☕️ Chips down

US restrictions put US$5 billion of Nvidia AI chips in limbo

November 01, 2023

Good morning.

AI giant Nvidia Corp may need to cancel up to US$5 billion worth of advanced chip orders expected to ship out to China next year as it is forced to comply with new US government restrictions.

News of the move, which could stymie Chinese tech companies, saw Nivida’s stock fall about 5% to a five-month low. The chips were scheduled to be delivered to Alibaba, Baidu and ByteDance.

*Stock data as of the market close. Commodities and crypto data in USD.

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MARKET MOVERS

Market News: AustralianSuper has rejected an independent expert review which said Brookfield and EIG’s proposed $18.7 billion buyout of Origin Energy is ‘fair and reasonable’.

AustralianSuper said Origin’s long-term value is higher than stated by the independent expert report as Origin shares fell 0.4% on the news.

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THE QUICK SYNC

  • Tesla has won its first US trial over a potential manufacturing defect after its involvement in a fatal crash in which the driver used its Autopilot driver assistance system. (WSJ)

  • Red Bull heir Mark Mateschitz has received a €582 million payout after inheriting the Austria-based company from his late father last year. (Bloomberg)

  • Toyota will invest US$8 billion and add around 3,000 jobs at its EV battery manufacturing plant in North Carolina, bringing its total investment in the plant to around US$13.9 billion. (Reuters)

  • Warner Brothers and immersive tech company Cosm are preparing to allow sports fans to watch NHL and NBA games via “shared reality” in a dome filled with 8K screens. (CNBC)

  • Pfizer has announced US$5.6 billion in write-offs and US$3.5 billion in cost cuts for the third quarter due to weakening demand for its Covid antiviral drug Paxlovid and the Covid vaccine. (CNBC)

TRADING FLOOR

M&A:

  • InvoCare is going private with TPG Capital takeover approval. (Capital Brief)

  • Chris Ellison increases stake in Wildcat Resources to 18% in lithium share raid. (The Australian)

  • The number of bidders for Ballarat gold mine Balmaine Gold has sharpened to a handful from at least 25 earlier. (AFR)

  • The sale of prized Australian and New Zealand assets by Northwest Healthcare REIT could be on the horizon. (The Australian)

  • Treasury Wine Estates acquires DAOU Vineyards for $1.4bn, strengthening US luxury wine position. (Capital Brief)

  • UBS and Macquarie Capital lead an $825m rights issue for Treasury Wine Estates' DAOU acquisition. (AFR)

  • AustralianSuper and other shareholders oppose Origin Energy takeover bid, and demand higher offer above $10 per share. (Capital Brief)

  • Future Group acquires Guild Super Services with Series C funds to expand superannuation presence. (AFR)

  • TPG's $1.8bn acquisition of InvoCare receives shareholder approval, ending two decades of public listing. (AFR)

  • Vicinity reacquires 100% stake in Chatswood Chase Sydney from GIC. (SMH)

  • Fashion retailer Vine Apparel, up for sale via FTI Consulting, has attracted 16 potential buyers spanning trade, private equity and strategic buyers. (AFR)

Capital Markets:

  • IperionX secures $25m alongside US DoD grant, with major institutional investors' participation. (AFR)

  • Good Earth Dairy secures $4.4m grant for Australia's first camel milk processing facility ahead of ASX listing. (BNA)

VC:

  • Sydney's Leonardo Ai generates $1.6m in five months with image creation software. (AFR)

  • Greenhouse climate tech hub opens in Sydney's Salesforce Tower with $31m investment. (Startup Daily)

  • LaunchVic entices venture capital to Victoria with up to $300,000 backing. (Startup Daily)

Others:

  • X's valuation drops below half of Elon Musk's purchase price for Twitter. (Capital Brief)

  • Inghams' shares rise on strong profit and earnings guidance. (Capital Brief)

  • Eucalyptus experiences growing pains with $100m revenue in 15 months. (Capital Brief)

  • Hancock Prospecting reports $5bn profit for FY year, down 15.3% YoY. (Capital Brief)

  • Macquarie's financial services division trims adviser numbers in restructuring move due to cost management and performance concerns. (AFR)

  • Bundaberg Brewed Drinks expands with state-of-the-art facility, doubling capacity for soft drink production. (BNA)

  • EnergyAustralia faces court claim for 'Go Neutral' product's use of carbon credits. (Capital Brief)

  • ACCC underscores the importance of overseeing mergers in a changing economy, calling for mandatory powers to preserve competition and innovation. (AFR)

  • Local is set to embark on $360m BTR project as part of SKY SQR in Box Hill. (BNA)

  • Liontown's Kathleen Valley lithium project is over 50% completed with the production start date approaching. (Capital Brief)

  • Bruce Mathieson threatens EGM if Endeavour chairman doesn't resign after board battle. (SMH)

  • Macquarie analysts say all-cash rival offer from Antony Catalano could be better for Southern Cross Media shareholders. (The Australian)

THE WATERCOOLER