My apologies, no commentary today due to my travel schedule.
1.1
SCMP (08/14): China’s richest province taps Alibaba to power its AI and chip push
China’s richest province has deepened its partnership with technology giant Alibaba Group Holding, eyeing a broad digital upgrade spanning artificial intelligence, semiconductors, and smart public services.
Under a strategic cooperation framework agreement signed on Thursday in Guangzhou, capital of Guangdong province in southern China, the Hangzhou-based firm planned to increase its investments in computing power, AI models and digital services, according to a report by local state media Nanfang Daily.
2.1
Bloomberg (08/13): Applied Materials Forecast Gets Tepid Reaction After Rally
Applied Materials Inc. delivered an estimate-beating forecast that still got a lukewarm reaction from investors, a sign of the lofty hopes surrounding a company that’s key to the AI boom.
Revenue will be approximately $10.3 billion in the fiscal fourth quarter, which runs through October, Applied Materials said in a statement Thursday. Though analysts estimated $9.62 billion on average, some projections were closer to $10 billion, according to data compiled by Bloomberg.
Investors have embraced Applied Materials this year, betting that it will be a key winner in the AI economy. The company is the biggest US maker of chip equipment, making it central to a surge in demand for semiconductors. But after a rally that more than doubled the stock price, it’s now harder for Applied Materials to meet expectations.
2.2
Reuters (08/14): Goldman in talks with investors on Nvidia financing deal after landing prized role, sources say
Goldman Sachs is in talks with potential investors about participating in Nvidia’s $500 billion AI financing initiative, after leveraging its long-standing relationship with the chipmaker to secure a coveted role in the deal, people familiar with the matter said.
U.S. insurers, money managers and banks are expected to form the core investor base for the financing, one of the people said, while asset managers plan to retain a sizable share of the financing, a second source said.
Goldman can provide junior capital and private credit financing through its asset management arm, while its investment bank can also help place the debt into private credit funds and eventually public debt markets, the second source said.
2.3
Reuters (08/13): Chinese chipmaker SMIC increases prices on strong AI demand
China’s top foundry, Semiconductor Manufacturing International Corp, said on Friday that AI-related demand would continue to underpin orders for its production, and that it had raised prices for its most sought-after capacity.
Co-CEO Zhao Haijun said on an earnings call that SMIC raised prices following negotiations with customers in the first quarter, and that it would charge more for wafers processed in the third quarter.
SMIC, the only Chinese foundry able to mass-produce logic chips such as CPUs and GPUs on a 7-nanometre process, posted revenue above $3 billion for the first time in the second quarter, driven by strong AI demand.
2.4
Reuters (08/13): Sandisk forecasts mid-to-high-teens revenue growth through 2030
Sandisk on Thursday said it expects revenue to grow at a mid-to-high-teens percentage rate from fiscal years 2028 to 2030, encouraged by strong demand amid rapid AI infrastructure buildout.
The company said the projection is in line with growth in the amount of storage capacity it produces, a metric the industry calls “bit growth.”
Shares of the company were up more than 15%. They have recorded an over sixfold gain so far this year, part of a broader rally among memory chipmakers as investors bet on sustained demand from rapid AI infrastructure expansion.
2.5
Bloomberg (08/13): Alibaba, Baidu, Kuaishou Address Mounting AI Costs as Competition Intensifies
Alibaba Group Holding Ltd., Baidu Inc. and Kuaishou Technology are the next big names in tech that will have to address concerns over the mounting financial costs needed to sustain intense AI competition.
That pressure already weighed on rival Tencent Holdings Ltd., which saw shares sag after disclosing it more than doubled spending last quarter in an attempt to shed its status as a laggard in the AI space.
Alibaba may strengthen its frontrunner position with Qwen3.8-Max, its biggest ever AI model that claims capabilities on par with US rivals.
2.6
Bloomberg (08/13): Japanese Equities Post Best Weekly Gain Since June as Tech Rises
Japanese stocks posted their best weekly gain in two months after a deceleration in US wholesale inflation eased concerns the Federal Reserve will hike interest rates.
The chip-heavy Nikkei 225 Stock Average closed 0.6% higher at 68,713.80, advancing 4.7% for the week. The broader Topix added 0.5% to 4,197.20, extending its run of record highs. Sony Group Corp. contributed the most to the Topix gain, increasing 5.7%. Out of 1,637 stocks in the index, 1,194 rose and 412 fell, while 31 were unchanged.
Enthusiasm for AI stocks is recovering after a late-July selloff in chip-related shares which was driven by concerns over the sustainability of the AI spending boom. Sentiment is now turning as confidence in the AI trade returns, fueling expectations that tech firms will see a boost to earnings.
3.1
Reuters (08/13): Chip equipment maker Lam Research to invest more than $3 billion to expand R&D labs
Lam Research said on Thursday it intends to invest more than $3 billion in the next five years to expand its global research and development lab network, as it seeks to increase experiment capacity and speed up product development.
The U.S. chip equipment maker said the multi-site expansion is expected to increase its experiment capacity by over 50%.
3.2
Nikkei (08/14): Japan struggles to secure rare earths for EVs, chip tools under China pressure
Japan is finding it increasingly difficult to source rare earths for electric vehicles and chipmaking equipment as Chinese trade restrictions squeeze supplies, forcing materials makers to use up inventories.
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Cover Photo by Loeng Lig on Unsplash
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