Biden Tightens Chip Curbs

Biden Tightens Chip Curbs 

The Biden administration is preparing one final round of export restrictions on artificial intelligence (AI) chips, according to Bloomberg, aimed at further limiting Chinese and Russian access to the technology. The proposed regulations would create a tiered system, with unrestricted access for select allies, strict curbs for adversaries and certain limits for the rest of the world. 

Arm Eyes Chip Start-up

SoftBank [SFTBY] and its majority-owned subsidiary Arm [ARM] are said to be exploring the acquisition of Ampere Computing, a semiconductor firm backed by Oracle [ORCL] and Larry Ellison, Bloomberg reported yesterday. Ampere was valued at around $8bn in a 2021 SoftBank investment proposal; while it had previously explored an IPO, it now appears focused on a strategic sale. 

OPTO x Compounding Quality

As part of our mission to highlight stocks with long-term potential, OPTO had the privilege of collaborating with Compounding Quality, an investment newsletter with nearly 400,000 readers, including notable names like LeBron James and Bill Ackman. Head over to Foresight, the OPTO Substack channel, for a deep dive into one of the fastest-growing quality stocks: KKR [KKR], projected to see a 30.2% revenue boost over the next two years.

Major Power Deal in the Offing

Constellation Energy [CEG] is reportedly in advanced discussions to acquire Calpine in a deal worth up to $30bn, including debt. This would mark one of the largest acquisitions in the US power generation sector, the Financial Times detailed. The deal, expected to involve a stock-heavy transaction, reflects growing demand for power driven by AI data centers and manufacturing reshoring.

Did Huang Just Pop the Quantum Bubble?

“If you kind of said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it’s probably on the late side,” said Nvidia [NVDA] CEO Jensen Huang during a question-and-answer session at the Consumer Electronics Show. Shares of quantum computing stocks slumped after he made the comments; Rigetti Computing [RGTI], for instance, lost 35%, according to Seeking Alpha.

GSK $1bn Biotech Buy

GSK [GSK] is nearing a $1bn acquisition of privately held biotech IDRx, which focuses on treatments for rare gastrointestinal tumors, the Financial Times reported. Backed by Andreessen Horowitz, RA Capital and Blackstone [BX], IDRx was valued at $430m during its last funding round in August. The deal is expected to be announced ahead of the JPMorgan healthcare conference; discussions are ongoing, however.

Can this AI Underdog Exceed Expectations?

Synopsys [SNPS] had a choppy 2024, with several drastic corrections leaving the stock down 5.74% for the full year. Despite this, Forbes identified SNPS in its list of top AI stocks to buy in 2025. The largest provider of electronic design automation technology in the industry, Synopsys boasts big-name clients including Intel [INTC] and Arm [ARM]. OPTO asks: can it live up to Forbes’ great expectations?