Apollo's Torsten Slok: We don't want a weak dollar, we want a weaker dollar
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Yahoo
27 minutes ago
- Yahoo
INTC: Intel Jumps on Reports of White House Investment in Ohio Factory
Aug 15 - Intel (NASDAQ:INTC) jumped more than 5% on Friday after reports suggested the Trump administration is in talks to take a stake in the company. The potential investment would support Intel's plan to build a massive semiconductor hub in Ohio, a project long touted as key to maintaining US leadership in high-end chip production. Warning! GuruFocus has detected 10 Warning Signs with INTC. Details of the stake and pricing remain under discussion, and Intel has not confirmed any deal. White House spokesman Kush Desai cautioned that talks remain hypothetical, while a company spokesperson highlighted Intel's commitment to supporting US technology and manufacturing initiatives. Tech analysts suggest such a move could offer Intel financial backing and strategic influence, helping the company catch up to rivals like Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD). Intel's market value has dropped to roughly $104 billion since 2020, underscoring the urgency for government support. Observers in the industry say the Ohio plant may end up being the largest ever chip manufacturing plant globally but progress is hampered by delays. According to analysts, such as David Nicholson and Austin Lyons, the strategic use of US manufactured semi-conductors entails high demands with Intel being in a leading position to gain competence in the international market. This article first appeared on GuruFocus.
UPI
27 minutes ago
- UPI
Applied Materials projects weaker semiconductor equipment revenue
1 of 2 | President Donald Trump (pictured during a meeting with Chancellor Friedrich Merz of Germany in the Oval Office at the White House in Washington, D.C., in June) has proposed a 100% tariff on semiconductors and possibly a 300% rate. U.S.-based Applied Materials' stock price slumped by double digits on Friday after the semiconductor equipment maker reported a projected decline in revenue amid tariff worries in China. File Photo by Chris Kleponis/UPI | License Photo Aug. 15 (UPI) -- Applied Materials' stock price slumped by double digits on Friday after the semiconductor equipment maker reported a projected decline in revenue amid tariff worries in China. On the Standard and Poor's 500 index, the company's stock decreased 11% at the opening bell and was trading at $162.09, down 13.87%, at 2 p.m. Entering trading, Applied Materials was up more than 15% for the year. The stock reached $199.29 on July 15 with the record $235.99 in April 2024. The company, based in Santa Clara, Calif., reported the sixth consecutive quarter of revenue growth, including $7.3 billion in the third quarter, but foresees a weaker situation in the next quarter. They initially projected $6.7 billion in revenue for the quarter. "We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing," Brice Hill, senior vice president and CFO at Applied Materials, said. "We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships." CEO Gary Dickerson, during an earnings call with analysts, said the current macroeconomic situation and trade issues have fueled "increasing uncertainty and lower visibility," mainly within its business in China. In addition, he said their forecast does not account for pending export license applications and a substantial backlog of products. Dickerson noted the easing of spending from customers, with Chinese clients cutting spending after increasing equipment manufacturing in the region. President Donald Trump has proposed a 100% tariff on semiconductors and possibly a 300% rate. Exempt companies would be those with manufacturing facilities in the United States. Applied Materials doesn't make chips, and instead supplies equipment, services and software used by the makers of the chips. The company's largest plant for logistics and logistics is in Austin, Texas. On Monday, Trump extended a tariff pause until Nov. 10 on products sent to the United States from China. Originally, he threatened 145% duty, but it was later lowered to 30% plus the baseline tariffs imposed on nearly all U.S. trading partners. The baseline remains in effect. In June, Trump announced a trade agreement with China over rare earth minerals. Under the deal, China would export rare earth minerals to the United States with both countries reducing their tariffs for 90 days. Rare earth minerals fuel energy sources for mobile devices and electric vehicles. Despite uncertainty, Applied Equipment in its report wrote that "we remain very confident in the longer-term growth opportunities for the semiconductor industry and Applied Materials. The company's adjusted earnings of $2.11 per quarter was short of the $2.39 expected by LSEG. Net income hit $1.78 billion, or $2.22 per share. One year ago, it was $1.71 billion, or $2.05 per share. The gross margin was 48.8% compared with 47.3% one year ago, and the operating margin was 30.6% vs. 28.7% in 2024. The company specializes in materials engineering solutions for semiconductors, flat panel displays and solar photovoltaic industries. The company's revenue in semiconductor equipment is No. 1 in the world, followed by the Dutch company ASML. Sales at all three Applied Materials units rose: Semiconductor Systems at $5.43 billion, Applied Global Services at $1.60 billion and and Display t a$263 million. The company's market capitalization is $151.06 billion. It was founded in 1967 as a startup.
Chicago Tribune
28 minutes ago
- Chicago Tribune
Letters to the Editor: Only smart move is for Naperville to extend IMEA contract; Trump's tariffs on India amount to bullying a friend
The Naperville City Council is facing a critical deadline Tuesday when it must decide whether to renew or reject a contract extension with the Illinois Municipal Electricity Agency to be the city's energy supply for another 20 years. IMEA is the nonprofit organization with which Naperville and 31 other communities have partnered for many years. If the amended contract is ratified, Naperville will secure a stable and affordable electric supply for future years. If rejected, it will be necessary for the city to purchase electricity on the open market from companies driven by profit. This will undoubtedly result in significantly higher prices, especially if only zero carbon options are chosen. The rush to zero carbon premium energy is shortsighted because IMEA power plants will continue to operate for the community members that renew the contract. IMEA opponents will not shut down the coal power plants but they will burden Naperville with runaway electric costs. Naperville also will forfeit the accumulated power plant bond payments estimated at $650 million to date and give up the reduced electric rates that will result from the construction bonds paid off by 2035. A provision option tied to the extended contract allows Naperville to utilize the Member Directed Resource (MDR) to purchase 26% of its energy from zero carbon suppliers. In addition, this provision can be 'moved forward' immediately into the current contract. This is an opportunity to supplement the current energy profile with 26% of zero carbon sourcing. The uncertainty of green energy capacity, rising electric demand due to expanding AI centers and higher projected green energy costs create a very volatile market. This can all be avoided by re-signing with the IMEA, an action that will keep costs stable, provide a consistent electric supply and avoid spot market chaos by dealing with power marketers offering profit-motivated electric supply options. I encourage the Naperville City Council to approve the IMEA contract extension so we can maintain a reliable power grid and provide fiscally responsible costs for residents while transitioning toward greener energy options.U.S. President Donald Trump's additional 25% tariff on India for buying Russian oil brings the total tariff amount to 50%. But the fact is the United States also did about $3.5 billion worth of trade with Russia in 2024. How is this not helping Russia fund its war in Ukraine? With Trump's tariffs, the price of generic medicines, clothes and food from India will increase in America. How will small businesses in both countries survive such high tariffs? Trump is not putting additional tariffs on China for buying Russian oil because he does not want to strain relations with China. Then why is Trump doing it with India? India and the U.S. have been allies since President George Washington's time. Trump has said that India is friends with the United States. So then why is he being a bully to India?
