Alchip Technologies Ltd

Alchip Technologies reported second quarter 2026 net income of $51.8 million, up 20.7% from $42.9 million a year earlier and up 14.9% from the first quarter. Pre-tax profit rose 23.9% year-over-year to $64.4 million, and gross profit increased 36.7% to $84.2 million. Revenue for the quarter reached $241.7 million, significantly higher than the first quarter's $132.4 million but down 18.7% from the year-ago quarter. Chairman and CEO Johnny Shen attributed the revenue increase to the start of 3nm accelerator shipments to a North American customer in May, with a ramp expected to continue into the third quarter. Of the total revenue, 87% came from 7nm and smaller technologies, with 3nm/2nm designs accounting for 47% and 5nm/7nm for 40%.

Alchip Technologies has successfully completed a global depositary shares offering raising US$510 million. The company issued 4 million new shares, with each GDS representing one common share, priced at US$127.51 per GDS. The GDSs will be listed on the Luxembourg Stock Exchange, and proceeds will primarily fund advanced technology development to support continued growth. The offering was 10 times oversubscribed shortly after launch, reflecting strong demand from leading international investors. Goldman Sachs International and Morgan Stanley Asia Limited acted as joint global coordinators and joint bookrunners.

Marvell Technology shares surged to a record high of about $330 before closing up roughly 7% near $311, after Bloomberg reported that Amazon Web Services is in early talks to sell its custom Trainium AI chips directly to outside companies. Marvell has been a key design partner for Trainium, and its data center revenue reached about $1.83 billion in its fiscal first quarter of 2027, up 27% year over year and representing about 76% of total revenue. A wider market for Trainium could expand the custom-silicon work Marvell supplies, though reports suggest Amazon may have shifted newer Trainium3 and Trainium4 design to Alchip Technologies. The stock has more than tripled in 2026 and trades at a forward price-to-earnings ratio of about 70, leaving little room for setbacks.