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Leading the way in the stock market today is Silicon Motion Technology Corp. (SIMO). China unexpectedly approved a sale over to MaxLinear.
Why These Companies Rallied:
Silicon Motion Technology Corp. (SIMO)
Over 14 months ago, MaxLinear, a leading chip company, announced an ambitious $3.8 billion acquisition plan of Silicon Motion Technology, a manufacturer of controllers for flash-based storage devices. However, the protracted timeline led investors to question the viability of the deal. This acquisition, agreed upon in May 2022, was intended to incorporate Silicon Motion’s NAND flash controller technology into MaxLinear’s portfolio, enhancing their prominence in the Broadband, Connectivity, and Infrastructure markets. The recent approval of the sale by Chinese regulators has reignited optimism around the deal’s closure – a development reflected in the soaring value of Silicon Motion stocks.
SIMO daily chart. Credit: Stocktwits
Vicor Corp. (VICR)
Vicor Corporation has released its financial results for the second quarter of 2023. The company reported that revenues for the quarter ending June 30, 2023, amounted to $106.7 million, marking a 4.5% increase from the $102.2 million reported in the same period a year ago. This also represents a 9.1% sequential increase from the first quarter’s revenue of $97.8 million. Gross margin notably increased to $55.2 million, compared to $46.8 million a year ago and sequentially from $46.5 million in the first quarter of 2023. Additionally, the gross margin as a percentage of revenue saw an increase to 51.7% from 45.8% in the corresponding period last year.
VICR daily chart. Credit: Stocktwits
ABVC BioPharma Inc. (ABVC)
ABVC BioPharma, Inc., a leading player in the biopharmaceutical industry, has announced its strategic move towards an alliance with Zhonghui United Technology Group Co., Ltd. ABVC signed a term sheet to acquire real estate assets from Zhonghui and its associated entities, marking a significant step in its expansion strategy. The deal, estimated at $7.4 million, is centered around an equity transfer and is directed towards the development of a comprehensive health and wellness hub in Chengdu, China.
ABVC daily chart. Credit: Stocktwits
XPeng, Inc. (XPEV)
Volkswagen, the German automaker, has announced plans to invest $700 million in Chinese automaker, Xpeng. This investment is part of a deal that will see Volkswagen taking a 4.99% stake in Xpeng, indicating a significant China deal. The agreement also includes the joint development and production of two mid-sized battery-electic vehicles (EVs) specifically for the Chinese market. These EVs will be produced at Volkswagen’s new development, innovation, and procurement center in Hefei and will be marketed under the Volkswagen brand. Volkswagen’s decision to invest in Xpeng and the new facility, known as 100%TechCo., is a strategic move aimed at responding to China’s rapidly evolving consumer demands.
XPEV daily chart. Credit: Stocktwits
PacWest Bancorp (PACW)
PacWest Bancorp saw a significant surge in its market value, with shares jumping 25% on a $1.1 billion buyout announcement by Bank of California, Inc. This all-stock merger will result in each share of PacWest being replaced with 0.6569 shares of Banc of California. Jared Wolff, the Chief Executive of Banc of California, will helm the merged entity.
PACW daily chart. Credit: Stocktwits
