The firm is known for its low-cost chips which are thinner than a human hair

Disruptive chip maker Pragmatic Semiconductor says it is focussed on ramping up production at its new County Durham factory site, despite falling revenue and widening operating losses.

Bosses say the innovative firm will continue to bear losses until production and sales scale up. And the hunt for new equity funding – following a successful £179m series D raise – is under way with JP Morgan appointed to lead the effort.

Pragmatic has secured £36m of bridge financing from existing investors, in the form of convertible loan notes, to tide it over in the meantime. It comes as newly published accounts show Pragmatic saw revenues fall to £901,000 in 2025, down from £1.69m the year before, and incurred operating losses of £65.1m, up from £55.8m.

Writing in the accounts, Steve McCue – who was appointed as chief financial officer in March 2025 – acknowledged delays to the company’s plan but talked of the “deep complexity of developing an entirely new disruptive technology. He said directors were satisfied the company continues to make significant progress.

Pragmatic has developed a fast and sustainable way to develop ultra-thin and flexible chips that are underpinning the digital and AI-led transformation of the economy. In 2022 it chose Meadowfield Industrial Estate as the site for its multimillion-pound, job-creating Pragmatic Park production site, where the second high-volume production line for its chips has now been built and installed to triple its capacity.

In late 2023 the company completed its series D equity raise, co-led by technology investors M&G Catalyst and the UK Infrastructure Bank. At the time, that was said to be the largest European semiconductor venture raise ever.

Given its track record of attracting investment there are hopes the series E round will also deliver for Pragmatic, which has its eyes on an estimated $30bn market. The firm has pointed to initial opportunities in the near-field communications space, dealing with smart labels and inlays for global packaging companies and consumer brands.

Within the results document, Mr McCue wrote: “The directors are pleased to report continued progress with ongoing technology and product innovation and high-volume manufacturing production ramping support of the further commercialisation of the company’s proprietary semiconductor technology and manufacturing processes during 2025. The company’s proven breakthrough technology delivers thin and flexible integrated circuits (‘chips’) at a significantly lower production cost and lower carbon footprint than comparable silicon chips.

“As an example, our RFID chips can enable item-level intelligence to be embedded in virtually any object on the planet. Moreover, our technology has the potential to fundamentally redefine the global semiconductor industry, with demands for greater supply chain resiliency, diversification of global manufacturing footprint in the face of escalating geopolitical tensions, and significant reductions in emissions, all continuing to present strong tailwinds for the company.

“Pragmatic offers a scalable and capital efficient means to grow semiconductor capacity and allows for truly localised chip production in a way that cannot be matched by other semiconductor technologies, all while dramatically reducing energy and water usage, and eliminating the use of many harmful chemicals required by the industry today.”

Australia’s benchmark stock index edged lower Monday, falling 0.11% to trade at 8,967.2 points, as a sharp slide in iron ore prices and mining stocks offset a positive overnight session on Wall Street driven by strong technology earnings.

The S&P/ASX 200 dropped 9.6 points in early afternoon trading, a modest decline that nonetheless followed an unusually weak start to the session. Futures markets had pointed to a considerably rougher opening, with ASX 200 futures down 85 points, or 0.95%, ahead of the local session, suggesting the index recovered some ground once trading got underway.

Iron ore and major mining stocks bore the brunt of Monday’s selling pressure. Fortescue fell 3.3% to a fresh 11-month low of $17.90, extending a decline that has now pushed the stock down 22% since mid-May and 16% year-to-date. Iron ore prices themselves fell to their lowest level in more than a year, driven by concerns tied to a major physical commodities trader alongside softening demand out of China and deteriorating fundamentals within the steel industry. As recently as three months ago, iron ore had been trading around $110 a tonne; prices have since dropped sharply to approximately $94 a tonne amid the weakening demand backdrop.

Chinese economic data released Monday added to the cautious tone. A private survey showed China’s factory activity gauge slowing, echoing weaker official government data and reinforcing concerns about softening demand from the country that remains Australia’s largest trading partner for iron ore and other key commodity exports.

Despite the pressure from mining and resources stocks, Monday’s session followed a broadly positive close to July on Wall Street. The Dow Jones Industrial Average rose 0.53%, the S&P 500 gained 0.7% and the Nasdaq Composite climbed 1% in the final session of the month, with the rally driven substantially by another round of strong technology earnings. Amazon led the advance after its own results helped push the so-called Magnificent Seven group of major technology stocks up roughly 3% collectively, offsetting a decline in Apple shares following its own earnings report. Chipmakers finished the session roughly flat, a result that did little to rescue the sector from what proved to be its worst monthly performance since 2008.

Microsoft’s earnings specifically continued to reverberate through markets heading into the new week. The company’s shares closed up 15.5% on Thursday, lifting its market capitalization to $3.35 trillion and surpassing Nvidia’s prior record for the largest single-day market value gain, a mark set in April 2025. Microsoft guided for Azure cloud revenue growth of 45% on a constant-currency basis in the current quarter, comfortably ahead of the roughly 40.9% growth analysts had been expecting. The company also kept its capital expenditure plans unchanged, at $50 billion for the first quarter of its 2027 fiscal year and $175 billion across the full 2026 calendar year, easing broader investor concerns that AI-related infrastructure spending might begin outpacing actual demand. At least nine brokerages raised their price targets on Microsoft following the results, pushing the average target to $560.90.

Sentiment toward the broader artificial intelligence trade also received a boost from a separate development involving hedge fund Citadel. A deal in which Citadel acquired the remaining public equities portfolio of hedge fund Situational Awareness triggered a relief rally across AI-linked stocks, even as some traders continued to question whether other heavily leveraged funds remain similarly exposed to potential forced selling. That relief rally extended into Asian markets as well, with South Korea’s KOSPI index surging a record 18% on Friday following the news.

Australian shares had entered the new trading week on strong footing after climbing almost 3% during July overall. Within the local market last week specifically, technology stocks rose 8.2% while healthcare stocks gained 5.5%, according to weekly sector performance data, reflecting a broader rotation toward growth-sensitive sectors even as resources and mining stocks have come under renewed pressure heading into the start of August.

Beyond the dominant iron ore and technology themes, Monday’s session also brought early corporate updates from companies including Transurban, FleetPartners, SKS Technologies, Vista Group and ResMed, with investors weighing those individual results alongside the broader macroeconomic backdrop shaping the session. Softer futures heading into the day had also reflected pressure from rising global bond yields and cautious investor positioning ahead of the bulk of Australia’s corporate reporting season, which continues to unfold through August.

With the ASX 200 continuing to trade well below its all-time high of 9,198.6 points, reached in February 2026, and iron ore prices showing few signs of an immediate rebound, investors are likely to keep close watch on further Chinese economic data and the pace of Australia’s ongoing corporate earnings season in the sessions ahead, particularly given how directly the fortunes of major resources stocks like Fortescue remain tied to the trajectory of Chinese steel and construction demand.

With August’s historical seasonality favouring Indian equities, analysts have identified stocks well placed to outperform based on derivatives build-up, though a few continue to attract bearish bets on weakening technicals.

With August’s historical seasonality favouring Indian equities, analysts have identified stocks well placed to outperform based on derivatives build-up, though a few continue to attract bearish bets on weakening technicals.

BULLISH BETS
DELHIVERY
Change in OI in Aug Series: 16.99% Change in Price in Aug Series: 4.19%
RATIONALE: The stock has attracted fresh long positioning in the August derivatives series, said Dhupesh Dhameja, research analyst, Samco Securities. “The stock continues to trade above its 100-day EMA, highlighting a robust long-term bullish structure, while the recent decline appears to be a healthy retracement within the broader trend rather than a reversal,” he said. Dhameja said the stock has the potential to extend its up move towards Rs 530, while Rs 458 remains a critical stop loss, below which the technical structure would weaken.

Read more: AI trade unwind, FII inflows brighten August outlook for Indian stocks

JIO FINANCIAL
Change in OI in Aug Series: 1.83% Change in Price in Aug Series: 3.84%
RATIONALE: The stock has been consolidating in a symmetric triangle pattern for the past five months, said Vipin Kumar, AVP – Derivatives and Technical Research at Globe Capital Market. “On Friday, it witnessed a bullish breakout from the said formation with a significant rise in volume,” he said. He suggests adding long positions in its August futures around the Rs 255-250 levels, with a stop loss at Rs 240, for a price target of Rs 270-280.

ADITYA BIRLA CAPITAL
Change in OI in Aug Series: 5.46% Change in Price in Aug Series: 2.65%

RATIONALE: The rise in open interest alongside a gain in price indicates fresh long accumulation in the August series, said Dhameja. “On the technical front, the stock is undergoing a healthy consolidation after a strong uptrend while holding above its rising 20-DEMA, highlighting sustained buying interest,” he said. “The ongoing price action reflects strong acceptance near higher levels, with the broader higher highhigher low structure remaining intact.” Dhameja said the structure suggests potential towards `445, while `384 remains a critical stop loss, below which the bullish structure would weaken.

BAJAJ HOLDINGS & INVESTMENT
Change in OI in Aug Series: 44% Change in Price in Aug Series: 5.25%

RATIONALE: Following a multiquarter corrective phase, the stock has established a durable base around its four-year mean, said Amit Trivedi, SVP, Institutional Equities Research at Yes Securities. “A decisive hold above Rs 11,000 is expected to strengthen bullish momentum, opening the path towards the Rs 12,500 zone,” he said. Trivedi suggests buying for a target of Rs 12,500, with a stop loss at Rs 10,850.

MUTHOOT FINANCE
Change in OI in Aug Series: 2.20% Change in Price in Aug Series: 4.45%

RATIONALE: Dhameja said the stock is well positioned to extend gains to Rs 3,450, while Rs 2,950 remains a critical stop loss, below which the breakout would lose its bullish bias. “The breakout follows multiple higher lows near the Rs 2,900 support zone, highlighting strong accumulation and improving demand dynamics. Price has also reclaimed the Rs 3,000 psychological mark, reinforcing the shift in short-term sentiment,” he said.

BEARISH BETS

LIC HOUSING FINANCE
Change in OI in Aug Series: 14.92% Change in Price in Aug Series: -3.32%

RATIONALE: The stock witnessed a bearish breakdown from the past two-and-a-half-month consolidation range, backed by higher volumes, said Globe Capital’s Kumar. “The breakdown was further supported by a significant rise in short positions,” he said. Kumar suggests initiating short positions on rallies around Rs 525-535, with a stop loss at Rs 548 and a target of Rs 490.

UPL
Change in OI in Aug Series: 1% Change in Price in Aug Series: 0.66%

RATIONALE: Following June’s decline, recoveries in the recent past remained short-lived, said Trivedi. “In the July series, the stock remained under pressure and witnessed a short build-up, with futures open interest rising about 26% on an expiry-toexpiry basis, and rollover stood at 96%,” he said. Trivedi suggests traders sell for a target of Rs 555, with a stop loss at Rs 632.

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VYMI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Spider-Man: Brand New Day brought in $927m (£687m) of global ticket sales to make it the second-biggest opening weekend ever as it shot past its estimated $225m production budget.

The superhero movie – starring real-life husband and wife Tom Holland and Zendaya – is only behind Avengers: Endgame, which took in more than $1.2bn in its opening weekend in 2019.

Brand New Day also set a second-best North American record, with box office takings of $335m.

The film’s strong performance gives a much-needed boost for Disney ahead of the highly-anticipated December release of Avengers: Doomsday, after a string of Marvel movies under-performed in recent years.

Brand New Day, which opened in cinemas last week, picks up a few years after 2021’s Spider-Man: No Way Home as Peter Parker continues to fight crime in a world that has forgotten he is the masked superhero.

The latest instalment of the hugely popular franchise received largely positive reviews, with some calling it Holland’s best Spider-Man performance yet.

The film is Marvel’s last big-screen outing before Doomsday, the long-awaited culmination of multiple superhero story arcs after Avengers: Endgame.

Marvel films released since Endgame have struggled to attract the same broad audiences as they did at their peak.

Big budget films like The Marvels and The Thunderbolts recouped their production costs but were among the studio’s lowest-grossing films.

Spider-Man remains one of Marvel’s most lucrative franchises, with No Way Home making nearly $2bn in ticket sales.

Cinema attendance has slowed since the Covid-19 pandemic, which accelerated the shift to home-streaming options like Netflix.

But the big screen has staged something of a comeback this year, with the North American box office takings on track to pass $10bn for the first time since 2019.

That was helped by blockbuster hits by including Toy Story 5, Michael, and The Super Mario Galaxy Movie – which have made more than $1bn each.

July releases Brand New Day and The Odyssey – director Christopher Nolan’s take on the epic Greek poem – are also on track to top the $1bn mark.

Indie horror flicks Obsession and Backrooms emerged as surprise successes, bringing in more than $390m each despite their modest budgets.

Oil prices dropped by more than $4 a barrel on Monday after U.S. President Donald Trump refrained from launching a fresh attack on Iran and instead signalled a willingness to pursue a quick agreement aimed at ending Tehran’s nuclear ambitions and reopening the Strait of Hormuz.

Crude oil price on August 3

Brent crude futures fell $4.37, or 5%, to $83.56 a barrel, while U.S. West Texas Intermediate crude declined $4.63, or 5.5%, to $80 a barrel.

The sharp decline followed a strong rally last month, when both contracts had gained more than 20% after fighting between the U.S. and Iran resumed. Concerns over attacks on several tankers near Oman also heightened security risks, discouraging shippers from entering the Gulf to load crude.

Also read: Trump’s closest Gulf allies are frustrated with his Iran war strategy: Report

In a possible sign of easing tensions, Trump said late on Saturday on his Truth Social platform that Iran and other Middle Eastern countries had sought time to finalise an agreement that would result in “the Immediate, Complete and Total” reopening of the crucial waterway and bring “an end to Iran’s nuclear threat”. Trump added that he had agreed to cancel the attack to allow for a rapid agreement, and said Israel had also committed to the effort.

On Sunday, OPEC+ approved an increase of around 188,000 barrels per day in its oil production quota for September, marking the completion of the rollback of one tranche of its voluntary output cuts.
However, the additional supply has had little effect on the market so far. Export disruptions from the Gulf, along with supply issues involving Russia and Kazakhstan amid the Iran and Ukraine wars, have meant that the group’s successive monthly production hikes for most of this year have largely remained on paper.

Analysts hopeful?

The trajectory of oil prices will largely depend on the duration of the supply disruption. JPMorgan estimates that every additional month of disruption could lift Brent prices by about $7 to $8 a barrel. If the disruption extends for three months, the bank expects the monthly average Brent price to reach around $114 a barrel.Goldman Sachs has also warned that Brent could rise to $120 a barrel if shipping disruptions through the Strait of Hormuz, the world’s most important oil transit route, continue. However, its base case remains that tensions in the Middle East will eventually ease.

Read more: Oil prices surge 20% in July as US-Iran war heightens Strait of Hormuz tensions

Based on that assumption, Goldman Sachs expects Brent to average $80 a barrel in the fourth quarter and $75 a barrel next year. Even so, the bank said the risks to its forecasts remain “tilted to the upside”, citing the possibility that shipping disruptions could continue in both the Strait of Hormuz and the Red Sea.

“The direction of our outlook is unchanged; the path and the timeline have shifted. We still expect oil to cool as we move into 2027, for three reasons: supply outside the conflict zone is expanding, with OPEC+ raising production targets, the UAE at record output and non-OPEC barrels responding to price, said Anindya Bannerjee, Head of Commodity Research at Kotak Securities.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)