3 months ago
By Anhata Rooprai
Aug 19 (Reuters) - Marvell Technology will help develop Google's in-demand custom chips and has offered the search giant the right to buy a potential $12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out.
Shares of the chipmaker jumped nearly 8% as the deal marked a major vote of confidence from a top cloud-computing provider and could bring roughly $120 billion in revenue through fiscal 2033, if Google hits the targets its stake option depends on.
Larger rival Broadcom, which had been Google's main custom chip partner so far, fell more than 5%, while shares in Google-parent Alphabet were little changed.
Demand for in-house chips such as Google's tensor processing units (TPUs) has surged as companies seek cheaper alternatives to Nvidia's pricey graphics processors and technologies better suited for inference, the process of running trained AI models.
#Google #billion #stake #rooprai
Aug 19 (Reuters) - Marvell Technology will help develop Google's in-demand custom chips and has offered the search giant the right to buy a potential $12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out.
Shares of the chipmaker jumped nearly 8% as the deal marked a major vote of confidence from a top cloud-computing provider and could bring roughly $120 billion in revenue through fiscal 2033, if Google hits the targets its stake option depends on.
Larger rival Broadcom, which had been Google's main custom chip partner so far, fell more than 5%, while shares in Google-parent Alphabet were little changed.
Demand for in-house chips such as Google's tensor processing units (TPUs) has surged as companies seek cheaper alternatives to Nvidia's pricey graphics processors and technologies better suited for inference, the process of running trained AI models.
#Google #billion #stake #rooprai
3 months ago
By Anhata Rooprai
Aug 11 (Reuters) - Intel raised $20 billion from an upsized share offering on Tuesday, as it looks to fund the costly build-out of its chip contract manufacturing business by cashing in on a stock surge fueled by its turnaround efforts.
Once a dominant force in the global chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in contract chip manufacturing.
Intel priced the offering at $95 per share, which was a discount of 2.6% from the previous close. The chipmaker said on Monday it aimed to raise $15 billion through the share sale.
Bloomberg first reported the size of the upsized offering.
#Intel #contract
Aug 11 (Reuters) - Intel raised $20 billion from an upsized share offering on Tuesday, as it looks to fund the costly build-out of its chip contract manufacturing business by cashing in on a stock surge fueled by its turnaround efforts.
Once a dominant force in the global chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in contract chip manufacturing.
Intel priced the offering at $95 per share, which was a discount of 2.6% from the previous close. The chipmaker said on Monday it aimed to raise $15 billion through the share sale.
Bloomberg first reported the size of the upsized offering.
#Intel #contract
4 months ago
By Zaheer Kachwala and Anhata Rooprai
June 24 (Reuters) - Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in supplies of memory chips, sending its shares surging 12% in after-hours trading.
The forecast - and third-quarter results that beat Wall Street estimates - underscore how AI-driven shortages are forcing Micron's large-scale data center customers to fund capacity, reshaping the memory market.
Micron, a key supplier for Nvidia's AI processors, has benefited from the shortage.
The company, the only U.S.-based manufacturer of high bandwidth memory chips used alongside Nvidia's AI processors, has seen demand for these chips far outstrip its production capacity, allowing the company and rivals SK Hynix and Samsung Electronics to charge a premium for their products.
June 24 (Reuters) - Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in supplies of memory chips, sending its shares surging 12% in after-hours trading.
The forecast - and third-quarter results that beat Wall Street estimates - underscore how AI-driven shortages are forcing Micron's large-scale data center customers to fund capacity, reshaping the memory market.
Micron, a key supplier for Nvidia's AI processors, has benefited from the shortage.
The company, the only U.S.-based manufacturer of high bandwidth memory chips used alongside Nvidia's AI processors, has seen demand for these chips far outstrip its production capacity, allowing the company and rivals SK Hynix and Samsung Electronics to charge a premium for their products.
