Recent German article.May or may not need to translate link...

Recent German article.

May or may not need to translate link HERE


01.02.2022 | 06:00BYD, BRAINCHIP, DAIMLER: THE CHIP STRATEGY DECIDES
CHIP TECHNOLOGY

The automotive industry is still suffering from the shortage of chips, as recently reported by the Handelsblatt. According to EU information, around 11.3 million new cars could not roll off the assembly line due to delivery problems. Europe now wants to counteract this with its own chip strategy. We take a look at three stocks and explain who stands to benefit.

BRAINCHIP: FINANCIAL GIANTS INVEST IN AI CHIPS

The innovative chip developer BrainChip is not yet concerned with market share. Rather, the revolutionary technology must first be launched on the market.

From the market's point of view, however, it is very obvious that this will succeed: the share has risen rapidly in recent weeks and also demonstrated great relative strength in the midst of the correction.

BrainChip designs semiconductors based on the model of the human brain. The chips are self-learning, self-sufficient and require hardly any energy. The company therefore wants to score points above all in autonomous driving and powerfully support the vision of the mobility turnaround.

A look at the list of BrainChip's 20 largest shareholders shows that BrainChip is not alone with this vision . There are HSBC Australia, Citicorp, Merrill Lynch Australia, BNP Paribas, JP Morgan, UBS, LDA Capital - even ex-BrainChip CEO Louis Dinardo remains loyal to his former company. After the correction, BrainChip could be a promising bet on the future of chip technology. The current CFO, Ken Scarince, will step down on 2/17.

DAIMLER NEEDS A EUROPEAN CHIP SOLUTION

The chips from BrainChip should also be of interest to classic automobile manufacturers such as Daimler - after all, it makes sense to evaluate the potential of the future in good time. With regard to the valuation of Daimler shares, the market has moved sideways in the past three months, but the value is still in solid waters in the long term. Daimler also got through the second crisis year 2021 fundamentally well. Both the sales of all cars and the growth in e-cars are impressive at Daimler. On top of that, the company offers a dividend approaching 5%.

However, in order to remain competitive, Daimler must stay on the ball with chips and other important preliminary products. Both the current supply and the Access to new chip generations is crucial for a company like Daimler.

Industrial companies such as Daimler in particular are likely to benefit from the new European semiconductor offensive. But it will be a while before the strategy bears fruit. It also remains questionable whether the Europeans will be able to secure technological leadership so quickly. Innovative disruptors such as BrainChip therefore remain interesting.