Wed. Sep 27th, 2023
    Arm’s Successful IPO, Apple’s New iPhone, Qualcomm’s Deal with Apple, Oracle’s Disappointing Outlook, and Tesla’s Dojo Upgrade

    The past week was filled with major developments in the tech industry. Arm Holdings, the chip design unit of SoftBank, had a highly successful IPO in the US, with its valuation surpassing initial projections. Apple launched its new iPhone 15 models, including the Pro Max, which saw strong demand. Qualcomm secured a deal to provide high-end chips for Apple iPhones from 2024 to 2026. On the other hand, Oracle shares plunged after the company provided a weak outlook for the second quarter. Tesla experienced a surge in its stock price after receiving an upgrade from Morgan Stanley, who highlighted the potential of Tesla’s Dojo Supercomputer.

    The IPO of Arm Holdings, a unit of SoftBank, was highly oversubscribed, and its valuation exceeded projections. The listing attracted major investors, including Apple, Nvidia, and Alphabet. This IPO marked the end of Softbank’s attempt to sell Arm to Nvidia. The demand for Arm’s IPO was driven by growing optimism around the AI industry and the expected increase in chip demand.

    Apple’s launch of the iPhone 15 series garnered positive attention, with initial delivery times slipping into October for the Pro Max model, indicating strong demand. This is a welcome development for investors, who were concerned about overall iPhone demand, particularly in China. Reports suggest that Apple’s new iPhones have received positive reviews and are expected to perform well in the market.

    Qualcomm’s announcement of an agreement to provide high-end chips for Apple iPhones in the coming years lifted its stock price. This deal extends Qualcomm’s partnership with Apple and provides stability for its business. Analysts estimate that this agreement presents a significant opportunity for Qualcomm, amounting to around $9 billion per year.

    Oracle faced a significant decline in its stock price after providing a weak outlook for the second quarter. While the company’s first-quarter results beat expectations, investors were disappointed by the soft cloud outlook. Oracle attributed this to the accelerated transition of its Cerner unit to the cloud. Despite this setback, some analysts remain bullish on Oracle’s long-term prospects.

    Tesla experienced a 10% surge in its stock price following an upgrade from Morgan Stanley. The analysts praised Tesla’s Dojo Supercomputer and its potential to transform the company. They compared it to Amazon’s AWS, which significantly contributed to Amazon’s earnings. The Dojo Supercomputer could add up to $500 billion to Tesla’s enterprise value, according to Morgan Stanley.

    The tech industry has seen significant developments, from successful IPOs to new product launches and partnerships. These events shape the trajectory of these companies and have implications for the broader tech landscape.