Foxconn’s “Enormous” Expansion of Nvidia Partnership

Foxconn: “Enormous” Expansion of Nvidia Partnership

Foxconn [FXCOF], the world’s largest contract electronics manufacturer, is constructing the world’s largest manufacturing facility for assembling Nvidia’s [NVDA] GB200 superchips, a crucial component of its next-generation Blackwell computing platform. At the company’s annual tech day in Taipei on Tuesday, Benjamin Ting, Foxconn’s Senior Vice President for the Cloud Enterprise Solutions Business Group, announced that the plant will be located in Mexico, and said its capacity would be “very, very enormous”, Reuters reported.

Alphabet Loses Another Antitrust Case

Alphabet [GOOGL] has been ordered to allow rivals access to its Android operating system, enabling them to create their own app marketplaces and payment systems. This ruling follows a lawsuit from Epic Games, which argued that Google stifled competition and imposed excessive fees through its Google Play Store, according to the Financial Times. The injunction prohibits Google from paying developers for exclusivity or forcing customers to use its billing system; it will take effect on November 1 and last for three years.

Hang Seng Logs Worst Drop Since 2008

China’s stock market rally slowed on Tuesday after officials refrained from announcing additional stimulus measures for the economy. The blue-chip CSI 300 index opened 10.8% higher following a week-long holiday but slid to close up 5.9%. Meanwhile, Hong Kong’s Hang Seng index fell 9.4%, its worst decline since October 2008, following an 11% rise in the previous five days.

Weight Loss Drug Dispute Resolved

Novo Nordisk [NVO] and Viatris [VTRS] have settled a patent dispute concerning Novo’s weight-loss drugs Ozempic and Wegovy, as stated in a joint filing with the US Patent and Trademark Office. The settlement addresses a patent covering the use of specific dosages of the drugs for treating type-2 diabetes and obesity. Additionally, Novo has filed lawsuits against Viatris and others for patent infringement regarding proposed generics.

Morgan Stanley Releases Kill List

Morgan Stanley analysts released their list of tax-loss selling stocks, Seeking Alpha reported, focusing on those in the top quintile of “sell” ratings as of January 16. These stocks have experienced at least a 10% price drop from mid-January to the end of September. These included: in communication services, Iridium Communications [IRDM], which saw a 20% decline; in financials, Global Payments [GPN] with 21%; in healthcare, Privia Health Group [PRVA] with 15%; in information technology, Photronics [PLAB] with 16% and Adobe [ADBE] with 13%.

US Government Plans Nuclear Boost

The Biden administration is planning to unshutter decommissioned nuclear reactors to meet the growing demand for emissions-free electricity, according to White House Climate Advisor Ali Zaidi, speaking at the Reuters sustainability conference in New York. Two projects are already underway: Holtec’s Palisades plant in Michigan and a potential restart at Constellation Energy’s [CEG] Three Mile Island plant in Pennsylvania. This news should make top Substack Doomberg happy; earlier this year, they explained to OPTO Sessions why they believe that nuclear energy is the only way forward.

SMCI Stock Pops on Shipment Data

Super Micro Computer [SMCI] stock surged over 15% on Monday, its biggest rise in seven months, following the announcement of positive shipment data. The company revealed it had deployed over 100,000 GPUs with its liquid cooling solution system for AI factories and cloud service providers. “Super Micro continues to innovate, delivering full data center plug-and-play rack scale liquid cooling solutions,” CEO Charles Liang said in a statement. Head over to Foresight, the OPTO Substack, for a deep dive into SMCI stock’s prospects.