Technology

South Korean neural processing units (NPUs) are emerging as a cost-effective alternative to Nvidia’s graphics processing units (GPUs), presenting a challenge to the company’s dominance in AI inference. Nvidia recently secured a contract to supply 260,000 GPUs to South Korea for sovereign AI training. In response, local firms like Rebellions, backed by Samsung, are now mass-producing NPUs specifically designed for AI inference tasks. The South Korean government plans to invest $634.5 million by 2030 to support the development of local AI semiconductor technologies, aiming to lessen the nation’s dependence on expensive foreign GPUs. IT service companies are beginning to adopt these domestic NPUs to reduce costs and enhance their competitiveness in AI transformation projects. This dual approach—utilizing Nvidia GPUs for training while fostering local NPUs for inference—indicates a potential shift in the semiconductor landscape. As Nvidia (NVDA) encounters increasing competition in the inference market, it will be important to monitor whether Korean NPUs can expand beyond niche applications and impact Nvidia’s global market share. ...

ASML has raised its revenue forecast for 2026 to €36–40 billion, reflecting a 15% increase from previous expectations. This adjustment is largely driven by heightened demand for advanced AI chips from companies like Nvidia and TSMC, as businesses accelerate their investments in AI infrastructure following ChatGPT’s 2022 launch. As a leader in extreme ultraviolet lithography systems, ASML plays a crucial role in the production of these sophisticated chips, positioning it favorably within the AI infrastructure market. Although the stock experienced a decline of approximately 4–6% following the announcement, the long-term outlook appears positive. Supply constraints are prompting customers to expand capacity, which may support ASML’s growth. Traders should monitor forthcoming capital expenditure announcements from major chipmakers and any changes in export regulations that could influence ASML’s global reach. ...