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WASHINGTON (Reuters) -A group representing major automakers warned late on Thursday that a chip disruption stemming from a dispute between China and the Dutch government could quickly impact U.S. auto production. Carmakers and their suppliers received notice from chipmaker Nexperia last week that it could no longer guarantee delivery of its chips, said ACEA, the European Union's auto association, which also said manufacturing could be significantly disrupted. In the United States, the Alliance for Automotive Innovation, which represents General Motors, Toyota, Ford, Volkswagen, Hyundai, and nearly all other major automakers, urged a quick resolution. "If the shipment of automotive chips doesn’t resume – quickly – it’s going to disrupt auto production in the U.S. and many other countries and have a spillover effect in other industries," said the group's CEO John Bozzella. "It’s that significant." Some automakers told Reuters that U.S. auto plants could be affected as soon as next month. They declined to be named due to the sensitivity of the issue. The chips made by Nexperia are crucial to production of U.S. parts and vehicles. The Dutch government announced on Sunday that it had as of September 30 taken control of Chinese-owned computer chipmaker Nexperia, citing worries about the possible transfer of technology to Nexperia's Chinese parent company, Wingtech. Court documents showed the Dutch government's move came after months of rising U.S. pressure on the company. Nexperia was at risk of being impacted by a new U.S. rule that extends export control restrictions to companies at least 50% owned by one or more entities on the U.S. entity list. Washington put Wingtech, which has 100% ownership of Nexperia, on the U.S. list in late December. The Chinese commerce ministry issued on October 4 an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China, according to a statement Nexperia published on Tuesday. Volkswagen and BMW both said production in Europe had not yet been impacted by the issues but that they were working to identify potential supply risks. (Reporting by David Shepardson; Editing by Sonali Paul)

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By Haripriya Suresh and Sai Ishwarbharath B BENGALURU (Reuters) -Indian IT firms Infosys, Wipro and LTIMindtree beat estimates for quarterly revenue on Thursday and pointed to improving demand in the back half of the year as clients show more willingness to fund AI projects. Their upbeat results follow a strong showing by market leader Tata Consultancy Services last week and bode well for the $283 billion sector, which has struggled in the past few quarters as customers cut discretionary spending amid tariff-related uncertainty. "We are benefiting from consolidation plays on automation and on using AI for efficiency. That's the big focus that we see from our clients across industries," Infosys CEO Salil Parekh said on a conference call, noting there was a "huge" opportunity in the enterprise AI space. Buzz around artificial intelligence is prompting more companies to consider funding projects tied to the technology to improve efficiency and drive automation, potentially opening up a major revenue stream for Indian IT firms. Infosys, which topped analyst estimates for profit and revenue in the second quarter, sees full-year revenue growth of 2-3%, compared with its prior view of 1-3%. Jefferies analysts said the forecast was achievable due to its "strong" deal bookings. Smaller peer Wipro, which expects its revenue to range between a 0.5% decline and a 1.5% rise for the third quarter, is also gaining from clients warming up to AI projects. "New demand that's picking up is AI," Wipro CEO Srini Pallia said. "Clients want to move away from proof of concepts to implementing AI and agentic AI across business processes and workflows." RISING TIDE LIFTS ALL BOATS Analysts viewed the quarter as a signal that the IT sector had put the worst behind it. "The results highlight a stabilizing IT sector gradually regaining traction amid shifting client priorities toward AI and digital acceleration," StoxBox analyst Sagar Shetty said. Anand Rathi's Sushovon Nayak confirmed that most of the IT firms, which had reported results, had shown "green shoots." The sector has particularly gained from a recovery in spending by financial services firms. Infosys and LTIMindtree beat second-quarter revenue estimates, driven by strength in the banking segment. ($1 = 87.8590 Indian rupees) (Reporting by Haripriya Suresh and Sai Ishwarbharath B; Additional reporting by Kashish Tandon; Editing by Nivedita Bhattacharjee, Dhanya Skariachan and Anil D'Silva)

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(Reuters) -The chair of the House Select Committee on China said Thursday that a licensing agreement for use of the TikTok algorithm as part of a deal by Chinese-based ByteDance to sell U.S. assets of the short video app would raise "serious concerns." Representative John Moolenaar, a Republican, is waiting for briefing to get more details on the deal that White House officials said previously would include the new owners of TikTok's U.S. assets licensing the algorithm. "I think anytime you have (China) with leverage over the algorithm, I think that's a problem," Moolenaar said at a forum. President Donald Trump signed an executive order on Sept. 25 declaring the plan to sell TikTok's U.S. operations to a consortium of U.S. and global investors meets the national security requirements set out in a 2024 law. (Reporting by David Shepardson and Alexandra Alper, Editing by Franklin Paul)

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(Reuters) -Companies announcing multi-billion dollar investments in artificial intelligence have raised concerns about the formation of a bubble reminiscent of the dotcom boom and bust. Investors are on guard for signals that demand is tailing off or that the massive spending is not paying off as anticipated. A BofA Global Research's monthly fund manager survey revealed that 54% of investors said they thought that AI stocks were in a bubble compared with 38% who do not believe that a bubble exists. Here is a list of industry executives, economists and analysts’ takes on the topic: BANK OF ENGLAND Global markets could tumble if investors' mood sours on the prospects for artificial intelligence, the Bank of England said on October 8. "The risk of a sharp market correction has increased," the BoE's Financial Policy Committee said in a quarterly update, in its sharpest warning to date of the dangers of an AI-triggered market slump, adding that the risk of spillovers to Britain's financial system from such a shock was "material". BRYAN YEO, GIC PRIVATE CHIEF INVESTMENT OFFICER "There's a little bit of a hype bubble going on in the early-stage venture space," said Singapore sovereign wealth fund's Yeo during a panel discussion at the Milken Institute Asia Summit 2025 on October 3. "Any company startup with an AI label will be valued right up there at huge multiples of whatever the small revenue (is),… That might be fair for some companies and probably not for others." JEFF BEZOS, FOUNDER AND EXECUTIVE CHAIRMAN OF AMAZON “When people get very excited as they are today about artificial intelligence, for example, every experiment gets funded,… And investors have a hard time in the middle of this excitement distinguishing between the good ideas and the bad ideas,” Bezos said during the Italian tech week on October 3. “A bubble like a banking bubble, a crisis in the banking system, that's just bad … The ones that are industrial are not nearly as bad, it could even be good because when the dust settles and you see who are the winners, society benefits from those inventions.” JOSEPH BRIGGS, ECONOMIST AT GOLDMAN SACHS' GLOBAL ECONOMICS RESEARCH The flood of multibillion-dollar investments pouring into U.S. artificial intelligence infrastructure is sustainable, pushing back on mounting concerns that the sector's spending spree could be overheating, Briggs said in a note on October 16. While the overall macroeconomic case for AI investment remains strong, he cautioned that "the ultimate AI winners remain less clear," with fast technological change and low switching costs potentially limiting first-mover advantages. MORTEN WIEROD, ABB CEO"I don't think there is a bubble, but we do see do see some constraints in terms of construction capacity not keeping up with all the new investments," Wierod told Reuters on October 16. "We are talking about trillions in investment," he said, adding: "That will take a few years to implement because there is not enough people and resources to build all this." PIERRE-OLIVIER GOURINCHAS, IMF'S CHIEF ECONOMIST The U.S. artificial intelligence investment boom may be followed by a dot-com-style bust, but it is less likely to be a systemic event that would crater the U.S. or global economy, Gourinchas, said on October 14. "This is not financed by debt, and that means that if there is a market correction, some shareholders, some equity holders, may lose out." SAM ALTMAN, OPENAI CEO“Are we in a phase where investors as a whole are overexcited about AI? My answer is yes,” Altman told tech media The Verge in August. “Someone is going to lose a phenomenal amount of money. We don’t know who, and a lot of people are going to make a phenomenal amount of money.” UBS Almost as many investors who feel we're in an AI bubble are also hanging on to their investments in the sector, UBS equity strategists said on October 14. "Most felt we were in an AI bubble, but that far from the apex of a bubble peak and thus around 90% of the people who said we were in a bubble said they were still invested in many of the AI-related areas." (Reporting by Paolo Laudani and Mathias de Rozario in Gdansk; Editing by Matt Scuffham)

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