SK Hynix: Major US Chip Boost

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SK Hynix: Major US Chip Boost

The South Korean chipmaker [000660:KS] is to invest some $4bn in a chip-packaging facility in the US state of Indiana, the Wall Street Journal reported Tuesday. The facility — which will be close to Purdue University, host to one of the leading US semiconductor programmes — will benefit from a mix of state and federal tax incentives. Earlier this month, the Nvidia [NVDA] supplier began production of next-generation high-bandwidth memory chips used in artificial intelligence (AI) chipsets.

Will AI Drive a Biotech Boom?

“We are ahead of a massive wave of new innovation in general, but in particular within biotech due to AI,” Hans Peter Portner, Head of Thematic Equities at Pictet Asset Management and manager of the firm’s largest fund, Global Megatrend Selection, told Bloomberg. Portner expects Pictet’s biotech-focused fund to double in the next three years, driven by the increasing use of AI by biotechs. Applications include speeding up R&D, sorting large volumes of data and discovering possible treatments.

Big FSD Push from Tesla

The electric vehicle giant [TSLA] is to offer US customers a one-month free trial of its Full Self-Driving (FSD) technology, according to a post from CEO Elon Musk on X, as waning demand and an ongoing price war in the sector squeeze the firm’s margins. “ Almost no one actually realizes how well (supervised) FSD actually works,” Musk said in an email to Tesla employees, according to Reuters.

Social Media: Winners and Losers

The former US President’s Trump Media & Technology Group [DJT] gained as much as 58% on Tuesday, after its IPO via a merger with SPAC Digital World Acquisition Corp [DWAC]. Meanwhile, the Reddit [RDDT] share price jumped 30% on Monday, continuing its upward trajectory since its IPO last Thursday. Lastly, a US judge decided in favour of the Center for Countering Digital Hate, which Elon Musk’s X Corp accused of biased assessment; Musk plans to appeal the verdict.

Why is JPMorgan Bullish on Super Micro Computer?

The Super Micro Computer [SMCI] share price has surged by some 800% over the past 12 months. JPMorgan analyst Samik Chatterjee initiated coverage of the stock on Monday with an ‘overweight’ rating and $1,150 price target, implying 10.3% upside from Monday’s close of $1,042.79. Shares closed up over 7% in Monday’s session following the news. Chatterjee anticipates the firm can grow revenue at a 43% annually between 2023 and 2027, Seeking Alpha reported.