1. Alphabet secured a favorable antitrust ruling, preserving Chrome and Android's dominance and future growth; 2. Despite new data-sharing requirements, the primary competitive threat stems from AI-focused players, but Alphabet is well-positioned to adapt; 3. Strong financial performance with double-digit revenue growth and an undervalued forward EV/EBITDA of 14.2x supports a Strong Buy rating.
Recent #Antitrust news in the semiconductor industry
Perplexity AI has made a $34.5 billion cash bid to acquire Google's Chrome browser. The surprise offer comes as Google faces anti-trust lawsuits in the U.S., and Perplexity may believe that Google will be forced to divest Chrome. Despite its current market cap of $18 billion, Perplexity has backing from high-profile investors and is said to have secured financing from multiple funds. However, the proposed price is considered low by some analysts, with estimates suggesting Chrome's value could be up to 10 times higher. Perplexity has also stated its commitment to keeping the Chromium engine open-source and investing $3 billion in Chrome over two years.
➀ Qualcomm is reportedly urging multiple antitrust agencies around the globe to intervene in its dispute with Arm, accusing the latter of unfair business practices.
➁ The relationship between Qualcomm and Arm has been contentious, especially as both companies try to capitalize on the AI chip boom.
➂ Qualcomm claims that Arm is restricting access to key technology, such as AI-optimized compute subsystems, under current license agreements.
➀ China's State Administration for Market Regulation (SAMR) is investigating Nvidia over its 2019 acquisition of Mellanox Technologies; ➁ Nvidia faces a potential fine of up to $1.03 billion; ➂ The probe is part of China's retaliation against U.S. export controls on semiconductor technology.
➀ NVIDIA is being investigated for antitrust practices in China.
➁ The investigation is related to NVIDIA's acquisition of Mellanox and its sales practices in China.
➂ The article discusses the impact of NVIDIA's technologies on the AI industry and its competition with Intel and AMD.
➃ The article also explores the broader context of chiplet technology and the competition between different interconnect standards.
➀ Qualcomm is waiting for the 2024 US presidential election results before making a move on Intel; ➁ The company is considering an acquisition of Intel, which could lead to antitrust concerns; ➂ The potential merger of Qualcomm and Intel, both major players in the semiconductor industry, could be one of the biggest deals in history.
➀ Google appeals a historic antitrust lawsuit ruling; ➁ The ruling threatens Google's $12.4 billion mobile gaming empire; ➂ Google argues that the changes requested by Epic could harm consumers and developers.
1. Google remains among the cheapest and fastest growing stocks despite its success; 2. Its long-lasting dominance has led to increased regulatory scrutiny; 3. The company's payments to Apple are considered anti-competitive by regulators.
➀ Google generated $238 billion in revenue from its advertising segment in 2023, representing 77% of Alphabet’s overall revenue. ➁ The US anti-trust lawsuit against Google began on September 9, 2024. ➂ Despite significant market share, competitors like Yandex and Baidu generate only a fraction of Google’s advertising revenue.
1. Google faces significant antitrust challenges but investors overestimate the impact on its growth and margins. 2. Despite legal headwinds, Google has maintained robust margin expansions and operating leverage. 3. Google's stock is undervalued at one of the lowest valuation multiples in a decade.
1. Nvidia is under investigation by the US Department of Justice for potential antitrust violations in the AI chip market; 2. The probe is based on complaints from competing companies, focusing on allegations of higher charges for networking gear when using competitor's chips; 3. Nvidia has stated it will cooperate with regulators and maintains its competition is based on innovation and adherence to laws.
1. India's Competition Commission has ruled against Apple's App Store practices, similar to EU's Digital Markets Act. 2. The ruling could lead to alternative app marketplaces and third-party payment methods on iPhones in India. 3. Apple's growing market in India faces regulatory challenges as it diversifies its manufacturing base.