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India is key for AMD
US chipmaker Advanced Micro Devices (AMD) [AMD] has identified India as a key market for its advanced semiconductors. AMD’s chief technology officer Mark Papermaster told CNBC on Thursday that continuing to grow in the country is “part of what we need to stay pace with the growing demand for our products”. India’s government hopes to encourage local production by requiring licences for imports of computer equipment, according to Bloomberg.
New titles boost Nintendo’s profits
Industry analysts praised the impact of Switch game The Legend of Zelda: Tears of the Kingdom as well as The Super Mario Bros. Movie as Nintendo [7974.T] announced record first-quarter (Q1) operating profits of ¥185.44bn ($1.3bn). Serkan Toto, CEO and founder of Japanese gaming consultancy Kantan Games, told Bloomberg that “the Zelda game has legs and will continue to sell well through 2024”. Nintendo’s sales grew 50% year-over-year to ¥461.34bn.
Infineon shares sink on narrow margins
Shares in German chipmaker Infineon [IFX.DE] saw their largest decline in three years after Q4 operating margin forecasts fell short of analyst expectations. Qualcomm’s [QCOM] CEO Cristiano Amon suggested the company will lay off staff after a disappointing earnings report which was linked in a company presentation to declining smartphone sales. Korea Exchange urged investor caution towards chipmakers as the country’s small semiconductor stocks saw six-day gains as high as 260%.
Temasek buys into $9.8bn EV unit
Mahindra & Mahindra [M&M.NS] has sold a 3% stake in its electric vehicle (EV) unit to Temasek for $145m, in a deal which values the division at $9.8bn. Mahindra is aiming for 20-30% of SUV sales to be electric by 2030, as India’s government looks to boost the country’s EV market, according to Reuters.
Loss provisions squeeze PayPal’s margins
Contracting margins saw PayPal’s [PYPL] share price fall 8% in premarket trading on Thursday. Adjusted operating margin fell from 22.7% in Q1 to 21.4% in Q2, with CEO Dan Schulman attributing the decline in performance to “some increased losses in our PayPal business-loan portfolio” and the consequent set-aside of funds to cover these. “I expect that to be a temporary blip across results,” Schulman told Bloomberg in a telephone interview.
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