It's not just chips — Taiwan's role in the AI supply chain is massive
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Yahoo
10 minutes ago
- Yahoo
Elon Musk Agrees With Cathie Wood: Tesla Is 'Largest AI Project On Earth' Amid Robotaxi Vision, Samsung Chip Deal Buzz
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Tesla Inc. (NASDAQ:TSLA) is the world's most ambitious AI endeavor, according to ARK Invest CEO Cathie Wood, who predicts its autonomous vehicle efforts could generate trillions in revenue. Autonomous Taxis Could Add $10 Trillion To Global GDP In a June interview on The Diary of a CEO podcast, Wood described Tesla as 'the largest AI project on earth,' a statement Elon Musk later reposted on X with a one-word affirmation: "True."Trending: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — Wood added that ARK's research shows the ecosystem surrounding autonomous taxi networks could generate between $8 trillion and $10 trillion in global revenue within the next 5–10 years. "To put that in context, the entire GDP of the world today is about $113 trillion," she said. "So $10 trillion is going to move the needle." Musk Aligns With AI Vision, Says AVs Will Impact GDP Soon Musk, who has long championed full self-driving (FSD) and robotaxi services, has said he expects autonomous vehicles to have a noticeable effect on GDP growth within the next one to two years. While Tesla's second-quarter revenue dropped 12% year-over-year to $22.5 billion—missing estimates—analysts remain focused on the company's long-term AI To Build Tesla's Next-Gen AI6 Chip In Texas In July, Tesla announced a $16.5 billion multiyear partnership with Samsung Electronics (OTC:SSNLF) to manufacture its AI6 chip domestically. The advanced chip is expected to power Tesla's next-gen autonomous systems, including its upcoming robotaxi fleet and Optimus humanoid bot. Samsung already manufactures Tesla's current AI4 chip, while Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is handling the AI5. Analysts said the new partnership will give Tesla valuable foundry experience that competitors haven't allowed. Dan Ives Says Tesla's AI Could Be Worth $1 Trillion Wedbush analyst Dan Ives in June estimated that Tesla's AI and autonomous driving division alone could be worth $1 trillion, reinforcing investor optimism even as the company navigates revenue headwinds and political scrutiny. Read Next: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo Courtesy: Photo Agency on This article Elon Musk Agrees With Cathie Wood: Tesla Is 'Largest AI Project On Earth' Amid Robotaxi Vision, Samsung Chip Deal Buzz originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
14 minutes ago
- Business Insider
AMD Earnings: Stock Slips Despite Strong Q2 Revenue Growth
Advanced Micro Devices (AMD) stock was down more than 4% in after-hours trading following the release of mixed second-quarter 2025 results. The company reported record revenue of $7.7 billion, a 32% year-over-year jump, driven by strong demand for server and PC processors. Also, AMD's topline surpassed the analysts' expectations of $7.41 billion. Meanwhile, adjusted EPS of $0.48 came in line with forecasts but dropped 30.4% year-over-year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. During the quarter, AMD's profit margins took a hit due to $800 million in inventory and related charges tied to U.S. export restrictions on its MI308 AI chips, which are currently barred from shipment to China. Despite this, CEO Lisa Su highlighted the strength of AMD's computing and AI portfolio, noting record sales of EPYC server chips and Ryzen desktop processors. 'We are well positioned to deliver significant growth in the second half of the year,' she added. AMD's Segment Highlights Segment-wise, Data Center revenue rose 14% to $3.2 billion, with EPYC processor demand offsetting MI308 shipment challenges to China. The Client and Gaming unit's sales surged 69% due to strong uptake of Zen 5 Ryzen chips, a richer product mix, and upbeat Radeon GPU demand. However, the Embedded segment's revenue fell 4% to $824 million. As the chart below shows, AMD's segments have been following this trend for the past several quarters. Q3 Outlook Looking ahead, AMD projects Q3 revenue of about $8.7 billion, reflecting 28% year-over-year growth. Also, it is well above the Street's $8.3 billion estimate. Also, adjusted gross margin is expected to rebound to 54%, assuming no contribution from MI308 shipments to China, as export license applications remain under U.S. government review. Is AMD a Buy or Sell Now? Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and one Sell assigned in the last three months. At $156.47, the average AMD price target implies a 10.23% downside potential. However, it's worth noting that estimates will likely change following today's earnings report.
Yahoo
2 hours ago
- Yahoo
OpenAI eyes $500 billion valuation in potential employee share sale, source says
(Reuters) -ChatGPT maker OpenAI is in early talks for a potential secondary stock sale that would allow current and former employees to sell shares, valuing the company at around $500 billion, a source familiar with the matter told Reuters on Tuesday. Bloomberg was first to report the news. The Microsoft-backed company aims to raise billions through the sale, with existing investors, including Thrive Capital, expressing interest in buying some of the employee shares, the source said. Thrive Capital declined to comment on a Reuters request. Separately, OpenAI is still in the process of raising $40 billion in a new funding round led by SoftBank Group at a $300 billion valuation to advance AI research, expand computational infrastructure and enhance its tools.
