The lawsuit claimed that Intel artificially inflated its stock price between January 25 and August 1, 2024. On August 1, the company reported a $1.61 billion loss, announced over 15,000 layoffs, and suspended its dividend to save $10 billion by 2025. The next day, Intel’s share price dropped by 26%, wiping out $32 billion in market value.

Intel’s Foundry Struggles and Massive Financial Losses

The Intel shareholder lawsuit was a result of fears over foundry losses, which have had a considerable effect on the company’s financial performance. Intel’s foundry business has been unable to keep up with competition from players such as TSMC and Samsung. In September 2024, Intel foundry signed a deal with Amazon to make chips for them.

Intel had marketed its foundry services as one of its prime growth drivers with a mission to regain its leadership in chip fabrication. But production innovation delays and intense competition caused rising losses, reigniting investor outrage. The complaint claimed that Intel had deceived investors about the profitability and viability of its foundry operations, something which Intel denied vehemently.

Investors Accuse Intel of Misleading Information

As part of the lawsuit, Intel investors accused chipmakers of downplaying the risks tied to the foundry division. Shareholders argued that Intel had given overly optimistic projections and did not adequately disclose the severity of its financial troubles. The stock took a significant hit as the losses became clear, resulting in billions being erased from Intel’s market value.

However, the judge ruled that shareholders wrongly linked the $7 billion loss to the Intel Foundry Services unit. They were not misled into thinking the unit’s reported results reflected the entire Internal Foundry Model.

Intel has assured investors of its dedication to bolstering its foundry business and enhancing its financial results. Thompson also stated that former Chief Executive Patrick Gelsinger’s remarks last March about Intel experiencing “significant traction” and “growing demand for our foundry offering” were not misleading. The statements referred to specific customers rather than overall revenue, which was declining. Although, CEO Patrick Gelsinger has resigned from his position in December of 2024.

The post Intel Defeats Shareholder Lawsuit Over Foundry Losses and $32 Billion Drop appeared first on Tech Research Online.

Interim Milestones

STMicroelectronics is among the largest semiconductor manufacturers in Europe. As it extended its ambitious revenue goals, the company introduced new milestones for 2027 to 2028. With the new STMicroelectronics revenue target, the company now expects to achieve an estimated revenue of $18 billion and 22% to 24% in gross operating margin by the end of 2028.

“ST expects to exit 2027 with high triple-digit million-dollar savings compared to the current cost base,” the company said in a statement.

This move shows that the company is embracing a more cautious outlook considering the current industry challenges. The revenue target adjustment by STMicroelectronics also underscores the challenges that the company is experiencing, especially in the demand of semiconductors such as silicon carbide.

STMicroelectronics is known for production of automotive chips. Analysts at Morgan Stanley have cited delays in adoption of these semiconductors this year due to a slump in automotive and industrial chips .

Aligning with the New Targets

For a company that had been affected significantly by the slowing industrial market, some analysts say the new revenue target adjustment is a welcome move. This year alone, ST’’ stocks have declined by 49%.

“The reiteration of ST’s financial targets today confirms our view that the current weakness the company is going through is cyclical, not structural. We believe that the targets presented today should help to improve sentiment,” brokerage Stifel said.

The company management says the automotive industry has been at the heart of STM’s semiconductor strategy. The key drivers of this industry included the shift to electric vehicles and emergence of advanced driver-assistance systems. Production of wafer and new materials like gallium nitride and silicon carbide are also critical to its revenue growth strategy.

SMT’s Cost Reduction Measures

STMicroelectronics said it will be reducing operations in some of its factories and focus more on overseas sites. The company will also be concentrating its resources in the most strategic areas as it seeks to align itself with the new growth targets. In addition to reviewing its revenue target, analysts expect the company to provide more details on how it will achieve cost reduction.
“We also expect the company to not just reiterate the time-line of the cost reduction program but to even outline which manufacturing facilities may be scaled back and where capex can be focussed,” Morgan Stanley Analysts said.

The new STM financial growth targets are a stark contrast to the 2022 revenue targets the company hoped to generate through IoT, car electrification, and foundry services. At the time, the company expected to generate 10% of its revenue from wide bandgap semiconductors, 20% from its foundry unit, and 32% from wafer production. The $20 billion estimates also included a 25% free cash flow margin from higher pricing and a strong product mix.

The post STMicroelectronics’ Growth Target Review Triggers Stock Slump appeared first on Tech Research Online.

According to Reuters, Revolut’s valuation announcement comes after the Financial Times reported that the UK government was planning to meet Revolut’s leadership to convince them to list on the London Stock Exchange instead of New York.

Cashing Shares

The latest share sale now allows staff in Revolut to cash in their stock and bring new investors into Revolut’s fold.

“We’re delighted to provide our employees the opportunity to realize the benefits of the company’s collective success. It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe,” Nik Storonsky, Revolut said.

The shares sale was led by various partners including Tiger Global, D1 Capital Partners, and Coatue.

Valuable Than Banks

The $45 billion Revolut share valuation makes the fintech company more valuable than some European banks. The fintech company’s valuation now doubles that of the French Bank Societe Generale whose current valuation now stands at $19 billion. Revolut is also more valuable than UK’s Barclay’s $43 billion.

In Europe, valuation of conventional banks has been affected by new regulations and weak profitability. For instance, Barclays bank shares have been on the recovery path for more than a decade. Revolut investors are positive that the fintech company will have better growth prospects compared to those of conventional lenders.

Revolut’s valuation hit the $33 billion mark in 2021 following an $800 million funding round that it won after jostling with Checkout.com and Klarna for Europe’s most valuable startup title. The latest Europe valuation share sale places Revolut at the top of the list.

Banking License

Revolut recently secured a UK banking license following a three-year wait that resulted from difficulties in scrutinizing its internal accounting procedures. Investors are confident that with the license, the fintech company will lure customers who opt for app-based banking from leading street banks.

Revolut can do this without incurring the cost associated with maintaining a network of branches. In 2023, the company announced a pre-tax profit of $564 million and $2.2 billion in total revenue.

The size of the latest Revolut share sale has not been disclosed. It’s also unclear whether Storonsky also cashed part of his stake in the share sale. Previously, Sky News reported that the CEO would sell part of his stake.

The post Revolut is Now Europe’s Most Valuable Startup appeared first on Tech Research Online.

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According to Tech.eu, the funding from Meridien stake will enable DKK partners to move its global expansion plan forward.

Meridien specializes in CRM, global payments, and the banking industry, while DKK Partners specializes in foreign exchange liquidity and emerging markets.

Consistent Growth

Last year, DKK partners grew its transaction flow to $1.3 billion. Its EBITDA hit the $2 million mark with a 150% CAGR. The firm also expanded to key markets, opening offices in London, Dubai, Nigeria and Senegal.

“DKK has an incredible growth story, a fantastic customer base, and a scalable business model, alongside a strategic partnership with Seed Group, makes them a game changing VASP in the region. The partnership with DKK, in conjunction with our other acquisitions of listed and regulated financial institutions, is perfect for Meridien and its preparation to list on the NYSE, driving the goal of creating a revolutionary business model in the industry of global payments, banking and correspondent services,” Meridien Holding CEO, Erik Lara Riveros said.

Strategic Alliance

The Meridien-DKK merger deal includes forming a strategic alliance that complements their business plans. The two companies plan to do this by acquiring banking and forex liquidity capabilities. Additionally, the DKK-Meridien merger deal allows both companies to focus on securing global payments. DKK will get shares in Meridien in addition to cash injection to facilitate its rapid expansion.

“This is a pivotal moment for our business and it’s a real honor to partner with Meridien as we enter our next phase of growth. Both businesses have shared values and a commitment to excellence, and we’re thrilled to be working to build a truly disruptive global brand that will redefine the payments industry,” DKK Partners Co-Founder, Khalid Talukder said.

Earlier in the year, DKK collaborated with the Seed Group to facilitate efficient and transparent transactions for financial institutions. The fintech company also got initial approval to provide Virtual Asset Broker Dealer services in Dubai.

Future Plans

Meridien Holdings plans to acquire financially regulated firms in multiple geographies. The goal is to aggregate the institutions and create seamless transfer of value throughout the Meridien ecosystem.

The post Meridien Boost NYSE Listing Plans with DKK Merger appeared first on Tech Research Online.