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Share Purchase Plan Raises Additional $0.55 Million
June 12, 2023
SensOre (ASX: S3N or the Company) aims to become the top performing global minerals targeting company through deployment of big data, artificial intelligence/machine learning technologies and geoscience expertise.
SHARE PURCHASE PLAN
SensOre is pleased to announce that in addition to the $1m placement announced on 11 May 2023, the Company has raised a further $548,500 in the Share Purchase Plan (SPP). SensOre will issue 2,194,000 shares and 1,097,000 options to SPP participants today and will dispatch holding statements on Wednesday 14 June 2023, in accordance with the SPP timeline.
Under the terms of the SPP offer, eligible shareholders were entitled to purchase up to $30,000 worth of shares at a subscription price of $0.25 per share, being the same price as the share placement which was also announced on 11 May 2023. The SPP offer also included the issue of one option for every two shares at an exercise price of $0.375 and expiry of 3 years. The SPP offer closed on 7 June 2023.
The Company is in advanced negotiations with those who have expressed interest in taking a placement of the shortfall from the SPP.
This announcement was approved and authorised for release by the CEO.
Click here for the full ASX Release
This article includes content from SensOre, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
artificial intelligence investingasx:s3naustralia resource investingaustralia technology investingsensore
S3N:AU
13h
12 Generative AI Stocks to Watch as ChatGPT Soars (Updated 2024)
The launch of OpenAI’s ChatGPT created a major buzz around artificial intelligence (AI) stocks.
ChatGPT is an AI chatbot software application that uses machine learning techniques to emulate human-written conversations. A hitherto niche subsector in the AI industry, this technology is called generative AI, and it's been making an impact on myriad industries, including marketing, security, healthcare, gaming, communication, customer service and software development.
While generative AI technology is in its early stages, Reid Menge, co-portfolio manager for the BlackRock Technology Opportunities Fund, sees immense potential.
“ChatGPT is nearly as smart as the human brain today,” he said, “and with the computational horsepower being used to train these AI models, imagine the capabilities of these generative AI services by 2025.”
According to Fortune Business Insights, the generative AI market is expected to grow at a compound annual growth rate of 39.6 percent between 2024 and 2032 to reach an impressive US$967.65 billion.
Although investors can’t directly take a position in privately owned OpenAI, several technology stocks offer exposure to the expected growth in generative AI technology.
Below, the Investing News Network showcases 12 generative AI stocks that stand to benefit the most from the rise in advancements and adoption of AI chatbot technologies and seven smaller generative AI companies that may be perfectly positioned to profit from their advancements.
All market cap and share price data were current as of October 23, 2024.
Biggest generative AI stocks to watch
These 12 tech giants offer investors exposure to generative AI by offering their own chatbots and generative AI products, developing the hardware and software necessary for AI and integrating AI into their product.
1. Apple (NASDAQ:AAPL)
Market cap: US$3.51 trillion
Current share price: US$230.76
Apple is increasingly incorporating AI into its products such as its virtual assistant Siri, and health and fitness tracking apps. The company's approach to AI — Apple Intelligence — emphasizes privacy by building devices that can perform AI tasks directly on the device using their A17 and A18 silicon chips.
Its newest iPhone 16, which launched in September 2024, comes with AI features like writing assistance and intelligent photo features built into the hardware of the device. The new iPad mini, which was released on October 23, was also designed to support Apple Intelligence.
2. NVIDIA (NASDAQ:NVDA)
Market cap: US$3.42 trillion
Current share price: US$139.56
Nvidia is a pioneer and global leader in graphics processing unit (GPU) technology. Nvidia designs specialized chips used to train AI and machine learning models. The company also offers supercomputing processing capabilities to scientific researchers around the world.
While its been well known in computer and gaming spaces for a long time, its focus on the AI sector has been driving its growth in recent years. Nvidia's market value has grown by 135 percent year-over-year and at one point the company even took the title of world’s most valuable company from rivals Microsoft and Apple.
Generative AI's explosive growth is driving the market for chips designed by companies like Nvidia and Marvell (NASDAQ:MRVL), another chip-making giant, and Micron (NASDAQ:MU), a company that makes memory chips, which are another important component to training generative AI systems.
3. Microsoft (NASDAQ:MSFT)
Market cap: US$3.16 trillion
Current share price: US$424.60
After having initially invested at least US$3 billion in OpenAI a few years ago, the technology behemoth Microsoft reportedly committed to investing up to another US$10 billion in the chatbot creator in the years ahead. The company also participated in OpenAI's latest funding round on October 2.
Microsoft built its own AI solutions, Bing AI and Copilot, based on OpenAI's technology. Bing is integrated into Windows 11's taskbar, allowing users to query the chatbot directly with Microsoft's Edge browser, Chrome and Safari. The company also recently partnered with Palantir to provide AI tools to US defense and intelligence agencies.
4. Alphabet (NASDAQ:GOOGL)
Market cap: US$2.01 trillion
Current share price: US$164.48
Alphabet, Google’s parent company, has played an important role in advancing generative AI technology. Its latest AI model, Gemini, is available in three sizes — Nano, Pro and Ultra — to meet various levels of user needs. According to the company, Gemini is "able to efficiently run on everything from data centers to mobile devices."
Alphabet is leveraging generative AI across its business segments. Its AI accelerator chip, TPU v5p, was developed for neural network machine learning and is designed to scale large clusters, reducing the time needed to train large language models. Alphabet's subsidiary, DeepMind, focuses on AI research and development. Its AI system, AlphaFold, won the Nobel Prize in Chemistry on October 9 for its ability to predict the structure of proteins based on a protein's unique amino acid sequence.
5. Amazon (NASDAQ:AMZN)
Market cap: US$1.94 trillion
Current share price: US$184.71
Amazon subsidiary and cloud-computing platform Amazon Web Services (AWS) evolved out of Amazon’s transition from an online retailer to one of the world’s largest technology companies. AWS’s wide range of services includes computing, storage, databases, networking, analytics, machine learning and AI.
AWS has many AI business tools on offer across four verticals: AI services, AI platforms, AI frameworks and AI infrastructure. Generative AI is nothing new to Amazon, as the technology forms the basis of conversational experiences with Amazon’s all-too-familiar Alexa.
Last year, AWS introduced Bedrock, a service that enhances software with generative AI capabilities such as turning text into images or creating text for blog posts, emails and documents. The company has since added more features to the service, including a custom model import feature that allows customers to bring their own models to the Bedrock platform.
6. Meta Platforms (NASDAQ:META)
Market cap: US$1.43 trillion
Current share price: US$563.69
Meta has expressed its commitment to continued research within the generative AI sphere with an open-source approach to its software developments. The giant behind Facebook, Instagram and WhatsApp is one of the most influential companies in tech, sharing ranks with the likes of Microsoft and Alphabet.
In April 2024, Meta introduced its Meta AI, which is built with Meta Llama 3. The AI is integrated into Meta's apps and also exists as a standalone website.
Meta's products use machine learning to streamline Facebook ad campaign generation and help businesses reach the right consumers. Its Q2 2024 quarterly report showed a 21.7 percent increase in ad revenue compared to last year.
Meta CEO Mark Zuckerberg has maintained that increased spending on AI infrastructure is necessary to maintain its competitive position. The company has been implementing cost-saving measures to offset these investments and balance the financial impacts of its AI initiatives.
7. Tesla (NASDAQ:TSLA)
Market cap: US$682.55 billion
Current share price: US$213.65
The automotive company that brought self-driving cars out of sci-fi and into reality is now on a mission to develop advanced, generative autonomous vehicles using the massive amounts of data collected from its cars. One of Tesla's goals is to develop a fully self-driving vehicle, but the company is also working on other AI initiatives like a bi-pedal autonomous Tesla Bot.
While the roll-out of Tesla’s self-driving technology has run into issues in the US, it was given the green light to begin testing the software in a pilot program in Shanghai on June 14. In July 2023, the company said it was spending "north of a billion dollars" from mid-2023 until the end of 2024 on Dojo, a supercomputer that collects the data and uses it to train generative AI models that Tesla vehicles use to operate.
Tesla CEO Elon Musk created a separate AI company called xAI, formed with the intent of using generative AI to "understand the meaning of the universe." It is currently working on a large language model called Grok that can "answer almost anything" and even prompt users to ask specific questions. Musk suggested Tesla could invest in xAI and use Grok, but this would need to be approved by Tesla's board and could be a conflict of interest.
8. Oracle (NYSE:ORCL)
Market cap: US$479.67 billion
Current share price: US$173.10
Oracle is a tech company that's been around since the 1970s. In the early 2000s, it began buying up other software companies, and today it is one of the leading providers of cloud-based database management software. Its Oracle Cloud Infrastructure (OCI) Generative AI service was released on January 23.
The software uses Cohere’s platform to allow businesses to incorporate large language models into software they're already using. Oracle has been involved in a long-term partnership agreement with Nvidia to provide generative AI solutions to complex issues. At the Oracle CloudWorld conference on September 11, Oracle announced the first supercomputer to reach "zettascale" performance, capable of 1 billion trillion calculations per second. The buildout will use as many as 131,072 Nvidia Blackwell GPUs.
9. SAP (NYSE:SAP)
Market cap: US$271.27 billion
Current share price: US$234.59
SAP is a software company out of Walldorf, Germany, with a line of generative AI products that aid companies in resource planning. In September 2023, the company released Joule, a natural language generative AI assistant designed to streamline tasks and improve workflow. Joule is available in SAP’s complete cloud portfolio and can be seamlessly integrated into the company's entire line of business AI offerings.
To further research how cloud technology can support AI applications, SAP has been collaborating with UC Berkley's Sky Computing Lab. The company was also recently recognized as one of the world’s most sustainable companies in 2024 by TIME Magazine and data firm Statista.
On September 12, SAP acquired WalkMe, a software company that provides a digital adoption platform that provides step-by-step instructions for an application.
10. Cisco Systems (NASDAQ:CSCO)
Market cap: US$224.33 billion
Current share price: US$56.28
Multinational digital communications firm Cisco Systems is a leader in IT and communications networks. The company has a large portfolio of multi-cloud products and applications, alongside strong relationships with Azure, AWS, Nvidia and Google Cloud.
Cisco’s AI and machine learning offerings encompass a wide range of computing solutions for enterprises, including a focus on cybersecurity. Cisco has also brought to market new generative AI tools for IT professionals, including its own AI Assistant.
11. Adobe (NASDAQ:ADBE)
Market cap: US$213.51 billion
Current share price: US$485.03
Adobe has a suite of design software that makes up its Creative Cloud platform and began rolling out AI-powered software with machine-learning capabilities in 2022. In March 2023, the company launched its generative AI iteration, Adobe Sensei GenAI, which features a list of services designed to improve marketing and content creation workflows. The AI tool is now part of its Adobe Experience Cloud.
In March 2024, Adobe and Microsoft joined forces to merge Adobe’s Experience Manager Sites capabilities with Microsoft Copilot, enabling users to harness the power of Adobe Firefly generative AI directly within Microsoft Word. In June, Adobe and TikTok signed an agreement to add TikTok's music to Adobe Express and give TikTok users access to Adobe's Symphony Assistant which uses AI to aid the creative process.
12. IBM (NYSE:IBM)
Market cap: US$214.4 billion
Current share price: US$232.75
IBM reportedly has one of the world’s largest AI research programs. The multinational tech company offers various AI solutions for cloud computing, IT operations, customer service, business automation, natural language processing and more. The MIT-IBM Watson AI Lab, a collaborative effort between the two establishments, works to advance research in healthcare, security and finance.
On September 4, the company sold its IBM QRadar SaaS assets to cybersecurity firm Palo Alto Networks (NASDAQ:PANW). IBM has also been working with the Defense Advanced Research Projects Agency to build tools capable of defending AI models from cyberattacks.
Other generative AI stocks to watch
The following companies have not yet reached the market capitalization of our top 12, but are each worth billions of dollars and have made some amazing achievements in generative AI technology in their own right, making them interesting prospects for investors.
In alphabetical order, they are:
- C3.ai (NYSE:AI), a company providing software as a service product to the financial and oil and gas industries. Its partnership with Alphabet allows C3.ai generative AI applications to be available on Google Cloud.
- CrowdStrike (NASDAQ:CRWD), a cybersecurity provider that monitors and analyzes Internet activity, detecting threats and blocking attacks with its generative AI-powered security analyzing software, Charlotte AI. This service is available to every Falcon user and provides real-time feedback on a company’s risk landscape.
- DynaTrace (NYSE:DT), a data-analysis company that provides real-time feedback on IT infrastructure for various companies using its generative AI assistant, Davis.
- Juniper Networks (NYSE:JNPR), a company that develops and markets routers, switches, network management software, network security products and software-defined networking technology. In 2021, the company introduced AI services to its networking technology and on January 29 the company unveiled the industry's first AI-Native Networking Platform.
- MicroStrategy (NASDAQ:MSTR), a data warehouse that uses generative AI to provide companies with analytical reports to help them make more informed and lucrative decisions.
- Palantir (NYSE:PLTR), a data-mining platform for government agencies. The company has been working with the US Department of Defense to research and develop generative AI and machine learning technology for national defense.
- UiPath (NYSE:PATH), a software company with roots in Romania and headquarters in New York. UiPath designs robotic process automation software to reduce or eliminate boring or repetitive tasks like data extraction and file management, saving companies in a wide range of industries hundreds of hours thanks to its AI and generative AI software.
FAQs for generative AI
What is generative AI?
Generative AI is an emerging AI technology based on deep learning models and algorithms that can generate text, images or sounds in response to prompts given by users.
What are generative AI examples?
Some of the most notable examples of generative AI are ChatGPT, DALL-E 2, Midjourney, Stable Diffusion, Gemini and Copilot.
OpenAI's DALL-E 2 is an AI system that can create realistic images and art from a description in natural language. Similar to DALL-E 2, Midjourney generates images from prompts. Stable Diffusion is a latent text-to-image diffusion model capable of generating photo-realistic images given any text input. Microsoft's Copilot is a feature of the Bing search engine that leverages the same technology as ChatGPT.
What are the hottest generative AI startups?
According to technology and business magazine e-Week, in addition to ChatGPT creator OpenAI, some of the other leading generative AI startups include Hugging Face, Synthesis AI, Jasper and Cohere.
This is an updated version of an article first published by the Investing News Network in 2023.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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22 October
AI Market Update: Q3 2024 in Review
The third quarter proved to be a turbulent period for the artificial intelligence (AI) sector.
It was marked by shifting investment strategies, heightened sensitivity to macroeconomic trends and significant funding injections as the US government aimed to bolster domestic chip production.
With hardware companies generally outperforming their cloud-focused counterparts, concerns are growing about over-concentration and the long-term profitability of AI investments.
Here the Investing News Network explores the developments that influenced the AI landscape in Q3.
Mixed performance from AI stocks in Q3
Amid a wave of quarterly reports from the tech sector, AI stocks experienced volatility, with investors reacting to both promising advancements and lingering uncertainties about the rapidly evolving industry.
This volatility was particularly pronounced in the case of NVIDIA (NASDAQ:NVDA), a bellwether for the entire AI sector. As a dominant player in the AI chip market, NVIDIA's share price movements reverberated throughout the tech landscape. The company’s Q2 earnings report on August 28 led to a drop in its share price as investors became worried by signs of slowing growth; its quarterly revenue growth was 15 percent, compared to 18 percent in Q1.
After the release of NVIDIA's report, Microsoft (NASDAQ:MSFT), Qualcomm (NASDAQ:QCOM) and Dell Technologies (NYSE:DELL) saw their share prices fall as well. NVIDIA shares were on the decline again on September 3 after reports surfaced that the US Department of Justice had sent subpoenas to the company and other firms — the government agency was looking for evidence that NVIDIA violated antitrust laws.
While stock market concentration can result in slower economic growth, Nicholas Mersch, associate portfolio manager at Purpose Investments, wrote in July that the attention toward semiconductor companies is justified.
“Value should be ascribed to those companies that are the most productive in the marketplace,” he said.
Quarterly earnings from chip companies like electronics manufacturer Foxconn Technology (TPE:2354), semiconductor manufacturer Micron Technology (NASDAQ:MU), and chip designers Advanced Micro Devices (NASDAQ:AMD) and NVIDIA beat analysts’ revenue expectations for the third quarter.
Demand for AI chips was cited as the main driver of growth, as was the case when Samsung Electronics (KRX:005930) reported its fastest sales and profit growth since 2021 for the June quarter.
However, results from companies like Arm Holdings (NASDAQ:ARM) and Qualcomm were less inspiring. While these companies reported impressive revenue growth, their earnings outlooks didn’t meet expectations and paled in comparison to giants like NVIDIA, which is forecasting revenue above US$30 billion for Q3.
This disparity in investor sentiment likely stems from several factors. For example, Arm Holdings, despite its crucial role in mobile chip architecture, hasn't capitalized on the AI boom the way companies like NVIDIA and Broadcom (NASDAQ:AVGO), with large and diverse customer bases, have been able to. Meanwhile, Qualcomm's growth prospects have been hindered by a slowdown in the smartphone market, where it faces significant challenges.
The contrast between chip stocks and cloud providers was also evident in the market’s reaction to quarterly reports from Alphabet (NASDAQ:GOOGL) and Microsoft. Alphabet surpassed estimates in Q2, but received a muted response from investors, while Microsoft’s share price dipped by 3 percent due to concerns about declining cloud growth.
AI powerhouses lay out future plans
As AI continues to gain traction, partnerships are emerging as a way for companies to keep moving.
Heading into Q3, NVIDIA CEO Jensen Huang laid out the company's strategy to maintain its dominant position, saying it will focus on expanding partnerships with computer makers and cloud providers.
The importance of strategic partnerships has been further underscored by the success of other industry giants. Microsoft’s success in the AI boom — and certainly its performance in Q3 — can be partially attributed to its business relationships, particularly its early partnership with OpenAI.
Likewise, IBM’s (NYSE:IBM) strategic cultivation of affiliations and software offerings, evidenced by its growing AI book of business, fueled a 4.3 percent increase in its share price in July and a 2.2 percent increase in September.
Apple, which is known for its closed ecosystem, has pursued fewer partnerships than its peers, potentially limiting its future growth in the AI sector. However, the company's recent partnership with OpenAI, geared at integrating ChatGPT into the newest iPhone, hints at a potential shift in its strategy.
While collaborations and other work fueled success for many AI players in Q3, Intel (NASDAQ:INTC) faced significant headwinds, despite its history as a leader in the tech industry. The company lowered its Q3 revenue forecast and announced a 15 percent labor cut alongside suspended dividend payments to fund its chip-making efforts.
Investors sent its share price down 31.74 percent between August 1 and August 5 in response. Intel lost even more ground a month later, when its advanced silicon wafer manufacturing process, Intel 18A, failed chip-making tests conducted by Broadcom. As of mid-October, the company was down about 50 percent year-to-date.
Intel CEO Pat Gelsinger presented investors with a plan to improve the company’s financial situation in September, including plans to establish its Foundry business as an independent subsidiary and a new partnership with Amazon Web Services to produce AI fabric chips using Intel 18A. The company has also reportedly been approached with acquisition offers from Qualcomm and Apollo Global Management, although no deal has been confirmed.
Will AI be profitable in the long term?
As mentioned, while some AI companies thrived during the third quarter, concerns persist among investors about the sector's long-term profitability. A prime example of this dynamic emerged just one day after Taiwan Semiconductor Manufacturing Company (NYSE:TSM) posted its results for the second quarter on July 18.
A tech selloff ensued as investors, perhaps motivated by profit taking ahead of an anticipated interest rate cut, rotated out of mega-cap tech stocks and into small-caps and other sectors.
This selloff, while potentially driven by short-term strategies, demonstrated how sensitive the AI sector remains to external factors and broader market trends. “We're concerned about the plunges of the Nasdaq and chip stocks. It's not just a short-term thing, which we see could consolidate downwards for the next two to three months,” Allen Huang, vice president at Taipei's Mega International Investment Services, told Reuters at the time.
An August 5 rout that wiped out about US$1 trillion in market capitalization from tech’s mega-cap companies also underscored the AI sector’s sensitivity to macroeconomic events.
However, as Fortune's Geoff Colvin later pointed out, “most of the major names in the chip-manufacturing industry (not companies like NVIDIA that design chips but don’t make them) defied the panic and rose.”
This is not to say that chip stocks are immune from external market risks. The potential for product delays and supply shortages introduces another layer of complexity for investors assessing the long-term viability of AI.
Reports of potential design flaws in NVIDIA's Blackwell chip series surfaced in early August, raising concerns about the delays that could impact major companies like Google, Meta (NASDAQ:META) and Microsoft. All three of these companies have heavily invested in NVIDIA to help build out their AI infrastructure.
Tech companies are allocating a significant portion of their AI spending to data center construction. These buildouts, and indeed the sheer amount of energy AI consumes, have drawn criticism from environmental groups.
Even tech companies have been vocal about the need for an energy breakthrough to power the AI buildout, reigniting talks of using nuclear energy. To that end, in September Microsoft signed a 20 year power purchase agreement with Constellation Energy (NASDAQ:CEG) to revive Three Mile Island (TMI) Unit 1.
With that in mind, some analysts have suggested that overlooked utilites stocks might be a good alternative investment, offering a less volatile way for investors to gain exposure to the AI boom.
As Fortune's Leo Schwartz said in August, "AI is the new gold, but you can't mine it without energy. And that could offer an edge to retail investors eager to buy into the trend.”
Investor takeaway
Looking head to the fourth quarter, expectations for the AI sector remain high. In its mid-year outlook, BlackRock points to data center buildouts as one of five forces that will stimulate investment in Q4.
“We see two scenarios where equities can do well: one with a concentrated group of winners in AI, even with a tough macro backdrop, and another where AI-driven growth becomes more broad-based, leading to productivity gains and sharp rate cuts,” said the firm, before emphasizing the impact of macroeconomic factors.
“The two hard economic landing scenarios differ on whether central banks can come to the rescue with rate cuts," it continues. A fifth scenario involves subdued growth, sticky inflation and higher rates.
The persistent threat of inflation and recession has weighed on markets all year. Investors will be closely monitoring the US Federal Reserve’s signals on potential interest rate cuts as it gears up to meet in November.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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22 October
Hemlock Semiconductor Secures US$325 Million to Boost US Polysilicon Production
Hemlock Semiconductor (HSC) is set to enhance its operational capacity in Michigan, US, after the announcement of a preliminary agreement for a US$325 million grant from the Biden administration.
According to a Monday (October 21) press release, the funds will be allocated to HSC as part of the government's broader efforts to strengthen the US semiconductor supply chain under the CHIPS and Science Act .
The multimillion-dollar investment will support the building of a new manufacturing facility at HSC's existing site in Hemlock, Michigan, making it a critical player in the US semiconductor supply chain. The initiative is also poised to boost the state’s economy by creating close to 180 manufacturing jobs and 1,000 construction jobs over time.
The new facility will produce and purify hyper-pure polysilicon, which is key for semiconductor manufacturing.
“Polysilicon is the bedrock of semiconductors,” said US Secretary of Commerce Gina Raimondo.
Founded in 1961, HSC is currently the only US-based manufacturer of hyper-pure polysilicon.
The proposed investment marks the company’s first major expansion in over two decades, and is anticipated to significantly boost its production capabilities as demand for advanced semiconductor technologies increases.
“HSC is proud to be a manufacturing powerhouse for two vital industries of the future — semiconductor and solar,” said HSC Chairman and CEO AB Ghosh in the same announcement.
"Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” he added.
National Economic Advisor Lael Brainard also highlighted the significance of the HSC investment in reinforcing Michigan’s status as a leader in innovation and manufacturing. “Today’s announcement with HSC establishes a critical capability in the supply chain for semiconductors, solar, and AI here in America,” she commented.
The funding includes a commitment of US$5 million to support the development of the local workforce. HSC has established partnerships with educational institutions, including Delta College and the Saginaw Career Complex, to create training programs aimed at preparing workers for careers in semiconductor manufacturing.
HSC is dedicated to promoting sustainability as well, and has collaborated with state authorities to promote low-carbon initiatives geared at reducing emissions associated with polysilicon production.
Overall, the CHIPS and Science Act has earmarked over US$36 billion for semiconductor manufacturing across the country with the intention of generating approximately 125,000 jobs through various initiatives.
The proposed funding reflects the administration’s commitment to revitalizing the US semiconductor industry, which has seen extensive outsourcing over the past few decades.
Don't forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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18 October
Tech 5: TSMC, ASML Post Quarterly Results; Amazon, Google Sign Nuclear Power Deals
Chip stocks faced losses early this week, sparking volatility in the tech sector.
Meanwhile, Bitcoin was on the rise after US Vice President Kamala Harris said she plans to support innovation in the cryptocurrency industry. Elsewhere, Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) signed nuclear power deals.
Stay informed on the latest developments in the tech world with the Investing News Network's round-up.
1. Bitcoin price rises to nearly US$70,000
The price of Bitcoin rose above its 200 day moving average late on Sunday (October 13) evening, reaching US$62,640 on the back of optimism over China’s recently announced stimulus plan. The popular cryptocurrency's gains extended into Monday (October 14) morning, and it eventually surpassed US$66,400 for the first time since late July.
Bitcoin performance, October 12 to 18, 2024.
Chart via CoinGecko.
Data from CoinGlass shows over US$100 million in liquidated short positions due to the sudden price jump.
Open interest in Bitcoin futures has surged to an all-time high, indicating strong institutional participation and raising expectations for a continued price rally. Bitcoin exchange-traded funds also saw record inflows of over US$250 million every day this week, further fueling bullish sentiment among sector participants.
Crypto analyst Omkar Godbole has suggested that the recent breakout could signal a significant upswing. The US$70,000 mark is now being eyed as Bitcoin's next major resistance level, while Ether's next hurdle lies at US$2,770.
Bitcoin closed the week at US$68,362, while Ether finished the period at US$2,663.
US election speculation also impacted Bitcoin this week.
On Monday evening, Harris pledged to support a regulatory framework for crypto, although the news was somewhat dampened as she didn't share a detailed plan. Even so, that didn’t stop Ripple Labs co-founder Chris Larsen from donating US$1 million worth of XRP tokens to Future Forward, a super PAC supporting Harris’ run.
2. Chip stocks stumble on export cap reports
A Monday afternoon report from Bloomberg revealed that the US government is considering capping sales of advanced artificial intelligence (AI) chips from American companies to certain countries.
Sources familiar with the matter said the move would be made in the interest of national security, and that officials are focused on countries located in the Persian Gulf, including the United Arab Emirates and Saudi Arabia.
Both nations have invested heavily in AI, with the United Arab Emirates' Mubadala Investment Firm making significant contributions to Anthropic, and Saudi Arabia establishing a US$40 billion investment fund focused on AI.
NVIDIA and AMD performance, October 14 to 18, 2024.
Chart via Google Finance.
Shares of NVIDIA (NASDAQ:NVDA) fell by over 4 percent on Tuesday (October 15), the day after the report’s release.
Only a day earlier, the company reached its highest closing value since June, driven by positive chip industry sentiment. Shares of AMD (NASDAQ:AMD), one of NVIDIA's top rivals, also fell by over 4 percent on Tuesday morning.
According to Bloomberg, officials from the Bureau of Industry and Security, a spokesperson for the White House National Security Council and representatives from Intel (NASDAQ:INTC), AMD and NVIDIA have declined to comment.
3. ASML's Q3 results fall flat
On Tuesday, ASML (NASDAQ:ASML) mistakenly released its Q3 results one day ahead of schedule, revealing that it has lowered its total net sales guidance for 2025 to 30 billion to 35 billion euros.
The company also missed revenue expectations for the quarter by more than half, prompting a nearly 16 percent decline in its share price for the week and erasing roughly US50 billion from its market cap.
"While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness,” said ASML CEO Christophe Fouquet in a press release.
ASML performance, October 14 to 18, 2024.
Chart via Google Finance.
The impact of ASML's results sent shockwaves through the semiconductor industry, as ASML is a key supplier to many of the world's largest chipmakers. Shares of ASML's major customer, Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM), also fell about 3.3 percent in early trading on Tuesday. Intel, which has already seen its market share dwindle this year, and Samsung (KRX:005930) also saw their share prices fall by over 2 percent each.
Analysts have attributed ASML's lowered expectations to several factors, including slower-than-expected demand for logic and memory chips and potential export controls in China. “Logic foundries are ramping up new nodes at a slower pace than expected, and ASML is seeing little capacity additions in memory so far,” Morningstar's Javier Correonero wrote on Wednesday (October 16), cutting his fair value estimate for ASML shares from 900 euros to 850 euros.
4. TSMC raises revenue growth target
TSMC posted better-than-expected Q3 results on Thursday (October 17), raising its revenue target for the fourth quarter of the year to the US$26.1 billion to US$26.9 billion range.
Its Q3 earnings increased by 39 percent year-on-year to roughly US$23.5 billion, representing growth of nearly 13 percent compared to the previous quarter. Net income also increased by an impressive 31.2 percent. Investors sent the company’s share price above US$200 for the first time this year on Thursday morning ahead of the release.
TSMC and ASML performance, October 14 to 18, 2024.
Chart via Google Finance.
“Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” said Wendell Huang, senior vice president and CFO of TSMC. “Moving into fourth quarter 2024, we expect our business to continue to be supported by strong demand for our leading-edge process technologies."
Shares of TSMC's two biggest customers, NVIDIA and Apple (NASDAQ:AAPL), also received a boost following the release of the report. Apple’s share price opened 1.75 percent higher when the markets opened on Friday (October 18), rising 2.66 percent for the week. NVIDIA, which suffered a setback at the start of the week, opened 2.63 percent higher ahead of the report’s release on Thursday morning. NVIDIA's share price is up 1.11 percent for the week.
5. Google, Amazon sign nuclear power deals
Last month, Microsoft (NASDAQ:MSFT) announced plans to source energy for its data centers from nuclear power, signing a multi-year purchase agreement with Constellation Energy (NASDAQ:CEG). Now, Google and Amazon are the latest Big Tech companies to look to nuclear power to meet their growing energy needs.
On Monday, Google signed an agreement to purchase nuclear energy from several small modular reactors (SMRs) that will be developed by Kairos Power. The deal is part of Google’s efforts to reach its ambitious net-zero goals.
The first SMR is set to come online by 2030, with additional deployments scheduled through 2035.
Amazon made a similar announcement on Wednesday, signing three agreements with Energy Northwest, Dominion Energy (NYSE:D) and X-Energy to support the buildout of SMRs in Virginia and Washington.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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18 October
TSMC Posts Strong Q3 Performance Despite US Export Ban Probe
Global chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM,TPE:2330) reported strong Q3 results despite ongoing controversies over alleged violations of US export controls.
The company's consolidated revenue for the quarter reached 759.69 billion New Taiwan dollars, up 39 percent year-on-year, while its net income rose 54.2 percent to total 325.26 billion New Taiwan dollars.
In US dollar terms, TSMC's Q3 revenue came in at at US$23.5 billion, a 36 percent year-on-year rise.
Wendell Huang, senior vice president and CFO of TSMC, said on Thursday (October 17) that a key driver of the firm's Q3 success was strong demand for its advanced 3 nanometer and 5 nanometer technologies.
These cutting-edge manufacturing processes, used in the production of chips for smartphones and artificial intelligence applications, accounted for a significant portion of the company’s wafer revenue.
In addition, advanced technologies — defined by TSMC as 7 nanometer and more advanced processes — generated 69 percent of the tech behemoth's wafer revenue during the quarter.
Looking ahead to the year's final quarter, TSMC expects continued demand for its advanced process technologies to drive revenue growth. The company’s management has provided a financial outlook that anticipates Q4 revenue of between US$26.1 billion and US$26.9 billion, reflecting further growth compared to the third quarter.
While TSMC’s financial performance continues to impress, the company is currently the subject of a US Department of Commerce investigation that is seeking to establish whether TSMC is working with Chinese tech giant Huawei.
The inquiry follows concerns that TSMC may be indirectly supplying chips to Huawei through intermediary companies, despite a 2020 ban that restricts the Chinese firm from accessing semiconductors made with US technology.
TSMC has issued a statement affirming its commitment to complying with international regulations. The company has also pledged to take "prompt action" to investigate any potential issues and ensure adherence to US export controls.
TSMC's previous collaboration with Huawei was halted after the US government tightened restrictions on the Chinese company as part of national security measures.
Don't forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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17 October
ASX AI Stocks: 5 Biggest Companies in 2024
Artificial intelligence (AI) continues to evolve and advance rapidly, becoming increasingly integrated in the automation of everyday life and a focal point of growth in the technology sector.
AI is also becoming a major focus for the Australian government, whose budget for the 2023/2024 fiscal year outlines a plan to invest AU$101.2 million in AI development and adoption over the coming years. That includes AU$17 million announced in December 2023 to fund up to five AI Adopt Centres for small- and medium-sized businesses.
According to a September 2023 report from IDC on worldwide AI spending, Australia, along with Korea and India, is leading the Asia-Pacific region in spending on AI solutions; the three countries are also leading when it comes to AI adoption in the area. Spending in the region, excluding Japan and China, is expected to reach US$28.2 billion by 2027.
Although the AI market is relatively small in Australia, it’s growing. To help investors understand the options available, the Investing News Network used TradingView's stock screener to find the top AI stocks on ASX by market cap. All ASX AI stocks data was current as of October 17, 2024; companies whose businesses are focused mainly on AI were considered.
1. NEXTDC (ASX:NXT)
Market cap: AU$11.13 billion
Share price: AU$17.30
NEXTDC is Australia’s leading data centre operator, with 13 functioning centres throughout Australia, New Zealand, Malaysia and Japan, and nine more currently in the works. The company has forged several business and academic partnerships to enhance Australia's digital infrastructure.
NEXTDC revealed last September that it would be partnering with La Trobe Business School’s Research Centre for Data Analytics and Cognition on research into future theoretical and practical applications of AI across a range of industries.
On August 6, NEXTDC obtained NVIDIA's (NASDAQ:NVDA) DGX-Ready Data Center Program certification, enabling them to optimize NVIDIA's AI platforms and power advanced AI data centres in Australia. The company is also this year’s recipient of the Australian Data Centre Service Company of the Year award, an accolade given to companies that demonstrate excellence and innovation in the Australian data services industry.
2. Appen (ASX:APX)
Market cap: AU$488.95 million
Share price: AU$2.03
Appen began in 1996 as an automated speech recognition startup by a couple based in Sydney, New South Wales. Today, the company operates as a trusted partner to firms transitioning to AI usage, with a suite of industry-specific large language models and AI-training products.
In January, long-time partner Alphabet (NASDAQ:GOOGL) cut ties to focus on in-house AI. Despite the loss of Google’s business, Appen’s Q2 2024 results showed revenue growth and a positive month-on-month trajectory. Following their release on July 30, the company's share price leapt 55.81 percent from the prior day, and it has continued upwards, rising over 200 percent since then.
3. BrainChip (ASX:BRN)
Market cap: AU$475.48 million
Share price: AU$0.23
BrainChip is the company behind Akida, a revolutionary digital neuromorphic chip that’s built with a spiking neural network, a type of artificial network that mimics the way messages are passed between neurons in the human brain.
Because the AI is inside the chip, the chip can learn on its own and is not reliant on the cloud or other networks. This makes it much more secure and reduces latency as well. The company’s lowest-power version, Akida Pico, was released on October 1.
On June 5, the company released a white paper for its newly developed technology called TENNs-PLEIADES, an efficient AI processor that can perform complex tasks like decision-making, object recognition and data analysis. Unlike Akida, this chip is designed for spatiotemporal classification and detection using event-based data, making it particularly well-suited for low-latency applications such as self-driving cars.
4. Ai-Media Technologies (ASX:AIM)
Market cap: AU$167.87 million
Share price: AU$0.76
Ai-Media Technologies is a global media access provider with operations in four key regions: Australia and New Zealand, North America, EMEA (Europe, Middle East, and Africa), and Asia. It was founded in 2003 by Tony Abrahams and Alex Jones, who was born deaf, and began trading on the ASX on September 15, 2020.
The company uses its AI-powered LEXI captioning solution to transcribe speech, making media accessible to all. It is now one of the world’s leading caption and translation providers, with monthly delivery of over 9 million minutes of captioned live and recorded media, according to its website.
5. Bigtincan Holdings (ASX:BTH)
Market cap: AU$147.9 million
Share price: AU$0.17
Bigtincan Holdings is a sales platform that uses AI to help companies improve their customers’ buying experience by making the process more efficient and personalised. Bigtincan’s list of partners includes Apple (NASDAQ:AAPL), Adobe (NASDAQ:ADBE), SalesForce (NYSE:CRM) and Microsoft (NASDAQ:MSFT). Its large language model, GenieAI, was launched in March 2023.
Bigtincan’s H1 fiscal year 2024 report revealed that GenieAI started generating revenue during the period, and the company reported positive earnings before interest, taxes, depreciation and amortization (EBITDA), up 136 percent from the previous reporting period. On September 10, the company partnered with SambaNova, a company providing "the world's fastest AI platform," to enhance Bigtincan's SearchAI.
FAQs for investing in AI
What is artificial intelligence?
AI is defined as human intelligence exhibited by machines. The development of graphics processing units with faster and more powerful chips has supported the emergence of AI technologies.
Where is AI used?
AI has been heralded as a technology of the fourth industrial revolution, with heavy investment from industries including transportation, manufacturing, education and agriculture. Some of the sectors that will likely see the fastest AI investment growth in the coming years are healthcare, pharmaceutical research, retail, industrial automation, finance and intelligent process automation.
How to invest in AI stocks?
Investors looking to capitalise on AI's growth potential have a number of entry points when it comes to stocks. It's key for each person to practise due diligence and speak to their broker to determine the most suitable investments.
The companies listed above have a strong focus on AI, but investing in companies that are using AI as part of a larger business model is one way to gain indirect exposure to the sector. Examples of stocks like this on the ASX include Block (ASX:SQ2), WiseTech Global (ASX:WTC), Seek (ASX:SEK) and Xero (ASX:XRO).
For a more diversified approach, the Betashares Global Robotics and Artificial Intelligence ETF (ASX:RBTZ) invests in companies involved in the development of AI applications all across the globe. Investing in an exchange-traded fund is a low-cost way to benefit from a sector without directly buying individual stocks.
This is an updated version of an article first published by the Investing News Network in 2020.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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