Why the Nvidia CEO's tone was different on this earnings call and what it means for investors
Nvidia's Jensen Huang was more somber than usual on the AI juggernaut's conference call following its blockbuster earnings, according to CNBC's Kristina Partsinevelos , who has been analyzing all the action in the cult stock for the last 24 hours. Partsinevelos and I dive into the Nvidia results in the CNBC Pro video above and discuss the following: What is troubling Jensen How Trump's next move could hand China's AI market to Huawei The second half outlook for Nvidia away from China The bull case that could get Nvidia back to an all-time high NVDA 1Y mountain Nvidia, 1 year As it stands now, Nvidia is up about 4% and sits about 8% from it's all time high.
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CNBC
20 minutes ago
- CNBC
Trade tensions aren't stopping Chinese companies from pushing into the U.S.
BEIJING — Chinese companies are so intent on global expansion that even the biggest stock offering to date on Shanghai's tech-heavy STAR board counts the U.S. as one of its biggest markets, on par with China. Shenzhen-based camera company Insta360, a rival to GoPro, raised 1.938 billion yuan ($270 million) in a Shanghai listing Wednesday under the name Arashi Vision. Shares soared by 274%, giving the company a market value of 71 billion yuan ($9.88 billion). The United States, Europe and mainland China each accounted for just over 23% of revenue last year, according to Insta360, whose 360-degree cameras officially started Apple Store sales in 2018. The company sells a variety of cameras — priced at several hundred dollars — coupled with video-editing software. Co-founder Max Richter said in an interview Tuesday that he expects U.S. demand to remain strong and dismissed concerns about geopolitical risks. "We are staying ahead just by investing into user-centric research and development, and monitoring market trends that ultimately meet the consumer['s] needs," he told CNBC ahead of the STAR board listing. China launched the Shanghai STAR Market in July 2019 just months after Chinese President Xi Jinping announced plans for the board. The Nasdaq-style tech board was established to support high-growth tech companies while raising requirements for the investor base to limit speculative activity. In 2019, only 12% of companies on the STAR board said at least half of their revenue came from outside China, according to CNBC analysis of data accessed via Wind Information. In 2024, with hundreds more companies listed, that share had climbed to more than 14%, the data showed. "We are just seeing the tip of the iceberg. More and more capable Chinese firms are going global," said King Leung, global head of financial services, fintech and sustainability at InvestHK. Leung pointed to the growing global business of Chinese companies such as battery giant CATL, which listed in Hong Kong last month. "There are a lot of more tier-two and tier-three companies that are equally capable," he said. InvestHK is a Hong Kong government department that promotes investment in the region. It has organized trips to help connect mainland Chinese businesses with overseas opportunities, including one to the Middle East last month. Roborock, a robotic vacuum cleaner company also listed on the STAR board, announced this month it plans to list in Hong Kong. More than half of the company's revenue last year came from overseas markets. At the Consumer Electronics Show in Las Vegas this year, Roborock showed off a vacuum with a robotic arm for automatically removing obstacles while cleaning floors. The device was subsequently launched in the U.S. for $2,600. Other consumer-focused Chinese companies also remain unfazed by heighted tensions between China and the U.S. In November, Chinese home appliance company Hisense said it aimed to become the top seller of television sets in the U.S. in two years. And last month, China-based Bc Babycare announced its official expansion into the U.S. and touted its global supply chain as a way to offset tariff risks. Chinese companies have been pushing overseas in the last several years, partly because growth at home has slowed. Consumer demand has remained lackluster since the Covid-19 pandemic. But the expansion trend is now evolving into a third stage in which the businesses look to build international brands on their own with offices in different regions hiring local employees, said Charlie Chen, managing director and head of Asia research at China Renaissance Securities. He said that's a change from the earliest years when Chinese companies primarily manufactured products for foreign brands to sell, and a subsequent phase in which Chinese companies had joint ventures with foreign companies. Insta360 primarily manufactures out of Shenzhen, but has offices in Berlin, Tokyo and Los Angeles, Richter said. He said the Los Angeles office focuses on services and marketing — the company held its first big offline product launch in New York's Grand Central Terminal in April. Chen also expects the next phase of Chinese companies going global will sell different kinds of products. He pointed out that those that had gone global primarily sold home appliances and electronics, but are now likely to expand significantly into toys. Already, Beijing-based Pop Mart has become a global toy player, with its Labubu figurine series gaining popularity worldwide. Pop Mart's total sales, primarily domestic, were 4.49 billion yuan in 2021. In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan. "It established another Pop Mart versus domestic sales in 2021," said Chris Gao, head of China discretionary consumer at CLSA. The Hong Kong-listed retailer doesn't publicly share much about its global store expansion plans or existing locations, but an independent blogger compiled a list of at least 17 U.S. store locations as of mid-May, most of which opened in the last two years. The toy company has been "very good" at developing or acquiring the rights to characters, Gao said. She expects its global growth to continue as Pop Mart plans to open more stores worldwide, and as consumers turn more to such character-driven products during times of stress and macroeconomic uncertainty.
Business Insider
41 minutes ago
- Business Insider
‘Don't Bet Against It': $4 Trillion in Sight for Nvidia Stock, Says Investor
Nvidia (NASDAQ:NVDA) has regained much of its shine over the last two months, catching fire once more with a bull run that has boosted its share price by some 50%. Confident Investing Starts Here: This sharp rebound came after a rare rough patch for the AI chipmaker earlier in 2025, when the stock struggled under the weight of tariff shocks, export restrictions, and concerns over reduced capex spending by hyperscalers. The tide began to turn as geopolitical tensions eased and major cloud players reaffirmed their investment plans, restoring confidence in the AI infrastructure boom. A strong earnings report and bullish guidance in late May further reinforced that momentum. However, even with the renewed optimism, not all signals are flashing green. Nvidia's revenue growth is beginning to decelerate – a likely outcome given its enormous scale – prompting some investors to question how much upside is still left. Could this be the point where enthusiasm gives way to caution? One investor, known by the pseudonym Cash Flow Venue, thinks the best course of action is to take a deep breath – and enjoy the ride. 'Let go of valuation concerns and wait for a $4 trillion+ valuation,' explains Cash Flow Venue, who urges investors to simply 'follow the money!' Looking at its recent Fiscal Q1 2026 earnings report, Cash Flow Venue cites the company's impressive year-over-year growth of 69% as a sign that Nvidia has no problem generating cash. Meanwhile, the company's EBITDA for the trailing twelve months has grown to some $91 billion, with the pace of the gains outpacing the rise in Nvidia's Enterprise Value. 'Nvidia's bears often forget that its valuation growth wasn't detached from the business growth. Even more, the business grew more dynamically than the valuation,' Cash Flow Venue noted. And there are plenty of drivers to boost additional growth, the investor hastens to add. With its top-tier hardware, CUDA software, and robust finances, Cash Flow Venue believes that CEO Jense Huang's optimism regarding Nvidia's future is certainly justified. With the pole position in the AI race and plenty of momentum on its side, it's an easy decision for this investor. 'A 'strong buy' business with the best capabilities to capitalize on the new 'industrial revolution,'' concludes Cash Flow Venue (To watch Cash Flow Venue's track record, click here) That's the gist on Wall Street as well. With 35 Buy, 4 Hold, and 1 Sell recommendations, NVDA continues to be a consensus Strong Buy. Its 12-month average price target of $172.36 indicates that despite its recent surge, analysts still see an upside of ~21% up ahead. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Forbes
an hour ago
- Forbes
HBM And Emerging Memory Technologies Enable AI Training And Inference
AI During congressional hearing in the House of Representatives' Energy & Commerce Committee Subcommittee of Communication and Technology, Ronnie Vasishta, Senior VP of telecom at Nvidia said that mobile networks will be called upon to support a new kind of traffic—AI traffic. This AI traffic includes the delivery of AI services to the edge, or inferencing at the edge. Such growth in AI data could reverse the general trend towards lower growth in traffic on mobile networks. Many AI-enabled applications will require mobile connectivity including autonomous vehicles, smart glasses, generative AI services and many other applications. He said that the transmission of this massive increase in data needs to be resilient, fit for purpose, and secure. Supporting this creation of data from AI will require large amount of memory, particularly very high bandwidth memory, such as HBM. This will result in great demand for memory that supports AI applications. Micron announced that it is now shipping HBM4 memory to key customers, these are for early qualification efforts. The Micron HBM4 provides up to 2.0TB/s bandwidth and 24GB capacity per 12-high die stack. The company says that their HBM4 uses its 1-beta DRAM node, advanced through silicon via technologies, and has a highly capable built-in self-test. See image below. Micron HBM4 Memory HBM memory consisting of stacks of DRAM die with massively parallel interconnects to provide high bandwidth are combined GPU's such as those from Nvidia. This memory close to the processor allows training and inference of various AI models. The current generation of HBM memory used in current GPUs use HBM3e memory. At the 2025 March GTC in San Jose, Jensen Huang said that Micron HBM memory was being used in some of their GPU platforms. The manufacturers of HBM memories are SK Hynix, Samsung and Micron with SK Hynix and Samsung providing the majority of supply and with Micron coming in third. SK hynix was the first to announce HBM memory in 2013, which was adopted as an industry standard by JEDEC that same year. Samsung followed in 2016 and in 2020 Micron said that it would create its own HBM memory. All of these companies expect to be shipping HBM4 memories in volume by sometime in 2026. Numen, a company involved in magnetic random access memory applications, recently talked about how traditional memories used in AI applications, such as DRAM and SRAM have limitations in power, bandwidth and storage density. They said that processing performance has skyrocketed by 60,000X over the past 20 years but DRAM bandwidth has improved only 100X, creating a 'memory wall.' The company says that its AI Memory Engine is a highly configurable memory subsystem IP that enables significant improvements in power efficiency, performance, intelligence, and endurance. This is not only for Numem's MRAM-based architecture, but also third-party MRAMs, RRAM, PCRAM, and Flash Memory. Numem said that it has developed next-generation MRAM supporting die densities up to 1GB which can deliver SRAM-class performance with up to 2.5X higher memory density in embedded applications and 100X lower standby power consumption. The company says that its solutions are foundry-ready and production-capable today. Coughlin Associates and Objective Analysis in their Deep Look at New Memories report predict that AI and other memory-intensive applications, including the use of AI inference in embedded devices such as smart watches, hearing aids and other applications are already using MRAM, RRAM and other emerging memory technologies will decrease the costs and increase production of these memories. These memories technologies are already available from major semiconductor foundries. They scale to smaller lithographic scaling that DRAM and SRAM and because they are non-volatile, no refreshes are needed and so they consume less power. As a result, these memories allow more memory capacity and lower power consumption in space and power constrained environments. MRAM and RRAM are also being built into industrial, enterprise and data center applications. The figure below shows our projections for replacement of traditional memories, SRAM, DRAM, NOR and NAND Flash memory by these emerging memories. NOR and SRAM, in particular, for embedded memories are projected to be replaced by these new memories within the next decade as part of a future $100B memory market. Projected replacement of conventional memories with new memories AI will generate increased demand for memory to support training and inference. It will also increase the demand for data over mobile networks. This will drive demand for HBM memory but also increase demand for new emerging memory technologies.
