Nvidia Says U.S. Implements Chip Export Restrictions to China, Warns of $5.5 Billion Charge
Nvidia NVDA 1.35%increase; green up pointing triangle said it is anticipating a charge of up to $5.5 billion tied to exporting its artificial-intelligence chips to China, according to a regulatory filing from the semiconductor company.
The graphic chip maker said Tuesday its first-quarter results for the three months ending April 27 are expected to include the charge associated with its AI H20 chips for inventory, purchase commitments and related reserves.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29-05-2025
- Yahoo
ETFs to Buy After NVIDIA's Q1 Earnings Miss, Record Revenues
NVIDIA NVDA reported mixed first-quarter fiscal 2026 results. Though the AI darling lagged earnings estimates, it reported record-breaking revenues, which topped estimates. NVIDIA shares jumped as much as 6% in after-hours trading. Investors seeking to tap the company's growth could invest in ETFs having the largest allocation to the AI chipmaker. Strive U.S. Semiconductor ETF SHOC, VanEck Vectors Semiconductor ETF SMH, VanEck Fabless Semiconductor ETF SMHX, YieldMax Target 12 Semiconductor Option Income ETF SOXY and Columbia Select Technology ETF SEMI could be compelling options. The company's earnings per share were 81 cents for the first quarter, missing the Zacks Consensus Estimate by 4 cents and up from 61 cents reported in the year-ago quarter. This marked an end to nine straight quarters of earnings beats. Revenues surged 69% year over year to a record $44.1 billion and beat the consensus mark of $42.70 billion. The impressive performance was largely driven by a booming data center business. The blockbuster results were driven by incredible demand for NVIDIA's latest AI chips. Data Center revenues, which account for much of NVIDIA's revenues, jumped 73% year over year to $39.1 billion (read:NVIDIA Reclaims $3 Trillion: ETFs to Bet On).The gaming division also performed strongly, with revenues climbing 42% year over year to $3.8 billion. This growth was bolstered by the launch of the Nintendo Switch 2, which features NVIDIA's chips and AI-powered DLSS technology supporting up to 4K gaming. NVIDIA's graphics processing capabilities, historically focused on gaming, are now increasingly used in AI applications, highlighting the broadening utility of its automotive and robotics segment saw a 72% revenue increase, reaching $567 million. Growth in this area was driven by rising demand for self-driving car chips and robotics software, including a significant advance in humanoid robotics. The company introduced Isaac GR00T N1 — the world's first open humanoid robot foundation model — and outlined plans to deepen its involvement in robotics demand for NVIDIA's artificial intelligence (AI) chips, especially for large cloud providers and AI supercomputing, continues to surge. NVIDIA is building factories in the United States and working with its partners to produce AI supercomputers. NVIDIA CEO Jensen Huang said, "Countries around the world are recognizing AI as essential infrastructure – just like electricity and the internet – and NVIDIA stands at the center of this profound transformation." Its chief financial officer, Colette Kress, said that Microsoft has 'deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands' of the company's GB200 product, due largely to its partnership with is also accelerating its global expansion. It recently announced plans to build AI factories in the United States and Saudi Arabia and launched the Stargate UAE AI infrastructure cluster in Abu Dhabi. Furthermore, NVIDIA has expanded collaborations with major cloud providers, including Oracle, Google, and Microsoft. Its Blackwell-based cloud instances are now available on AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure (read: Stocks & ETFs to Benefit From Trump's Stargate Project).Looking ahead to the second quarter of fiscal 2026, the graphics chipmaker expects revenues of $45 billion, plus or minus 2%. The Zacks Consensus Estimate is pegged at $45.1 billion. This guidance includes an estimated $8 billion hit from H20 export restrictions, largely impacting sales to China. The AI darling has lost billions in revenues from Trump's ban on its chip exports to China. Despite this, NVIDIA remains confident in the ongoing global demand for its AI infrastructure. Strive U.S. Semiconductor ETF (SHOC)Strive U.S. Semiconductor ETF seeks broad market exposure to the U.S. semiconductor sector. It follows the Bloomberg US Listed Semiconductors Select Total Return Index and holds 32 stocks in its basket, with NVIDIA accounting for the top firm at 22.9%. Strive U.S. Semiconductor ETF has an AUM of $81.8 million and charges 40 bps in annual fees. It trades in a volume of 10,000 shares per day on average and sports a Zacks ETF Rank #1 (Strong Buy).VanEck Vectors Semiconductor ETF (SMH)VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with NVIDIA occupying the top position at 21.1%. It has managed assets worth $22 billion and charges 35 bps in annual fees and expenses. VanEck Vectors Semiconductor ETF trades in an average daily volume of 6 million shares and flaunts a Zacks ETF Rank # Fabless Semiconductor ETF (SMHX)VanEck Fabless Semiconductor ETF offers exposure to companies involved in semiconductor production and is classified as a fabless. It follows the MarketVector US Listed Fabless Semiconductor Index and holds 23 stocks in its basket. NVIDIA takes the top spot at 20.6% share. SMHX, which debuted in the space in late August, has accumulated $47.8 million in its asset base. VanEck Fabless Semiconductor ETF charges 35 bps in annual fees and trades in a volume of 40,000 shares. It flaunts a Zacks ETF Rank # Target 12 Semiconductor Option Income ETF (SOXY) YieldMax Target 12 Semiconductor Option Income ETF is an actively managed ETF that seeks a target annual income level of 12% and capital appreciation via direct investments in a select portfolio of semiconductor companies. NVIDIA occupies the top position in the portfolio with a 19.5% share. YieldMax Target 12 Semiconductor Option Income ETF debuted in December and has gathered $6 million in its asset base. It charges 99 bps in annual fees and trades in an average daily volume of 3,000 Select Technology ETF (SEMI) Columbia Select Technology ETF is an actively managed ETF that focuses on semiconductor and semiconductor-related businesses that may be poised to benefit from technology innovation and disruption. It follows the S&P Global 1200 Information Technology Index and holds 35 stocks in its basket, with NVIDIA occupying the second position at 17.2%. Columbia Select Technology ETF has amassed $37.3 million in its asset base and trades in an average daily volume of 4,000 shares. It charges 75 bps in fees per year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Columbia Select Technology ETF (SEMI): ETF Research Reports Strive U.S. Semiconductor ETF (SHOC): ETF Research Reports VanEck Fabless Semiconductor ETF (SMHX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-05-2025
- Yahoo
NVIDIA Gains Momentum Ahead of Q1 Earnings: ETFs in Focus
AI leader NVIDIA NVDA is in the spotlight as it is set to release its fiscal first-quarter 2026 results after market close on May 28. The chipmaker has gained momentum in recent weeks ahead of its earnings chipmaker has gained 5.1% over the past three months compared with the industry's growth of 3.5%. NVIDIA reclaimed $3 trillion in its market cap early this month. The strong trend is likely to continue if it comes up with an earnings beat (read: NVIDIA Reclaims $3 Trillion: ETFs to Bet On). ETFs having the largest allocation to NVIDIA will be in focus ahead of its earnings report. These include Strive U.S. Semiconductor ETF SHOC, VanEck Vectors Semiconductor ETF SMH, VanEck Fabless Semiconductor ETF SMHX, YieldMax Target 12 Semiconductor Option Income ETF SOXY and Columbia Semiconductor and Technology ETF SEMI. NVIDIA currently has an Earnings ESP of -0.41% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP AI leader saw negative earnings estimate revisions of a couple of cents for the first quarter of fiscal 2026 over the past seven days. The Zacks Consensus Estimate calls for 39.3% revenue growth and 63.9% earnings growth in the fiscal first quarter. NVIDIA's earnings surprise history is also good, as it delivered an earnings surprise of 7.92%, on average, in the last four quarters. NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation Quote NVIDIA has a Growth Score of A, suggesting that it is primed for Street analysts maintained their bullish view on the stock, with a recommendation of 1.36 on a scale of 1 to 5 (Strong Buy to Strong Sell), made by 45 brokerage firms. Of these, 37 are Strong Buy and two are Buy. Strong Buy and Buy, respectively, account for 82.22% and 4.44% of all on short-term price targets offered by 42 analysts, the average price target for NVIDIA comes to $167.00. The forecasts range from a low of $100.00 to a high of $220.00. NVIDIA is a global leader in the AI chip market, controlling between 80% and 95% of the market, according to Reuters. Its success is largely attributed to its leadership in developing advanced graphics processing units (GPUs), which are unmatched in producing processors that power artificial intelligence systems, including generative AI, the technology backing OpenAI's ChatGPT that can create text, images and other media. Most analysts believe NVIDIA will become far more valuable in the future due to its dominance in the billion-dollar AI chip is once again poised to redefine the AI landscape with the upcoming launch of its new AI chipset. The mass production is likely to begin as early as next the last earnings conference call, CEO Jensen Huang said demand for NVIDIA's Blackwell chip, its latest chip for powering AI servers, "is amazing" and predicted more to come. He expressed confidence in NVIDIA's future, noting that the company is at the center of what he described as the 'next wave' of AI innovations. Huang said, 'AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.'The AI darling offered a bullish revenue outlook for the to-be-reported quarter and optimism about its next-generation AI Blackwell chips. For the first quarter of fiscal 2026, the graphics chipmaker expects revenues of $43 billion, plus or minus 2%. As NVIDIA continues to ride the wave of AI demand, it will continue to grow in the coming year (read: Tech ETFs at the Forefront of the Current Market Rally). NVIDIA is currently trading at a P/E ratio of 31.37, slightly lower than the Semiconductor - General industry average of 31.58. Further, the stock is currently trading at a PEG ratio of 1.27, much lower than the industry average of 2.10. The lower the PEG ratio, the better the value, as investors would pay less for each unit of earnings. Strive U.S. Semiconductor ETF (SHOC) – NVIDIA exposure: 22.9%VanEck Vectors Semiconductor ETF (SMH) – NVIDIA exposure: 21%VanEck Fabless Semiconductor ETF (SMHX) – NVIDIA exposure: 20.5%YieldMax Target 12 Semiconductor Option Income ETF (SOXY) – NVIDIA exposure: 19.4%Columbia Semiconductor and Technology ETF (SEMI) – NVIDIA exposure: 17.1% Investors seeking to take on more risk could bet on single-stock ETFs with 200% exposure to NVIDIA. These include T-REX 2X Long NVIDIA Daily Target ETF NVDX and the GraniteShares 2x Long NVDA Daily ETF NVDA WeeklyPay ETF NVW seeks to provide weekly distributions and calendar week returns, equal to 1.2 times (120%) the calendar week total return of NVIDIA shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Columbia Select Technology ETF (SEMI): ETF Research Reports Strive U.S. Semiconductor ETF (SHOC): ETF Research Reports VanEck Fabless Semiconductor ETF (SMHX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research 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
16-05-2025
- Yahoo
The retail buy-the-dip move paid off. What that crowd of investors is doing now, according to JPMorgan.
A pullback is shaping up, as investors hunt fresh rationale to keep buying and excitement fades over the U.S.-China tariff pause. Retail will be in focus with data and Walmart earnings ahead. Timing stock market ups-and-downs is a tricky feat, but congratulations are in order for retail investors, who appear to have done well in recent weeks by tearing a page out of Warren Buffett's 'be-greedy-when-others-are-fearful' playbook. 'My wife says no': I'm 57 and ready to retire next year on $7,500 a month. Who's right? My wife and I paid off my stepdaughter's $415K mortgage in exchange for her house, but it's now worth $310K. Should we sue? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? 'We're not wealthy': My niece is marrying out of state and she has a honeymoon fund. Is that cheeky? 'The buy-the-dip strategy in early April has clearly paid off,' said a team of JPMorgan strategists led by Emma Wu. 'We estimate retail investors' portfolio is up 15.1% since April 8, closely aligning with the market performance of +15.8%.' Investors bought $50 billion in stocks as the market bounced from the S&P 500's SPX 52-week low of 4982.77 reached April 8, said the JPMorgan team. 'Notably, their buy-the-dip strategy and gradual buying during the subsequent rally (with a reduced pace) has historically been profitable,' said the strategists. That was the situation in 2020: retail buyers made some 31% from the March low to the June high, basically doubling the market performance, the JPMorgan said. Retail investors were the main driver behind the market rally in the last week of April, with institutional activity subdued and low positioning by momentum-trading commodity trading advisers. Their market share reached 36% in late April, versus a year-to-date average of 21% and long-term share of 12%. As for what that savvy bunch of traders has been up to lately, JPMorgan says a shift may be under way. Wu and her colleagues noted that Monday marked the first time they've seen profit-taking flow — $555 million — since the market recovery, with $2 billion profits taken on options and the 'largest outflow in history' for Nvidia NVDA, to the tune of $894 million. After Tuesday's softer-than-forecast inflation numbers, retail investors came back in, though at a slower pace. Inflows in the latest week were entirely driven by exchange-traded funds, chiefly broad market ones such as the SPDR S&P 500 ETF Trust SPY, said Wu and colleagues. They also saw a sector rotation: value to growth, small cap to large cap, healthcare to industrials, gold and silver to base metals, while demand for international equities remained a theme. Over the past week, investors took profits on Nvidia, Palantir PLTR and Tesla TSLA, with continued heavily selling of Apple AAPL since last July, though buying for other Magnificent 7 group names. U.S. stocks SPX DJIA COMP have opened lower, with Treasury yields BX:TMUBMUSD30Y BX:TMUBMUSD10Y dropping. Oil prices CL00 NQ00 are down nearly 3% on rising bets of a U.S.-Iran nuclear deal. . Key asset performance Last 5d 1m YTD 1y S&P 500 5892.58 4.64% 11.69% 0.19% 11.01% Nasdaq Composite 19,146.81 7.94% 17.41% -0.85% 14.36% 10-year Treasury 4.536 15.50 20.60 -4.00 15.50 Gold 3131.9 -7.14% -6.72% 18.66% 30.94% Oil 61.5 6.13% -0.71% -14.43% -22.02% Data: MarketWatch. Treasury yields change expressed in basis points Fed Chairman Jerome Powell has warned that inflation could be more volatile in future. He spoke just ahead of a big data drop that showed producer prices falling a bigger-than-forecast 0.5% and the most since the pandemic, though that won't last. April retail sales rose a scant 0.1% as expected, after a revised up 1.7% gain in May, while the latest weekly jobless claims held steady at 229,000. Due later, industrial production is scheduled for 9:15 a.m., followed by business inventories and a home builders confidence index at 10 a.m. Consumer bellwether Walmart WMT reported forecast-beating results and maintained its full-year outlook, but warned tariffs are pressuring prices. Shares have turned lower. China e-commerce group Alibaba BABA reported weaker-than-forecast results and shares are down. Deere DE reported an earnings beat and share are up, but it also trimmed guidance. UnitedHealth shares UNH are off 6% after a report of a DOJ probe. Foot Locker FL shares are up 80% after Dick's Sporting Goods DKS said it will buy the sneaker chain in a $2.4 billion deal, confirming a Wednesday report. Coinbase stock COIN is slipping after suffering a cyber attack after overseas workers were bribed to steal customer data. Cisco Systems CSCO posted an earnings beat on growing AI demand for networking products. CoreWeave CRWV is falling on disappointing guidance. At a news conference, President Donald Trump gave the kiss of death to the idea of a U.S. sovereign wealth fund. He also said India offered to drop tariffs on the U.S. to zero. Bags of cash from drug cartels flood teller windows at U.S. banks. Microsoft layoffs hit coders hardest with AI costs on the rise. As investors pile into private assets, this storied firm expects slowdown. Gold could be setting up for a 'spectacular fall,' as the U.S.-China tariff pause and talks planned between Russia and Ukraine take war risk out of commodity prices, said Ben Emons, founder of Fed Watch Advisors, in a Substack post. His chart shows gold and the Energy Select Sector SPDR XLE both pointing lower. 'Gold has 'crashed' before, such as in 2012-13 when the Euro crisis ended, and after 2020, resulting in a drawdown of 30 to 40 percent in each case. Secondly, there is energy, with XLE and WTI stopping short of the 50-day moving average, while the broader market remains in a risk-on momentum,' he said. These were the most active tickers on MarketWatch as of 6 a.m.: Ticker Security name NVDA Nvidia TSLA Tesla UNH UnitedHealth GME GameStop PLTR Palantir Technologies SMCI Super Micro Computer AAPL Apple AMD Advanced Micro Devices AMZN TSM Taiwan Semiconductor Manufacturing The real deal. Harvard Law School's $27.50 Magna Carta copy. Meet Buster and Geno, America's favorite pets. The Eurovision song contest won't let the European Union flag on stage. The retail buy-the-dip move paid off. What that crowd of investors is doing now, according to JPMorgan. These $5,000 bonds can help you fix a stock-heavy portfolio How Europe's best investor picks stocks including GE Aerospace and Microsoft I have $50,000 in credit-card debt after my divorce, but received $30,000 after a car wreck. Do I buy a used Lexus? 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early?
