European AI chipmaker Axelera AI recently secured over $250 million in Series B funding, bringing its total capital raised to more than $450 million since 2021. This round, led by Innovation Industries with new investors like BlackRock, will fuel global commercial growth and the development of next-generation AI platforms. Axelera AI plans to increase production of its 'Europa' chip, set for launch before June, focusing on energy-efficient edge AI inference for industrial settings to reduce reliance on large data centers.
Meanwhile, Nvidia continues to play a central role, having partnered with Meta Platforms to supply millions of advanced AI chips for infrastructure. However, major hyperscalers such as Google, Amazon, and Microsoft are increasingly investing in developing their own custom silicon. While these companies still rely heavily on Nvidia's GPUs for extensive AI workloads, their in-house chip efforts could influence Nvidia's long-term market share and growth, a key point of focus for investors ahead of Nvidia's Q4 earnings report.
The broader AI hardware market shows varied trends. TSMC's stock is performing strongly, benefiting from increased AI demand as a foundry for chip designers. Samsung Electronics is also boosting its cloud role, mass producing HBM4 DRAM for AI and data centers, and collaborating on encrypted AI hardware using its 8nm foundry process. In contrast, Hong Kong stocks, including tech giants like Baidu and Tencent, saw declines due to AI-related concerns, while mainland China markets experienced gains, with AI companies Zhipu AI and MiniMax surging.
The software sector is experiencing a mixed impact from AI. Software stocks have rebounded significantly due to new partnerships with AI startup Anthropic, easing investor concerns about disruption and opening new revenue streams. However, companies like Workday have seen their stock plunge amid fears of AI disruption. Hamza Lemssouguer of Arini Capital warns that market overreaction to AI fears is increasing borrowing costs for the debt-laden software sector, potentially leading to defaults. Despite this, Zscaler is considered a strong buy, expanding rapidly in AI-agent security.
Beyond hardware and software, the AI Trading Platform market has reached an all-time high, with major financial institutions like Goldman Sachs, Morgan Stanley, and JPMorgan Chase actively involved. These platforms leverage artificial intelligence to analyze markets and execute trades with enhanced speed and accuracy. North America leads this market, while the Asia-Pacific region shows the fastest growth, driven by market volatility and the demand for data-driven decisions across stock, forex, and cryptocurrency trading.
Key Takeaways
- Axelera AI, a European AI chipmaker, raised over $250 million in Series B funding, totaling over $450 million since 2021, with BlackRock as a lead investor.
- Axelera AI's funds will support global growth and production of its 'Europa' chip for energy-efficient edge AI inference, aiming to reduce data center reliance.
- Nvidia partnered with Meta Platforms to supply millions of advanced AI chips for infrastructure.
- Hyperscalers like Google, Amazon, and Microsoft are developing custom AI silicon, potentially impacting Nvidia's long-term market share despite continued reliance on its GPUs.
- TSMC's stock is strong due to increased AI demand, while Samsung is mass producing HBM4 DRAM and developing encrypted AI hardware.
- Hong Kong tech stocks, including Baidu and Tencent, declined on AI worries, contrasting with gains in mainland China AI companies like Zhipu AI and MiniMax.
- Software stocks rebounded with partnerships involving AI startup Anthropic, easing disruption fears and creating new revenue streams.
- Workday's stock plunged due to AI disruption concerns, and Arini Capital warns that AI fears are increasing borrowing costs for the software sector.
- Zscaler is expanding rapidly in AI-agent security and is considered a strong buy due to its cloud security data moat.
- The AI Trading Platform market reached an all-time high, with major institutions like Goldman Sachs and JPMorgan Chase utilizing AI for market analysis and trade execution.
Axelera AI Raises Over $250 Million for Global AI Hardware Expansion
Axelera AI, a European leader in AI acceleration hardware, has secured over $250 million in Series B funding. The round was led by Innovation Industries and included new investors like BlackRock and SiteGround Capital. This funding will support Axelera AI's global commercial growth and the development of its next-generation AI platforms. The company aims to expand its sales and marketing internationally and enhance its product offerings to meet the rising demand for efficient AI solutions. This investment highlights strong investor confidence in Axelera AI's technology to improve AI hardware performance, power efficiency, and cost.
European AI Chip Startup Axelera Secures $250 Million
Axelera AI, a European company specializing in AI chips, has raised $250 million in a funding round led by Innovation Industries. New investors include BlackRock and SiteGround Capital. The company plans to use the funds to increase production of its 'Europa' chip, set for launch before June, and improve its customer software. Axelera AI focuses on energy-efficient chips for running AI models in industrial settings, not for training them. Since its founding in 2021, the company has raised over $450 million.
BlackRock Invests $250 Million in Dutch AI Chipmaker Axelera AI
Dutch chipmaker Axelera AI has raised over $250 million, with BlackRock Inc. among the lead investors. The company develops power-efficient semiconductors for running trained AI models, focusing on 'edge' applications. These chips aim to reduce reliance on large data centers. While Nvidia's chips are dominant, the inference market is growing rapidly. Axelera AI has secured over $450 million in total funding since 2021 and has seen its customer base triple in the past year. The company's CEO noted increasing opportunities requiring investment.
Axelera AI Raises $250 Million for Edge AI Hardware
Axelera AI, an Edge AI hardware startup, has raised over $250 million in a funding round led by Innovation Industries, with participation from BlackRock and SiteGround Capital. This brings the company's total funding to $450 million since 2021. The funds will scale manufacturing, expand customer networks, and advance software tools. Axelera AI claims this is the largest investment ever in a European AI semiconductor company. Their chips are designed for efficiency and local data processing in edge applications, addressing power and bandwidth constraints.
Investors Watch Nvidia Amid Hyperscaler In-House Chip Plans
Nvidia announced a major AI infrastructure partnership with Meta Platforms, supplying millions of advanced AI chips. Investors are closely monitoring how hyperscalers' in-house chip development impacts Nvidia's future demand. Despite developing custom silicon, companies like Google, Amazon, and Microsoft still rely on Nvidia's GPUs for their extensive AI workloads and ecosystem. While in-house chips aim for cost and efficiency, they often lack the flexibility of Nvidia's established platform. This trend could affect Nvidia's long-term market share and growth.
Nvidia's Q4 Earnings Crucial for AI Market Confidence
Nvidia's upcoming Q4 earnings report is critical for assessing the AI hardware market's health. Analysts expect strong revenue, driven by demand for AI accelerators from cloud providers. However, investor sentiment is shifting, focusing on the sustainability of this growth. Major companies like Meta, Google, and Microsoft are increasing investment in custom silicon, potentially impacting Nvidia's future sales. The market will closely watch Nvidia's guidance, competitive strategy, and supply chain commentary for signs of continued AI spending momentum.
Hong Kong Stocks Fall on AI Worries; China Markets Rise
Hong Kong stocks declined, led by technology companies like Semiconductor Manufacturing International Corp, Baidu, Alibaba, and Tencent, due to AI-related concerns. The Hang Seng Index dropped significantly. In contrast, mainland China markets, including the CSI 300 and Shanghai Composite, saw gains. AI companies Zhipu AI and MiniMax surged following positive brokerage reports on large language model adoption. Property developer Henderson Land and PC maker Lenovo Group also saw gains. US markets experienced a decline overnight.
TSMC Stock Soars Amid AI Demand, Options Data Shows Bullish Trend
Taiwan Semiconductor Manufacturing Company (TSMC) stock is performing strongly, unaffected by AI bubble fears. As a foundry, TSMC manufactures chips for other designers, benefiting from increased AI demand. Options market data suggests a bullish outlook, with a discount in the 25-delta skew indicating potential for stock price increases. Implied volatility suggests a modest risk of downside, making call options potentially attractive. The expected trading range for TSM stock by March 20 is between $341.17 and $399.91.
Samsung Boosts Cloud Role with HBM4 and Encrypted AI Hardware
Samsung Electronics has begun mass production and shipping of its HBM4 DRAM, designed for AI and data center workloads. The company is also collaborating with SEMIFIVE and Niobium to create encrypted AI hardware using Samsung's 8nm foundry process for enhanced cloud security. Additionally, Samsung is joining Applied Materials' $5 billion EPIC Center in Silicon Valley to develop future chip technologies. These moves position Samsung strongly in critical AI and cloud hardware supply chains, from memory to specialized accelerators.
Software Stocks Rebound on Anthropic AI Partnerships
Software stocks have experienced a significant rebound, boosted by new partnerships with AI startup Anthropic. These collaborations are easing investor concerns about AI disrupting the software industry. Major software companies are integrating Anthropic's AI capabilities to enhance their products and services, potentially opening new revenue streams. The market views these AI partnerships as opportunities for growth and innovation, with Anthropic's focus on AI safety providing reassurance. This trend suggests growing optimism about the software industry's adaptation to AI.
Workday Stock Plunges Amid AI Disruption Fears
Workday's stock price has fallen sharply due to concerns about potential disruption from artificial intelligence. While the broader S&P 500 index is showing positive earnings growth, specific companies are facing market pressure related to AI's impact. Other companies like Lucid and HP also experienced stock declines following their quarterly reports. The market is closely watching how AI developments affect various sectors and company valuations.
AI Fear Alone Risks Software Defaults, Says Arini Capital Founder
Hamza Lemssouguer, founder of Arini Capital Management, warns that fear of AI disruption is increasing borrowing costs for software companies, potentially leading to defaults. He believes the market is overreacting, causing higher capital costs for these firms. The software sector, which holds significant debt, is facing increased scrutiny from lenders. Lemssouguer suggests that while private credit offers opportunities, its concentration in the software sector may be excessive and poses risks.
Zscaler Scales Zero Trust and AI Agent Security
Zscaler is considered a strong buy due to its robust data moat in cloud security and rapid expansion in AI and data security. Despite short-term pressures from acquisitions, the company benefits from high customer retention and dominant positioning in AI-agent security. Analysts believe Zscaler's sticky platform and upselling potential outweigh risks like competition and stock-based compensation. The company's long-term operating leverage and accelerating revenue growth are key investment highlights.
AI Trading Platform Market Hits Record High
The AI Trading Platform market has reached an all-time high, with major financial institutions like Goldman Sachs, Morgan Stanley, and JPMorgan Chase actively involved. These platforms use artificial intelligence to analyze markets and execute trades, enhancing speed and accuracy. Key types include algorithmic, quantitative, and crypto AI trading platforms, applied in stock, forex, and cryptocurrency trading. North America leads the market, while the Asia-Pacific region shows the fastest growth. Trends include AI-powered analytics and cloud-based platforms, driven by market volatility and the demand for data-driven decisions.
Sources
- Axelera AI Secures More Than $250 Million Funding on Global Commercial Growth
- European AI chip startup Axelera raises additional $250 million
- BlackRock Backs Dutch Chipmaker Axelera AI in $250 Million Round
- Axelera AI raises more than $250m to boost development of Edge AI hardware
- Investors Watch Nvidia AI Chips Amid Hyperscalers’ In‑House Chip Plans
- Nvidia’s Q4 results could make or break confidence in the AI hardware market
- Hong Kong stocks retreat on AI worries, China markets rally in Year of the Horse
- Taiwan Semi Stock Is Soaring Above AI Bubble Fears. Where Options Data Says It Is Headed Next.
- Samsung Taps HBM4 And Encrypted AI Hardware To Deepen Cloud Role
- Software stocks rebound as Anthropic partnerships ease AI disruption fears
- Earnings live: Workday stock plunges amid AI disruption concerns, Lucid falls on mixed quarter, HP tumbles
- Arini’s Lemssouguer Says AI Fear Alone Risks Software Defaults
- Zscaler Scales Zero Trust And AI Agent Security
- AI Trading Platform Market Reaches All-Time High | Goldman Sachs, Morgan Stanley, JPMorgan Chase
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