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Last Week’s Highlights
Nvidia down with AI chip launch delay
Nvidia has decided to postpone the launch of its latest artificial intelligence chip, the H20, designed specifically for the Chinese market, until the first quarter of next year. The move, communicated to Chinese customers, is in response to the need to comply with strict U.S. export regulations. The H20, considered the most powerful of the three chips developed to meet these restrictions, is facing integration problems from server manufacturers, according to sources close to the matter. The delay could affect Nvidia’s efforts to maintain its presence in the competitive Chinese market, where local rivals such as Huawei are looking to take advantage of opportunities generated by U.S. export restrictions. In the meantime, other chips planned by Nvidia to comply with these regulations, such as the L20, are expected to remain on schedule.
Amazon wins approval to acquire iRobot
According to informed sources, Amazon is on the verge of receiving unconditional approval from the European Union for its $1.4 billion acquisition of robot vacuum cleaner maker iRobot. The deal, which has been scrutinized by antitrust authorities globally, has raised concerns about data hoarding and the possible leveraging of big tech’s dominance in new markets. The European Commission warned Amazon in July about the risk of reducing competition in the robot vacuum cleaner sector. The Commission’s decision is expected before February 14, and the British competition agency has already cleared the deal unconditionally after a preliminary examination. With this deal, Amazon would add iRobot’s popular Roomba robot vacuum cleaner to its extensive portfolio of smart devices, which includes Alexa, smart thermostats, and security devices.
Coming Up This Week
Tesla to enter India
Tesla, recognized for pioneering the production of electric vehicles, is planning an investment of up to $2 billion to build a plant in India, provided the Indian government reduces import tariffs on vehicles. The company is seeking a decrease in import duties to 15% for the first two years of operations, in line with the government’s efforts to encourage local manufacturing. Currently, the tax rate on vehicle imports is 100%. In a complicated context, Tesla faces labor challenges in Sweden, where a conflict in repair shops has affected its operations. Despite these setbacks, the company is willing to make significant investments in India, anticipating outlays of up to $2 billion if production reaches 30,000 vehicles. During these plans, Elon Musk and Tesla faced a variety of difficulties, from labor disputes to lawsuits related to its Autopilot system, raising questions about the future of its stock in the market.
Huawei inspires Apple to enter the EV market
According to a Bloomberg report, Apple may be considering entering the electric vehicle market, taking inspiration from the successes of Chinese manufacturers Huawei and Xiaomi in this sector. Huawei has experienced considerable success in the Chinese electric vehicle market, with more than 80,000 orders following the launch of its car, while Xiaomi plans to launch its electric vehicle next year, after receiving approval from Chinese regulators. The distinct advantage of both companies lies in their extensive technology ecosystems, in contrast to EV makers such as Tesla and BYD, which focus on a single line of business. If Huawei and Xiaomi continue to be successful, this could motivate Apple to enter the electric vehicle market. Although analyst Dan Ives highlights the consistent demand for the iPhone in China, a drop in demand for some iPhone 15 models is also noted, while for specialists Apple shares maintain a “strong buy” rating.