BROADCOM CHIP SHORTAGE
Amazon burns cash, Intel flags weak PC demand as AI boom's costs ripple across markets
As Wall Street grows increasingly anxious about AI-related expenditures, major tech giants like Amazon and Intel display alarming financial outcomes. With soaring operational costs and waning consumer interest, both companies face challenging cash flow situations, resulting in borrowing to cover rising expenses. This situation has led to declines in semiconductor and AI cloud shares as investors question future profitability, sparking fears about the tech sector's growth sustainability.
Weak quarter for Intel sends shivers through cooling chip stocks
Chip stocks, particularly those affected by Intel's earnings, faced significant declines following the report's release. Intel attributed its downturn to challenges in the PC industry and a recent factory explosion. Other major chipmakers like AMD and Broadcom also experienced declines in after-hours trading. Concerns about the overall semiconductor industry were heightened after Alphabet's disappointing earnings. Despite these challenges, the semiconductor index has shown strong performance throughout the year.
Korea’s KOSPI crashes another 5% as AI rout deepens; AI bellwether down over 40% from peak
Chip heavyweight SK Hynix Inc. headed for its lowest close since April. Data-center infrastructure company Elice Inc. plunged as much as 32% in its trading debut in Seoul. Both AI bellwethers SK Hynix and Samsung have plunged 35% and 22%, respectively.
AI race may depend more on access to power, infrastructure than chip supply: Morgan Stanley
The assessment comes as rapid investment in AI infrastructure threatens to outpace the availability of electricity, raising concerns that smaller companies could struggle to compete with financially stronger technology giants.
AI race may depend more on access to power, infrastructure than chip supply: Morgan Stanley
According to Morgan Stanley's latest analysis, the burgeoning AI infrastructure market is on track to experience a dire electricity shortfall by 2028. This impending shortage poses a serious risk for smaller enterprises striving to keep pace with their larger counterparts. A predicted 32-gigawatt power deficit threatens data-center development and chip deployment. While global strategies might be an option for some, the internal power dilemmas in the U.S. will persist.
From worst to best: How IT stocks staged a Rs 2.6 lakh crore revival this week
Indian IT stocks staged a sharp comeback this week, adding Rs 2.6 lakh crore in market value as the sector gained 12% to become the best-performing index. Better-than-expected Q2 earnings, positive management commentary and a selloff in AI-linked stocks helped revive sentiment, even as concerns over AI adoption and earnings growth persist.
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Rs 82,500 crore rally in 3 days: Why TCS, HCL Tech, other IT stocks jumped up to 12% in 3 days and will the boom last?
Indian IT stocks have rebounded sharply. The Nifty IT index has risen 8%, adding Rs 82,500 crore to the sector’s market capitalisation. The rebound follows a selloff in global AI-linked stocks driven by concerns over stretched valuations, concentration risks and uncertain returns on heavy AI investments.
AI traders behaving like casino gamblers? What made chip trade toxic and why that’s good news for India
Global AI stock enthusiasm hit a roadblock as South Korea's Kospi plunged 7.4% on chip competition concerns and Broadcom's warning on AI spending. Conversely, Indian IT stocks surged, adding Rs 26,000 crore in market cap as investors rotated into services over semiconductor hardware exposure.
Rs 26,340 crore added in minutes! Why HCL Tech, TCS and other IT stocks rallied up to 7%
Indian IT stocks rallied up to 7%, with the Nifty IT index gaining 3.3%, as concerns over rising AI investment costs and uncertain returns rattled global technology stocks. Broadcom and Intel executives flagged capital constraints, prompting investors to reassess the AI boom. Separately, OpenAI told investors its September annualised revenue was nearly $50 billion, below its earlier indicated figure of $70 billion.
Anthropic hires Google chip veteran Amir Salek as part of push into hardware
AI firm Anthropic has hired a Google chip founder for its new semiconductor team. This move signals Anthropic's ambition to develop its own custom AI chips. The company is also securing significant data center capacity deals. Rival OpenAI is pursuing similar custom chip development strategies. These efforts aim to address supply shortages and optimize AI hardware.
South Korea's SK Hynix, Samsung Electronics sign $950 billion partnership with US big tech
The partnership includes the long-term supply of $750 billion in memory chips to US companies by SK Hynix and $200 billion in chips by Samsung Electronics to Broadcom, the presidential adviser, Kim Yong-beom, said at a briefing.
Meta to put AI chip into production in September as it looks to double computing capacity, memo shows
Meta Platforms plans to manufacture its own artificial intelligence chip starting September. This initiative aims to significantly increase the company's overall computing power by next year. The custom-designed chip, code-named Iris, is part of a multi-generation project. Meta is working with Broadcom and Taiwan Semiconductor Manufacturing Co for design and production. This move seeks to reduce costs and gain independence from external chip suppliers.
Anthropic in talks with Samsung to develop custom AI chip
AI giant Anthropic is reportedly exploring the creation of its own custom AI chips, holding talks with Samsung for a potential partnership. This move aims to reduce reliance on external suppliers and address ongoing chip shortages, following similar moves by rivals like OpenAI, Amazon, Microsoft, and Meta.
Qualcomm forecasts $15 billion data center chip sales by 2029, shares soar
Qualcomm also said it expects $40 billion in revenue from chips outside its smartphone stronghold by 2029, up from previous estimates of $22 billion, and with handsets only making up a third of its chip revenue by then.
KKR launches $10 billion AI infrastructure company with Nvidia, Vistra
The Kuwait Investment Authority, AI chip giant Nvidia and utility firm Vistra are anchor investors in the company, called Helix Digital Infrastructure, which is led by former Amazon Web Services CEO Adam Selipsky.
Apollo, Blackstone back Anthropic's $35 billion capacity expansion in new Broadcom tie-up
Apollo and Blackstone are investing $35 billion to boost Anthropic's AI computing power. This expansion will utilize Broadcom's custom chips and networking. The initial phase adds one gigawatt of capacity, enough for many homes. This infrastructure will be deployed at Fluidstack-operated sites from mid-2026. The partnership aims to provide over 20 GW for leading AI labs by 2028.
Arm forecasts higher-than-expected revenue on surging AI data center demand
Arm Holdings anticipates higher first-quarter revenue, boosted by strong demand for its AI chip technology. However, the company has not yet secured enough supplies for a new chip, raising concerns among analysts. Despite this, Arm's designs power most smartphones globally, and its data center business shows significant growth potential.
Qualcomm jumps as optimism on smartphones, AI chips outweigh dismal forecast
Qualcomm shares saw a significant jump. CEO Cristiano Amon expressed confidence in a smartphone market rebound post the fiscal third quarter. The company is also expanding into data center processors and autonomous vehicle chips. This diversification aims to reduce reliance on the cyclical handset market. Analysts remain divided on the extent of the memory crunch easing.
Anthropic weighs building its own AI chips
Demand for its AI model Claude has accelerated in 2026, with the startup's run-rate revenue now surpassing $30 billion, up from about $9 billion at the end of 2025, Anthropic said earlier this week. Anthropic uses a range of chips, including tensor processing units (TPUs) designed by Alphabet's Google and Amazon's chips to develop and run its AI software and chatbot Claude.
Broadcom flags supply constraints, says TSMC capacity a bottleneck
The Taiwanese firm, the world's main producer of advanced AI chips, said in January that capacity was tight, as the boom in AI infrastructure buildout has soaked up much of its advanced production lines.
US Stocks: Broadcom shares rise as $100 billion AI forecast signals gains in Nvidia-dominated market
Broadcom shares rose nearly 3% on Thursday after the company predicted over $100 billion in AI chip sales next year, signaling rapid share gains in the market dominated by Nvidia.
Broadcom rises as $100 billion AI forecast signals gains in Nvidia-dominated market
Big Tech firms such as Alphabet, Microsoft , Amazon and Meta are expected to spend at least $630 billion to build AI infrastructure this year, boosting demand for chips, servers, storage and networking equipment from companies like Broadcom.
OpenAI builds first chip with Broadcom and TSMC, scales back foundry ambition
The company has dropped the ambitious foundry plans for now due to the costs and time needed to build a network, and plans instead to focus on in-house chip design efforts, according to sources, who requested anonymity as they were not authorized to discuss private matters.
Broadcom looks to defy chip slowdown on data center, wireless strength
Broadcom may experience some weakness in demand in the upcoming quarters as enterprise, cloud and service providers are likely to moderate their orders and capex spending into 2023.
View: The ‘new normal’ in supply chains includes geopolitical dynamics & climate change
A global shortage of containers and the chaos at ports has choked the movement of goods and hurt many businesses. Worse, semiconductor shortages have crippled worldwide manufacturing. It appears that a perfect storm is brewing.
Chip lead times begin to slow, suggesting shortages have peaked
Chip investors are already looking ahead -- with trepidation -- to the industry’s next glut. In the past, lengthening lead times have been followed by painful periods of oversupply.
Fans may have to wait longer for the new iPhone 13; Apple likely to cut production due to chip shortage
As many as 10 million units of iPhone 13 are expected to be slashed.
Apple likely to cut iPhone 13 production due to chip crunch
Apple told its manufacturers that the number of units would be lower because chip suppliers including Broadcom Inc and Texas Instruments are struggling to deliver components.
Intel CEO says chip shortage to hit bottom in second half
Intel, the world’s largest chipmaker, gets the majority of its sales from providing processors that run personal computers and servers, machines that are central to data centers and corporate networks.
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