Latest News In AI Chips - Palomino Expands AI Market Reach with Vega Links Acquisition

Palomino Laboratories has signed a binding Letter of Intent to acquire Vega Links Inc., aiming to transform itself into a comprehensive AI interconnect company. This acquisition will expand Palomino's market reach from approximately $6 billion to over $60 billion by integrating systems architecture and advanced interconnect technologies, such as copper, MicroVCSEL, and MicroLED solutions. As AI infrastructure advances rapidly, the demand for high bandwidth, low latency, and energy-efficient data movement is escalating, and the combined capabilities of Palomino and Vega Links aim to address these emerging AI networking trends. This strategic move positions the company to play a significant role in the evolving AI infrastructure landscape, with a focus on supporting hyperscale AI deployments.

In other trading, ASML Holding (ENXTAM:ASML) was a notable mover up 3.2% and closing at €1,598.40. On Wednesday, the company increased its earnings guidance for 2026 and reported Intel Foundry's use of its High NA EUV technology in high-volume manufacturing. In the meantime, Suzhou Everbright Photonics (SHSE:688048) lagged, down 20% to end the day at CN¥341.21.

ASML Holding's advancements in EUV technology position it to capitalize on the expanding AI market with significant margin and revenue growth. Click here to explore the compelling narrative on ASML's strategic innovations.

For a deeper understanding, revisit our 'Market Insights' article where we highlighted China's focus on AI chip advancements and semiconductor leadership—opportunities exist, but act quickly!

Best AI Chip Stocks

• NVIDIA (NasdaqGS:NVDA) finished trading at $207.40 down 2.4%. This week, NVIDIA faced an ITC investigation related to memory patents, announced a new AI factory project in Japan, unveiled advancements in AI models and edge computing products, and saw significant AI infrastructure deployments.
• Broadcom (NasdaqGS:AVGO) closed at $374.45 down 5%. This week, the ITC launched an investigation into Broadcom and others regarding alleged patent infringement on Samsung memory products.
• Micron Technology (NasdaqGS:MU) ended the day at $853.20 down 5.6%. Micron secured strategic agreements two days ago with major automotive industry partners to enhance AI-enabled vehicle technology.

Summing It All Up

• Take a closer look at our AI Chip Stocks list of 122 companies, such as Realtek Semiconductor, Konfoong Materials International and Powerchip Semiconductor Manufacturing, by clicking here.
• Contemplating Other Strategies? Trump has pledged to "unleash" American oil and gas and these 23 US stocks have developments that are poised to benefit.

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Sources:

• Simply Wall St
• "Palomino Laboratories Announces Binding LOI to Acquire Vega Links Inc. to Create a Next-Generation AI Interconnect Company" from Palomino Laboratories Inc on GlobeNewswire (published 16 July 2026)

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