Here is an update. I think it's nice that we are called with the big ones! And first comes?!
"07/27/2022 | 05:45
CHIPS ACT - WHAT NOW? BRAINCHIP HOLDINGS, INTEL, NVIDIA STOCK
- BRAINCHIP HOLDINGS
- INTEL
- NVIDIA
Image source: pixabay.com
White House Press Secretary Karine Jean-Pierre made no secret of the purpose of the CHIPS Act - Creating Helpful Incentives to Produce Semiconductors for America - this week to be passed by Congress. The aim is to have semiconductor investments in the USA in the future instead of in China and at the same time to slow down growth in China. Since 1990, the USA's share of the world market in chip production has fallen from a good 40% to 12%, and with it dependence on other countries has increased dramatically. However, the global integration of the chip industry cannot be changed in the short term because with more than 1.
Reading time: about 3 minutes. Author: Stefan Bode
ISIN: BRAINCHIP HOLDINGS LTD | AU000000BRN8 , INTEL CORP. DL-_001 | US4581401001 , NVIDIA CORP. DL-_001 | US67066G1040
BRAINCHIP HOLDINGS IS PICKING UP SPEED
The semiconductor company
BrainChip Holdings (WKN: A14Z7W ISIN: AU000000BRN8 Ticker: 24Y) made the breakthrough in popularity at the beginning of the year. The company, which is already positioned globally, caused a sensation with the Mercedes Benz cooperation with the EQXX and thus made the breakthrough. The share price then literally exploded, but fell back to the breakout level after a short phase of exaggeration. But for a week now, a bull market has been announced again. The price managed to break out of the short-term downward trend on July 18 and with the onset of momentum, the share rose from EUR 0.58 to EUR 0.79 and thus by 37%.
(now 0,85€ Frankfurt)
The reason for the increase could have something to do with the CHIPS act in the USA, because there have been no company-related news in the past few days. Possibly it was only the technical breakout that led to follow-up purchases in the semiconductor company, which is interesting in the long term. Its "Neuromorphic Artificial Intelligence and Intellectual Property (AI-IP)" is an intelligent, fast chip with very low power consumption that can learn and program independently. This development is a
quantum leap for autonomous vehicles, as it means that the battery power can be used for the actual driving process for much longer, thus increasing the range.
INTEL – DER CHIPS-ACT PROFITEER?
The chip group Intel (WKN: 855681 ISIN: US4581401001 ticker symbol: INL) could benefit the most from the so-called CHIPS law in the USA . The US government wants to provide a total of USD 52 billion in subsidies and also introduce tax credits for investments in this sector. This is intended to boost US production in the semiconductor industry. But the law has met with mixed responses, especially in the chip industry. Some market participants fear disproportionate support from chip manufacturer Intel. This puts companies like AMD, Nvidia or Qualcomm at a disadvantage and they could take legal action against it.
The assumption is reasonable, since Intel develops its chips in the USA with Texas Instruments and Micron Technology and this part is explicitly to be strengthened and expanded by the US government. At the beginning of the year, Intel announced that it would build a factory in Ohio for USD 20 billion, thereby expanding its future US production capacities, for which the foundations were laid in Arizona last year.
NVIDIA IS GROWING STRONGLY
The chip company Nvidia (WKN: 918422 ISIN: US67066G1040 ticker symbol: NVD) has also grown strongly in recent years . Driven by strong demand and tight supply, the stock climbed steeply through November 2021. But with the slump in crypto assets since the end of 2021, high-margin demand from this segment has also collapsed. This has happened regularly in the cyclical crypto segment in the so-called crypto winter in recent years. At the same time, however, this gives hope that after this slump from autumn onwards, the cycle will again speak in favor of an increase in the valuation of Bitcoin & Co and thus with a sharp increase in demand from this area.
But despite the slump in the crypto sector, Nvidia was still able to present good growth figures. Data center revenue for the most recent quarter was $3.8 billion, up 15% from the same quarter last year. This underlines the annual plan of USD 15 billion from this division and its importance as a growth engine. The area from the electric vehicle segment is also growing strongly. Battery management requires ever more powerful chips, as does the trend towards autonomous driving. At the beginning of the year, the DRIVE Orin SoC for the autonomous driving segment went into production and is expected to become a new growth driver. Orders have already been received from 35 different companies in this segment, including the Chinese BYD and Lucid. Annual growth of 40% is expected here alone.
In order to reduce the once
cheap* dependency on Russia and China after three decades of globalization policy, the western states are spending enormous amounts of tax money. Individual sectors such as the semiconductor industry benefit from this in particular, because this key industry is the basis for many other economic sectors.
If you want to position yourself here in the long term, you should take a closer look at the aforementioned companies.
*It says "billige". I am unsure exactly what the author means by this. In German, of course, "billig" means cheap. But I suspect that the author may not mean this adverb but rather the sense of the verb "billigen", i.e. ~condone or ~accept (correct => "gebilligte").
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https://www.derfinanzinvestor.de/kommentare/chips-act-und-nun-brainchip-holdings-intel-nvidia-aktie
JK, how did you get THAT out of the vault?? It was clearly marked NEVER to ever see the light of day again.
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