This weekly newsletter pulls together summaries of the top ten most-read Insights across Tech Hardware and Semiconductor on Smartkarma.
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1. OpenAI, AMD Enter Into Strategic Partnership. Guys, This Is Getting Ridiculous!
- OpenAI agrees to deploy 6 gigawatts of AMD GPUs based on a multi-year, multi-generation agreement. The deal could be worth upwards of $100 billion to AMD through 2030
- AMD issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved, including AMD share price appreciation to $600
- Could a strategic partnership with Intel now also be on the cards? After all, OpenAI needs CPUs as well as GPUs, especially as they ramp into enterprise. Just saying…
2. Hitachi Ltd. (6501 JP): Tie-Up with OpenAI Opens the Flood Gates
- An agreement to supply OpenAI with energy-saving electric power equipment should be accretive to Hitachi’s sales and profits as long as the AI boom continues.
- Hitachi is also building an “AI Factory” based on Nvidia technology. This should accelerate the growth of Hitachi’s Lumada digital services platform, also boosting sales and profits.
- Hitachi’s share price jumped 10.3% on the OpenAI news. Data center news flow and AI sentiment now drive the share price.
3. Intel (INTC.US): AMD to Submit Foundry Orders to Intel? We Think It’s Highly Unlikely.
- What is happening with Advanced Micro Devices (AMD US) and Intel Corp (INTC US)?
- Intel’s stock price has risen about 50% from its April 8 low. However, we have yet to see any tangible progress in its manufacturing technology.
- Intel’s stock price has risen about 50% from its April 8 low. However, we have yet to see any tangible progress in its manufacturing technology.
4. Astroscale (186A.T-JP/ASTRO): The Small-Cap Takaichi Defense Trade
- After months of going nowhere, Astroscale shot up more than 20% in the two trading days following the election of defense hawk Sanae Takaichi as president of the LDP.
- Astroscale made a small gross profit last quarter, but needs a rising flow of contracts and subsidies in order to turn profitable at the operating and net levels.
- At ¥825, the stock price is 38% below the ¥1,326 high reached just over a year ago. If Takaichi becomes prime minister, the chances of regaining that high would improve.
5. Taiwan Tech Weekly: Why Many Tech Companies Could Soon See Their Chip Costs Rise Substantially
- As Chips Move to 3nm and 2nm Designs, Tech Companies Could See a Sharp Increase in Their Chip Manufacturing Cost
- Intel (INTC.US): AMD to Submit Foundry Orders to Intel? We Think It’s Highly Unlikely.
- HBM Stocks Will Keep Running (Micron, SK Hynix), It’s Just the Beginning
6. PC Monitor: Dell Doubles Multi-Year Forecasts; AI PC Up-Cycle, Art Thou Finally Here?
- Dell doubles long-term growth outlook to 7–9% revenue and 15%+ EPS CAGR through FY30, led by AI infrastructure.
- AI PCs emerge as Dell’s next growth engine; global refresh cycle could finally kickstart long-awaited PC upturn.
- Taiwan makers Asus, Acer, Quanta, and Wistron positioned to benefit as AI PC and server demand scales together.
7. Taiwan Dual-Listings Monitor: Weak US Friday Session Opens Up Wide Opportunities Across the Board
- TSMC: +19% Premium; Good Level to Close Out for Those Short the ADR Spread
- UMC: -3.9% Discount; Rare Deep Discount Good Level to Long the ADR Spread
- ASE: -5.5% Discount; Any Spread Below Parity a Good Level to Long the ADR Spread
8. Sovereign AI. National Strategic Imperative, FOMO Or Both?
- If all of the publicly announced sovereign AI initiatives come to pass, they could account for upwards of $1 trillion in AI infrastructure spending through 2030
- For now, “sovereign” AI means mostly means made in the USA. However, there a growing demand for “sovereign” AI from China, particularly among countries disillusioned by the US trade wars
- In general AI infrastructure, the US is outspending China six to one in 2025. Could one be spending too much and the other spending too little? Let’s see…
