By Toby Sterling and Nathan Vifflin AMSTERDAM, Jan 15 (Reuters) - ASML, the world's biggest maker of equipment used to manufacture computer chips, crossed $500 billion in ​market value for the first time on Thursday, after top customer ‌TSMC announced larger than expected capital spending plans to keep up with booming demand for artificial intelligence ‌chips. TSMC hiked its planned capital spending to between $52 billion and $56 billion in 2026, blowing past market expectations of $46 billion according ...

HONG KONG (AP) — The United States and Taiwan reached a trade deal Thursday that cuts tariffs on Taiwanese goods in exchange for $250 billion in new investments in the U.S. tech industry. The deal is the latest President Donald Trump has struck — such as those with the European Union and Japan — since he unveiled a sweeping tariff plan last April to address trade imbalances. Trump also has a one-year trade truce with China to stabilize ties with the world's second largest economy. Trump initially set th ...

HONG KONG (AP) — China’s trade surplus surged to a record of almost $1.2 trillion in 2025, the government said Wednesday, as exports to other countries made up for slowing shipments to the U.S. under President Donald Trump's onslaught of higher tariffs. China's exports rose 5.5% for the whole of last year to $3.77 trillion, customs data showed, as Chinese automakers and other manufacturers expanded into markets across the globe. Imports flatlined at $2.58 trillion. The 2024 trade surplus was over $992 bill ...

WASHINGTON (AP) — President Donald Trump on Friday ordered the unraveling of a $2.9 million computer chips deal that he concluded threatened U.S. security interests if the current owner, HieFo Corp., remained in control of the technology. The executive order cast a spotlight on a business deal that drew scant attention when it was announced in May 2024 during President Joe Biden's administration. The deal involved aerospace and defense specialist Emcore Corp. selling its computer chips and wafer fabricati ...

AI. Market records. Tariffs. Penguins. TACO.It's been a big year of economic shocks and surges as the international framework of global trade was shredded.In other major news, a company famous for making gaming PC chips became the world's most valuable, and Australia's key interest rate stuttered downwards then flatlined.George Tharenou, chief economist for Australia at investment bank UBS, was in New York during April's so-called "liberation day", when US President Donald Trump revealed a sweeping regime o ...

Asian stocks rose broadly on Thursday after computer chip maker Nvidia delivered stellar third-quarter earnings and fourth-quarter forecast and struck a confident tone about the durability of the artificial intelligence (AI) cycle.The dollar gained on diminished rate cut expectations and ahead of the release of the long-delayed September U.S. jobs report later in the day, originally scheduled for October 3.Gold ticked lower after a two-day gain while oil edged up slightly as investors weighed the fallout f ...

Core Insights - The company, which produces computer chips crucial for the artificial intelligence sector, reported a revenue increase to $57 billion in its recent quarter [1] Company Performance - Revenue for the recent quarter reached $57 billion, indicating strong demand driven by the AI boom [1]

Market Overview - Global shares have declined significantly, with benchmarks in Tokyo and Seoul dropping over 3% due to the impact of Nvidia and other AI-related stocks pulling U.S. markets lower [1][2] - The S&P 500 and Dow Jones Industrial Average futures are down 0.3%, reflecting concerns over high stock prices in the AI sector [2] Regional Market Performance - Asian markets experienced a downturn, with Japan's Nikkei 225 falling 3.2% to 48,702.98, and South Korea's Kospi dropping 3.3% to 3,953.62 [5][6] - Chinese markets also faced selling pressure, with Hong Kong's Hang Seng declining 1.7% and the Shanghai Composite slipping 0.8% [6] Key Company Movements - Nvidia's stock decreased by 1.8%, although it remains up nearly 40% year-to-date [7] - Other AI-related companies, such as Super Micro Computer, saw significant losses, with a 6.4% drop [7] - Major tech firms in Asia, including Samsung Electronics and TSMC, also reported declines, with Samsung down 2.8% and TSMC down 2.8% [5][6] Economic Indicators - The yield on 30-year Japanese government bonds surged to 3.31%, indicating rising risks associated with government spending and national debt management [4] - Anticipation of U.S. employment data release is affecting market sentiment, with potential implications for Federal Reserve interest rate decisions [3][10]

Group 1 - The European Union needs to incentivize investments in the semiconductor industry to maintain security and competitiveness against U.S. and Asian rivals [1][2] - SEMI Europe has recommended that the EU Commission revise the 2023 Chips Act to attract 43 billion euros in investments for chip facilities [1][2] - The EU is expected to propose significant revisions in March, ahead of schedule, in what is referred to as Chips Act 2.0 [2] Group 2 - The focus should shift from attracting advanced manufacturing to supporting European supply chains and leveraging existing strengths in equipment manufacturing, such as ASML [3] - SEMI suggests removing the strict "first of a kind" criterion for state aid and establishing a single point of contact for project approvals [4] - A coalition of European governments has called for a Chips Act 2.0 that prioritizes the semiconductor sector and proposes a budget of 20 billion euros for chip projects, representing a quadrupling of current funding [5]

Core Insights - Nvidia is currently the leader in producing chips for artificial intelligence, with a stock price increase of 25,000% over the past decade and comprising 8% of the S&P 500 [2] - The demand for data centers is rapidly growing due to the need for housing the computers that run Nvidia's chips, benefiting related industries such as data center REITs and companies like Nucor and Eaton [6] - Electricity demand is projected to grow significantly, with a 55% increase expected between 2020 and 2040, driven in part by the expansion of AI infrastructure [12] Nvidia's Market Position - Nvidia's current price-to-earnings (P/E) ratio is approximately 55x, which is high compared to the S&P 500 average of 29x, suggesting it may be attractively priced relative to its historical valuation [3] - Despite its current dominance, Nvidia's leadership in the AI chip market is not guaranteed to last, as historical precedents show that industry leaders can be surpassed [4] Data Center Demand - The growth in AI is leading to increased demand for data centers, which are essential for housing the servers that run AI applications [6] - Companies involved in the construction and management of data centers are likely to benefit from this trend, indicating potential investment opportunities in this sector [6] Electricity Sector Opportunities - The demand for electricity is expected to rise alongside the growth of data centers, making investments in electric utilities a viable option [8] - Investors can consider exchange-traded funds (ETFs) like the Vanguard Utilities ETF and the Utilities Select Sector SPDR ETF to capitalize on the increasing electricity demand [9][12] - Both ETFs have similar expense ratios and dividend yields, making them attractive options for investors looking to gain exposure to the utility sector [11]