Chips in Focus and Epic Games' Mobile Storefront | Bloomberg Technology
20 Aug 2024 (27 days ago)
Semiconductor Industry and Investments
- Texas Instruments will receive $1.6 billion in grants and $3 billion in loans from the Biden administration as part of the CHIPS Act.
- Chipmakers are not recovering as quickly as other stocks due to concerns about stricter regulations from the U.S. government on exporting high-tech equipment.
- Japan will now require foreign investors to give prior notice when investing in chipmaking equipment to protect against technology leaks.
- Applied Materials, a company that makes equipment used in chip manufacturing, saw its stock price decrease by 3% due to its forecast not meeting market expectations for AI-related investment.
Market Trends and Upcoming Events
- Data centers are a resilient area of investment, and the real estate investment trust (REIT) market is becoming more attractive due to expectations that the Federal Reserve will cut interest rates.
- Nvidia's upcoming August 28th earnings report will be an important event to watch, as it will provide insights into the strength of AI orders and could impact the performance of other mega-cap tech companies.
App Stores and Mobile Gaming
- Downloading apps outside of Apple and Google app stores is a complicated process that involves 10 to 20 steps. (00:12:07)
- U.S. courts have ruled that Apple is not a monopoly, but they must allow for third-party payment processing.
- Epic Games is projected to make a significant amount of money from their new mobile storefront, primarily through Android and secondarily on iOS.
Paramount Potential Acquisition
- Bronfman, previously working with Bain Capital, is now in talks with Roku, Fortress, and Stephen Paul for a potential bid on Paramount.
- Sherry Redstone, as the majority shareholder in Paramount through her holding company, has the final say in any potential deal.
Autodesk Controversy
- Autodesk continued to use a controversial sales strategy despite promising investors they would stop. The company also ignored internal warnings about the risks associated with the practice.
- Autodesk's use of the controversial sales strategy was driven by a reliance on these deals to meet free cash flow targets.
IPOs and Stock Exchanges
- Klarna, a European fintech company, is approaching a U.S. IPO and is seeking a valuation of $40 billion. (00:27:35)
- Europe is unlikely to establish a unified stock exchange to rival the size and investment base of the U.S. stock market.
- Epic Games, a U.S. software company based in New Jersey, is considering a secondary listing.
H1-B Visas and Tech Industry
- There is a significant demand for H1-B visas in the U.S. tech industry, exceeding the available supply.
- The H1-B visa is the most common employer-sponsored visa in the tech industry and is important for attracting talented individuals to innovate and potentially create the next Google or Tesla in the United States.
Electric Vehicles and Tariffs
- E.U. tariffs on Chinese-made electric vehicles, implemented on July 5th, have resulted in a 45% decrease in the registration of these vehicles within the E.U. in July.
Worldcoin and Digital Identity
- Worldcoin, a startup, has created an orb that scans people's irises to verify them as real humans and provide them with a small amount of cryptocurrency. (00:38:40)
- Worldcoin uses zero-knowledge proofs to provide privacy guarantees and does not store user data.
- Alex Blania, co-founder of Worldcoin, states that the company has faced only one ban, which was implemented in Hong Kong.
- Blania believes that Worldcoin technology will be crucial for safeguarding democratic processes and preventing manipulation of essential online services.