Close menu




December 15th, 2021 | 12:30 CET

Infineon, Nevada Copper, Nvidia - The high-tech industry in the copper trap!

  • Copper
Photo credits: pixabay.com

Copper is an essential metal for the high-tech industry because of its extreme conductivity. Since 2019, there has already been a supply deficit, and from 2020 to 2021, the price has increased fivefold. A study on copper commissioned by the International Copper Association (ICA) shows that by 2030, more than 250,000 tons of copper per year will be used as part of the windings in electric traction motors in electric vehicles on the road. The increase in copper demand follows the development of the global automotive market, as electric and plug-in hybrid cars will account for around 19% of the total market by 2030. How is the gap closing?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: INFINEON TECH.AG NA O.N. | DE0006231004 , NEVADA COPPER CORP. | CA64128F7039 , NVIDIA CORP. DL-_001 | US67066G1040

Table of contents:


    Ryan McDermott, CEO, Phoenix Copper
    "[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper

    Full interview

     

    Nevada Copper - Things are looking up at Pumpkin Hollow

    Nevada Copper is a Canadian copper producer and owner of the Pumpkin Hollow copper project in Nevada. Pumpkin Hollow has significant reserves and resources primarily in copper, gold and silver. The two fully-permitted projects include a high-grade underground mine and associated processing plant, which are now in production. Furthermore, management is completing a mega open pit project that is moving towards a feasibility study with new drilling in 2022.

    Nevada Copper today provided an operational update and overview of milestones achieved at the Pumpkin Hollow underground mine in the second half of 2021. The Company worked hard to accelerate the operational ramp-up and the mining rate. Management systems were completely rebuilt in the second half of 2021 and are now operating very efficiently. Productivity increased 31% between October and November, from 1.75 to 2.29 feet per person shift, resulting in significant improvements in operational efficiency and cost reductions. By December, development rates were 50% higher than in August. The mill operation has delivered a 90% yield throughout 2021, with batch processing reaching the 4,700 tons per day mark. All underground ventilation infrastructure was completed by summer.

    In November 2021, the Company completed a CAD 125 million public share offering, with a significant portion of the funds provided by select mining sector companies and institutional investors. Long-term debt will be reduced by approximately 30% in the current Q4 2021. Energy supply is also expected to shift to sustainable operations, as Pumpkin Hollow has sufficient sun and land to implement a large solar project. It could reduce Scope 1 carbon emissions by about 10% of estimated total emissions over the life of the mine. The Company news is reading well right now.

    Nevada Copper's stock has lost some ground after the hefty capital raise. After the rollback in the summer, the share now stands at CAD 0.56. That corresponds to a market capitalization of CAD 250 million. An entry at this level should already pay off next year.

    Infineon - The national ID card for Vietnam

    The COVID pandemic has put a lot of pressure on international chip manufacturers and high-tech operations. Infineon recently even had to slightly lower its sales forecast because the shortage of raw materials leads to production bottlenecks. However, the order situation remains sound. The German chipmaker has signed a collaboration with MK Group to produce electronic ID cards with special functions in Vietnam.

    These new super ID cards have special security chips that make a fully electronic ID card possible and will be used in the future to identify citizens in Vietnam. The government is introducing these ID cards to provide online government services. The aim is to avoid long waiting times and queues at government offices in the future. Security chips and a new operating system will ensure that the electronic ID card with its biometric data and digital signatures is better protected. Users will also use this card for authentication at public authorities and banks. Infineon is supplying the corresponding semiconductors and security controllers based on 40-nm security chip technology.

    Major Swiss bank UBS recently raised its price target for Infineon from EUR 45 to 49 and left its rating at "buy." "Looking ahead to 2022, the semiconductor group's stock remains a preferred sector stock," wrote analyst Francois-Xavier Bouvignies. However, concerns about future growth are spreading, as Infineon shares have not risen since November. Chart-wise, investors should therefore stop stocks at EUR 39.50, as a drop below the late summer breakout line at around EUR 37.50 is imminent.

    Nvidia - With special AI for digitization and augmented reality

    Nvidia is an endurance runner when it comes to digitalization and artificial intelligence. Digitalization is joined by the enormous development field of the "Metaverse". For those who have not yet dealt with it: By definition, this refers to a collective virtual space created by the convergence of virtually augmented physical reality and physically persistent virtual space. A classic example of the first kind of "metaverse" is creating an artificial world in which one can customize one's avatar and move around freely, as illustrated very well in the game "Roblox". The second type is called augmented reality. Here, the actual reality is extended by additional knowledge.

    High computing power is needed for the aforementioned "Metaverse" because huge digital worlds are created there, and that is where Nvidia comes in with its products. The Company's high-performance GPUs and CPUs are in broad demand, especially in combination with the high investments of Microsoft, Amazon and Alphabet in the new virtual worlds.

    The protagonists in the race for this huge market are Facebook or Meta, Epic, Roblox and Microsoft. Nvidia's stock last soared to nearly USD 900, then split 1-for-3. In terms of market capitalization, it now weighs in at just under USD 700 billion. The chart is now interesting after the first 15% correction because the next holding line can only be seen at around USD 228. Nvidia is, therefore, only worth a long speculation in the very long term.


    High-tech industries need copper. However, it is scarce and expensive. For Infineon and Nvidia, the technical trend is already battered, and the uptrends could turn in the very short term. Nevada Copper offers a long-term opportunity as a new copper player in the commodity market.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by Juliane Zielonka on August 18th, 2023 | 08:00 CEST

    Globex Mining, Deutsche Lufthansa, Rheinmetall: Share prices soar on the back of impressive deals

    • Mining
    • Gold
    • Copper
    • Aviation
    • armaments

    Globex Mining achieves several deal highlights: The exploration company receives CAD 2 million in cash from Agnico Eagle for a land purchase, with further opportunity for a growing asset. Over 23 months, an additional CAD 6 million is expected to flow to Globex Mining. Then follows an option agreement with Tomagold Corporation on a Canadian gold property at Gwillin Lake near Quebec. Total payments of six figures are due over the next four years. In addition, shares in Tomagold will be transferred to Globex Mining. While German Foreign Minister Baerbock was more conspicuous for flight mishaps, the Lufthansa Group achieved an adjusted EBIT of around EUR 1.1 billion in Q2/23. The subsidiaries SWISS, Austrian Airlines, Brussels Airlines, Eurowings and Lufthansa Technik also posted record results. Furthermore, Rheinmetall is also taking to the skies - now supplying drones to Ukraine.

    Read

    Commented by Fabian Lorenz on July 14th, 2023 | 07:50 CEST

    Bulls at the controls: Nel, Barrick Gold, Viva Gold! What about BASF?

    • Mining
    • Gold
    • chemicals
    • Copper

    Low inflation in the US has given new impetus to the bulls. Not only are growth stocks benefiting from the hope that the interest rate cycle is coming to an end, but also gold. Thus, the gold price reacted on Wednesday by jumping to over USD 1,960 per troy ounce. Top-tier gold stocks such as Barrick also responded positively. Exploration companies have significant catch-up potential, including Viva Gold. The Company is favorably valued and has again reported positive drill results. The fact that the interest rate cycle is nearing its end is also evident in the chemical industry. Most recently, BASF issued a warning, and there are sell recommendations. On the other hand, there are buy recommendations for the Nel share.

    Read

    Commented by André Will-Laudien on June 6th, 2023 | 07:45 CEST

    Climate Crisis: Copper is the new oil! BYD, Orestone Mining, Ford, Nio - 100% acceleration in Greentech

    • Mining
    • Copper
    • Electromobility
    • GreenTech

    At the beginning of May, analysts at Bank of America declared a new "super cycle" for basic and raw materials. What they mean by this is that a whole series of important materials will be in great short supply for years. The prime example is the red metal copper. The price of the industrial metal has almost doubled in the past 12 months. It is currently quoted at around USD 8,350 per tonne, not far from the historic high of USD 10,750. During the pandemic, the metal briefly fell to USD 4,500. Currently, however, forecasts are once again pointing upwards. Bank of America expects the price to more than double again to around USD 18,000 in the next three years. We take a look at some hot stocks.

    Read