The artificial smart chip manufacturer, Ying Weida, became the world ‘ s first listed company with a market value of $4 trillion last month, and may have become the most important factor in determining the course of the stock market.
On Wednesday, Silicon Valley announced that spending on AI infrastructure remained strong, which eased the anxiety of investors on Wall Street and around the world.
In recent months, there has been growing concern among industry as to whether technology companies will continue to spend billions of dollars on artificial intelligence data centres — expenditures that help to support the economy. In the three months to July, however, the sales of Ingweida had increased by 56 per cent over the same period, to $46,744 million, slightly exceeding Wall Street expectations. Profit growth exceeded 59 per cent, reaching $26.42 billion.
As technology companies invest heavily in data centres, revenue for this quarter is expected to increase by 54 per cent over the same period last year, to $54 billion. This projection is consistent with Wall Street ‘ s forecast of $53.9 billion, but the company indicated that it did not include any sales from China, which would have made it more profitable.
“Last year, artificial intelligence has made great progress,” Hwang In-hoon, Chief Executive Officer of Inweda, said at a conference with analysts. He said that by 2020, spending on artificially intelligent infrastructure would increase to between $3 trillion and $4 trillion, from which companies ‘ chips would benefit.
“We are in the early stages of this construction phase”, he said.
In the latter, the share price of Ingweida fell by more than 2 per cent. While the company is currently publishing more quarterly profits than its technological counterparts, such as Apple and Meta, the decline in stock prices reflects precisely how high expectations are. The company ‘ s board of directors approved a plan to repurchase $60 billion in shares, demonstrating its confidence in the future.
Since the release of the ChatGPT chat robot by OpenAI in late 2022, the performance of Yveida has been closely followed. As the technology company buys its chips — they are ideal options to drive artificial intelligence — its wealth soars. Weeda has grown to be the most important stock on the market, accounting for 7.5 per cent of the market value per dollar of the Standard & Poor ‘ s 500 index, up from 3 per cent last December. Its performance also affects the valuation of science and technology and energy companies with artificial intelligence operations.
“The question has been: will the wave of artificial intelligence continue or will it be significantly slowed down?” The research director of the Universal Visible Alpha, Melissa Otto, pointed out. If the performance fails to meet expectations, it will be “like a grenade on the market”, she says. “It could blow up a lot of things.”
In recent months, special attention has been paid to the need for the latest Blackwell chip in Weida. The product was released at the end of last year and sales continued to climb, with the company delivering approximately 72,000 Blackwell chips per week at an estimated cost of $30,000 per chip.
The chip contributed to increased expenditures by Meta, Google and other cloud computing companies on data centres. In July this year, Meta announced an additional $7 billion for data centre construction, and Google indicated an additional $10 billion.
However, the challenges faced by In Weida are mainly those involved in the broader American-Chinese power struggle. China is the world’s largest chip market, and Huang In-hoon has stated that Ying Wei Da needs to enter China because half of the world’s artificial intelligence developers are Chinese. But it needs permission from Washington and Beijing to operate in China.
In April this year, the Trump government prevented Ying Weidar from selling H20 chips specifically designed for Chinese companies for fear that they might be used to help China’s artificial intelligence industry and military. After Wong In-hoon lobbied to overturn the decision, President Trump agreed in August to allow it to sell.
China then called on Huang In-hoon to Beijing to discuss his concerns about the safety of the British Weidar chip. Subsequently, China began to discourage Chinese enterprises from buying H20.
These negotiations meant that Weidar had not sold any products in China during the previous quarter. It also indicated that while Chinese clients had begun to obtain a licence from the United States Government for the purchase of British Waida chips, it did not believe that there would be any sales in China this quarter.
During a teleconference with analysts, Crixus said that government approval would clear the way for $2 billion to $5 billion of H20 sales this quarter. “We are still waiting for progress on several geopolitical issues, which have been rumbling among the governments concerned and the companies that are trying to decide on the purchase plan,” she said. But she also said, “There is still an interest in being there”.
The cautious attitude of Ying Weida towards the Chinese market has disappointed investors, who believe that China is crucial to boosting future sales. Prior to the release of Yin Weida’s financial statements, analysts estimated that the company’s revenue in China would reach $16 billion this year and its sales in China would exceed $56 billion next year, which would have a significant impact on the company’s total revenue.
Wong In-hoon said that Ying Weida continued to discuss with the Trump Government the importance of the Chinese market. He said that he wished to provide China with a modified version of the Blackwell chip, which had been downgraded, and that there was a “real possibility” of the matter.
“I estimate that the Chinese market offers us about $50 billion this year”, Huang In-hoon said in a teleconference with analysts. “You can expect that, with the growth of artificially intelligent markets in other parts of the world, the Chinese market will grow by about 50 per cent annually.”
Genkoland ‘ s technologist Lennart Heim said that it was likely that the Chinese company would buy two modified Blackwell chips at a premium and then assemble them together to obtain higher performance.
