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Shares of major semiconductor equipment firms surged following reports that the U.S. is considering less stringent sanctions on China's chip industry. ASML and Tokyo Electron saw significant gains as the U.S. may limit the export blacklist for Chinese firms, potentially softening the impact on ASML's revenue from China. Analysts noted that excluding ChangXin Memory Technologies from the blacklist could lead to a smaller decline in ASML's sales than previously expected.
Nvidia shares fell 3.21% in premarket trading after the company reported third-quarter earnings that, despite beating expectations with $35.08 billion in revenue (up 94% year-on-year), indicated a slowdown in growth compared to previous quarters. This decline affected other chipmakers, with Intel, Qualcomm, and AMD also experiencing losses. Analysts remain optimistic about Nvidia's future, particularly with the anticipated launch of its next-generation chip, Blackwell, amid strong demand.
Nvidia's CEO Jensen Huang announced that the company will exceed its previous estimates for Blackwell chip sales, driven by strong demand from major clients like Microsoft and OpenAI. Despite facing supply constraints, Nvidia expects to ship more Blackwell chips each quarter, with revenue projections rising significantly. The company anticipates that Blackwell sales will eventually surpass those of its previous generation Hopper chips, marking a pivotal moment in the AI revolution.
Google is poised to redefine the Arm laptop market with its Gemini AI integration and the upcoming Tensor G5 chip, aiming to compete against Apple"s dominance. Meanwhile, Qualcomm"s legal battle with Arm Holdings could disrupt the ecosystem, potentially delaying innovation and giving Google a strategic advantage. As the merger of ChromeOS and Android unfolds, Google must execute flawlessly to capitalize on this pivotal moment in personal computing.
The ongoing legal dispute between Arm and Qualcomm over the validity of Qualcomm"s architectural license could significantly impact the Arm ecosystem, potentially disrupting Qualcomm"s chip shipments and pushing OEMs back to x86 processors. Meanwhile, Google"s efforts to integrate AI with its upcoming Tensor G5 chip may position it to compete more effectively in the Arm laptop market, but it faces challenges from established players like Apple and Microsoft. As the landscape evolves, the merger of ChromeOS and Android could redefine Google"s strategy in the increasingly competitive Arm-based computing space.
Sridhar Vembu, CEO of Zoho, criticized rival Freshworks for laying off 660 employees despite having over a billion dollars in the bank, arguing that companies should prioritize their workforce for long-term success. He highlighted the importance of taking care of employees, contrasting successful firms like Nvidia and AMD with Intel's focus on Wall Street, and questioned the current state of capitalism in the U.S. Vembu emphasized that true capitalism involves caring for one's people, urging against adopting a flawed financial system.
Taiwan Semiconductor Manufacturing Co. and GlobalFoundries Inc. have completed negotiations for binding agreements involving billions in grants and loans to support U.S. factories. While the exact timing for signing the agreements and unveiling the incentives remains uncertain, the award amounts align with earlier preliminary agreements.
Global markets remain surprisingly stable despite escalating geopolitical tensions, including direct conflict between Israel and Iran, with oil prices even falling. Analysts suggest that the market may be underestimating risks, particularly regarding potential US-China trade barriers and the implications of the upcoming US election. Key indicators to watch include the VIX, oil prices, and semiconductor stocks, as well as the political landscape following the election.
Taiwan's Hsinchu Science Park (HSP) is a leading global hub for the integrated circuit (IC) industry, fostering innovation and entrepreneurship through a robust ecosystem of over 170,000 professionals and extensive R&D support. With a focus on high-tech sectors like AI, IoT, and biotech, HSP offers diverse one-stop services, including talent cultivation and research grants, while promoting sustainable development and resilience against global challenges. The Industrial Technology Research Institute (ITRI) complements this by driving technological advancements in smart living, healthcare, and green energy, aiming for a better future through its 2035 Technology Strategy.
UBS maintains a positive outlook on US equities, predicting the S&P 500 will reach 6,600 by the end of 2025, despite recent volatility and rising Treasury yields. The bank expects corporate profits to grow 5-7% in Q3, contributing to an 11% growth for 2024, driven by strong economic resilience and AI demand. UBS anticipates further rate cuts from the Fed, emphasizing the strength of the economy and sectors like IT, utilities, and consumer discretionary.

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