Latest news with #AIrevolution
Yahoo
6 hours ago
- Business
- Yahoo
UK chipmaker considers breakup as it is rocked by Trump's tariff assault
One of Britain's leading microchip businesses is racing to complete a $1bn (£740m) sale as it grapples with the impact of Donald Trump's trade war. Imagination Technologies, which designs graphics processor technology for customers such as Apple, has held sale talks with two US rivals. Bosses of the Chinese-owned company are also considering a potential break-up to get a deal over the line, which could include selling its valuable patent portfolio. It is understood that executives have put a $1bn price tag on Imagination, with bankers from Lazard overseeing the process. In a memo to staff, Ray Bingham, Imagination's chairman, said 'the Galway Project', which refers to the sale talks, 'continues to progress well'. The memo added: 'The second-to-none creativity and expertise of our teams is an incredible asset to capture the unique opportunity created by the current AI revolution.' It comes after the president's trade war with China has rocked the tech industry, including at UK-based Imagination. Pressure has arisen after the US introduced increasingly stringent sanctions on China's chip industry, as Mr Trump seeks to limit China's access to Western technology. This stems from fears that it could be used by Beijing's military. Imagination, which is based in Hertfordshire, was taken private by US-based investor Canyon Bridge in a £550m deal in 2017. However, the business was later engulfed in a political storm after Canyon Bridge's Chinese backers attempted an unsuccessful boardroom coup. This led to the departure of the then-chief executive, Ron Black, who blew the whistle on the Chinese effort to take control of the business. Last year, an employment tribunal ruled Imagination had unfairly sacked Mr Black, who had sued the company for £200m. Damages are yet to be determined. Canyon Bridge has been considering its options for Imagination for several years, at one stage exploring a Chinese float and then a US listing. According to its latest accounts for the year ending December 2023, Imagination's revenues increased by 3.6pc to £124.6m, although its profits plunged by 78pc to £2.6m. At the time, the company warned that 'US and UK export controls' on its Chinese customers had 'stymied top-line revenue growth'. As for its management, staff were told earlier this month that Simon Beresford-Wylie, the current chief executive, is preparing to leave the business. Didier Lamouche, a board member, will lead the business in the interim while it appoints a successor. A spokesman for Imagination declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. 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
Telegraph
8 hours ago
- Business
- Telegraph
UK chipmaker considers breakup as it is rocked by Trump's tariff assault
One of Britain's leading microchip businesses is racing to complete a $1bn (£740m) sale as it grapples with the impact of Donald Trump's trade war. Imagination Technologies, which designs graphics processor technology for customers such as Apple, has held sale talks with two US rivals. Bosses of the Chinese-owned company are also considering a potential break-up to get a deal over the line, which could include selling its valuable patent portfolio. It is understood that executives have put a $1bn price tag on Imagination, with bankers from Lazard overseeing the process. In a memo to staff, Ray Bingham, Imagination's chairman, said 'the Galway Project', which refers to the sale talks, 'continues to progress well'. The memo added: 'The second-to-none creativity and expertise of our teams is an incredible asset to capture the unique opportunity created by the current AI revolution.' It comes after the president's trade war with China has rocked the tech industry, including at UK-based Imagination. Pressure has arisen after the US introduced increasingly stringent sanctions on China's chip industry, as Mr Trump seeks to limit China's access to Western technology. This stems from fears that it could be used by Beijing's military. Imagination, which is based in Hertfordshire, was taken private by US-based investor Canyon Bridge in a £550m deal in 2017. However, the business was later engulfed in a political storm after Canyon Bridge's Chinese backers attempted an unsuccessful boardroom coup. This led to the departure of the then-chief executive, Ron Black, who blew the whistle on the Chinese effort to take control of the business. Last year, an employment tribunal ruled Imagination had unfairly sacked Mr Black, who had sued the company for £200m. Damages are yet to be determined. Canyon Bridge has been considering its options for Imagination for several years, at one stage exploring a Chinese float and then a US listing. According to its latest accounts for the year ending December 2023, Imagination's revenues increased by 3.6pc to £124.6m, although its profits plunged by 78pc to £2.6m. At the time, the company warned that 'US and UK export controls' on its Chinese customers had 'stymied top-line revenue growth'. As for its management, staff were told earlier this month that Simon Beresford-Wylie, the current chief executive, is preparing to leave the business. Didier Lamouche, a board member, will lead the business in the interim while it appoints a successor.
Yahoo
07-06-2025
- Business
- Yahoo
CEG, OKLO, and SMR Get Set to Power the AI Boom via Nuclear Energy
The nuclear energy sector is experiencing a resurgence unseen in decades, driven largely by its potential to power the burgeoning AI revolution. Major technology companies such as Meta (META), Microsoft (MSFT), and Alphabet (GOOGL) are competing to secure reliable energy sources for their expanding data centers, and nuclear power's clean, consistent output has positioned it as a key player in this race. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Leading this revival are three companies—Constellation Energy (CEG), Oklo (OKLO), and NuScale Power (SMR)—each bringing a distinct approach to the nuclear landscape. Over the past year, all three have outperformed the market, capturing investor attention amid rising energy demand. Constellation Energy is the 800-pound gorilla of U.S. nuclear power, and it's just landed a deal that's got everyone's attention. Just two days ago, CEG signed a 20-year power purchase agreement with Meta to deliver 1.1 gigawatts from its Clinton Clean Energy Center in Illinois, starting in 2027. This isn't an ordinary contract, but rather a lifeline for a plant that was on the verge of closure when its zero-emissions credits expire. The deal, which also boosts Clinton's output by 30 megawatts, underscores CEG's ability to secure tech giants. Microsoft is already on board with a Three Mile Island restart. What makes CEG a one-of-a-kind destination for tech titans is its scale. With 94 reactors across the U.S., they're a one-stop shop for tech companies chasing net-zero goals while powering AI workloads. Their shift away from co-located data center plans to grid-connected projects, as noted in last month's update, indicates they're adapting to regulatory hurdles, such as FERC's rejection of expanded co-location deals. Moreover, the Meta deal demonstrates that CEG can pivot and still secure massive contracts. Sure, their stock's run-up makes it a bit daunting to be bullish on today, but with AI data centers projected to eat up 9% of U.S. electricity by 2030, CEG's infrastructure could be a cash cow in waiting. Currently, most analysts are bullish on CEG stock. The stock features a Moderate Buy consensus rating based on eight Buy and five Hold ratings assigned in the past three months. No analyst rates the stock a sell. CEG's average stock price target of $319.45 implies ~10% upside over the next twelve months, despite shares having already rallied 30% year-to-date. Oklo, the newest entrant in the nuclear energy space and backed by OpenAI's Sam Altman, is focused on small modular reactors (SMRs)—compact, flexible power plants ideally suited for data centers. The company's stock has surged 440% over the past year, fueled by high-profile agreements such as its December deal with Switch to supply 12 gigawatts through 2044. Additionally, a recent memorandum with Korea Hydro & Nuclear Power to advance their 75-megawatt Aurora Powerhouse fast reactor has further accelerated momentum. While Oklo remains pre-revenue and is currently investing heavily in technology development, with commercial operations still several years away, its 'power-as-a-service' model—where the company builds, owns, and operates reactors—could revolutionize how data centers secure reliable power without significant upfront costs. Recent executive orders easing nuclear regulations have also provided a regulatory boost. However, significant risks remain, including ongoing R&D challenges and the high costs of scaling production. For investors who believe SMRs are key to powering the AI revolution, Oklo's long-term vision holds considerable promise. On Wall Street, Oklo stock carries a Moderate Buy consensus rating based on six Buy and three Hold ratings. No analyst rates the stock a sell. Oklo's average stock price target of $54.40 implies about 15% upside potential over the next twelve months. NuScale Power holds a distinct advantage as the first U.S. company to secure Nuclear Regulatory Commission (NRC) approval for its small modular reactor (SMR) design—the 77-megawatt VOYGR module. But the company isn't resting on this milestone; it is rapidly advancing a 2-gigawatt agreement with Standard Power to supply data centers in Pennsylvania and Ohio. Despite posting losses as it invests in expanding its supply chain, NuScale's Q1 report revealed an impressive 857% year-over-year revenue increase. The recent Meta-Constellation Energy deal also boosted NuScale's stock, signaling strong market confidence in its role in nuclear's resurgence. What distinguishes NuScale from its competitors is its pragmatic approach. Its light-water reactor technology is more established and less experimental than Oklo's fast reactors, making it a safer candidate for near-term deployment. However, supply chain constraints and complex project coordination remain significant challenges that could delay progress. Still, with tech giants like Google and Amazon entering SMR agreements, NuScale's first-mover advantage positions it well to meet growing energy demands. Its factory-built, modular design aligns perfectly with data centers' requirements for scalable, reliable power. NuScale Power is currently covered by eight Wall Street analysts, who generally hold a bullish outlook. The stock carries a Moderate Buy consensus rating, reflecting five Buy ratings, two Holds, and one Sell over the past three months. However, SMR's average price target of $27.42 suggests approximately 12% downside potential over the next twelve months. The resurgence of the nuclear sector is no coincidence, as the soaring energy demands of AI are reshaping the industry landscape. Constellation Energy (CEG) brings scale, Oklo (OKLO) leads with innovation, and NuScale Power (SMR) holds a regulatory advantage. Each faces its own challenges—CEG's stock trades at a premium valuation, Oklo is still managing significant cash burn, and NuScale navigates operational risks. Nevertheless, the potential upside is substantial. With tech giants committing to multi-gigawatt agreements and nuclear capacity projected to quadruple by 2050, these companies are at the forefront of a transformative energy revolution and merit close attention. 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CNN
30-05-2025
- Business
- CNN
Top three clicks: Headlines from the Middle East this week
Cristiano Ronaldo's future is in question after another record-breaking season, while Air Arabia becomes the first airline in the region to accept crypto payments. Meanwhile, Saudi Arabia is investing $10 billion to take the lead in the AI revolution.
CNN
30-05-2025
- Business
- CNN
Top three clicks: Headlines from the Middle East this week
Cristiano Ronaldo's future is in question after another record-breaking season, while Air Arabia becomes the first airline in the region to accept crypto payments. Meanwhile, Saudi Arabia is investing $10 billion to take the lead in the AI revolution.
