Close menu




April 26th, 2022 | 12:15 CEST

Chip industry booming: What are Mercedes partners BrainChip, Nvidia and Infineon doing?

  • AI
  • Automotive
  • Chip industry
Photo credits: pixabay.com

Chip stocks are having a hard time at the moment, although the market is undersupplied and will probably remain so for some time. This was also highlighted by figures from semiconductor equipment supplier ASML. Orders at the world's largest supplier of lithography systems to semiconductor manufacturers were around EUR 7 billion in the first three months of 2022, well above market expectations. In addition, ASML has indicated targets through 2025. The Company intends to expand production capacities in view of the high demand. Mercedes partner BrainChip should also benefit from these positive industry prospects. And, of course, industry heavyweights such as Nvidia and Infineon.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: MERCEDES-BENZ GROUP AG | DE0007100000 , BRAINCHIP HOLDINGS LTD | AU000000BRN8 , INFINEON TECH.AG NA O.N. | DE0006231004 , NVIDIA CORP. DL-_001 | US67066G1040

Table of contents:


    Mercedes partner Brainchip with the next collaboration

    Probably one of the most exciting listed chip newcomers is BrainChip. The Australian technology company is working on solutions in the field of artificial intelligence and machine learning. The Akida chip is the Company's current flagship product. It is a neuromorphic processor. It is said to be very close to the workings of the brain and thus, in particular, very energy-efficient. BrainChip sees applications in autonomous driving, IoT devices, robotics, medical diagnostics and security technology. The Australians caused a sensation at the turn of the year when it became known that Akida is installed in the Concept car EQXX from Mercedes and, among other things, makes the "Hey, Mercedes" voice control up to ten times more efficient than conventional voice control. There were also reports of interest on the part of the US Air Force. As a result, the share price exploded to EUR 1.20. In the context of the general weakness on the stock markets, the price returned to EUR 0.60. Operationally, the Company continues to step on the gas.

    Most recently, BrainChip reported a cooperation with nViso SA. The Swiss company says its technology is the only one capable of analyzing human behavior signals such as facial expressions, emotions, identity, head posture, gaze, gestures, activities and objects with which users interact. In robotics and vehicle applications, human behavior analysis detects the user's emotional state to provide personalized, adaptive, interactive and safe devices and systems. This technology will be integrated into BrainChip's Akida processors. The partners see initial applications in the area of robots and surveillance systems. BrainChip CEO Sean Hehir said, "nViso's AI systems for analyzing human behavior offer fascinating possibilities in homes, cars, buildings, hospitals and more. We are excited to support these capabilities with BrainChip's processing power and energy efficiency." This may not have been the last interesting news from BrainChip this year.

    Nvidia: Deutsche Bank reduces price target

    Nvidia is one of the favorites of German investors. You can regularly find the stock in the top 5 most traded stocks. Not without reason. The technology company is involved with its chips in numerous megatrends such as gaming, autonomous driving and metaverse. Like BrainChip, Nvidia is also cooperating with Mercedes. For example, Mercedes will work with Nvidia to offer software packages for automated driving functions starting in 2024. In the process, the US-based company will earn money both from the sale of hardware and from a revenue share on software updates. The Nvidia share has not yet earned anything this year. It has lost around a quarter of its value so far, and analysts are skeptical at the moment. Most recently, Deutsche Bank had reduced the price target from USD 285 to USD 255. The assessment is still "hold". Nvidia is expected to publish quarterly figures at the end of May. Average analyst estimates are for quarterly earnings per share of USD 1.08 (source: Zacks Investment Research based on 10 analyst estimates). Last year, the Company earned USD 0.78 per share.

    Infineon: Analysts skeptical in the short term

    Infineon is one of the very few successful German chip manufacturers. But analysts are currently cautious about this share as well. Jefferies has confirmed the rating "Underperform". The price target is EUR 26. According to the analysts, things are going well in the industry and the figures of the European semiconductor companies in the first and second quarters are likely to exceed expectations. However, the potential for positive surprises in terms of gross margins is limited and the current semiconductor cycle is already well advanced. Therefore, the share prices of chip manufacturers are likely to remain under pressure. Barclays' price target for the Infineon share is somewhat higher. However, it was significantly reduced from EUR 45 to EUR 30. The rating remains "Equal Weight". In the long term, the Barclays analysts assess the prospects for the entire sector as positive. However, there could be a short-term downturn. Currently, the Infineon share is trading at around EUR 27.


    The chip industry is benefiting from an undersupply and long-term megatrends such as autonomous driving. Nvidia and Infineon will also benefit from this. A real hot stock is BrainChip. Partners like Mercedes show that the Australians are on the right track.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by Carsten Mainitz on September 22nd, 2022 | 10:25 CEST

    Moderna, BrainChip Holdings, Infineon - And the winner is?

    • chips
    • AI
    • Technology

    For many years now, the Boston Consulting Group (BCG) has been selecting the 50 most innovative companies in the world. A few days ago, the hit list was published for the sixteenth time. The top ranks are occupied by Apple, Microsoft, Amazon, Alphabet and Tesla. German companies are only found with Siemens from rank 20. Innovations play an important role for investors because they enable competitive advantages, which sooner or later translates into rising share prices. But global companies are not always the only ones to be considered; it is often lucrative to look at the second tier.

    Read

    Commented by André Will-Laudien on September 7th, 2022 | 13:41 CEST

    Artificial intelligence shopping with these stocks: Infineon, BrainChip, Porsche, VW

    • chips
    • AI
    • Electromobility

    It is hard to imagine tomorrow's high-tech applications without them: small, miniaturized chips that take over the intelligent control of our modern appliances. These nimble marvels must not only perform their programmed tasks but also save power and space. Engineering centers worldwide are trying to develop chips that learn from exogenous influences, i.e. that detect their environment through speech recognition or corresponding sensor technology, evaluate states and develop reaction categories. For example, if an object the size of a ball rolls from the right edge of the road across the center of the lane, such systems are supposed to trigger braking with the help of optics and sensor technology. Bravo if it works - where are the opportunities in the current stock downturn?

    Read

    Commented by Armin Schulz on August 8th, 2022 | 12:45 CEST

    Infineon, BrainChip, Nvidia - Chip shortage will continue in 2022

    • AI
    • Technology
    • Digitization
    • chips

    The chip shortage is not only omnipresent in the automotive industry. Most recently, AOK was no longer able to issue electronic health cards to its policyholders because the chips were missing. According to McKinsey, the semiconductor industry is expected to grow by 6-8% annually until 2030. Nancy Pelosi's visit to Taiwan could further fuel the chip crisis in the future. It is important to know that the island nation produces about two-thirds of all microchips needed worldwide. There is a latent danger that China will want to annex Taiwan. The USA is already trying to make itself less dependent on Asia. To that end, a USD 369 billion semiconductor manufacturing stimulus bill has been passed by Congress. Today we look at three companies that will benefit from the investment.

    Read