🚢 The shipping night-Maersk

Chip designer Arm brought the AI-mad investors onside | Maersk had an "oh, ship" moment | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for February 9th in 3:15 minutes.   💿 You can embrace the future and hold onto the past: just look at vinyl sales and streaming figures. Join us for [The Inevitable Future of Cryptocurrency]( on February 20th, and find out how to lean into digital assets, even if you always carry cash. [Grab a free ticket]( Today's big stories - Chip designer Arm wrangled its way into AI’s inner circles, so investors sidled up, stat - Our analyst stared down the big issue for Big Tech, in search of big answers – [Read Now]( - Maersk was, ahem, seaing red, announcing profit results and predictions that were way off the mark The Winner Circle [The Winner Circle] What’s going on here? Arm showed off tidy [results]( on Wednesday, but investors were more impressed with the company that the chip designer’s been keeping. What does this mean? It takes a village to rear high-tech semiconductors from fledgling sketches to strong, sculpted specimens. Arm takes on the early days, designing the chips and licensing the blueprints, usually for the smartphone industry. That was risky business last year, when rising prices forced even the most tech-curious shoppers to prioritize groceries and rent over snazzy upgrades. And yet, Arm managed to make more profit last quarter than analysts expected, even piquing investors’ interest by suggesting that the smartphone industry is back on the up. The real kicker, though, was Arm’s reminder that AI-focused chipmakers will be using its blueprints, a development that’s predicted to pull revenue 15% above analysts’ expectations to roughly $900 million. Investors more than matched that upgrade, pushing Arm’s stock up over 50%. Why should I care? For markets: The more the merrier. Arm’s piggy bank pings every time a chipmaker produces and sells a licensed design, so there’s no reason to stay exclusive. The chip designer has built up quite the Rolodex of connections in the smartphone sector, but anyone who’s anyone is hanging out in the AI squad these days. Well, Arm clearly has the gift of the gab, successfully buddying up to “it” firms like Nvidia and Microsoft. The bigger picture: Chips, hold the dip. So far, Nvidia has hogged most of the business in the AI space. But with more major companies rolling out high-tech initiatives, and smaller startups looking to take them on, there could be more than enough of a bounty to share among a few capable chip designers and producers. At the same time, if recessions stay at bay, shoppers will be more likely to splash out on gizmos and gadgets. This year, then, could be one to remember for the chip industry. You might also like: [How to get armed and ready for the hottest IPO in ages](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Winner Circle&utm_campaign=daily-global-09-02-2024&utm_source=email) Analyst Take This Big Issue Could Have Big Tech Running Into A Wall [This Big Issue Could Have Big Tech Running Into A Wall]( By Paul Allison, CFA, Analyst I’m a big fan of [Big Tech]( – as big as anyone. If you’ve read my past Insights, you know that I’ve been [pretty excited]( about Microsoft and Nvidia for some time. And yet, the enormity of [Magnificent Seven]( firms does give me pause for thought. Their heft could just affect their [future prospects](. Bigger isn't always better, see. So that’s today’s Insight: [I stare down the big issue for Big Tech, looking for big answers](. [Read or listen to the Insight here]( SPONSORED BY CROWDCUBE AND FUEL VENTURES Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. [Take 2 minutes to learn more.]( Become a VC, but skip the morning meetings [SEIS funds]( are essentially venture capital funds that invest in very early-stage companies. That’s usually the most lucrative way to buy in, but it’s usually reserved for the pros alone. Plus, SEIS funds currently let investors claim [50% income tax relief]( and have capital gains advantages. And while you’d usually need to cough up some £20,000 to buy into one, Crowdcube and Fuel Ventures collaboration is letting you [invest in Fuel Ventures' SEIS fund from just £2,000](. Since 2015, [Fuel Ventures]( has been backing the most ambitious entrepreneurs, investing over £180 million into over 150 companies. That’s paid off: Fuel Ventures sold ContentCal to Adobe for $110 million cash and Capdesk to Carta for $88 million. If you want in on the next one, [join the waitlist: the first investment launches this month](. [Find Out More]( Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. [Take 2 minutes to learn more.]( When you support our sponsors, you support us. Thanks for that. Extenuating Circumstances [Extenuating Circumstances] What’s going on here? Maersk’s results, outlook, and buyback decision all [disappointed]( analysts, but at least the Danish shipping giant can blame the world for its woes. What does this mean? Stormy waters, high winds, and circling sharks are just a day in the office for shipping companies. Global economic slowdowns and attacks in the Red Sea, not so much. While Maersk can stack twenty-foot containers like the best of them, it can’t do much about a lack of global trade – a result of thinly spread economies watching their spare change – or a majorly inconvenient no-go zone. So with the cost of taking longer but safer routes eating into the limited money Maersk brings in, the company expects to make anywhere between $1 and $6 billion in profit this year. That wide range hardly exudes confidence, and even the upper limit – just two-thirds of last year’s takings – only matches analysts’ expectations. So when Maersk topped it all off by suspending its buyback, which might’ve buoyed up the company’s shares, investors sent the stock down nearly 15%. Why should I care? For markets: Oh ship. Shipping companies aren’t completely at the whim of the world, of course. Even if they’re tasked with fewer loads of cargo, they can charge more for the limited supply they do deliver. But don’t count on the corporate customers to front the cost: they’ll pass that buffer onto shoppers, a chain that could take inflation back out of central banks’ reach. The bigger picture: Time is a healer. War, pandemics, and international stand-offs could make the hardiest news reader want to take a break from the headlines. So when money’s on the line, it’s understandable that investors turn flighty too. Thing is, even major setbacks tend to resolve themselves over time. And if not, money-hungry companies have a knack for making sure business goes on anyway, tinkering with their production schedules, prices, or suppliers to keep the books on balance. You might also like: [What rising Middle Eastern tensions may mean for your portfolio](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Extenuating Circumstances&utm_campaign=daily-global-09-02-2024&utm_source=email) 💬 Quote of the day "Life in the twentieth century is like a parachute jump: you have to get it right the first time." – Margaret Mead (an American cultural anthropologist) [Tweet this]( SPONSORED BY STREETBEAT Your ideal portfolio, made just for you In the realm of investing, one size does not fit all. After all, your financial aspirations and interests are unique to you. Now, you can use [Streetbeat’s AI-powered financial advisor]( to craft a personalized portfolio that represents your interests and directs you toward where you want to be financially. So whether you’re banking on [green energy]( to build up your kid’s college fund, or trying to profit from a pivotal trend like [artificial intelligence](, Streetbeat can create a portfolio that fits just right. You won’t fall off track if you forget to check in, either. [Streetbeat’s AI]( automatically rebalances your portfolio to keep it aligned with your standards and preferences. Plus, it’ll keep you clued in, analyzing market data and sentiment to tell you why markets are moving – and what that means for you. [Unlock the power of knowledge with Streetbeat](. [Find Out More]( Streetbeat, LLC ("Streetbeat") is an SEC-registered investment adviser. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Any historical returns, expected returns or probability projections are hypothetical and may not reflect actual future performance. See Terms and Conditions at [Streetbeat.com](. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. If an imaginary oyster became a film set. Take a trip inside [the Poor Things universe](. 2. AI-enhanced investing is here. 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