Chip sector shares rise significantly after Microsoft’s announcement to invest $80 billion in data centers and AI infrastructure in 2025, doubling its 2024 investment. Dutch chip machine manufacturers like ASML (+5.6%), ASM (+5.1%), and Besi (+3.5%) benefit from the expected demand for chip machines. Chip stocks rise globally. The investment drive of tech giants like Microsoft, Google, and Amazon fuels demand for advanced infrastructure, strongly stimulating the chip sector. (FD)

The new stock year has begun. This year offers many opportunities again. Big Tech companies, the “Magnificent 7”, continue to invest heavily in artificial intelligence (AI), with no change in sight. Market leader Nvidia launched several groundbreaking products at the CES technology fair in Las Vegas, running on their latest computer chips (Blackwell), which can extend battery life by 40%. Simultaneously, Advanced Micro Devices (AMD) sees opportunities to position itself as a strong alternative to Nvidia in 2025. Companies like Microsoft and Google continue to invest in developing their own AI chips, further sharpening competition in this market.

AI news also boosts shares of Dutch chip machine manufacturers

Quantum as the New Hype After AI, quantum technology appears to be the new hype on Wall Street, with companies like Rigetti (+1930%), D-Wave (+1000%), and IonQ (+248%) showing spectacular stock increases. Although development is still in its infancy, Google’s breakthrough with the Willow chip fuels optimism. Quantum computers promise enormous potential, especially in combination with AI, but are not yet commercially deployable. Valuations remain extremely high despite ongoing losses. Even companies with just “quantum” in their name, like Quantum Corporation, benefit from the euphoria. (FD)

Innovations and market breakthroughs mainly occur in the US, while the EU clearly lags behind and must follow.

It is therefore a good thing that we learned of the following collaboration with “Chip State” Arizona:

Netherlands Intensifies Ties with ‘Chip State’ Arizona January 7, 2025 – 11:42 | Current | Innovation & Transformation | ASM International

The Netherlands is taking semiconductor industry collaboration with the US to a higher level. Minister Dirk Beljaarts (Economic Affairs) has concluded an agreement with Katie Hobbs, governor of the American state of Arizona.

The collaboration focuses on innovations, talent development, and bringing products and services to market in this industry. Several Dutch chip companies are established in Arizona.

ASM, the Dutch multinational supplier of production machines for the semiconductor industry, previously known as ASM International, is significantly expanding its operations in Arizona. This involves three hundred million dollars. Eventually, 1,300 people are expected to work there.

The minister also opened a Netherlands Business Support Office (NBSO) in Phoenix, Arizona. The goal of this trade office is to structurally support Dutch companies wanting to do business in Silicon Desert, the region around Phoenix and Scottsdale. The basis for the enhanced collaboration was laid in 2023 during the visit to the American state by then-Prime Minister Rutte and Minister Adriaansens.

Market Value Market Leaders in ICT Sector The so-called “Magnificent 7”, namely Nvidia, Apple, Microsoft, Amazon, Alphabet (Google), META, TESLA, have performed financially very well last year and have consequently risen enormously in market value.

The value increases in Billions of US dollars can be read from the chart below.

They can therefore go shopping in Europe and Asia, together with US private equity firms that are also cash-loaded.

Difficult Year 2024 for Private Equity in Europe to Sell Companies Private equity parties found it challenging to sell companies in 2024. This impacted returns. Nearly half of the planned sales of small companies failed or were postponed. Causes for difficult sales included inflation, higher interest rates, and global political tensions. This makes buyers hesitant. It remains difficult to obtain financing for acquisitions. Private equity was therefore forced to hold companies in their portfolio longer. (FD)

Euronext Wants One European Exchange Europe must compete with Wall Street. This can be achieved with one European exchange, which will look much more like its American counterpart. This is what the new CEO of Euronext Amsterdam advocates for. European stock liquidity must increase. This difference in tradability causes higher valuations in the US. Europe must then distinguish itself in terms of sustainability. While European rules are strict and complex, Van Vlerken sees no option to relax them to attract more capital from the US.

Investors Captivated by Trump Geopolitical and economic prospects are strongly influenced by Donald Trump’s return as US president. He is expected to continue tax cuts and take trade measures without Congressional approval, which could cause tensions with China. Meanwhile, stock markets remain optimistic, especially in the US, thanks to corporate and AI innovations. At the interest rate level, analysts predict stronger reductions by central banks, both in the US and Europe. In crypto markets, Bitcoin is being overtaken by other currencies like Ethereum, partly due to a crypto-friendly policy. The dollar remains strong due to American stimulus policy, while the euro is weaker because of economic challenges and potential US import tariffs. (Telegraaf)

Meta Wants to Monitor Less Colored in EU Following the US, Meta wants to stop using fact-checkers in the EU due to alleged political bias and switch to community notes, where users correct posts. This model may not comply with the European Digital Services Act, which requires platforms to limit systemic risks like fake news and hate speech. Although EU platforms have some freedom of choice, the new policy must be effective and pass a risk analysis. Community notes seem less successful, given the increase in ‘hate speech’ on X. Non-compliance could result in substantial fines or an EU ban for Meta. (FD)