Rivian shares surged nearly 47% in overnight trading after the adventure EV-maker announced a joint venture deal with Volkswagen (VWAGY), crucially bringing in fresh capital into Rivian’s coffers.
Volkswagen announced it intends to deal with Rivian to create “next generation software-defined vehicle (SDV) architectures” to be used in both companies’ future EVs. The joint venture will use Rivian’s “zonal hardware design” and platform for the foundation of future vehicles, as well as Rivian’s electrical architecture expertise for the vehicles. Rivian will license its existing IP rights to the joint venture.
In exchange, Volkswagen will invest an initial $1 billion in Rivian through an “unsecured convertible note that will convert into Rivian’s common stock,” with up to $4 billion in additional investment staged through 2026 for a total infusion of $5 billion.
Micron shares jumped over 3% in overnight trading. When Micron Technology reports third quarter results on Wednesday, analysts expect the memory chipmaker to beat Wall Street estimates, driven by increased AI exposure and higher DRAM pricing.
The Boise, Idaho-based company is expected to post EPS of $0.53 on revenue of $6.67 billion, implying a rise of 77.9% during the quarter.
Nvidia shares continued to rise 1% in overnight trading. Shares of Nvidia surged nearly 7 per cent on Tuesday, snapping out of a three-session tailspin that had erased about $430 billion from the artificial intelligence chipmaker's market value.
Nvidia's shares finished at $126.09, after a tumble that saw them lose around 13 per cent from their June 18 close of $135.58. The drop followed a rally that accelerated after a 10-for-1 stock split that took effect on June 10.
"The bounce today is a normal technical bounce after a 15 per cent drop in three days; you're not going to go straight down every single day," said Tom Hayes, chairman at Great Hill Capital in New York. "It's a great company, it's a great CEO, and you have insiders selling three-quarters of a billion worth of stock just as retail investors were getting involved with the split," Hayes added.
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