January 28th, 2022 | 11:15 CET
Infineon, BrainChip, Advanced Micro Devices - Winners of the chip boom!
Table of contents:
Infineon Technologies AG - Good figures on the way?
Infineon Technologies AG, created with the spin-off of the Siemens Group's semiconductor division, is the only German chip manufacturer to make it into the current top ten list of the world's largest chip manufacturers. The Company is the global market leader in the production of semiconductors for the automotive industry and in power semiconductors, which are used to control large currents primarily in industry.
After its direct competitor Texas Instruments was able to present a strong outlook a few days ago, and the decision on an interest rate hike by the US Federal Reserve was postponed until at least March, the Infineon share price, which had recently come under some pressure again after a strong run in the fall of 2021, was also able to recover. Investors are now eagerly awaiting February 3. On this day, the Munich-based Company will present its figures for the December quarter. This is also the first quarter of the new 2021/2022 financial year.
Industry experts expect good figures but assume that the increases in the second half of the year will be even higher. The Company wants to have eliminated all of its supply bottlenecks by then. In the case of components sourced from third parties, distortions are expected to persist into next year. For investors, this is good news. The recent price declines, driven by general technology fatigue, offer a good entry opportunity.
BrainChip - New entry opportunity!
Forget Silicon Valley and turn your globe upside down. Then you will see where the music is currently playing in the field of artificial intelligence: in the land of kangaroos and koalas. BrainChip, one of the most exciting chip startups in recent history, is based here. With their development of a neuromorphic processor called Akida™, the Australians have certainly made a big splash that is electrifying investors.
The share price development has demonstrated this since the beginning of the year. The share price has almost tripled, particularly with the announcement that the Company has succeeded in obtaining another important patent - now already the eighth - for the protection of its processor design at the US Patent Office. The patent covers so-called Spiking Neural Networks (SNN), which mimic the functioning of the human brain by convolution of input information.
Since potential customers are already lining up (including car manufacturer Daimler and the US military), BrainChip is also having no trouble finding financing partners to further develop its processor. For example, earlier this year, the Company agreed on a capital call deal with its major shareholder LDA Capital, which allows them to call loans at short notice to ensure ongoing financing.
The chipmakers have collaborated with NaNose Medical to develop a portable SARS-CoV-2 virus testing device based on the Akida™ chip. It can detect viral load at a much earlier stage purely from breath and thus at a much lower viral load - more reliably and rapidly than a PCR test. This development alone could become a blockbuster product if commercialized quickly. Further information on the Company, which is currently valued at around AUD 2.8 billion, and its current developments, is expected at the International Investment Forum (IIF), which will open its virtual doors on February 17, 2022. For more information, visit www.ii-forum.com.
Advanced Micro Devices - Stock market star of recent years weakens
The share of the American chip manufacturer AMD has lost 24% since the beginning of the year. So what is going wrong with the former stock market darling? Three factors are coming together: 1. a general stock market fatigue, especially for technology stocks. 2. delays in acquiring the world's largest supplier of FPGA arrays (logic ICs) Xilinx. The deal was supposed to be completed by the end of 2021 to jointly tackle the data center market, which Intel has so far dominated. However, the Chinese government has yet to give its approval. 3. an anticipated decline in the traditional PC business, now that fewer people will be working from home again in the future. However, it should also be noted that AMD is not only active in the classic PC business but is also the supplier for the two most important gaming consoles, PlayStation 5 and Xbox Series X.
There has recently been some movement regarding the Xilinx deal. It is now expected to be completed by the end of the current quarter at the latest. Thus, investors are eagerly awaiting February 1, when AMD will present its figures for the full year 2021. We assume that these will be very good and see the current price level as an entry opportunity.
Chips are gold for the hips and good for the portfolio. If you pick the right ones. With a title like AMD, you cannot go wrong. The growth forecast is good. As the global market leader in the automotive sector, Infineon also offers opportunities because of the increasing electrification of mobility. The story of the current stock market darling BrainChip remains exciting. If the chip delivers what it promises, the shares will continue to have enormous potential.
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.
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