Volkwagen and Rivian: The Perfect Match?

Volkwagen and Rivian: The Perfect Match?

Legacy carmaker Volkswagen [VWAGY] and loss-making innovator Rivian [RIVN] have announced a $5.8bn joint venture, boosting Volkswagen’s investment from an initial $5bn. The partnership will focus on sharing electric vehicle (EV) technology to navigate slowing demand and fierce competition from Chinese automakers. Rivian’s stock surged over 9% in after-hours trading on the news. The deal provides vital funding for Rivian’s upcoming R2 SUV and grants Volkswagen access to Rivian’s EV tech.

SoftBank Will Be First to Get Blackwell

At the Nvidia [NVDA] artificial intelligence (AI) summit in Japan on Tuesday, CEO Jensen Huang announced that his firm will collaborate with SoftBank’s [SFTBY] telecom unit to deploy the world’s first AI system featuring Nvidia’s much-hyped Blackwell chips, with a view to creating Japan’s most powerful supercomputer. The new system, built on Nvidia’s DGX B200 platform, will support SoftBank in developing generative AI capabilities and AI business ventures across Japanese universities, research centers and corporations. 

Amazon Chip Launch Ahead

Elsewhere in the chipverse, Amazon [AMZN] is preparing to launch its latest AI chips, as it aims to increase returns on its semiconductor investments and lessen dependence on Nvidia. Amazon’s cloud unit, Amazon Web Services (AWS), is focused on developing custom chips to optimize data center efficiency, reducing operational costs for both AWS and its clients. Annapurna Labs, a chip start-up acquired by Amazon in 2015, is set to unveil Trainium 2 next month; it is currently being piloted by AI firms such as Anthropic, Databricks and Stockmark. 

Musk: One Step Closer to Mars?

Donald Trump has appointed Elon Musk and Vivek Ramaswamy to lead a “department of government efficiency” aimed at reducing regulations, bureaucracy and spending. The duo will work closely with the Office of Management and Budget until July 4, 2026. Musk had previously said that the election result was crucial to removing regulations that prevent him from realizing his dream of colonizing Mars. Earlier this year, OPTO detailed how Musk’s seemingly disparate ventures must be seen as components of his over-arching Martian project. 

We Have Liftoff!

Rocket Lab [RKLB] shares surged post-market after reporting Q3 results, with revenue up 55% year-over-year to $104.8m, buoyed by new Electron launch contracts totaling $55m. The company’s average launch price has risen 67% since the rocket’s debut, reflecting strong market demand and driving a backlog of $1.05bn. Although expenses increased to $51.9m, EPS improved slightly to -$0.10. For Q4, RKLB expects revenue of $125m–135m and gross margins of 26–34%. CEO Peter Beck noted a strong year-end with more launches planned in November and December.

Tencent’s 47% Surge

The world’s biggest games publisher, China’s Tencent [TCEHY], posted a 47% profit surge in the September quarter, reaching RMB53.2bn, largely thanks to the success of its game Dungeon & Fighter Mobile. Revenue rose by 8% to RMB167.2bn, meeting forecasts. Tencent’s core gaming division benefited from high-performing titles, including its financial backing of Black Myth: Wukong, further solidifying its status in the gaming industry amid economic challenges.

Will Partnerships and Expansion Boost the Affirm Share Price?

Demand for flexible payment options is rising, especially among younger cash-strapped consumers, which is helping Affirm [AFRM] to grow its share of the buy now, pay later (BNPL) market. However, as regulators look to clamp down on installment lending, expanding outside of North America could be key to the long-term success of AFRM stock. OPTO unpacks how a recent partnership could significantly bolster Affirm’s fundamentals, and compares it to other key players in the BNPL market.