Trillions 💸

Swiggy's scene, OYO's recovery and an Expensive apology.

Dec 16, 2024

☀️ Morning, new week is here. The final 15 days are expected to be quiet.

📈 The S&P has outpaced the Sensex by nearly 15% points this year—doesn’t happen that often. India’s inflation and slowing GDP growth are key factors behind the lag.

Let’s hit it.

1 Big Thing: New trillion dollar giant 💸

Broadcom became the latest company to join the $1 trillion market cap club on Friday, as the artificial intelligence wave continues to broaden out.

What matters: Broadcom is widely known for making bespoke AI chips for large tech companies like Google, Meta Platforms, Bytedance, and more. Most recently, they signed a deal with Apple to supply chips for Apple’s AI server infrastructure.

Beyond chips, Broadcom also runs a robust software infrastructure business, which includes giants like VMware, which the company acquired a while back for a record $69 billion.

What’s driving Broadcom’s business:

Software sales nearly tripled to $5.8B while semiconductor sales rose 12% to $8.2B
AI revenue exploded 220% last year to $12.2B, surpassing the initial $10B target—a sign that demand scales faster than wall street can keep up

Broadcom’s stock grew nearly 24% on Friday, adding $200 billion+ to its market cap, in what would be the biggest single-day surge since the 2009 IPO.

Bottomline: While Nvidia has been lauded as the winner of the AI chip boom, Big Tech’s appetite to make their own silicon could be a game-changer, and if it catches wind, Broadcom is at the forefront of that ~trillion dollar market.

Zoom out: nearly $220 billion will be spent by Meta, Microsoft, Amazon, and Alphabet on capital expenditures this year too, mostly on AI infra. Beyond Nvidia, there’s more beneficiaries (like Broadcom) emerging.

2. Quick IPOs in store this week 📈

The IPO pipeline is buzzing this week with three notable issues:

Transrail Lighting, a Mumbai-based engineering, procurement, and construction company, is launching its IPO from December 19 to December 23. The offer includes a ₹400 crore fresh issue and 1.01 crore shares in an offer-for-sale by promoter Ajanma Holdings.
Mamata Machinery, a plastic-packaging machinery manufacturer from Ahmedabad, will open its IPO on December 19. The entire bid is an offer-for-sale by promoters. The old-school business sells packaging to companies like Balaji Wafers and Chitale Foods.

Share Filter Coffee ☕

3. Who got the bag? 💰

Quick look at a few major raises from venture town:

Prop-tech startup Inkers Technology raised $3 million in Series A funding, led by Lucky Investments. The company sells an AI-enabled platform to track construction projects based on simple progress-pictures, helping large developers stay on top of their major initiatives.
B2B manufacturing marketplace, Zetwerk, is raising $67 million in funding, led by Khosla Ventures for a Series F round. The company will use the proceeds to fund its growth plans and general corporate needs, including capital expenditures. Zetwerk partners with manufacturers across India to produce bespoke, precision-engineered products, helping large industrial companies identify and qualify the right suppliers. Exports play a significant role in its business.

4. Old media settles with Trump ⚖️

ABC News will pay $15 million to Trump and $1 million in legal fees to settle a lawsuit over comments made by an anchor, George Stephanopoulos, accusing Trump of rape. One expensive apology!

The deets: Trump sued ABC in March after George Stephanopoulos referenced a civil case where Trump was found liable for sexually assaulting E. Jean Carroll. While Trump was never convicted of rape, ABC failed to clarify the distinction between the civil and criminal cases.

Now, as part of the deal, ABC will also issue an apology attached to the article. The settlement was finalized Friday, with both Trump and Stephanopoulos scheduled for depositions next week.

Why it matters: Trump’s unexpected win is forcing mainstream media to rethink its approach. This is one of the largest settlements ever between Trump and a media company, so far.

5. OYO charts a gradual recovery 📈

Nuvama Wealth acquired ₹100 crore worth of shares in OYO’s parent company, Oravel Stays Limited, at ₹53 per share. This was a secondary market transaction and bumped Oyo’s valuation up to $4.6 billion.

The deets: the shares were sold by OYO's early investors. Other buyers, like Incred, are also exploring stakes, with prices ranging from ₹53 to ₹60 per share, potentially boosting OYO’s valuation to $5.2 billion.

Zoom out: OYO reported a ₹132 crore profit in Q1 FY 2025, marking a strong recovery from losses of ₹108 crore last year. While the company’s valuation is climbing, it’s still a far cry from its peak of $10 billion.

This company is known for its significant developments in real estate and data centers, particularly in the NCR region. It has a market cap of approximately ₹25,965 crore and has seen impressive stock performance, with returns of over 3,000% in the past five years. Which company is this?

Answer to last week's quiz: Suzlon.

What else are we snackin’ 🍿

💉Industry icon: Biocon's Kiran Mazumdar-Shaw has won the Jamsetji Tata Award for championing biosciences in India.

💻Big Tech donates: Sam Altman and Jeff Bezos each plan to donate $1 million to Donald Trump’s inaugural fund.

👊Meta vs OpenAI: Meta is backing Elon Musk's attempt to stop OpenAI from shifting from a non-profit to a for-profit model.

🎉Swiggy’s scene: Swiggy is entering the events space with Scenes, its new feature that lists live events and sells tickets, challenging Zomato’s District.

That’s a wrap! Don’t let the Weekday blues get to you.

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