Black Sesame Steers Towards $140 Million Hong Kong IPO SoC, ADAS, ADAS, Nvidia, Huawei, HiSilicon, Hong Kong, Liu Weihong, Shan Jizhang, Horizon Robotics, autonomous vehicles, Tsinghua University, Black Sesame International Holding Ltd by https://www.benzinga.com/
AI Insights:
Simple Explanation:
A company called Black Sesame that makes special chips for cars that can help them drive by themselves is going to sell some of its shares in Hong Kong. This is important because it is one of the first companies in this sector to do this. Black Sesame's chips are used in cars that can help drivers with driving tasks but not fully drive by themselves. The company is losing a lot of money because it is spending a lot on making new chips and not making enough money yet. It faces competition from other companies that also make chips for cars and some car makers are even making their own chips. Read from source...
Critical Perspective:
Key points:
- Black Sesame is a Chinese chipmaker that focuses on ADAS applications for autonomous vehicles
- The company is preparing to raise more than $100 million in a Hong Kong IPO, reporting its loss more than doubled from 2.4 billion yuan in 2021 to 4.9 billion yuan last year
- The company faces stiff competition from Nvidia, HiSilicon, and startups like Horizon Robotics in the autonomous driving chip market
- The article argues that the company is unlikely to turn a profit anytime soon, as the market is crowded, the technology is immature, and the automakers are developing their own chips
- The article also cites the recent hype around robotaxis in Wuhan as an example of the potential upside for the sector, but also warns of the challenges and risks
Summary:
The article is a critical analysis of Black Sesame's upcoming IPO, which aims to raise more than $100 million in Hong Kong. The author questions the company's viability, as it suffers from huge losses, faces fierce competition, and has to deal with uncertain market conditions. The author also acknowledges the excitement around autonomous driving, but cautions that it may not translate into profits for Black Sesame anytime soon.
Sentiment Analysis:
Bearish
Article's Key Points:
- Black Sesame is preparing to raise more than $100 million in a Hong Kong IPO
- The company's loss more than doubled from 2.4 billion yuan in 2021 to 4.9 billion yuan last year
- The company faces stiff competition from Nvidia, HiSilicon, and startups like Horizon Robotics in the autonomous driving chip market