Ampere 🤝
Dmart's E-commerce bet, Adani sells wires, and a defense deal.
☀️ Good morning, the weekend is here!
📈 Indian markets rallied for the fourth straight session, logging their longest winning streak in nearly two months. Sensex & Nifty jumped over 1%, with all sectors in the green, led by Reliance, TCS, HDFC Bank, and Infosys.
💡 Quick spotlight: Copper surged past $10,000 per ton, fueled by weeks of trade chaos sparked by Trump’s aggressive tariff push. FWIW, commodities generally do well when there is policy or macro uncertainty.
Let’s hit it!
1 Big Thing: SoftBank’s $6.5B AI chip bet 🤝
SoftBank is acquiring Ampere Computing, a chip design firm, in a $6.5 billion all-cash deal, marking another major bet on AI infrastructure.
The deets: Ampere designs high-performance ARM-based chips for AI and cloud computing. Its customers include Google Cloud, Microsoft Azure, Oracle Cloud, Alibaba, and Tencent, making it a major supplier for the world’s biggest cloud platforms.
The acquisition gives SoftBank full control over Ampere, as Carlyle (59.6%) and Oracle (32.2%) sell their stakes.
Why it matters: AI needs massive computing power, and SoftBank is securing its position in the AI chip supply chain. It already owns majority of Arm Holdings, which designs the chip architecture used by Ampere.
Now, it’s tightening that grip by adding a company that makes AI-ready server chips—a space dominated by Nvidia and AMD.
The company has been on an AI shopping spree, partnering with OpenAI on AI infrastructure projects, backing Cristal Intelligence, and even purchasing an old Sharp factory in Japan to turn it into an AI data center.
Worth noting: this is SoftBank’s biggest AI hardware bet yet, but knowing Masa, it won’t be the last.
If you are looking for context around Masa’s conviction on AI, encourage you watch this.
2. Adani plugs into cables & wires 🚀
Adani Enterprises is stepping into the wires and cables business via its subsidiary Kutch Copper.
The deets: the company has formed a 50:50 joint venture, ‘Praneetha Ecocables’, with Praneetha Ventures. The JV will focus on manufacturing, marketing, distributing, and trading metal products, cables, and wires.
But why: Kutch Copper already produces copper, a key raw material for cables, giving Adani a strong advantage in the industry. By integrating its supply chain, the company can boost margins, lower costs, and reduce dependency on external suppliers.
Why it matters: the cables & wires industry is booming, fueled by India’s push for rural electrification, smart grids, and renewable energy projects. The expansion of 5G, data centers, and fiber-optic networks is also driving demand for specialized high-speed cables.
Adani isn’t alone—UltraTech Cement recently entered the sector, intensifying competition in a market valued at $12.8 billion in 2024, expected to reach $42 billion by 2034.
Zoom out: the announcement shook the industry. Polycab fell 15%, Havells dropped 5%, and KEI Industries slipped 7%, as investors braced for fresh competition from a deep-pocketed new player.
Meanwhile, Copper is having quite the run.
3. DMart is “Ready” to roll 🛒
Avenue Supermarts is investing ₹175 crore into its e-commerce arm, Avenue E-Commerce, which runs DMart Ready.
The investment signals a strong push to expand in the e-grocery space, taking on players like BigBasket, Blinkit, and JioMart. The funds will help DMart to penetrate deeper into tier-2 and tier-3 cities.
The deets: unlike Blinkit and Instamart, which focus on quick commerce and 10 to 15-minute deliveries, DMart Ready operates on a low-cost model. It prioritizes scheduled deliveries and self-pickup points, ensuring better profit margins.
Why it matters: the company is betting on a hybrid approach, leveraging its offline stores for last-mile delivery while also expanding its online reach.
The big picture: India’s e-grocery market is set to hit $30 billion by 2026. With rising digital adoption, traditional retailers like Reliance and DMart are doubling down on e-commerce to stay ahead in the evolving grocery landscape.
On a different note, DMart Ready’s e-commerce revenue has already skyrocketed.
4. Stocks that kept us interested 🚀
1. Bharat Forge bagged a defense deal
Bharat Forge shares jumped over 4% after the Cabinet Committee on Security (CCS) approved a ₹7,000 crore contract for acquiring 307 indigenous Advanced Towed Artillery Gun Systems (ATAGS).
Bharat Forge is a a key player in defense, automotive, aerospace, railways, and energy sectors.
The deets: 307 ATAGS units will be distributed across 15 artillery regiments, enhancing India’s long-range firepower.
ATAGS is India’s first fully indigenous 155mm artillery gun with a 52-calibre barrel, capable of hitting targets up to 40 km away.
ATAGS will replace aging 105mm and 130mm artillery, equipping the Indian Army with next-gen weaponry.
2. Paras Defence lands ₹142 crore DRDO deal
Paras Defence surged 4% after securing a ₹142 crore contract from DRDO to develop a laser-based weapon system that can track and destroy drones and missiles.
Paras Defence is a defence electronics, components, and optics solutions provider.
Why it matters: with rising global threats, India is ramping up laser-based defense. This contract strengthens Paras Defence’s role in next-gen warfare while advancing DRDO’s push for self-reliant military tech.
5. Story in data: Space Race 📈
India’s space program is proving that big impact doesn’t always need a big budget.
Despite ranking 9th in global space spending, India continues to push boundaries with cost-effective missions and growing private sector involvement.
What else are we snackin’ 🍿
🚨 Rate watch: the US Federal Reserve held interest rates steady at 4.25–4.5%, but policymakers still expect two rate cuts in 2025.
🧐 X vs. India: X is suing the Indian government over Grok-related takedown orders, arguing they violate legal safeguards
✈️ Jet jackpot: Air India plans a multi-billion dollar order for 30-50 widebody jets from Boeing and Airbus.
And that’s a wrap. Pour yourself an extra one this weekend.
We’ll be back like clockwork on Monday!
Hit that 💚 if you liked this issue.
