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.

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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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