AnalytixInsight

Last week, Dow Jones was up just fractionally while S&P 500 rose 1.4%, moving above the key 5,000 level. Nasdaq gained 2.3%, briefly exceeding the 16,000 level. OpenAI’s CEO Sam Altman has spoken with investors about raising trillions of dollars to fund an effort to expand the world’s manufacturing capacity to make semiconductors for artificial intelligence. The effort could require US$5 trillion to US$7 trillion and a sprawling partnership between OpenAI, chipmakers, power providers and governments. China’s leading chip manufacturer, Semiconductor Manufacturing International Corporation, is setting up production lines outside Shanghai to manufacture even more advanced chips as soon as this year. The news comes despite U.S. efforts to prevent China from advancing its chipmaking abilities through sanctions and blacklists. Nvidia is in talks with Microsoft, Meta, Amazon to develop custom AI chips. Arm shares soared as much as 41% after the chip designer gave a strong forecast. Palantir stock jumped 19% as AI demand drove a revenue beat. OpenAI is developing a form of agent software to automate complex tasks by effectively taking over a customer’s device. Google launched its GPT-4 rival, Gemini Ultra, for US$20 a month. Disney’s ESPN, Warner Bros. Discovery and Fox Corp. have announced a new streaming joint venture in the U.S. that would put all of their sports programming on a single app. In Canada, Sophic Client UGE achieved commercial operation for a rooftop community solar project in Queens, New York. UGE had the Queens project appraised by a third party for a fair market value of US$3.20/watt, with a project total of US$1.2 million. With the completion of this project, UGE’s operating portfolio now stands at 5.6MW, with an additional 17.7MW of projects currently in the construction and deployment phase of development.

On the back of risks we highlighted last week, markets struggled mid week, as Fed chief Powell largely ruled out a March rate cut, and Google results weighed on tech stocks. That said, Dow Jones and S&P 500 rose 1.4% last week as both set record highs. Nasdaq gained 1.1% to close at a two year high driven by gains on Thursday and Friday owing to Meta and Amazon results. US venture capitalists are reportedly sitting on US$311 billion in unspent cash, as they shy away from risky bets on Silicon Valley start-ups and concentrate on finding ways to return capital to their own backers. Rubrik, the cybersecurity software startup that Microsoft invested in at a US$4 billion valuation in 2021, plans to go public in New York as early as April, as it handles a U.S. fraud investigation into one of its former employees. Internet discussion forum Reddit is targeting a valuation of at least US$5 billion in its upcoming initial public offering, about half the price at which it last raised funds privately. Sierra Space Corp. is making preliminary plans to go public and exploring possible acquisitions as the company drives toward debuting its long-awaited cargo spaceplane, potentially by the summer. Jeff Bezos could sell up to US$8.5 billion in Amazon stock in next year. A Delaware judge voided the US$56 billion compensation package of Tesla CEO Elon Musk. Tesla’s share price slid about 3% in after-hours trading following news of the decision. In Canada, Sophic Client Kraken was mentioned as a recent buy by PenderFund Capital Management. Sophic Client Renoworks and Eagleview announced a new all-in-one virtual 3d design and measurement tool for exterior contractors. Railtown AI announced a $2.5 million non-brokered private placement. Recent Canadian tech financings appear to have been well received by investors, which bodes well for the space. Exro will acquire California-based SEA Electric in a $332-million EV-tech deal.

Last week, Dow Jones rose 0.65%, S&P 500 gained 1.1% and Nasdaq composite was up 0.9%. Investors could now pause to see big earnings and economic news, including a Fed meeting this coming week. While Wall Street cheers on Silicon Valley, tech companies are downsizing at an accelerating clip. So far in January, some 23,670 workers have been laid off from 85 tech companies. Chipmaker Cerebras systems is weighing an IPO as soon as 2024. ASML shares closed at a record high after an earnings beat, and orders pop. Elon Musk’s xAI is in talks to raise US$6 billion. The FTC started an inquiry of AI Deals involving Microsoft, OpenAI, Google, Amazon, Anthropic. Google launched a generative AI tool for search ad buyers. Figma will offer new equity packages to employees at a price that values the company at US$10 billion, 50% lower than the US$20 billion Adobe was willing to pay for the design startup in a since-scuttled deal. Tesla shares fell 10% as a vague outlook disappointed Wall Street. Some Apple Vision Pro deliveries were pushed to April, and demand remains unclear. In Canada, we are optimistic that we are beginning to see increased capital flowing into small cap innovation after nearly three years. Sophic clients, Kraken Robotics, OneSoft Solutions, and Renoworks Software are at or near their 52 week highs. Kneat upsized its previously announced bought deal public offering to $17.4 million. MediaValet will be acquired in an all-cash transaction, at a premium of 30% and 22% to the Company’s closing price and 20-day volume-weighted average price, respectively. EMERGE signed a definitive agreement to sell WholesalePet for US$9.25 million, and plans a major debt reduction. New Sophic Capital client, ADM Endeavors provided a corporate update, and expects consistent organic growth in 2024 and beyond. Renoworks announced the new Renoworks Pro Partner program and introduced Renoworks API Hub to fuel market growth.