Palantir, Almonty Industries, Intel: The role of specialty metals and AI in the next generation of tech

Palantir CEO Alex Karp makes controversial comments about national security

The co-founder and CEO of Palantir Technologies, Alex Karp, caused a stir in a recent interview prior to a presentation on artificial intelligence. Karp speaks in drastic terms about his company's role in relation to military governments and national security. He emphasizes that Palantir has developed processes to make data and language models usable for governments. This expertise comes from working with the US government. "If you want to kill your adversary on the battlefield, you need a way of processing the raw resources," explains Karp.

Karp's statement on the US retaliation policy is particularly controversial: "Touch an American, and we will inflict pain on you for generations to come." Let's hope they are not carrying a pager.

Despite this martial rhetoric, Karp describes himself as an "unfortunate radical Democrat". He sees Palantir as well positioned, regardless of whether Donald Trump or Kamala Harris wins the 2024 presidential election.

Karp is confident about the future of Palantir and predicts that the Company's value could increase tenfold in the future. He sees the recent inclusion in the S&P 500 index as a vindication after years of criticism of the Company. The stock has risen 136% over the year.

Milestone for Almonty: Final tests pave way for processing plant in Sangdong

The Canadian mining company Almonty Industries has reached an important milestone on the road to full production at its Sangdong mine in South Korea. The test runs in the pilot plants to produce tungsten concentrate have been successfully completed.

The tests took place at two locations: in Portugal in September 2023 and the Sangdong mine in South Korea from July to August 2024. The Company has developed a special flotation technology that specifically addresses the unique characteristics of the Sangdong tungsten ore. The technology was the result of tireless laboratory and continuous process testing at the Korea Institute of Geoscience and Mineral Resources (KIGAM).

Further large-scale testing is required to scale up this process. This pilot plant testing phase is therefore a complete success in identifying potential challenges for the main plant. It also allows the on-site team to gain operational expertise before full-scale production. This will ensure the future reliability of production.

Tungsten is a versatile metal widely used in both the IT and defense industries. In IT, it is used for microchips, electrical contacts, and heat management, while in armaments, it is used for armour-piercing ammunition, rocket tips, and aviation alloys. Its unique properties, such as its high melting point, extreme hardness, high density and good electrical conductivity, make it an indispensable material for the development of powerful and resilient technologies in these areas. Both sectors are growing industries.

In Portugal, the Almonty team has consistently achieved concentrates of over 60% WO₃ with recoveries of around 82% from ore grades of around 0.45% WO₃. In Sangdong, despite lower ore quality, a yield of 86.3% was achieved. Lewis Black, CEO of Almonty, is pleased: "With the successful completion of the pilot phase, all preparations for process technology and plant performance have now been completed. After minor adjustments, we expect stable tungsten concentrate production in Sangdong in 2025."

All performance parameters have been achieved, and some have even been exceeded. In addition, optimization potential in the use of reagents has been identified. CEO Black emphasizes that the years of fine-tuning with the pilot plants in Korea and Portugal have paid off and will enable a smooth start-up of the main plant.

The Sangdong project will enable Almonty to become one of the world's leading tungsten producers outside of China. With the successful completion of the pilot phase, the start of production is now within reach.

Intel announces strategic realignment and partnership with AWS

Semiconductor giant Intel announced a strategic realignment following last week's important board meeting. The semiconductor company plans to increase capital efficiency in its foundry division, particularly in light of the upcoming launch of Intel 18A. The foundry business refers to the division of Intel that specializes in contract manufacturing of chips for other companies.

In this context, Intel announced an expanded strategic collaboration with Amazon Web Services (AWS). This partnership includes a co-investment in customized chip designs and a multi-year, multi-billion dollar framework agreement for products and wafers from Intel.

The Company is working hard to establish a more competitive cost structure and achieve the USD 10 billion savings target announced last month. This could be the reason for the halt in the settlement process in Magdeburg. A pause of about two years is being discussed. The German government has promised Intel around EUR 10 billion for the site. The groundbreaking ceremony should take place this year and create around 3,000 jobs. The investment is estimated at around EUR 30 billion and will likely depend on the next government in Germany - if it happens at all.

The collaboration with Amazon Web Services includes the promotion of US semiconductor production and the AI ecosystem in the US state of Ohio. Intel is sticking to its plans for a state-of-the-art chip manufacturing facility in New Albany. AWS plans to invest an additional USD 7.8 billion in expanding its data centers in central Ohio, on top of previous investments of USD 10.3 billion.

The time for corporate restructuring is running out. Intel could lose its third place in terms of sales to the South Korean chipmaker SK Hynix for the first time in the third quarter. According to market analyst Omdia, SK Hynix is expected to generate record sales of USD 12.8 billion in the period from July to September, overtaking Intel to become the third-largest chipmaker in the world.

Recent inclusion in the S&P 500 and projected growth potential make Palantir an interesting, if risky, investment. The aggressive rhetoric of CEO Alex Karp could attract investors looking for robust defense technologies, but it could also raise ethical concerns. For Almonty Industries, the successful completion of the pilot phase at the Sangdong mine is a significant milestone. With the prospect of becoming a leading tungsten producer outside of China, Almonty offers investors an interesting opportunity to benefit from the growing demand for strategic metals. Intel is at a critical stage in its realignment. The partnership with AWS and the focus on the foundry business show promising approaches to growth opportunities. However, the delays in the Magdeburg project and the possible loss of third place to SK Hynix indicate significant challenges. Investors should closely monitor the progress of cost reduction and technological development. Intel remains an important player in the semiconductor market but is under considerable pressure to maintain its competitive position.