Trump's AI Plan to Boost Asia Data Center Projects, DayOne Says
The plan's increased clarity on chip shipment restrictions should help data center businesses in the region, said Jamie Khoo, chief executive officer of DayOne Data Centers Singapore Pte. That's a change from earlier in the year, when the US's intentions around export curbs created fear and discomfort in the industry, the head of the data-center operator said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Trump Threatens 100% Semiconductor Tariff—Why Chip Stocks Are Still Rising
Key Takeaways Chip stocks advanced Thursday after President Donald Trump said companies that commit to manufacturing in the U.S. will be exempt from 100% tariffs on imported semiconductors. Trump's announcement was light on details about how the tariffs and exemptions would work, but analysts expect clarity within the next week. Wall Street analysts were optimistic that the vast majority of chip designers and manufacturers would win exemptions from manufacturing commitments or by contracting with U.S.-based stocks rose on Thursday, the day after President Donald Trump said companies that manufacture in the U.S. or have committed to doing so will be exempt from 100% semiconductor tariffs. 'We'll be putting a tariff of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge,' Trump said during a White House press conference Wednesday afternoon. The tariffs were disclosed alongside Apple (AAPL) CEO Tim Cook, who appeared with Trump to announce plans to invest $100 billion in U.S. manufacturing, on top of the $500 billion committed earlier this year. President Trump's off-the-cuff announcement was light on details. For example, it was unclear whether existing commitments to manufacture in America would be sufficient, or if the president wants chipmakers to make new investments to win an exemption. It also remains unclear whether the tariffs and exemptions apply to electronics that contain semiconductors, or just the chips themselves, according to Jefferies analysts. "We await full details likely in the next week or so before jumping to any conclusions, as it has always been a bad move to extrapolate too much from Trump's words or social media post[s]," said Angelo Zino, senior vice president and equity analyst at CFRA Research. Nonetheless, investors seemed to think Wednesday's announcement removed a significant overhang for semiconductor stocks. The PHLX Semiconductor Index (SOX) was up 1.2% in recent trading. AI chip giants Nvidia (NVDA) and Broadcom (AVGO) were recently both up about 0.5%, though down from their earlier highs, while competitor Advanced Micro Devices (AMD) jumped 5%. Contract chip manufacturer Taiwan Semiconductor Manufacturing Co. (TSM) also advanced 5%, and manufacturing equipment maker Applied Materials (AMAT) rose more than 2%. Which Chipmakers Will Be Affected? 'From a high level, the 100% headline number seems intimidating, but in practice we expect a much lower impact,' wrote Bank of America Securities analysts in a note on Wednesday. U.S.-based companies with domestic manufacturing capacity, such as Intel (INTC), Micron (MU), and Texas Instruments (TXN), should not be affected by the tariffs, according to Citigroup analysts. And fabless chip designers, including giants Nvidia, AMD, Broadcom, and Qualcomm (QCOM), should also be able to avoid the tariffs by contracting with major foundries like TSMC, Samsung, and GlobalFoundries (GFS), all of which have U.S. manufacturing facilities. "If Taiwan Semi does get a full exemption ... it would bode well for the broader tech semiconductor/hardware ecosystem and our positive stance on the space," Zino of CFRA said. Even European semiconductor companies without a U.S. presence are expected to be spared the 100% levy. The EU-U.S. trade deal announced late last month capped semiconductor tariffs at 15% and guaranteed zero-for-zero tariffs for semiconductor equipment makers like Netherlands-based ASML (ASML). European Commission spokesperson Olof Gill on Thursday reportedly said the Trump administration had guaranteed that the 15% cap established by the trade deal would not be overwritten by other tariffs. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 minutes ago
- Yahoo
Trump Is Calling for Intel CEO Lip-Bu Tan to Resign. What Does That Mean for INTC Stock?
Intel (INTC) shares are down more than 3% today after the U.S. president demanded that Lip-Bu Tan – the company's chief executive – 'resign immediately.' According to President Donald Trump, Tan is 'highly CONFLICTED' and there is 'no other solution to this problem.' More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Including today's decline, Intel stock is down nearly 30% versus its year-to-date high set in February. Why Is Trump's Post Negative for Intel Stock? Investors are choosing caution on INTC shares this morning as the president's social media post highlights political and reputational risks tied to the company's leadership. An administrative demand for Tan to resign introduces meaningful uncertainty around corporate governance and strategic continuity. Labeling him as 'highly CONFLICTED' possibly due to ties with China-based businesses raises fears of national security scrutiny, especially amid heightened U.S.-China trade tensions. Earlier this week, Sen. Tom Cotton, R-Ark wrote a letter to the chairman of the Intel board of directors questioning these alleged ties, including to Cadence Design Systems (CDNS), which just plead guilty to violating U.S. export controls. All in all, Trump's comment signals potential regulatory pressure and leadership instability ahead, risks that may further hurt Intel stock in the second half of 2025. INTC Shares Continue to Face Challenges Trump's remarks add to a string of challenges facing Intel shares that made Seaport Global analysts maintained their 'Sell' rating on the semiconductor company last week. According to the investment firm, INTC stock isn't worth owning despite an attractive valuation since it may continue to lose market share to competitors like Advanced Micro Devices (AMD), particularly in high-performance computing and AI-driven workloads. Moreover, a recently announced NEX spinoff adds complexity to INTC's corporate structure. It's more of a defensive move than a growth catalyst, Seaport told clients in its latest research note. Wall Street Sees Significant Upside in Intel Despite several headwinds threatening Intel's stock price recovery, Wall Street hasn't really thrown in the towel on INTC shares yet. While the consensus rating on the semiconductor stock remains at 'Hold' only, the mean target of about $23 indicates potential upside of roughly 17% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Chicago Tribune
20 minutes ago
- Chicago Tribune
President Donald Trump's planned 100% computer chip tariff sparks confusion among businesses and trading partners
President Donald Trump's plans for 100% tariffs on computer chips that aren't made in the U.S. are stoking confusion among businesses and trading partners — boosting stocks for leading semiconductor companies while leaving smaller producers scrambling to understand the implications. 'We are still waiting for official guidance,' said Limor Fried, founder and engineer at Adafruit Industries, a small electronics maker in New York. Wall Street drifts as stock markets worldwide take Trump's new tariffs in strideThe chips that go into Adafruit's products come through U.S. sales and distribution companies as well as direct from companies in the Philippines and Taiwan. If those chips aren't exempt, 'it would increase the costs that go into our designs as the semiconductors are the most expensive component in our assemblies,' Fried said. 'For many of these tariffs, we often have to wait until we get a bill to know our exposure, and then we adjust our pricing to account for the increases.' The U.S. imports a relatively small number of chips because most of the foreign-made chips in a device — from an iPhone to a car — were already assembled into a product, or part of a product, before it landed in the country. 'The real question everybody in the industry is asking is whether there will be a component tariff, where the chips in a device would require some sort of separate tariff calculation,' said Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics. Trump said Wednesday that companies that 'made a commitment to build' in the U.S. would be spared the import tax, even if they are not yet producing those chips in American factories. 'We'll be putting a tariff of approximately 100% on chips and semiconductors,' Trump said in the Oval Office while meeting with Apple CEO Tim Cook. 'But if you're building in the United States of America, there's no charge.' Wall Street investors interpreted that as good news not just for U.S. companies like Intel and Nvidia, but also for the biggest Asian chipmakers like Samsung and Taiwan Semiconductor Manufacturing Company that have been working to build U.S. factories. But it left greater uncertainty for smaller chipmakers in Europe and Asia that have little exposure to the artificial intelligence boom but still make semiconductors inserted into essential products like cars or washing machines. These producers 'probably aren't large enough to get on the map for an exemption and quite probably wouldn't have the kind of excess capital and margins to be able to add investment at a large scale into the United States,' Chorzempa said. It's also not clear how the chip-specific tariffs would apply to trading partners that already made broader deals with Trump — such as agreements with the European Union, Japan and South Korea that tax most goods at 15%. The announcement came more than three months after Trump temporarily exempted most electronics from his administration's most onerous tariffs. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation. Chorzempa said chip tariffs could again raise prices by hundreds of dollars per vehicle if the semiconductors inside a car are not exempt. 'There's a chip that allows you to open and close the window,' Chorzempa said. 'There's a chip that is running the entertainment system. There is a chip that's kind of running all the electronics. There are chips, especially in EVs, that are doing power management, all that kind of stuff.' Much of the investment into building U.S. chip factories began with the bipartisan CHIPS and Science Act that President Joe Biden signed into law in 2022, providing more than $50 billion to support new computer chip plants, fund research and train workers for the industry. Trump has vocally opposed those financial incentives and taken a different approach, betting that the threat of dramatically higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for electronics.
