White House Unveils 'AI Action Plan' to Spur Development
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22 minutes ago
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Confusion Over Tariff Stacking Hampers Japan's Bid to Pin Down US Trade Deal
(Bloomberg) — A fresh discrepancy in interpretations of the US-Japan trade deal came to the fore on Thursday, as Japan's chief negotiator visits Washington to press for follow-through on a pledge to cut a levy on car imports to 15%. All Hail the Humble Speed Hump Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Three Deaths Reported as NYC Legionnaires' Outbreak Spreads Major Istanbul Projects Are Stalling as City Leaders Sit in Jail PATH Train Service Resumes After Fire at Jersey City Station Japanese media reports said Washington would not exempt Tokyo from an order stacking new 15% across-the-board tariffs on top of existing levies, hours before they come into effect. Japan's top trade negotiator Ryosei Akazawa had earlier disputed such an understanding. 'There will be no stacking,' Akazawa said on Tuesday before leaving for Washington. 'There's mutual understanding on this matter.' The 15% rate will replace existing rates on items that currently face levies of less than 15%, while items already saddled with levies higher than 15% will see no change, according to Japan's Cabinet Secretariat. Asked about the matter Thursday, Japan's chief spokesperson Yoshimasa Hayashi said Akazawa has reconfirmed the agreement on universal tariffs with the US. Akazawa met with US Commerce Secretary Howard Lutnick on Wednesday in the US, reiterating the terms of the trade agreement reached last month and calling for its quick implementation. The top priority for Japan is to have the US follow through as soon as possible on a promise to cut car tariffs. July's deal also included a pledge to change the universal levy on Japan to 15%, up from the 10% baseline but lower than a threatened 25%. The new rate is to take effect on Thursday, but the discord over stacking shows the two sides are not on the same page over details and implementation steps. Kyodo News cited an unidentified White House official as saying the 15% levy would be added to current levies. That is in line with an executive order released by the US administration last week, which indicated that the 15% cut-off applied to the European Union, but didn't mention that it would apply for Japan. The discrepancy may be limited in scope. Before Trump began announcing new tariffs on nations around the world, the US had applied levies averaging 1.4% on Japanese goods, according to estimates in February by Kenichi Kawasaki, a professor at the National Graduate Institute for Policy Studies. More importantly, Japan is urging US President Donald Trump to lower tariffs on cars to 15% from 27.5%, a combination of an existing 2.5% and additional 25%, as agreed upon in the deal. It remains unclear when the change will take place. Implementing the deal is one of the reasons Japanese Prime Minister Shigeru Ishiba has cited for staying in his role even after his ruling party suffered a historic election loss last month. 'There are all sorts of debates over the tariffs, but we have reached an agreement,' Ishiba said at a press conference in Hiroshima on Wednesday. 'As stated by US government officials involved in previous US-Japan trade negotiations, it is much, much more difficult to implement the deal than agree on it.' —With assistance from Sakura Murakami and Takashi Hirokawa. (Updates with Hayashi's comments.) Russia's Secret War and the Plot to Kill a German CEO The Pizza Oven Startup With a Plan to Own Every Piece of the Pie AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity A High-Rise Push Is Helping Mumbai Squeeze in Pools, Gyms and Greenery ©2025 Bloomberg L.P. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 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
Yahoo
22 minutes ago
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Billionaire David Tepper Is Selling Nvidia, AMD, and TSMC, and Loading Up On Shares of This Trillion-Dollar Artificial Intelligence (AI) Stock Instead
Key Points Quarterly-filed Form 13Fs provide a way for investors to track which stocks Wall Street's leading asset managers are buying and selling. Appaloosa's David Tepper has been a persistent seller of AI stocks over the last year, including hardware giants Nvidia and Advanced Micro Devices, as well as Taiwan Semiconductor. Only 11 public companies have ever reached the trillion-dollar valuation plateau -- and one of these companies has been on Tepper's buy list. These 10 stocks could mint the next wave of millionaires › For some investors, earnings season is the pinnacle of each quarter. This six-week period, where many of Wall Street's most influential businesses lift the hood on their operating results, provides investors with invaluable information. However, an equally strong argument can be made that the quarterly filing of Form 13Fs with the Securities and Exchange Commission is just as important as earnings season. A 13F offers investors a way to see which stocks Wall Street's top money managers have been buying and selling. In other words, these filings clue investors in to the stocks, industries, sectors, and trends that have piqued the interest of highly successful asset managers. Arguably no trend has been hotter than the rise of artificial intelligence (AI). Empowering software and systems with the tools to make split-second decisions without human intervention is a multitrillion-dollar global opportunity, which explains why AI stocks have soared. But not all of Wall Street's prominent billionaire fund managers are along for the ride. Based on 13Fs filed in mid-May that detail first-quarter trading activity, Appaloosa's billionaire chief David Tepper has been a big-time seller of three red-hot AI stocks -- Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC -- over the previous year. Curiously, though, Tepper has been loading up on another AI stock that somewhat recently joined the exclusive trillion-dollar club. Billionaire David Tepper has been a persistent seller of Nvidia, AMD, and TSMC stock Tepper and his team tend to be fairly active and are regularly building up or reducing their existing stakes. Rather than looking at changes from the prior three-month period, more wisdom can often be gained by examining year-over-year changes to Appaloosa's more than $8 billion dollar investment portfolio. Between April 1, 2024, and March 31, 2025, Tepper oversaw a significant reduction in, or the complete exit from, three of the AI revolution's top companies: Nvidia: 4,120,000 shares sold (93% reduction), which has been adjusted to account for Nvidia's 10-for-1 stock split in June 2024. Taiwan Semiconductor: 230,000 shares sold (46% reduction). Advanced Micro Devices: 1,630,000 shares sold (completely exited position). All three of these companies have been successful in their own right within the AI arena. Nvidia's graphics processing units (GPUs) account for the bulk of GPUs deployed in AI-accelerated data centers, while AMD's Instinct series chips are slowly adding market share. Meanwhile, TSMC is the world's leading chip-fabrication company, with its chip-on-wafer-on-substrate capacity rapidly expanding to satiate growing enterprise demand for AI infrastructure. If everything is going to well for Nvidia, AMD, and TSMC, the question that has to be asked is: Why did billionaire David Tepper sell over a 12-month period? Simple profit-taking is one of the more logical answers. All three companies have seen their shares appreciate noticeably over the trailing-three-year period, and Tepper has demonstrated he's not shy about locking in gains. What's worrisome is there may be more to this persistent selling activity than just a desire to take some chips off the table. For example, every next-big-thing technology since (and including) the proliferation of the internet in the mid-1990s has navigated its way through a bubble that eventually burst. In plainer English, investors continually overestimate the adoption rates and/or utility of game-changing technological advances. It's going to take time for AI to mature as a technology and for businesses to figure out how to optimize their solutions and generate a positive return on their investments. This suggests another bubble may be brewing. Whereas Taiwan Semiconductor is a diversified company that generates a meaningful percentage of its net sales from fabricating chips for smartphones, Internet of Things, and automotive, Nvidia and AMD are increasingly reliant on enterprise GPU orders. If an AI bubble were to form and burst, these two companies would be hit hard. Valuation may have also come into play for Appaloosa's billionaire chief. Historically, industry-leading businesses thriving on the heels of a next-big-thing trend have topped out at 30 to 40 times trailing-12-month sales. Nvidia's price-to-sales (P/S) ratio is 31, as of this writing. With the stock market also historically pricey, Tepper may view Nvidia, AMD, and TSMC as being on shakier ground than their respective share prices would indicate. This trillion-dollar AI stock is bucking the trend in Tepper's fund Whereas billionaire David Tepper has been an undeniable seller of artificial intelligence stocks over the trailing year, based on 13F filings, there's one trillion-dollar AI stock that's managed to buck the trend. During the March-ended quarter, Appaloosa gobbled up 130,000 shares of Broadcom (NASDAQ: AVGO), which is one of only 11 public companies around the world to have ever reached a $1 trillion valuation. While Nvidia and AMD have locked down the lion's share of GPU market share in AI-accelerated data centers, Broadcom is the preferred choice for its host of AI networking solutions. Its products are capable of connecting tens of thousands of AI-GPUs in order to maximize compute capacity, as well as minimize tail latency. Put simply, Broadcom's hardware reduces lag, which facilitates the split-second decisions that need to be made by AI-empowered software and systems. Broadcom is also making a name for itself thanks to its custom AI chips. During the company's fourth-quarter conference call in late 2024, CEO Hock Tan opined that a few of its hyperscaler clients could spend anywhere from $60 billion to $90 billion in fiscal 2027 (its fiscal year ends in late October or early November). As long as AI remains a hot trend, Broadcom is expected to be one of the more unstoppable stocks. But what Appaloosa's Tepper might appreciate most about Broadcom is that it's much more than just an AI-driven company. While AI is, unquestionably, Broadcom's most meaningful growth driver at the moment, it has plenty of other channels that generate sales and positive operating cash flow. Before AI became the hottest thing on Wall Street, Broadcom was known for its lead role in developing wireless chips and accessories used in next-generation smartphones. Even though smartphones aren't the growth story they were a decade ago, the ongoing expansion of 5G service globally provides a modest growth opportunity for Broadcom. In addition, it offers an assortment of solutions for industrial product lines and automobiles, as well as owns an enterprise cybersecurity solutions division. The point being that if the AI bubble were to burst, Broadcom would, in all likelihood, be in better shape to navigate the coming storm than hardware giants Nvidia and AMD. Lastly, Tepper may have found Broadcom's valuation more palatable than the likes of Nvidia. As of this writing on Aug. 5, Broadcom is valued at 35 times forward-year earnings, but appears to be sporting a sustainable annual growth rate of 20% or greater. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $462,306!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,522!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $619,036!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 4, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Billionaire David Tepper Is Selling Nvidia, AMD, and TSMC, and Loading Up On Shares of This Trillion-Dollar Artificial Intelligence (AI) Stock Instead was originally published by The Motley Fool
Yahoo
22 minutes ago
- Yahoo
TSMC Hits Record; Taiwan Says Tech Giant Exempt From US Tariffs
(Bloomberg) -- Taiwan said its leading chip manufacturer will not have to pay a 100% tariff on sales to the US, helping drive Taiwan Semiconductor Manufacturing Co. shares to a record. All Hail the Humble Speed Hump Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Three Deaths Reported as NYC Legionnaires' Outbreak Spreads Major Istanbul Projects Are Stalling as City Leaders Sit in Jail PATH Train Service Resumes After Fire at Jersey City Station 'TSMC is exempted from the chip tariffs because it has set up plants in the US,' Liu Chin-ching, minister in charge of the National Development Council, said in Taipei on Thursday. As for other Taiwanese companies that may be affected by the levies, they 'shall continue to stay ahead' if competitors face the same charges. The US government has also expressed willingness to continue negotiations with Taiwan on tariff issues, Liu added. The government still expects economic growth in 2025 to reach the level of 3.1%, despite the impact of the new levies, Liu said. TSMC manufactures the most advanced chips used in artificial intelligence, and the island's technology exports drove growth to a blistering 7.96% in the second quarter, the fastest pace in four years. The trillion-dollar company accounts for almost 40% of the weight of Taiwan's benchmark stock index, and its rally Thursday helped lift the broader benchmark. TSMC's shares rose 4.89% to a record NT$1,180 Thursday, helping the island's benchmark stock index outperform regional peers with a 2.4% gain. The Taiwan dollar also rallied as much as 0.9% against the greenback. United Microelectronics Corp., Taiwan's second-largest chipmaker, may also reduce the impact of tariffs through its cooperation with Intel Corp., Liu said. 'Investors had been apprehensive while awaiting the tariff rate for semiconductors, but exemptions for Taiwan's largest company have allayed concerns,' said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group. 'Foreign equity inflows on the back of this news have helped pushed TWD stronger. With the dividend repatriation flows now largely complete, and with the USD back under pressure again, we could see further appreciation in TWD near-term.' On Wednesday, Trump said he would impose a 100% tariff on semiconductor imports, but cited Apple Inc. as an example of a company that won't have to pay levies because of its investment in the US. 'If you're building in the United States of America, there's no charge,' Trump said. 'Even though you're building and you're not producing yet.' In March, TSMC announced an additional $100 billion investment in the US, with three more fabs, two advanced packaging facilities and a research and development center in Arizona, raising its total investment in the US to $165 billion. The US recently imposed a 20% tariff on goods from Taiwan, but said the chip sector would be treated separately. That levy is higher than the 15% Taiwan's main regional competitors like Japan and South Korea both secured. Still, companies and governments continue to scramble to assess the impact of Trump's various tariff announcements. South Korea's Samsung Electronics Co. has chip fabs in Texas and is joining Apple's 'American Manufacturing Program,' making it well-positioned to avoid tariffs. But the government of Malaysia, a significant semiconductor exporter, on Thursday said it has reached out to the US seeking clarity on the tariffs. Malaysia's chip industry is unlikely to be severely impacted, the Star separately reported, citing Prime Minister Anwar Ibrahim. Most of the companies in Malaysia's chip industry are US-based or have committed to continue their investments and production in the world's largest economy. --With assistance from Betty Hou, Wenjin Lv, Anisah Shukry and Netty Ismail. (Updates with TSMC's share price and Taiwan dollar's gain in the fifth paragraph. Adds Malaysian report.) Russia's Secret War and the Plot to Kill a German CEO The Pizza Oven Startup With a Plan to Own Every Piece of the Pie AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity A High-Rise Push Is Helping Mumbai Squeeze in Pools, Gyms and Greenery ©2025 Bloomberg L.P.
