs on China&rsquo;s access to<a href="https://www.benzinga.com/government/22/09/28823337/chip-wreck-ahead-biden-administration-mulls-more-curbs-on-chip-and-chip-making-equipment-exports-to"> U.S. semiconductor technology</a>.
Read Also: <a href="https://www.benzinga.com/money/how-to-start-investing-in-stocks">Investing For Beginners</a>
Taiwan Semiconductor shares dropped as much as 7% in morning trade on the island, while Samsung shares fell close to 4% in Korea.&nbsp;SK Hynix Inc. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) slid over 3% in morning trade, while Tokyo Electron Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/toely#OTC">TOELY</a>) shares shed over 5%.
The Philadelphia Stock Exchange Semiconductor Index (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sox#NASDAQ">SOX</a>) fell 3.5% on Monday to hit its lowest level since November 2020, <a href="https://www.bloomberg.com/news/articles/2022-10-11/chip-stocks-fall-across-asia-as-japan-korea-return-from-holiday">reported </a>Bloomberg.
In addition to restricting U.S. sales of semiconductor technology to China, the new rules also require foreign companies to license American tools used to produce high-end chips sold to China.
Expert Take: Jefferies Financial Group Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jef#NYSE">JEF</a>) analysts&nbsp;wrote in a note that the new rules may increase some of the headwinds around China businesses in two areas: restrictions on a broader group of supercomputer chips, and restrictions on multinational capital investment in China, the report said.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/10/29204078/what-new-china-semiconductor-restrictions-mean-for-us-investors">What New China Semiconductor Restrictions Mean For US Investors</a>

Movers

TOELY

Apple Supplier TSMC And Other Chip Suppliers' Stocks Plunge After US Curbs On China

<ul>
<li>Morgan Stanley&nbsp;analyst Joe Moore remained in line on U.S. semiconductors, recognizing obvious cyclical challenges that he thinks are partly priced in but still material uncertainty about where estimates can bottom.&nbsp;</li>
<li>He notes that most U.S. semiconductor companies have not yet guided down, except for PC and some smartphone names, including memory.</li>
<li>Given economic deceleration and inventory excess around a once-in-a-generation supply chain crisis, he sees at least some risk to virtually all company consensus estimates for next year.&nbsp;</li>
<li>In terms of his specific memory view versus the Asia team naming&nbsp;SK Hynix&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) as a top pick, he similarly sought value in the challenging memory complex.&nbsp;</li>
<li>Moore has an Overweight rating on both&nbsp;Lam Research Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lrcx#NASDAQ">LRCX</a>) (<a class="editor-rtfLink" href="https://www.benzinga.com/quote/LRCX/analyst-ratings" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">$543 price target</a>) and&nbsp;Western Digital Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wdc#NASDAQ">WDC</a>) (<a class="editor-rtfLink" href="https://www.benzinga.com/quote/WDC/analyst-ratings" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">$65 price target</a>). Both should have a challenging fundamental outlook (extremely so in the case of WDC) that he would argue discounted by current valuations.&nbsp;</li>
<li>He continues to be Underweight on&nbsp;Micron Technology, Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>) (<a class="editor-rtfLink" href="https://www.benzinga.com/quote/MU/analyst-ratings" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">$49 price target</a>), the closest comp to Hynix in his coverage, but with materially different trading patterns around the two stocks.&nbsp;</li>
<li>In the long term, Micron has a healthy balance sheet and continues to execute well in product roadmaps and like-for-like price declines.&nbsp;</li>
<li>Moore generally does not disagree with views that the company is in a strong position longer term.&nbsp;</li>
<li>Challenges drive the cautious view he foresees in the next 12 months versus an optimistic consensus.</li>
<li>Price Action:&nbsp;LRCX shares traded lower by 0.29% at $399.46 on the last check Wednesday.</li>
</ul>

Price Target

Reiteration

Here's Why This Analyst Remains In Line On US Semiconductor Companies

Reuters
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/08/28470608/this-leading-south-korean-chipmaker-eyes-us-to-tap-its-recently-approved-chip-subsidy-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">This Leading South Korean Chipmaker Eyes US For Advanced Chip Packaging Plant: Report</a>
<ul>
<li>SK Hynix Inc&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hxscl#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HXSCL</a>) targeted a U.S. site for its advanced chip packaging plant and plans to break ground there around the first quarter of 2023.</li>
<li>The plant, worth &ldquo;several billion,&rdquo; would ramp up to mass production by 2025-2026 and employ 1,000 workers.</li>
<li>SK Group, South Korea&rsquo;s second-biggest conglomerate, owner of SK Hynix, announced the new plant in July as part of a $22-billion U.S.-based investment package.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/asia/22/08/28469006/a-proxy-advisory-firms-objections-and-the-central-banks-guidelines-drag-alibaba-backed-paytm-shares" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Why Alibaba-Backed Fintech Paytm Plunged 6% Today</a>
<ul>
<li>Shares of Indian digital payments service provider Paytm, backed by&nbsp;SoftBank Group&nbsp;Corp&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/sftby#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SFTBY</a>) and&nbsp;Alibaba Group Holding Ltd. (NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/baba#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BABA</a>), fell close to 6% on Friday following a proxy advisory firm&rsquo;s opposition to the re-appointment of its CEO and the Reserve Bank of India&rsquo;s&nbsp;new guidelines for digital lending apps.</li>
<li>The Objections: Proxy advisory firm Institutional Investor Advisory Services&nbsp;said it is against the re-appointment of Vijay Shekhar Sharma as CEO and managing director at the annual general meeting next week, Reuters reported.</li>
</ul>
Wall Street Journal
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/08/28471456/3ms-aearo-technologies-files-for-bankruptcy-to-get-out-of-her-courtroom-federal-judge-says-wsj" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">3 M&rsquo;s Aearo Technologies Files For Bankruptcy To Get Out Of Her Courtroom, Federal Judge Says</a>
<ul>
<li>A month ago, many U.S. military veterans had filed lawsuits against&nbsp;3M Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mmm#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MMM</a>) for hearing impairment caused by faults in the company&rsquo;s military-grade earplugs.</li>
<li>A federal judge questioned 3M Co.&rsquo;s decision to transfer several claims regarding military earplugs to bankruptcy court, noting that a corporate company &ldquo;voluntarily agreed&rdquo; to take on those harm responsibilities prior to filing for Chapter 11, reported Wall Street Journal.</li>
<li>Aearo Technologies LLC, a 3M subsidiary named as a co-defendant and its publicly traded parent company in the roughly 230,000 pending claims, filed for bankruptcy last month.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/m-a/22/08/28471612/deutsche-telekom-nears-majority-stake-ownership-in-t-mobile-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Deutsche Telekom Nears Majority Stake Ownership In T-Mobile</a>&nbsp;
<ul>
<li>Deutsche Telekom&nbsp;AG (OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/dtegy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">DTEGY</a>) reiterated plans to build its stake in&nbsp;T-Mobile US, Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/tmus#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TMUS</a>).</li>
<li>Deutsche Telekom acknowledged nearing the majority ownership of T-Mobile US by customers.</li>
<li>Deutsche Telekom raised its guidance for the second time this year, citing in part the performance of T-Mobile.</li>
<li>T-Mobile&rsquo;s business in the U.S. accounted for about two-thirds of Deutsche Telekom&rsquo;s net revenue in Q2.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/08/28471398/valueact-capital-partners-acquires-6-7-stake-in-the-new-york-times-wsj" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ValueAct Acquires 6.7% Stake In New York Times; Describes Stock As&rsquo; Undervalued&rsquo;</a>
<ul>
<li>San Francisco-based investment firm, ValueAct Capital Partners LP has acquired a 6.7% stake in&nbsp;New York Times Co&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/nyt#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">NYT</a>), according to a regulatory filing.</li>
<li>The investment firm has acquired the stake for $350.24 million. ValueAct noted that NYT stock is undervalued and represented an attractive investment opportunity.</li>
<li>The firm will likely bat for the media house to vigorously market its subscriber-only content, the Wall Street Journal reported.</li>
</ul>
Bloomberg
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/22/08/28471644/huobi-founder-seeks-to-sell-60-of-his-stake-bloomberg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Billionaire Huobi Founder Seeks To Sell ~60% Of His Stake</a>
<ul>
<li>The founder of Huobi Group, Leon Li, is in negotiations to sell his majority stake in the cryptocurrency exchange for up to $3 billion, reported Bloomberg.</li>
<li>According to people familiar with the situation, the Chinese crypto mogul has held talks with a variety of bankers about selling about 60% of the business.</li>
<li>The founder of Tron Justin Sun and Sam Bankman-Fried&rsquo;s FTX are among those who have spoken with Huobi informally about a share transfer, the people stated.</li>
</ul>
Financial Times
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/08/28471303/tiktoks-toxic-work-culture-at-london-forced-employees-to-quit-continue-to-boost-hiring-in-us-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TikTok&rsquo;s Toxic Work Culture At London Forced Employees To Quit; Continues Hiring In US</a>
<ul>
<li>TikTok compelled its London office staff to quit by creating a hostile working culture, Financial Times reports.</li>
<li>TikTok created what staff described as a &ldquo;kill list&rdquo; of colleagues in the e-commerce department whom it wanted to fire or end the contracts.</li>
<li>Some of the targeted employees had only been in the positions for a couple of weeks.</li>
<li>TikTok reportedly assigned the staff named on the so-called &ldquo;kill list&rdquo; to untrained roles.</li>
</ul>
Benzinga&nbsp;
<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/22/08/28471114/johnson-johnson-to-stop-selling-talc-based-powder" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Johnson &amp; Johnson To Stop Selling Talc-Based Powder</a>
<ul>
<li>Johnson &amp; Johnson&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/jnj#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">JNJ</a>) said it plans to stop selling its legacy talc-based baby-powder products globally in 2023, a move amid continued legal battles and two years after the company discontinued the product in the U.S. and Canada.</li>
<li>After assessing its portfolio, J&amp;J said it had made the &ldquo;commercial decision&rdquo; to transition all its baby powder products to cornstarch instead of talcum powder in 2023.</li>
<li>The health conglomerate maintains that the product is safe. It faces about 38,000 lawsuits claiming its talc products caused cancer due to contamination with asbestos, a known carcinogen.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/08/28469290/google-ordered-to-cough-up-43-million-in-australia-for-misleading-users" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Google Fined $43M In Australia For Misleading Users Over Data Tracking</a>
<ul>
<li>Australia&rsquo;s competition watchdog said the country&rsquo;s federal court ordered&nbsp;Alphabet Inc&rsquo;s&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/googl#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GOOGL</a>) (NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/goog#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GOOG</a>) Google on Friday to pay AU$60 million ($42.7 million) in penalties for misleading users.</li>
<li>The court found that the company misled users about collecting their location data through their Android mobile devices between January 2017 and December 2018, the Australian Competition &amp; Consumer Commission (ACCC) said in a statement.</li>
<li>It estimates that around 1.3 million Australian Google account users may have been affected by this.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/22/08/28468790/s-p-global-drops-coinbase-credit-rating-to-bb" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">S&amp;P Global Drops Coinbase Debt Rating Over Crypto Market Downturn, Doubts Over Company&rsquo;s Ability To &lsquo;Operate Efficiently&rsquo;</a>
<ul>
<li>S&amp;P Global has lowered its credit rating of&nbsp;Coinbase Global Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/coin#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">COIN</a>), citing a &ldquo;negative&rdquo; outlook for the cryptocurrency exchange.</li>
<li>S&amp;P Global lowered its long-term issuer credit rating and unsecured debt ratings on Coinbase to &lsquo;BB&rsquo; from &lsquo;BB+&rsquo; on Thursday.</li>
<li>The rating agency said it had revised its assessment of the crypto exchange&rsquo;s financial risk after Coinbase reported weak earnings in the second quarter.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/large-cap/22/08/28471451/petrobras-again-cuts-refinery-diesel-prices-puts-amazon-basin-potash-rights-on-sale" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Petrobras Cuts Refinery Diesel Prices Again, Puts Amazon Basin Potash Rights On Sale</a>
<ul>
<li>Brazilian state-run&nbsp;Petroleo Brasileiro&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/pbr#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">PBR</a>), also known as Petrobras, will lower refinery gate diesel prices by almost 4% from today, marking the second cut in a week after a drop in international prices.</li>
<li>The company said it would cut diesel prices to 5.19 reais ($1.01) from 5.41 reais, while gasoline prices were kept unchanged.</li>
<li>The oil giant had already lowered diesel prices by 3% last week, the first time in more than a year.</li>
<li>Petroleo Brasileiro, said it has begun looking for bidders for its potassium mining rights in the Amazon basin.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/22/08/28467762/nft-marketplace-opensea-addresses-the-elephant-in-the-room" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">OpenSea Addresses The &lsquo;Elephant In The Room&rsquo; &mdash; The Sale Of Stolen NFTs</a>
<ul>
<li>Decentralized NFT marketplace OpenSea addressed its policy regarding the sale of stolen items on its platform.</li>
<li>In a series of tweets on Thursday, OpenSea said it plans to incorporate user input in preventing the sale of stolen NFT.</li>
<li>&ldquo;So why do we have this policy? It is against US law to knowingly allow the sale and transfer of stolen items. We do not want to incentivize theft by allowing our platform to be used to help sell stolen items,&rdquo; stated OpenSea.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/22/08/28468672/ethereum-classic-etc-rally-pushes-short-liquidations-to-9m" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Ethereum Classic (ETC) Rally Pushes Short Liquidations To $9M</a>
<ul>
<li>Ethereum Classic ETC/USD rallied to an intra-day high of $42.29 on Thursday, liquidating $9 million worth of short positions.</li>
<li>ETC surged 10% over 24 hours, reclaiming a one-month high, according to data from Benzinga Pro. ETC was up 9.31% against Bitcoin BTC/USD and 6.85% against Ethereum ETH/USD.</li>
<li>Over 12 hours, more than $9 million worth of ETC shorts were liquidated while just $3.8 million longs were liquidated over the same period.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/22/08/28462123/exclusive-qualcomm-cfo-says-company-is-naturally-positioned-to-benefit-from-the-digital-transformat" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">EXCLUSIVE: Qualcomm CFO Says Company Is &lsquo;Naturally Positioned&rsquo; To Benefit From The Digital Transformation: &lsquo;The Opportunity In Front Of Us Is Unlimited&rsquo;</a>
<ul>
<li>QUALCOMM Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/qcom#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">QCOM</a>) shares surged in July leading up to the company&rsquo;s quarterly results. A strong earnings report from the chipmaker at the end of the month helped to reinforce the recent rally.</li>
<li>&ldquo;We had record revenue both in IoT and automotive, and within handsets, we saw tremendous year-over-year growth in a market that&rsquo;s been relatively challenged because of the overall macroeconomic situation,&rdquo; Qualcomm CFO Akash Palkhiwala said Thursday on Benzinga&rsquo;s &ldquo;Stock Market Movers.&rdquo;</li>
<li>Earnings Highlights: Qualcomm remains focused on diversifying its revenue streams. The chipmaker aims to transform itself from a &ldquo;phone chip company&rdquo; to a &ldquo;connected processor company,&rdquo; Palkhiwala said.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/22/08/28464453/rivian-q2-earnings-highlights-revenue-beat-production-update-and-whats-next" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Rivian Q2 Earnings Highlights: Revenue Beat, Production Update And What&rsquo;s Next For EV Manufacturer</a>
<ul>
<li>Electric vehicle company&nbsp;Rivian Automotive&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/rivn#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">RIVN</a>) reported second-quarter financial results after the market close Thursday. Here are the key highlights.</li>
<li>Rivian reported second-quarter revenue of $364 million, beating a Street estimate of $337.52 million, according to data from Benzinga Pro.</li>
<li>The company reported a loss of $1.89 per share in the second quarter.</li>
<li>&ldquo;We should be able to add a second shift for vehicle assembly towards the end of the third quarter,&rdquo; the company said.</li>
</ul>
Photo via Wikimedia Commons.

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Benzinga Before The Bell: Johnson & Johnson To Stop Selling Talc-Based Powder, Google Fined $43M In Australia For Misleading Users Over Data Tracking, S&P Global Drops Coinbase Debt Rating And Other Top Financial Stories Friday, August 12

<ul>
<li>South Korea&#39;s&nbsp;SK Hynix Inc&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hxscl#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HXSCL</a>) targeted a U.S. site for its advanced chip packaging plant and break ground there around the first quarter of 2023,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/technology/sk-hynix-break-ground-new-us-chip-packaging-plant-early-next-year-sources-2022-08-12/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters reports</a>.</li>
<li>The plant, worth &quot;several billions,&quot; would ramp up to mass production by 2025-2026 and employ 1,000 workers.</li>
<li>The plant will likely be near a university with engineering talent.</li>
<li>SK Group, South Korea&#39;s second-biggest conglomerate, owner of SK Hynix, announced the new plant in July as part of a $22 billion U.S.-based investment package in semiconductors, green energy, and bioscience projects.&nbsp;</li>
<li>It looked to allocate $15 billion to the semiconductor industry through research and development programs, materials, and the creation of an advanced packaging and testing facility.</li>
<li>The U.S.&#39;s CHIPS and Science Act of 2022&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/07/28239589/intel-tsmc-other-chipmakers-get-a-big-shot-in-the-arm-as-us-approves-highly-anticipated-280b-chips-a" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">aim to spend</a>&nbsp;$52.7 billion to drive industry resilience against China.</li>
<li>Taiwan Semiconductor Manufacturing Company Ltd&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/tsm#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TSM</a>),&nbsp;Intel Corp&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/intc#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">INTC</a>), and&nbsp;Samsung Electronics Co, Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ssnlf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SSNLF</a>) are the front-runners for the U.S. grant as they are amid massive expansion plans in the country.</li>
</ul>

This Leading South Korean Chipmaker Eyes US For Advanced Chip Packaging Plant: Report

The U.S.&#39;s landmark $52 billion federal program to boost domestic chipmaking capabilities has a caveat for companies like&nbsp;Intel Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>) and&nbsp;Taiwan Semiconductor Manufacturing Co Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>), striving to build their businesses in China,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-08-02/us-to-stop-tsmc-intel-from-adding-advanced-chip-fabs-in-china?srnd=technology-vp&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reports</a>.
Specifically, the Chips and Science Act bars companies procuring federal funding from materially expanding production of chips more advanced than 28-nm in China or a country of concern like Russia for ten years.&nbsp;
Companies vying for funding cannot increase their production of advanced chips in China.
Intel, TSMC, and&nbsp;Samsung Electronics Co, Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>), all of which are now building new chip fabrication facilities worth tens of billions in the U.S., are the&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/07/28239589/intel-tsmc-other-chipmakers-get-a-big-shot-in-the-arm-as-us-approves-highly-anticipated-280b-chips-a" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">frontrunners for a</a>&nbsp;sizable chunk of the grant.
However, TSMC&#39;s inability to upgrade or expand its existing facilities will cost it growth opportunities in the leading semiconductor market.
The U.S. has allowed the chipmakers to add production of 28-nanometer semiconductors or older generations.&nbsp;
Intel had to sell its wafer plant in Dalian to&nbsp;SK Hynix&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) as part of a broader deal for its Nand memory business. Intel still has chip packaging and testing facilities in China.
The U.S. restricted China&#39;s leading chipmaker,&nbsp;Semiconductor Manufacturing International Corp, access to&nbsp;ASML Holding NV&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>) cutting-edge ultraviolet lithography systems.&nbsp;
The Chinese chip industry encountered a further setback as the U.S. tightened China&#39;s access to relatively advanced chip equipment.
The U.S.&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/08/28291003/heres-why-western-digital-micron-are-set-to-gain-and-lam-research-applied-materials-set-to-lose-from" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">weighed restricting access</a>&nbsp;of its chipmaking equipment to memory chip makers in China, including&nbsp;Yangtze Memory Technologies Co Ltd.
The move would also seek to protect the only U.S. memory chip producers,&nbsp;Western Digital Corp&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/wdc#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">WDC</a>) and&nbsp;Micron Technology Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mu#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MU</a>), jointly representing 25% of the NAND chips market.
Price Action:&nbsp;INTC shares traded lower by 0.97% at $36.60 premarket on the last check Tuesday.
Photo by mohamed hassan via Pxhere

ASML

US $52B Chip Funding For Intel, TSMC, Samsung Will Cost Them China Ambitions: Report

The U.S. weighed restricting access of American chipmaking equipment to memory chip makers in China, including&nbsp;Yangtze Memory Technologies Co Ltd,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/technology/us-considers-crackdown-memory-chip-makers-china-2022-08-01/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters reports</a>.
The crackdown would involve barring the shipment of U.S. chipmaking equipment to factories in China that manufacture advanced NAND chips.
Samsung Electronics Co, Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>) and&nbsp;SK Hynix Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) could also face heat due to the move.&nbsp;
Samsung has two big factories in China, while SK Hynix&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/m-a/21/05/21235478/europe-approves-sk-hynixs-9b-acquisition-of-intels-nand-storage-unit-bloomberg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">is buying</a>&nbsp;Intel Corp&#39;s&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/intc#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">INTC</a>) NAND flash memory chips manufacturing business in China.
The move would also seek to protect the only U.S. memory chip producers,&nbsp;Western Digital Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wdc#NASDAQ">WDC</a>) and&nbsp;Micron Technology Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>), which together represent 25% of the NAND chips market.
YMTC&#39;s expansion and low-price offerings present &quot;a direct threat&quot; to Micron and Western Digital, as per a June 2021 report.
The U.S. also looks to prohibit the export of tools to China used to make NAND chips with more than 128 layers.&nbsp;LAM Research Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lrcx#NASDAQ">LRCX</a>) and&nbsp;Applied Materials&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amat#NASDAQ">AMAT</a>) were the primary suppliers of such tools.
YMTC, already under investigation for possible violation of U.S. export controls, and&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/03/26390713/read-how-apple-plans-to-beat-chip-crisis-and-continue-to-score-in-china" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">is in talks</a>&nbsp;with&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) to supply flash memory chips.
The U.S. also&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/07/27998696/us-targets-chinas-largest-chipmaker-after-huawei-to-check-the-countrys-growing-chip-dominance" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">imposed restrictions on</a>&nbsp;other Chinese chipmakers and&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/07/27965227/us-canvasses-netherlands-to-severe-chipmaking-ties-between-asml-and-china-the-pros-and-cons" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">convinced allies to</a>&nbsp;restrict chipmaking ties with China apart from&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/07/28239589/intel-tsmc-other-chipmakers-get-a-big-shot-in-the-arm-as-us-approves-highly-anticipated-280b-chips-a" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">approving its Chips Act</a>&nbsp;to strengthen its chipmaking position.
Price Action:&nbsp;MU shares traded higher by 1.29% at $62.66 on the last check Monday.

Winners and Losers From US Chip Restrictions On China

<ul>
<li>Industrial firms warned against China&#39;s strict COVID-19 curbs, intensifying supply chain disruptions and rising uncertainty about the business outlook,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/technology/china-lockdowns-drag-earnings-chipmakers-industrials-2022-04-27/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters reports</a>.</li>
<li>Even as companies shuffled to keep up with soaring costs of everything from labor to raw materials, the Russian invasion of Ukraine and related Western sanctions drove up energy prices.</li>
<li>General Electric Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ge#NYSE">GE</a>) did not see the inflation offset in 2022 and became more decentralized to improve prices.</li>
<li>3M Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmm#NYSE">MMM</a>), already struggling with chip shortages and high raw materials costs, looked to continue to increase prices to offset inflationary and supply chain costs echoing that GE had already raised prices.</li>
<li>SK Hynix Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) saw China&#39;s lockdown as the most significant risk driving weaker chip demand in mobile and personal computers.</li>
<li>LG Display Co, Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lpl#NYSE">LPL</a>) said supply chain problems caused by the lockdowns affected panel production and shipments in the March quarter.</li>
<li>Texas Instruments Incorporated&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/txn#NASDAQ">TXN</a>) and&nbsp;STMicroelectronics N.V.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stm#NYSE">STM</a>) flagged disruptions due to China&#39;s curbs.</li>
<li>Mercedes Benz Group AG&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/dmlry#OTC">DMLRY</a>) saw supply chain bottlenecks and chip shortages hurt its business throughout the year due to China&#39;s lockdowns.&nbsp;Tesla, Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) and&nbsp;General Motors Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>) increased prices to offset inflationary costs.</li>
<li>Price Action:&nbsp;TXN shares traded lower by 3.82% at $162 in the premarket on the last check Wednesday.</li>
<li>Photo by Gerd Altmna via Pixabay</li>
</ul>

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TSLA

China Lockdowns Pose Earnings Risk For Major Industrial Stocks and Autos like Tesla

Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) is exploring new sources of the memory chips that go into iPhones, including its first Chinese producer of the critical component,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-03-31/apple-said-to-weigh-more-memory-chip-suppliers-including-china?srnd=technology-vp&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reports</a>.
In February, Apple&#39;s crucial partner&nbsp;Kioxia Holdings Corp&nbsp;halted production at two plants due to material contamination, further jeopardizing the ongoing semiconductor crisis. Bloomberg notes that the halt could push flash memory chip prices up 5% to 10% in the June quarter.
Apple considered expanding a roster of suppliers that already included&nbsp;Micron Technology Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>) and&nbsp;Samsung Electronics Co Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>).&nbsp;
Apple tested NAND flash memory chips sample made by&nbsp;Tsinghua Unigroup Co&#39;s&nbsp;Yangtze Memory Technologies Co and discussed a possible tie-up. Yangtze Memory could serve as Apple&#39;s good backup choice after the leading flash memory makers Samsung and&nbsp;SK Hynix Inc&nbsp;(HXSCL), as per Bloomberg.
Apple could use Yangtze Memory&#39;s product in lower-end devices like the iPhone SE.
Yangtze Memory could offer an attractive source of cheaper chips close to Apple&#39;s critical assemblers like&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hnhpf#OTC">HNHPF</a>) or Foxconn and&nbsp;Pegatron Corp&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/pgtrf#OTC">PGTRF</a>).
Bloomberg writes that an analyst stated that Yangtze memory could supply about 5% of memory for iPhone SE and 3% to 5% of memory for the upcoming iPhone 14.
Yangtze Memory could help Apple score points with China government, known for the leading smartphone market. Apple has managed to strike a delicate balance in China, helping it score in a country that banned rivals from&nbsp;Alphabet Inc&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) Google to Facebook rebranded&nbsp;Meta Platforms Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>).
Price Action:&nbsp;AAPL shares traded higher by 0.44% at $178.55 in the premarket on the last check Thursday.

PGTRF

Read How Apple Plans To Beat Chip Crisis and Continue To Score In China

<ul>
<li>South Korean chipmaker&nbsp;SK Hynix Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hxscl#OTC">HXSCL</a>) CEO admitted to weighing a consortium to acquire British semiconductor company&nbsp;Arm Ltd,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/business/sk-hynix-ceo-says-reviewing-forming-consortium-acquire-arm-yonhap-2022-03-30/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters reports</a>&nbsp;citing Yonhap news agency.</li>
<li>&ldquo;I don&rsquo;t believe Arm is a company that could be bought by one company,&rdquo; SK Hynix Vice-Chair and co-CEO Park Jung-ho admitted,&nbsp;<a class="editor-rtfLink" href="https://www.fxempire.com/news/article/sk-hynix-ceo-says-reviewing-forming-a-consortium-to-acquire-arm-yonhap-952200" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">FX Empire reports</a>.</li>
<li>SoftBank Group Corp&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/sftby#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SFTBY</a>) (OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/sftbf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SFTBF</a>) looked to list Arm on Nasdaq by March 2023 via an IPO worth $60 billion.&nbsp;</li>
<li>Recently SoftBank&rsquo;s deal to sell Arm to&nbsp;Nvidia Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) fell flat due to global regulatory opposition.</li>
<li>Arm&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/03/26366226/heres-how-arm-looks-to-speed-up-its-us-ipo" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">looked to transfer</a>&nbsp;its Chinese joint venture shares to a SoftBank Group special purpose vehicle to speed up its IPO.</li>
</ul>

SFTBF

South Korean Chipmaker Weighs Arm Takeover Options

Micron: Korean Memory Competitors Are Just Too Formidable

Semiconductor Equipment Downturn Will Continue Through H1 2024

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The surge in demand for memory stocks underscores the sector&rsquo;s growth. The burgeoning need for high-bandwidth memory (HBM), essential for Nvidia&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) AI processors, is driving the interest. 



The HBM3 standard, introduced by JEDEC in January 2022, marks a significant evolution in memory technology. It offers substantial improvements over its predecessor, HBM2E. Further, it&rsquo;s designed to meet the rigorous demands of high-performance computing (HPC) applications including AI, graphics, and networking. And HBM3 supports higher densities&mdash;reaching up to 32 Gb with stack heights up to 16-high, achieving a total capacity of 64 GB. Also, it doubles the speed to 6.4 Gbps compared to HBM2E&rsquo;s 3.6 Gbps. This serves to enhance data transfer rates crucial for advanced computing tasks.



These enhancements make it an attractive area for investors looking at the high-growth section of the semiconductor market.&nbsp;Let&rsquo;s explore three companies who are seizing this world of possibilities.



<h2>SK Hynix (HXSCL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/semiconductor1600e-300x169.jpg" alt="semiconductor stocks Close-up electronic circuit board. technology style concept. representing semiconductor stocks. top semiconductor stocks to buy now. semiconductor stocks"><div>Source: Shutterstock</div></div>SK Hynix&rsquo;s (OTC:HXSCL) share price has seen an impressive increase this year. This surge is largely attributed to the growing demand for its HBM products.



In fact, SK Hynix is renowned for producing a wide range of memory and storage solutions. These include DRAM and NAND flash memory chips. As a pivotal player in the global electronics market, SK Hynix supplies key components for computers, servers, and mobile devices.



The company <a href="https://consent.yahoo.com/v2/collectConsent?sessionId=2_cc-session_ba50ad9d-938b-4665-a1ac-4b11e41780b2">recently hit a $100 billion market cap</a>. Not only does this position SK Hynix as the second-largest company in South Korea, but also it highlights its competitive edge.



Further, SK Hynix develops memory chips that specifically cater to AI applications. SK Hynix is a stock to add to your watch list.



<h2>Micron Technology (MU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/mu_micron_1600-300x169.png" alt="An outside image of a Micron Technology, Inc. headquarters. MU stock. momentum stocks to buy soon"><div>Source: Charles Knowles / Shutterstock.com</div></div>Micron Technology (NASDAQ:<a href="https://investorplace.com/stock-quotes/mu-stock-quote/">MU</a>) is a U.S.-based company specialized in DRAM, NAND, and NOR flash memory products. Its innovations power technologies including data centers, consumer electronics, mobile devices and automotive applications.



In February, the company announced the <a href="https://investors.micron.com/news-releases/news-release-details/micron-commences-volume-production-industry-leading-hbm3e">commencement of volume production</a> for its High Bandwidth Memory 3E (HBM3E) solution. A key aspect of this product announcement is that Micron&rsquo;s 24GB 8H HBM3E is integrated into Nvidia&rsquo;s H200 Tensor Core GPUs. The latter are expected to ship in the second quarter of 2024.&nbsp;



Further, it boasts a pin speed exceeding 9.2 Gb/s, translating to over 1.2 TB/s of memory bandwidth. This breakthrough allows for rapid data access across AI accelerators, supercomputers, and data centers, facilitating quicker computations and analyses. One of the standout features of Micron&rsquo;s HBM3E is its exceptional energy efficiency, consuming roughly 30% less power compared to other HBM3E products.&nbsp;



Moreover, the 24 GB capacity of Micron&rsquo;s HBM3E paves the way for seamless scalability in AI applications. This memory solution ensures that data centers are equipped with the necessary bandwidth to handle the tasks at hand.&nbsp;



Micron&rsquo;s stock soared after Bank of America (NYSE:<a href="https://investorplace.com/stock-quotes/bac-stock-quote/">BAC</a>) Securities <a href="https://tokenist.com/bofa-boosts-microns-pt-to-144-amid-ai-driven-hbm-demand-surge/">raised its price target</a> from $120 to $144. This affirmation adds confidence in Micron&rsquo;s potential to meet rising AI-driven demand for high-bandwidth memory.



<h2>Samsung Electronics (SSNLF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/08/samsung-ssnlf-stock-1600-300x169.jpg" alt="Amsterdam, Netherlands-may 5, 2016: samsung (SSNLF) office logo on a building"><div>Source: JPstock / Shutterstock.com</div></div>Although renowned for its smartphones, TVs, and memory chips, Samsung Electronics (OTC:SSNLF) leads innovation across various tech domains. Samsung is the world&rsquo;s largest memory producer, placing it at the forefront of the AI revolution.



Also, the company&rsquo;s stock surged earlier this year on a report that it is poised to potentially join SK Hynix as a supplier for Nvidia. This development caused Samsung&rsquo;s shares to soar.&nbsp;



Additionally, Samsung unveiled its fifth-generation HBM3E chip, marking an industry milestone as the first 36-gigabyte, 12-stack high-performance memory chip. Specifically, Nvidia&rsquo;s graphics processing units could greatly benefit from Samsung&rsquo;s HBM3E chips. As a result, Samsung Electronics is now considered a top memory stock, given the rapid increase in HBM chip demand.&nbsp;



On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://protect-us.mimecast.com/s/XtC3C1wq33iErOvYSGOsXg?domain=investorplace.com/">Publishing Guidelines</a>.
<div>Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/unforgettable-gains-3-memory-stocks-to-own-as-the-market-heats-up/">Unforgettable Gains: 3 Memory Stocks to Own as the Market Heats Up</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Unforgettable Gains: 3 Memory Stocks to Own as the Market Heats Up

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Shares in global chipmakers have continued to move higher presenting some compelling chip stocks to buy. This is amid a more favorable macro backdrop and unprecedented demand for high-end chips that power artificial intelligence (AI) apps. The investment appeal of these stocks received a notable boost after Taiwan Semiconductor Manufacturing (NYSE:<a href="https://investorplace.com/stock-quotes/tsm-stock-quote/">TSM</a>), the world&rsquo;s largest chip manufacturing company, reported April revenue up nearly 60% from the same period last year.



This marks the most substantial growth rate for the year 2024 thus far. TSMC is a crucial supplier for tech giants such as Apple (NASDAQ:<a href="https://investorplace.com/stock-quotes/aapl-stock-quote/">AAPL</a>) and Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>). It has a strong performance signaling anticipated growth in customer operations.



Chip stocks maintain a favorable outlook on the risk-reward potential for global <a href="https://investorplace.com/industries/technology/semiconductor/">semiconductor stocks</a>. Here, we look at three chip stocks to buy that are considered safe bets in the chipmaking sector.



<h2>Broadcom (AVGO)</h2>



<div><img width="300" height="165" src="https://investorplace.com/wp-content/uploads/2018/06/avgomsn-compressed-300x165.jpg" alt="Broadcom Stock Is a Winner With Big Upside Potential"><div>Source: Shutterstock</div></div>Broadcom (NASDAQ:<a href="https://investorplace.com/stock-quotes/avgo-stock-quote/">AVGO</a>) is a leading global technology company and one of the top chip stocks to buy. The company designs, develops and supplies various semiconductor and infrastructure software solutions. Known for its extensive product portfolio, Broadcom&rsquo;s offerings encompass data center networking, broadband access, software, and wireless connectivity.



Most recently, Barclays <a href="https://seekingalpha.com/news/4081523-broadcom-well-suited-to-bring-second-wave-of-ai-barclays" target="_blank">initiated coverage</a> on Broadcom with a positive outlook, assigning an Overweight rating and a price target of $1,405. The brokerage firm highlighted that Broadcom is leading in the data center silicon market and poised to benefit from the burgeoning advancements in artificial intelligence (AI).



Broadcom&rsquo;s inclusion in Barclays&rsquo; list of preferred names for the year stems from its robust data center silicon portfolio. Despite the semiconductor industry&rsquo;s susceptibility to cyclical downturns, the company&rsquo;s growing software business is recognized as a pivotal element in bolstering profitability and free cash flow.



Barclays&rsquo; attention to AI&rsquo;s potential is timely. The firm anticipates a mid to high-20% growth rate for Broadcom next year. This surge will continue over the long haul, fueled by the company&rsquo;s expertise in custom silicon and switching solutions.&nbsp;



<h2>Micron (MU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/mu_micron_1600-300x169.png" alt="An outside image of a Micron Technology, Inc. headquarters. MU stock. momentum stocks to buy soon"><div>Source: Charles Knowles / Shutterstock.com</div></div>Micron Technology (NASDAQ:<a href="https://investorplace.com/stock-quotes/mu-stock-quote/">MU</a>) is a leading global innovative memory and storage solutions provider. Micron&rsquo;s product portfolio includes DRAM, NAND flash memory and NOR flash memory, integral to advanced computing, mobile applications and data centers.&nbsp;



The company&rsquo;s stock has surged on robust demand for high bandwidth memory this year. Micron is the supplier of these chips, alongside Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) and SK Hynix&rsquo;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HXSCL#OTC">HXSCL</a>). Along these lines, Baird analysts recently upgraded their rating on Micron stock.



The brokerage firm cited significant growth opportunities for the company in the face of increasing demand for AI applications. The firm <a href="https://www.investopedia.com/micron-technology-stock-jumps-after-baird-upgrade-8643986" target="_blank">changed its rating</a> from Neutral to Outperform. It&rsquo;s anticipating substantial upside potential for the United States&rsquo; largest memory chip manufacturer.



The upgrade comes after Baird analysts researched the semiconductor industry, identifying positive trends in the Dynamic Random-Access Memory (DRAM) market that could benefit Micron. According to Baird, recent checks within the channel have revealed an outlook for memory that could be favorable over the next 12 to 18 months.



Additionally, Morgan Stanley (NYSE:<a href="https://investorplace.com/stock-quotes/ms-stock-quote/">MS</a>) has recognized the strong performance and market position of Micron. It has upgraded its rating from &ldquo;Underweight&rdquo; to &ldquo;Equalweight&rdquo; and substantially increased its price target from $98 to $130 &mdash; an <a href="https://tokenist.com/ms-upgrades-micron-technology-stock-raises-pt-to-130/" target="_blank">increase of over 32%</a>.



Baird&rsquo;s report highlighted that DRAM prices surpass expectations, which could lead to constrained industry-wide supply growth. They expect the growth to slow to low single digits quarter-over-quarter in the latter half of 2024.



This slowdown is partly due to capacity shifts toward high-bandwidth memory (HBM). It is expected to enter a new supercycle that could significantly enhance Micron&rsquo;s gross margins. The investment firm pointed out Micron&rsquo;s production of HBM3E, the latest generation of high-bandwidth memory. It has the potential to achieve over 60% gross margin.&nbsp;



<h2>Super Micro Computer (SMCI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/04/smci1600-1-300x169.png" alt="Person holding smartphone with logo of US company Super Micro Computer Inc. (Supermicro) in front of website. Focus on phone display. Unmodified photo. SMCI stock"><div>Source: T. Schneider / Shutterstock.com</div></div>Super Micro Computer Inc. (NASDAQ:<a href="https://investorplace.com/stock-quotes/smci-stock-quote/">SMCI</a>), known as Supermicro, is a global leader in high-performance, high-efficiency server technology and innovation. The company provides advanced server solutions, storage systems, and cloud computing technologies.&nbsp;



Wall Street analysts recently highlighted SMCI as one of the top chip stocks to buy, <a href="https://www.investing.com/news/stock-market-news/the-switzerland-of-ai-5-analysts-discuss-smci-stock-after-earnings-3411510" target="_blank">describing the stock</a> as the &ldquo;Switzerland of AI&rdquo; following the company&rsquo;s announcement of another set of strong quarterly results. Rosenblatt analysts, known for their expertise on chip stocks, pointed out that the company&rsquo;s AI dynamics are &ldquo;a sweet spot for the company&rsquo;s building block architecture, Green computing, rapid broad platform deployment, and must-have liquid cooling capabilities.&ldquo;



Similarly, analysts at Loop Capital reiterated their Buy rating on shares of Super Micro Computer, maintaining a price target of $1,500. The firm anchors its positive stance on the stock in Super Micro&rsquo;s well-positioned AI dynamics, driven by the company&rsquo;s building block architecture.



On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guideline</a><a href="https://protect-us.mimecast.com/s/XtC3C1wq33iErOvYSGOsXg?domain=investorplace.com/">s</a>.
<div>Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/3-chip-stocks-to-buy-to-invest-in-ais-brain/">3 Chip Stocks to Buy to Invest in AI&#8217;s Brain</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Chip Stocks to Buy to Invest in AI's Brain

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The artificial intelligence (AI) revolution has triggered a multi-year investment cycle across the enterprise. Additionally, generative AI is now permeating various consumer internet applications. These trends bode well for AI wealth-building stocks.



In Q1 of fiscal year 2024, a huge moment of clarity appeared on AI spending as cloud service providers such as Amazon (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) and Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) increased their capital expenditure plans. Indeed, it was a stark reminder of the heavy investment needed to make AI applications and products a reality. Bank of America projects capex for Alphabet (NASDAQ:<a href="https://investorplace.com/stock-quotes/goog-stock-quote/">GOOG</a>, NASDAQ:<a href="https://investorplace.com/stock-quotes/googl-stock-quote/">GOOGL</a>), Meta Platforms (NASDAQ:<a href="https://investorplace.com/stock-quotes/meta-stock-quote/">META</a>) and Amazon will increase by $37 billion in 2024 to $145 billion.



Moreover, according to Capital Group, big tech giants are raising their capital expenditure budgets and will spend an <a href="https://www.capitalgroup.com/institutional/insights/articles/tech-giants-ratchet-up-spending-in-ai-race.html#:~:text=Big%20Tech%20leads%20capex%20charge&amp;text=Data%20for%20Alphabet%2C%20Amazon%2C%20Meta,38%25%20increase%20year%20over%20year.">estimated $500 billion over the next three years</a>. This spending will go toward chips, particularly graphics processing units (GPUs) and application-specific integrated circuits (ASICs). Plus, a substantial proportion will cover memory, servers and network equipment. This means more profits will flow to these three AI wealth-building stocks.



<h2>Marvell Technology (MRVL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/12/marvell_technologies_mrvl1600-300x169.jpg" alt="image of the marvell (MRVL) technologies office campus"><div>Source: Michael Vi / Shutterstock.com</div></div>Custom ASICs have emerged as an alternative to Nvidia&rsquo;s H100 and B200 GPUs. After Broadcom (NASDAQ:<a href="https://investorplace.com/stock-quotes/avgo-stock-quote/">AVGO</a>), Marvell Technology (NASDAQ:<a href="https://investorplace.com/stock-quotes/mrvl-stock-quote/">MRVL</a>) is the second-largest player in this fast-growing high-end market, with <a href="https://markets.businessinsider.com/news/stocks/broadcom-marvell-capitalize-on-generative-ai-demand-with-custom-asic-solutions-1033449187">a 13-15% share</a>.



JPMorgan analysts are bullish on Marvell Technology as one of the AI wealth-building stocks to buy. They forecast that the high-end ASIC market will grow to between $20 and $30 billion. Additionally, due to demand from generative AI, this market will grow at a 20% compounded annual growth rate.



Buoyed by this growth, the company&rsquo;s AI revenues could skyrocket. Notably, the chip maker is working with various big tech companies on custom silicon. It has been collaborating with Google on its 5-nanometer Axion ARM CPU chip and Amazon on its 5-nanometer Tranium chip. Additionally, rumors are buzzing that it&rsquo;s working with Microsoft on its Maia chip and Amazon on its Inferentia chip.



Considering these tailwinds, JPMorgan analysts think MRVL could generate $1.6 to $1.8 billion in revenues from networking and custom ASICs this year. Moreover, they expect AI revenues to double next year. Additionally, <a href="https://www.marketwatch.com/investing/stock/mrvl/analystestimates">most analysts are extremely bullish</a>, with 28 buy ratings and a median price target of $90, representing over 20% upside.



<h2>Micron Technology (MU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/mu_micron_1600-300x169.png" alt="An outside image of a Micron Technology, Inc. headquarters. MU stock. momentum stocks to buy soon"><div>Source: Charles Knowles / Shutterstock.com</div></div>After a 10% pullback, it is time to buy Micron Technology (NASDAQ:<a href="https://investorplace.com/stock-quotes/mu-stock-quote/">MU</a>). The memory maker is among the best-positioned AI wealth-building stocks due to its high bandwidth memory (HBM). Importantly, HBM memory reduces bottlenecks, increasing training efficiency for large language models.



Although Micron Technology tumbled after Q3 of FY 2024 earnings, the results were stellar. The company <a href="https://www.reuters.com/technology/micron-beats-estimates-third-quarter-revenue-2024-06-26/">blew past estimates</a>, reporting revenues of $6.81 billion for the third quarter against estimates of $6.67 billion. Data center drove the strength as AI demand led to 50% quarter-over-quarter (QOQ) growth in the segment. Furthermore, the company grew its share in high-margin AI products such as data center solid-state drives and HBM.



Another impressive highlight was the company disclosing that HBM chips were sold out for 2024 and 2025. Due to robust demand, Chief Executive Officer (CEO) Sanjay Mehrotra noted in <a href="https://investors.micron.com/static-files/4550f98c-1054-4847-a929-c17d520a0564">Q3 prepared remarks</a> that Micron Technology was on track for record FY 2024 revenues. Besides, he expects this momentum to carry over into FY 2025.



Indeed, MU is set for a banner FY 2025 due to AI demand, making it one of the top AI wealth-building stocks. Moreover, an ongoing shift from commoditized memory to high-margin AI products will boost profitability.



<h2>ASML Holding N.Y. (ASML)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/asml-1600-300x169.png" alt="Closeup of mobile phone screen with ASML logo on computer keyboard"><div>Source: Ralf Liebhold / Shutterstock</div></div>As demand for AI accelerates, semiconductor foundries and integrated device manufacturers are scrambling to increase capacity. This ramp-up spells opportunity for ASML Holding N.Y. (NASDAQ:<a href="https://investorplace.com/stock-quotes/asml-stock-quote/">ASML</a>), the maker of EUV machines used to manufacture chips.



Several reasons prevail for maintaining a bullish stance on ASML. First, AI-related revenue is soaring due to memory demand driven by advanced memories such as HBM and DDR5. As a result, the semiconductor equipment maker is seeing increasing orders from memory makers like Micron Technology.



Secondly, the firm benefits from increased subsidies and grants to the semiconductor sector. Due to <a href="https://www.semiconductors.org/chips-incentives-awards/">incentives and grants</a> from laws such as the CHIPS and Science Act, chip manufacturers are opening new facilities. For instance, Micron Technology is constructing new fabs in New York and Idaho. In line with this expansion, it will spend $8 billion of capex in 2024 and increase it to a mid-30s percentage of revenue in 2025.



The outlook for ASML is very positive. Almost every foundry and integrated device maker is constructing <a href="https://www.statista.com/chart/31834/new-projects-in-semiconductor-manufacturing-in-the-united-states/">new chip manufacturing facilities</a>. Companies like Taiwan Semiconductor Manufacturing (NYSE:<a href="https://investorplace.com/stock-quotes/tsm-stock-quote/">TSM</a>), Samsung Electronics and Intel (NASDAQ:<a href="https://investorplace.com/stock-quotes/intc-stock-quote/">INTC</a>) have broken ground on new projects in the U.S. and Europe. These facilities will be filled with ASML equipment, making the stock a top buy.



On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a>



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.</div><h3>More From InvestorPlace</h3>
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