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☆ Intel results boost chip stocks on optimism PC market slump is ending
▼ + stars: | 2023-07-28 | by ( Aditya Soni | ) www.reuters.com time to read: +3 min

Intel is poised to add about $10 billion to its market value, based on its current price of $37. Intel's results lifted Advanced Micro Devices (AMD.O) and Nvidia (NVDA.O) by 3.2% and 2.3%, respectively, while Qualcomm (QCOM.O) advanced 2.6%. Although a titan of the American chip industry, Intel has fallen behind rivals such as Taiwan's TSMC and Nvidia both in terms of margins and market value as the PC market downturn and stiff competition in the data center market battered its business. Earnings reports from other chipmakers including Samsung (005930.KS) have also shown that the glut in the smartphone and PC markets is ending, but the outlook for demand from customers outside the AI industry remains gloomy. Intel has a 12-month forward price-to-earnings ratio of 31.10, compared with Nvidia's 43.26 and an industry median of 19.95.

Persons: Glenn O'Donnell, Forrester, Pat Gelsinger, Aditya Soni, Chavi Mehta, Savio D'Souza, Shounak Organizations: Intel, Devices, Nvidia, Qualcomm, Samsung, Rosenblatt Securities, Thomson Locations: KS, Bengaluru

☆ War with China would be an 'onslaught' like the US hasn't faced in decades
▼ + stars: | 2023-07-27 | by ( Jake Epstein | Jacob Zinkula | ) www.businessinsider.com time to read: +15 min

War would also have severe consequences for China and US allies in the Western Pacific. Any war with China would be fought on multiple fronts — from the air and sea to the web and financial markets. The US maintained this capacity for decades, but America's manufacturing prowess has atrophied since the end of the Cold War. Control of the Pacific would be a crucial part of any war with China, and Beijing boasts the world's largest navy. Cash warsWhile a military conflict between the US and China is only a hypothetical, the two countries are already competing on the economic battlefield.

Persons: Joe Biden, Mark Milley, Dan Blumenthal, it's, Blumenthal, Ujian, didn't, Glenn O'Donnell, Forrester, stymie, Ann Wang, William Alan Reinsch, Reinsch, Russia —, Scott Kennedy, Kennedy, aren't, Ramping, Jake Epstein, Jacob Zinkula Organizations: US, Joint Chiefs of Staff, Armed, US Navy, American Enterprise Institute, US Department of Defense, US Marine Corps, Pentagon, Navigation Plan, Ford, Nimitz, Center for Strategic, International Studies, Beijing, Russia, Columbia University, Marine Locations: China, Western, Beijing, Pacific, Taiwan, South China, America, Nebraska, Pearl, Normandy, Mongolia, Ukraine, Russian, Nanchang, Liaoning, Shandong, Fujian, wean, Washington, United States, Japan, Philippines, Netherlands

During a conference call with investors, the company projected that adjusted gross margins will climb above 40% in the second half, having hit historic lows in the first half of the year. Underscoring Intel's profitability slump in recent years, its first-quarter unadjusted gross margin fell to 34.2%, almost half of its multi-decade high of over 67% in 2010. The company forecast a further drop to an unadjusted gross margin of 33.2% for the second quarter. "While we understand investors may be disappointed in its 2Q23 gross margin outlook, we are confident that Intel's gross margin will recover in 2H23 as the burden of factory underutilization and new product start-up cost diminishes," said Kinngai Chan, analyst at Summit Insights Group. Intel said adjusted losses were 4 cents per share, above analysts' expectations of a 15 cent per share adjusted loss.

☆ US would destroy Taiwan's semiconductor factories rather than letting them fall into China's hands, a former national security adviser says
▼ + stars: | 2023-03-13 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +5 min

A former security adviser told Semafor the US would destroy Taiwan's semiconductor factories if China invaded. Robert O'Brien, who served as national security advisor under Donald Trump, said the US "and its allies are never going to let those factories fall into Chinese hands." Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest chipmaker, making up an estimated 90% of the market for advanced processors. O'Brien is not the first to raise the idea of destroying Taiwan's semiconductor factories if China invades. "This could be done most effectively by threatening to destroy facilities belonging to the Taiwan Semiconductor Manufacturing Company, the most important chipmaker in the world and China's most important supplier.

☆ A Chinese invasion of Taiwan is a real and dangerous possibility that could wreck armies and ruin the global economy worse than the 1929 stock market crash
▼ + stars: | 2023-01-29 | by ( Jacob Zinkula | Jake Epstein | ) www.businessinsider.com time to read: +11 min

Experts say the military and economic impacts for could be catastrophic, and not just for China and Taiwan. Whether it's 2030, 2027, 2025, or even this year, experts say it could wreak havoc on the global economy and take a devastating toll on the militaries involved. CFOTO/Future Publishing via Getty ImagesThough China's actions have stirred fears of a possible Chinese attack, the US military assesses that an invasion of Taiwan would prove extremely difficult for the Chinese military. Threats to one company could spell catastropheLooking at this situation from an economic perspective, a Chinese invasion of Taiwan could mean trillions of dollars in losses and a serious global recession. Others have argued it's in the self interest of both China and the United State to overplay the likelihood of a Taiwan invasion.

OAKLAND, Calif/BANGALORE, Jan 27 (Reuters) - Microprocessor giant Intel Corp (INTC.O) has stumbled badly at a time when smaller rival AMD and others are picking up speed. Intel still dominates the markets for PC and server processing chips, with a market share greater than 70%, tech research firm IDC calculated. "I don't think Intel is in a position yet to start recovering share" in the market, he said. Customers of processors cannot launch products if new chip designs are late, and Intel has stumbled on delivering its latest data-center chip, code named Sapphire Rapids. Worse for Intel, the benchmarks published by the two companies show that AMD's latest server chip outperforms Sapphire Rapids on "general purpose workloads", according to Bernstein analyst Stacy Rasgon.

REUTERS/Andrew KellyOAKLAND, Calif/BANGALORE, Jan 27 (Reuters) - Microprocessor giant Intel Corp (INTC.O) says it will regain its footing against AMD and other chip rivals which are gobbling up market share, but Wall Street is skeptical. That's a headwind for Intel and AMD, both of which are rolling out new chips, but Intel is facing a larger inventory correction. Intel still dominates the markets for PC and server processing chips, with a market share greater than 70%, tech research firm IDC calculated. Chipmaker shares were hammered across the board on Friday, but Intel led the decline, slumping by 10% while AMD lost 1.8%. AMD set to overtake Intel in market cap, again AMD set to overtake Intel in market cap, againReporting By Jane Lanhee Lee and Chavi Mehta; Editing by David Gaffen, Peter Henderson, Kirsten Donovan and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Biden is touting a multi-billion-dollar chip factory in Arizona as a way to save the global economy from China threats — but an invasion of Taiwan would still wreak chaos
▼ + stars: | 2022-12-15 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Experts disagree on how much this will protect the US economy in the event of a Chinese invasion of Taiwan. "These investments are helping us build and strengthen the supply chain here in America," Biden said, adding that "American manufacturing is back." "That's the definition of supply chain resilience. "Ultimately, creating a more resilient supply chain for semiconductors involves more than fab plants." To truly achieve supply chain resilience, Rasser says, the US must only boost production further, but needs similar investments in all areas of the chips supply chain, from raw materials to packaging.

☆ Amazon slumps as tech selloff worsens
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +2 min

The dour outlook worsened this week's tech selloff amid fears of a looming recession, weighing on shares of Meta Platforms Inc (META.O), Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O). Amazon's shares, which were down 12.8% at $96.77, were trading at their lowest since March 2020. "Despite accelerating revenues, Amazon has been cut down to size by the market after missing expectations. While the cloud services segment has been one of high and sustained growth for tech companies, indications for Amazon, Microsoft and Intel Corp (INTC.O) this week point to lower investments as costs rise. Reporting by Akash Sriram and Chavi Mehta in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Amazon shares slump, Big Tech peers stay afloat
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +2 min

Oct 28 (Reuters) - Amazon.com Inc's (AMZN.O) shares fell about 8% on Friday after forecasting holiday-quarter sales below Wall Street estimates, while its Big Tech peers recovered from a bruising selloff this week. The online retailer, whose market cap briefly fell below $1 trillion, was last down 8.4% at $101.66, after hitting its lowest since April 2020. Apple Inc (AAPL.O), however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts' estimates. Microsoft, Alphabet and Meta gained between 1.2% and 3.1% after their shares were battered this week following gloomy outlook from the companies. The Big Tech stocks are on track to lose more than $400 billion this week.

☆ The fate of the world economy may depend on what happens to a company most Americans have never heard of
▼ + stars: | 2022-10-22 | by ( Avery Hartmans | Jacob Zinkula | ) www.businessinsider.com time to read: +13 min

The fate of the global economy may rest on the shoulders of one company: TSMC. That's because there could be trillions of dollars' worth of economic activity tied to that one company: Taiwan Semiconductor Manufacturing Company, the world's biggest chipmaker. Ann Wang/ReutersThe semiconductor industry has its roots in the US, as much of the research and development is done on US soil. According to a 2021 report from the Semiconductor Industry Association, in 1990 the US produced 37% of the world's chip supply. These days, the US is responsible for only 12% of global chip production.

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