Stage set for Nvidia earnings report amid US chip export controls
Investors are poised for a crucial update on Nvidia's earnings after the AI chip maker has been caught up in the fallout of Donald Trump's trade policy overhaul.
The US technology giant will unveil its financial results for the first three months of 2025 on Wednesday.
As the second most valuable listed company in the world, behind Microsoft, Nvidia is watched closely by global traders.
Nvidia was among global technology firms to suffer sharp drops in their share price following Mr Trump's 'liberation day' tariff announcements last month.
However, they have rallied since and most of the losses suffered on Wall Street in the wake of the announcements have been regained.
Russ Mould, investment director at AJ Bell, said that analysts will 'doubtless' look for comments from Nvidia's chief executive, Jensen Huang, on tariffs.
He added that they will also be closely watching for an update on the impact of the US government tightening rules on chip exports to China, after the company warned over a 5.5 billion US dollar (£4.1 billion) cost hit from the move.
Nvidia said it has been informed by the US government that it needs a licence to export its H20 AI chip to China, including Hong Kong, for the 'indefinite future'.
Mr Huang recently blasted the country's wider export controls as a 'failure', saying they had backfired against US companies by spurring on Chinese developers.
Meanwhile, the boss has tried to soothe investor concerns about Chinese AI firm DeepSeek emerging earlier this year as a lower-cost rival to the US giant.
'Trump's tariffs and trade policies are blotting out many other issues right now, but this one is yet to go away,' Mr Mould said.
'The (DeepSeek) product challenged the consensus view that AI required more – more chipsets, more computing and server power, and more energy – and AI-related stocks have yet to fully recover their poise.'
'Nvidia did offer fairly cautious guidance for the first quarter, which runs from February to April, but it has had the happy knack of beating estimates for the quarter,' he added.
Nvidia is expected to report sales of about 43 billion US dollars (£31.9 billion) for the first quarter, about two-thirds higher than the 22.1 billion dollars (£16.4 billion) generated this time last year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
31 minutes ago
- The Independent
Veterans slam Trump's ‘political' deployment of Marines and National Guard to LA: ‘Citizens are not enemy combatants'
Donald Trump 's deployment of National Guard troops and U.S. Marines to Los Angeles is a thinly veiled 'authoritarian' and politically motivated attempt to inflame protests and crush dissent, veterans and legal experts warn. Trump is relying on federal law that allows the president to call up the National Guard to respond to domestic unrest, an action known commonly as federalizing the normally state-authorized Guard. Even then, those troops have only a limited mission in supporting federal law enforcement agents and federal buildings at the center of protests against the administration's mass deportation agenda. But now, with his National Guard deployment combined with sending some 700 Marines to L.A., veterans groups, military law experts and Democratic officials fear the president is testing the limits of his authority to send active-duty military into American streets — and violating service members' commitments to stay out of domestic politics. 'When I joined the Marine Corps, I swore an oath — not to a person, not to a party, but to the Constitution,' said Marine veteran Janessa Goldbeck, CEO of the Vet Voice Foundation, a national nonpartisan advocacy group. 'What we're seeing now is a deliberate effort to turn the military into a political prop,' she told The Independent. Trump is not deploying troops for national defense but 'domestic intimidation,' she added. 'That's not just just politicizing the military — it's crossing a dangerous line,' Goldbeck told The Independent. Trump's military threats are 'how authoritarian regimes take power' and signal the president's wider ambitions for 'the weaponization of the military for political gain,' according to veterans advocacy group Common Defense. 'The militarized response to protests in Los Angeles is a dangerous escalation that undermines civil rights and betrays the principles we swore to uphold,' Army veteran and Common Defense political director Naveed Shah said. 'The idea that Marines would be deployed to suppress the very people we're meant to protect is a disgrace. It's un-American,' Marine Corps veteran and Common Defense organizer Jojo Sweatt added. The last time a president federalized the National Guard against the will of a state governor was in 1965, when then-President Lyndon Johnson deployed troops to protect civil rights advocates marching from Selma, Alabama to Montgomery — two weeks after the violence of 'Bloody Sunday' on the Edmund Pettus Bridge. Johnson did so after Alabama's segregationist Gov. George Wallace told the president that his state 'refuses to provide for the safety and welfare' of the marchers, according to Johnson's proclamation. But 60 years later, Trump is deploying troops not to defend civil rights activists but to protect law enforcement and federal property. Activating troops against the wishes of California Gov. Gavin Newsom 'is bad for all Americans concerned about freedom of speech and states' rights,' retired Major Gen. Randy Manner said in a statement to Fox News. 'There are over a million badged and trained members of law enforcement in this country for the governor to ask for help if he needs it,' he added. 'While this is presently a legal order, it tramples the governor's rights and obligations to protect his people. This is an inappropriate use of the National Guard and is not warranted.' Trump's open-ended memo invoking military deployment does not single out Los Angeles or even California. It empowers the Defense Secretary Pete Hegseth 'to employ any other members of the regular Armed Forces as necessary.' Carrie A. Lee, a former associate professor at the U.S. Army War College, called Trump's actions 'massive overreach' and 'crazy broad,' seemingly paving the way for the administration 'to use military force against protestors on American soil anywhere they want.' Invoking 'protective power' authority without any geographical limits effectively creates an unprecedented and 'dangerous' nationwide order, according to Lee. Trump has not invoked the Insurrection Act, though the president and administration officials have repeatedly labeled protesters 'insurrectionists' and 'seditionists' — sparking fears that the president is laying the groundwork for mass deployment of military assets across the country. Instead, Trump is currently relying on a far more limited statute that taps his 'protective power' authority, which does not allow the military to conduct law enforcement activities — unlike the Insurrection Act, which is excluded from federal statute that bars federal troops from participating in civilian law enforcement. 'The public must be laser focused on seeing the extent to which Secretary Hegseth adheres to these historically recognized limitations,' according to University of Houston Law Center professor Chris Mirasola, a former attorney-advisor at the Department of Defense Office of General Counsel. If troops are pulled into violent confrontations, Trump could use those incidents to justify invoking the Insurrection Act, opening the door for active-duty military to face off against Americans not just in the streets of Los Angeles but across the country. 'This is an unnecessary, unprecedented and predictable misuse of military power against American citizens,' according to Army veteran Paul Rieckhoff, founder of Iraq and Afghanistan Veterans of America. 'And Trump has now thrust our troops into the middle of the most explosive issue in America,' he added. 'And this is likely just the start. We could see a clash and crisis between Trump and governors and mayors across America like we've never seen.' A lawsuit from watchdog group American Oversight called the deployment 'an opening salvo in a coordinated national strategy and not simply an isolated incident.' The lawsuit is seeking records from the Trump administration regarding the use of military assets in immigration enforcement and 'potential authorities his administration would invoke to authorize federalizing law enforcement.' 'Deploying the military to quash protests over the administration's inhumane and legally dubious immigration policies — especially over the objection of elected state leaders — is a dangerous, though unfortunately predictable, escalation by the Trump administration,' according to American Oversight executive director Chioma Chukwu. 'If left unchecked, this abuse of power under thin legal pretense can be readily replicated across other states in the future,' he said in a statement. 'Americans have a right to know who authorized it, what rationale was offered, and not just whether the government crossed a line — but by how much that line has been obliterated.'
The Guardian
33 minutes ago
- The Guardian
People in Los Angeles: share your reaction to the protests and military mobilization
Los Angeles is reeling after a series of immigration raids led to widespread protests over the weekend and Donald Trump took the extraordinary step of ordering thousands of US military troops to descend on the city, a move that California leaders have decried as 'inflammatory'. Raids on Friday in areas of the city with large Latino populations led to mainly peaceful demonstrations, but the protests turned violent when federal immigration authorities used flashbang grenades and teargas against demonstrators. Over the weekend, fiery and chaotic scenes played out in downtown LA, Compton and Paramount, with dozens of people arrested. Donald Trump has been accused of intentionally fanning the flames with his decision on Monday to send in 700 marines and another 2,000 national guard troops to LA, adding to 2,000 already sent to the city on Saturday. While Trump has said the deployment was essential for maintaining order, the Los Angeles mayor, Karen Bass, accused the administration of using the city as an 'experiment', while Gavin Newsom, California's governor, called the decision to send in troops without his permission 'purposefully inflammatory'. We would like to hear from people living in LA about the latest events in the city. How do you feel about the immigration raids? What is your reaction to the national guard and marines being deployed? You can send us your thoughts on recent events in LA using this form. Please share your story if you are 18 or over, anonymously if you wish. For more information, please see our terms of service and privacy policy. Your responses, which can be anonymous, are secure as the form is encrypted and only the Guardian has access to your contributions. We will only use the data you provide us for the purpose of the feature and we will delete any personal data when we no longer require it for this purpose. For true anonymity please use our SecureDrop service instead. If you're having trouble using the form, click here. Read terms of service here and privacy policy here.
Reuters
35 minutes ago
- Reuters
US still dependent on Canadian oil, despite Trump's claims, Cenovus CEO says
CALGARY, June 10 (Reuters) - The U.S. is still reliant on Canadian oil imports, despite claims made by U.S. President Donald Trump, Cenovus Energy's CEO said on Tuesday at a conference in Calgary, Alberta. Trump has threatened on-again, off-again tariffs on Canada's oil, of which nearly 4 million barrels per day are exported to the United States. Canada also remains dependent on U.S. energy systems, Cenovus CEO Jon McKenzie said, adding the country must diversify its customer base.
