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Nvidia Investing $3.5 Billion in MediaTek, Partners on NVLink Fusion Platform

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Nvidia Investing $3.5 Billion in MediaTek, Partners on NVLink Fusion Platform

Nvidia (NVDA) expanded its partnership with chip designer MediaTek, including a $3.5 billion investment, to support adoption of the company's proprietary interconnect technology for custom rack-scale artificial intelligence chips.

Under the deal, Nvidia bought $3.5 billion convertible bonds issued by MediaTek, and the Taiwan-based fabless chipmaker will adopt the NVLink Fusion platform, which provides chipmakers with prevalidated connectors and specialized memory to integrate custom AI accelerators directly into Nvidia's rack-scale data center systems.

"MediaTek is one of the world's great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency," Nvidia Chief Executive Jensen Huang said. "Together, we're building platforms that bring Nvidia accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale."

"Nvidia's investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI," MediaTek CEO Rick Tsai said.

Last week, Nvidia reported fiscal second-quarter results that more than doubled from a year ago and topped Wall Street expectations, driven by record data center sales. Morgan Stanley said the chipmaking giant offered a surprisingly strong fiscal 2028 revenue outlook, while its gross margin guidance provided clarity amid rising memory costs.

Separately, Nvidia announced an expanded partnership with Amazon.com's (AMZN) Amazon Web Services to supply 2 million additional GPUs across AWS infrastructure in 2027 and 2028, and build dedicated 100,000-GPU AI factories for federal security workloads.

Earlier in August, Nvidia said it was collaborating with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital to support its AI infrastructure. Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BAM), Goldman Sachs (GS) and KKR (KKR) were part of the partnership.

Previously, Nvidia agreed to expand its partnership with South Korean conglomerate SK Group with a more than $500 billion AI infrastructure initiative.

Nvidia's shares were up 1.1% Monday and have gained 18% this year.

Chip designer Marvell Technology (MRVL) reported late last week second-quarter results above Wall Street's estimates amid a surge in data center revenue. B. Riley Securities said the company's fiscal third-quarter gross margin outlook came in a bit soft amid a higher custom product mix.

Semiconductor manufacturer Broadcom (AVGO) is scheduled to report its fiscal third-quarter results Wednesday.

Price: $220.40, Change: $+2.85, Percent Change: +1.31%

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Austal Swings to Loss in Fiscal 2026, Impacted by 'Onerous' US Contracts
US Markets

Austal Swings to Loss in Fiscal 2026, Impacted by 'Onerous' US Contracts

Austal (ASX:ASB) posted a loss in fiscal 2026, impacted by "onerous" US contracts, while the company said it's committed to delivering a return to profitability in fiscal 2027."The Group result was influenced in the near term by the previously announced non-cash provision relating to onerous contracts at Austal USA, where its request for accelerated contractual relief was not agreed to by the US Department of War, despite previous positive discussions," said Chief Executive Patrick Gregg.The shipbuilder and defense contractor logged AU$0.127 in loss per share for fiscal 2026, compared with a profit of AU$0.233 a year ago, while revenue increased to AU$2.03 billion from AU$1.82 billion previously.Euroz Hartleys, which has a buy rating on Austal with an under review price target of AU$6, said in a note that the results were largely anticipated after the company's August trading update."The Board and management are committed to delivering a return to profitability in FY2027. We have a strong contractual position in relation to the onerous contracts, and other programs and sustainment business in the US remain profitable with a strong order book and outlook," said Gregg.The company said earlier in the month that it received a non-binding, conditional proposal from a unit of South Korea's Hanwha Group to acquire its US operations for an indicative enterprise value of up to $1.2 billion."The [proposal] was a major development. Austal has determined that it merits further evaluation and approved Hanwha to undertake due diligence to improve the certainty of any proposal." Gregg added.

ASX:ASB
BYD's First-Half Profit Falls on Lower NEV Business, FX Losses
US Markets

BYD's First-Half Profit Falls on Lower NEV Business, FX Losses

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HKG:1211SHE:002594
China's Big Four Banks Let Credit Costs Eat Into First-Half Profits Even as Revenues Jump
US Markets

China's Big Four Banks Let Credit Costs Eat Into First-Half Profits Even as Revenues Jump

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HKG:0939HKG:1288HKG:1398HKG:3988SHA:601288SHA:601398SHA:601939SHA:601988