Nvidia has limited supply of H20 chips for Chinese customers, Reuters says
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Yahoo
33 minutes ago
- Yahoo
Why Did Micron Stock Drop Today?
Key Points Samsung says the market for HBM memory for artificial intelligence (AI) functions is getting oversupplied. Samsung will cut prices on the most powerful HBM3E product in an attempt to win market share. Wells Fargo says this is bad news for Micron. 10 stocks we like better than Micron Technology › Shares of computer memory-maker Micron Technology (NASDAQ: MU) tumbled 5.2% through 11:25 a.m. ET Thursday -- but as far as I can tell, it wasn't anything Micron did to deserve this. Instead, it was Samsung that's to blame. What Samsung said about high-bandwidth memory (HBM) As WCCFTech reports this morning, Samsung has just announced it's lowering prices on HBM3E (that's "High Bandwidth Memory 3 Enhanced," currently the most capable kind of HBM memory, designed for use in artificial intelligence and machine learning). Samsung explained that on the one hand, it hasn't been able to win as much HBM business from Nvidia (NASDAQ: NVDA) as it would like, while on the other hand, the HBM market seems oversupplied right now. And the solution to both problems -- to help Samsung move product -- is to lower prices. Is Micron stock a sell? For Micron, this poses a problem -- because Micron also wants to sell HBM3E memory, and now Samsung has effectively declared a price war in the HBM market. In order to fight it, Micron will have to lower its own prices (hurting Micron's revenue and profit), or else it will lose market share to Samsung (also hurting Micron's revenue and profit!) And if that sounds like a lose-lose proposition for Micron, that's because it is. In a note on The Fly this morning, Wells Fargo warned that Samsung's action will "impact market prices," drying up much of the premium in prices between HBM3E and plain-vanilla DRAM memory, perhaps as early as H2 2025 (i.e., now). Priced at just 20x trailing earnings, Micron stock may not look too expensive. But if profits are about to dry up as Samsung's price cuts take hold, Micron stock could look expensive in a hurry. Savvy investors might want to sell before that happens. Should you invest $1,000 in Micron Technology right now? Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Micron Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Wells Fargo is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why Did Micron Stock Drop Today? was originally published by The Motley Fool 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
Miami Herald
38 minutes ago
- Miami Herald
Ford CEO Says Its Newest EVs Are Ready for Its "Model T Moment"
During Ford's second-quarter earnings call with investors on the evening of July 30, Ford CEO Jim Farley revealed that the automaker is set to reveal its new strategy centered around a new line of electric vehicles underpinned by a new platform. In his remarks, Farley said that the future plans would be a "Model T moment," referring to the 120-year-old model that was the world's first mass-produced, affordable car. He hinted at a transformative breakthrough that would help position Ford to sell a new line of electric cars aimed at competing against low-cost Chinese models from known names like BYD. "On Aug. 11, that will be a big day for all of us at Ford. We will be in Kentucky to share more about our plans to design and build a breakthrough electric vehicle and a platform in the U.S.," Farley said. "This is a Model-T moment for us at Ford. A chance to bring a new family of vehicles to the world that offer incredible technology, efficiency, space, and features." In the past, the Ford CEO admitted his admiration for his Chinese competition. Late last year, he revealed on a podcast appearance that he daily drove a Xiaomi SU7 that Ford used for benchmarking, adding that he was having a hard time giving it up. On the earnings call with Wall Street insiders, he acknowledged that Ford is falling behind its East Asian rivals, pegging them as their new competition to beat. Farley noted to the investors and Wall Street insiders listening in that the next EVs developed by its internal California-based "Skunkworks division" are set to be released within "the next year or two - starting," adding that its strategy against its Chinese counterparts "is to go and really push ourselves to radically reengineer and transform our engineering, supply chain and manufacturing process." "We really see, not the global (automakers) as our competitive set for our next generation of EVs, we see the Chinese. Companies like Geely, BYD," Farley said. "That's how we built our vehicle. How we've engineered what kind of supply chain we've used and the kind of low content in our manufacturing." Despite this, Farley's announcement underscores that Ford has yet to make any money selling its electric vehicles. Its internal "Model e" division, which is dedicated solely to EVs, has been hemorrhaging money for several quarters. During Q2 2025, Ford reported that the Model e division lost $1.3 billion, a worse quarter than the division's loss of $1.1 billion just a year earlier. Farley told the Wall Street analysts on July 30 that over the past three years, the automaker saw EV consumer demand and government regulations and support rapidly change, which pushed it to think carefully about its next moves. As part of its new EV strategy, Ford's CEO said it will offer EVs in select body styles in segments where it "can actually make money on EVs." Another part of that strategy is its investment in LFP, or lithium-iron-phosphate batteries -a cheaper, longer-lasting form of EV battery, particularly used in Chinese-market electric vehicles. Starting next year, it plans to build them at the BlueOval Battery Park in Marshall, Michigan, which he touts as "a big advantage for the company." But despite this, Ford feels that its investment in EVs is part of a larger lineup puzzle, which includes gas-powered cars like hybrids and extended range electric vehicles. "We think that's a much better move than a $60,000 to $70,000 all-electric crossover," Farley said. "We think [offering a variety of powertrains] is really what customers are going to want long term, and we're investing a lot in more durable internal combustion engine powertrains." This development feels like a preview of the end result of something that Farley and his Blue Oval engineers have been working on since he and other Ford executives learned of the level of innovation that Chinese automakers were capable of. In a September 2024 profile written by Mike Colias and published by The Wall Street Journal, Farley was described less as a traditional businessman than as a hands-on executive obsessed with his competition. The piece centered around a trip to China in 2023, during which Farley and other Ford executives got the full picture of their Chinese competition. According to the Journal, Farley's fascination with Chinese automakers began when he and Ford CFO John Lawler test-drove an electric SUV made by Changan, Ford's joint venture partner in China. "Jim, this is nothing like before," Lawler said to Farley after the drive, per the Journal. "These guys are ahead of us." In light of the signing of the "Big Beautiful Bill" and its provisions against EVs, Ford's EV announcement comes at an interesting time. Nonetheless, I wonder what kind of vehicle Farley will reveal in Kentucky come August 11. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
43 minutes ago
- Yahoo
Microsoft capex to exceed $30B this quarter, CFO says
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Microsoft expects its capital expenditures for its current quarter to exceed $30 billion, driven by 'the continued strong demand signals' the software giant is seeing, CFO Amy Hood said Wednesday. The remarks came as the company reported $281.7 billion in total revenues for its last fiscal year ended June 30, a 15% year-over-year spike. For the current fiscal year, Microsoft anticipates that it will deliver 'another year of double-digit revenue and operating income growth,' according to Hood. 'We will continue to invest against the expansive opportunity ahead across both capital expenditures and operating expenses given our leadership position in commercial cloud, strong demand signals for our cloud and AI offerings, and significant contracted backlog,' she said during an earnings call. Dive Insight: On the heels of the better-than-expected quarterly earnings, Microsoft's stock price jumped 5% on Thursday, pushing the company's valuation beyond the $4 trillion mark, according to a CNBC report. The company joined chipmaker Nvidia, which hit $4 trillion for the first time earlier in July, the report said. 'If this growth is maintained, it significantly reduces the risk that Microsoft would need to rethink its massive AI-related CAPEX, even if competitive pressure increases,' Thomas Monteiro, senior analyst at said in emailed comments. 'In other words, the company's ability to balance heavy AI investment with margin expansion shows it can scale efficiently into FY26, regardless of external challenges,' he added. Microsoft and other tech giants continue to bet heavily on AI as investors eagerly look for signs that its paying off. Meanwhile, economic uncertainty triggered by President Donald Trump's on-again, off-again tariff measures has created added pressure for big tech firms. For its fiscal 2025 third quarter ended March 31, Microsoft's capex, including finance leases, totaled $21.4 billion. That amount was 'slightly lower than expected due to normal variability from the timing of delivery of data center leases,' Hood said during an earnings call in late April. At the time, Hood said Microsoft expected its capex to grow at a slower pace in its upcoming fiscal year starting in July. This came after the company confirmed a pullback in AI data center projects. The company's capex during its most recent quarter was $24.2 billion, Hood said on Wednesday. Reiterating comments she made earlier this year, Hood said Microsoft's capex growth in the current fiscal year will moderate. 'Due to the timing of delivery of additional capacity in H1, including large finance lease sites, we expect growth rates in H1 will be higher than in H2,' the finance chief said. Recommended Reading Microsoft capex to grow at slower rate, CFO says
