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Yahoo
25 minutes ago
- Yahoo
What the China export easing means for Nvidia, AMD, and other chips stocks
Nvidia (NDVA) and AMD (AMD) may soon get the green light to sell AI chips to China again, potentially reviving a key growth market. The US government is reportedly considering loosening export restrictions, which could allow the tech giants to resume sales of some lower-end AI chips to China. This policy shift comes after April's export ban blocked chips such as Nvidia's H20 AI accelerator and AMD's MI308. 'This is a game changer,' Dan Ives, managing director of Wedbush Securities, told Yahoo Finance. 'Nvidia stands to gain billions in annual revenue from China, and every Nvidia supplier is going to benefit, as well as second and third derivative plays.' Bank of America (BAC) raised its price targets for Nvidia and AMD to $220 and $175, respectively, in anticipation of license approval. Favorable regulation could boost Nvidia's earnings per share by 5%-7% and AMD's by 3%-5%, its analysts estimate. But it's not just Nvidia and AMD that stand to gain. "It's a silver bullet positive for the AI buildout sector,' Ives said. If China's cloud and data center buildouts ramp back up, companies like Broadcom (AVGO) and Marvell Technology (MRVL), whose custom chips support AI infrastructure, could benefit. Credo Technology Group (CRDO), a high-speed interconnect supplier, may also see demand rise alongside broader server deployments. All three stocks carry a Buy rating from BofA. The clearest beneficiaries may be at the heart of chip manufacturing. Taiwan Semiconductor Manufacturing Company (TSMC), which produces Nvidia and AMD's chips, and Samsung Electronics (SSNLF), a key supplier of high-bandwidth memory, are well-positioned to capture a rebound. Read more: How does Nvidia make money? 'If I'm pointing to derivatives, I'm pointing to Samsung and TSMC,' Matt Bryson, managing director of research at Wedbush Securities, told Yahoo Finance. 'They're literally working on the parts Nvidia and AMD are shipping.' Bryson said that before April's export ban, Chinese server build activity was the 'number one positive inflection' the industry was watching. The momentum stalled in the second quarter, but could quickly return if policy changes are confirmed. The semiconductor market is rapidly expanding as AI advances. Gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector. Nvidia CEO Jensen Huang estimated the Chinese AI market is worth $50 billion. Still, the exact effect on balance sheets will be hard to pin down in the near term. Nvidia's first quarter earnings reported a $2.5 billion drop in China revenue and a $4.5 billion inventory write-off. An additional $8 billion loss is anticipated in the second quarter. The semiconductor market is rapidly expanding as AI advances. Gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector. Nvidia CEO Jensen Huang estimated the Chinese AI market is worth $50 billion. 'China is one of the best areas they [AMD] could break into,' Ives said. Bryson pointed out that even if the chipmakers get the green light to resume shipments and see some revenue bounce back, it's a big question mark whether the demand is even still there. Chinese customers might have already found other suppliers or simply moved on. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at 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
25 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq rise as earnings roll in, retail sales jump
US stocks advanced on Thursday as Wall Street filtered through a fresh wave of earnings but stayed wary of the next move in President Trump's campaign to oust Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average (^DJI) rose 0.3% while the S&P 500 (^GSPC) also gained about 0.3%. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.4% on the heels of another record-setting session for tech stocks. The major US indexes are consolidating near record highs as investors navigate a plethora of catalysts, including earnings, economic data, Trump's tariffs, and the president's displeasure with the Fed's stance on interest rates. Retail sales rebounded in June, an indication that Trump's tariffs are not significantly impacting consumer spending habits yet. The reading serves as another snapshot of the health of the US consumer, who big banks so far this earnings season say seem to be doing just "fine." Also out Thursday morning, data from the Department of Labor showed 221,000 initial jobless claims were filed in the week ending July 12. After picking up in May, weekly filings for unemployment claims are now at their lowest level in three months. In earnings, TSMC (TSM) posted a record quarterly profit early on Thursday, citing stronger and stronger AI demand. The Nvidia supplier's shares popped as its results boosted other chipmaker stocks. Meanwhile, PepsiCo (PEP) reported a surprise rise in revenue and lowered its forecast drop in 2025 profit. Read more: Full earnings coverage in our live blog But Netflix (NFLX) is the highlight of Thursday's docket, as it kicks off this season's Big Tech earnings reports with results due after the bell. The streaming giant's shares are on a tear so far this year. On the back burner for now are Trump's renewed threats to attempt to fire Powell, which sparked a stock sell-off at one point on Wednesday. While the president said he was "not planning" to do so, he has spent months excoriating Powell and the Fed's lack of appetite for interest rate cuts. Investor bets suggest Trump is likely to remain disappointed after the central bank's meeting in two weeks, as nearly 100% of traders expect a rate hold amid mixed signals on inflation. Several Fed officials are scheduled to speak on Thursday, which could move the needle. Meanwhile, the dollar (DX=F) continued to climb out of the trough it fell into as the prospect of Powell's removal rattled markets. Read more: The latest on Trump's tariffs Jobless claims fall for 5th straight week Data from the Department of Labor out Thursday morning showed Americans filed 221,000 initial jobless claims in the week ending July 12. It marked the fifth straight week that applications for US unemployment benefits fell. After picking up in May, weekly filings for unemployment claims are now at their lowest level in three months. Continuing claims, or the total number of Americans collecting unemployment benefits, ticked up slightly to 1.96 million for the week ending July 5. The job market has continued to show resilience despite uncertainty from President Trump's trade policies. In June, the US surprisingly added 147,000 jobs, more than the 106,000 expected by economists, while the unemployment rate ticked down to 4.1%. Investors have held their bets on Federal Reserve interest rate cuts steady. As of Thursday morning investors were pricing in a 54% chance the central bank cuts interest rates by its September meeting, down from a roughly 70% chance seen just last week, according to the CME FedWatch Tool. Stocks open mostly flat as investors digest June retail sales, earnings reports Stocks were little changed at the market open as investors digested a better-than-expected increase in June retail sales and a wave of corporate earnings reports. The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) traded flat, while the Nasdaq Composite (^IXIC) inched up slightly by about 0.1%. On the earnings front, Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit, sending the stock 3% higher in early trading. PepsiCo (PEP) shares more than 6% after the beverage maker reported better-than-expected quarterly results. Trending tickers in premarket trading: TSMC, Opendoor, Pepsi, GE Aerospace, Netflix Here are some of the most notable movers in premarket trading as more second quarter earnings roll in: Check out more trending tickers here. Retail sales rise more than expected in June Yahoo Finance's Josh Schafer reports: Read more here. Pepsi stock rises on better-than-expected earnings PepsiCo (PEP) stock rose 2% after the company reported better-than-expected quarterly results. Pepsi still expects a drop in annual profit, though not as severe as it expected previously. It sees its full-year core earnings per share falling 1.5% instead of the 3% previously forecast. The Gatorade and Lay's maker benefited from favorable foreign exchange rates and greater demand for energy drinks and healthier soda brands, like its prebiotic soda brand Poppi. For the quarter, Pepsi's adjusted earnings per share were $2.12 on revenue of $22.7 billion. Read more here or listen to Pepsi's earnings call live on its stock ticker page. TSMC stock pops 3% on record quarterly earnings Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday, sending the stock 3% higher in premarket trading. The company reported net profit of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year. TSMC, which is Nvidia's (NVDA) primary chip manufacturer, said that artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year. In a policy reversal, Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue. Nvidia shares were up half a percent on Thursday morning. "China is a big market, and my customer can continue to supply the chip to the big market," TSMC CEO C.C. Wei said at a press conference. "It's very positive news for them, and in return, it's very positive news for TSMC." While TSMC has not seen changes in customers' behavior so far, it cautioned that tariffs could affect income in the fourth quarter. Netflix earnings on deck: What Wall Street is watching Netflix (NFLX) is set to report second quarter earnings after the bell on Thursday. Shares have soared about 40% since the start of the year, with the stock's valuation a top debate on Wall Street as the streamer doubles down on live events and sports content. Yahoo Finance's Allie Canal reports on what to expect: Read more here. United Airlines stock slides in wake of fresh profit guidance United Airlines shares fell in premarket after the US carrier reset its full-year profit outlook, saying travel demand has picked up thanks to an easing in economic and geopolitical uncertainty. The airline now expects to post adjusted profit of $9 to $11 a share for 2025, compared with Wall Street expectations for $10.04 a share. "United saw a positive shift in demand beginning in early July, and, like 2024, anticipates another inflection in industry supply in mid-August," United CEO Scott Kirby said in a company statement. "The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year," he added. But United's revised guidance still undershot the range of $11.50 to $13.50 a share that it laid out at the start of the year. In April, the company issued two sets of profit outlooks based on whether the US fell into recession, with a range of $7 to $9 a share in the worse scenario. At the same time, it flagged it still might meet its higher target. Profit in the second quarter beat estimates, but its revenue growth fell short. Read more on United's earnings here, from Reuters. TSMC profits soar over 60% in Q2, notching all time high Taiwan Semiconductor Manufacturing Co. (TSM), the global leader in contract chip production, delivered a blockbuster second quarter. It reported net profit of T$398.3 billion ($13.53 billion), a 60.7% year-over-year surge that shattered analyst expectations and marked an all-time high for the company. TSMC's robust momentum comes as tech giants like Apple (AAPL) and Nvidia (NVDA) ramp up chip orders to support AI advancements and next-gen devices. Shares in the chip giant closed at $237.56 on Thursday, up 0.3%, before jumping more than 5.6% in overnight trading, pushing past $250 before steadying. Oil prices bounce back from early week losses Oil prices rose overnight Wednesday despite recent fears of oversupply by OPEC+ producers. Reuters reports: Read more here. Jobless claims fall for 5th straight week Data from the Department of Labor out Thursday morning showed Americans filed 221,000 initial jobless claims in the week ending July 12. It marked the fifth straight week that applications for US unemployment benefits fell. After picking up in May, weekly filings for unemployment claims are now at their lowest level in three months. Continuing claims, or the total number of Americans collecting unemployment benefits, ticked up slightly to 1.96 million for the week ending July 5. The job market has continued to show resilience despite uncertainty from President Trump's trade policies. In June, the US surprisingly added 147,000 jobs, more than the 106,000 expected by economists, while the unemployment rate ticked down to 4.1%. Investors have held their bets on Federal Reserve interest rate cuts steady. As of Thursday morning investors were pricing in a 54% chance the central bank cuts interest rates by its September meeting, down from a roughly 70% chance seen just last week, according to the CME FedWatch Tool. Data from the Department of Labor out Thursday morning showed Americans filed 221,000 initial jobless claims in the week ending July 12. It marked the fifth straight week that applications for US unemployment benefits fell. After picking up in May, weekly filings for unemployment claims are now at their lowest level in three months. Continuing claims, or the total number of Americans collecting unemployment benefits, ticked up slightly to 1.96 million for the week ending July 5. The job market has continued to show resilience despite uncertainty from President Trump's trade policies. In June, the US surprisingly added 147,000 jobs, more than the 106,000 expected by economists, while the unemployment rate ticked down to 4.1%. Investors have held their bets on Federal Reserve interest rate cuts steady. As of Thursday morning investors were pricing in a 54% chance the central bank cuts interest rates by its September meeting, down from a roughly 70% chance seen just last week, according to the CME FedWatch Tool. Stocks open mostly flat as investors digest June retail sales, earnings reports Stocks were little changed at the market open as investors digested a better-than-expected increase in June retail sales and a wave of corporate earnings reports. The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) traded flat, while the Nasdaq Composite (^IXIC) inched up slightly by about 0.1%. On the earnings front, Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit, sending the stock 3% higher in early trading. PepsiCo (PEP) shares more than 6% after the beverage maker reported better-than-expected quarterly results. Stocks were little changed at the market open as investors digested a better-than-expected increase in June retail sales and a wave of corporate earnings reports. The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) traded flat, while the Nasdaq Composite (^IXIC) inched up slightly by about 0.1%. On the earnings front, Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit, sending the stock 3% higher in early trading. PepsiCo (PEP) shares more than 6% after the beverage maker reported better-than-expected quarterly results. Trending tickers in premarket trading: TSMC, Opendoor, Pepsi, GE Aerospace, Netflix Here are some of the most notable movers in premarket trading as more second quarter earnings roll in: Check out more trending tickers here. Here are some of the most notable movers in premarket trading as more second quarter earnings roll in: Check out more trending tickers here. Retail sales rise more than expected in June Yahoo Finance's Josh Schafer reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. Pepsi stock rises on better-than-expected earnings PepsiCo (PEP) stock rose 2% after the company reported better-than-expected quarterly results. Pepsi still expects a drop in annual profit, though not as severe as it expected previously. It sees its full-year core earnings per share falling 1.5% instead of the 3% previously forecast. The Gatorade and Lay's maker benefited from favorable foreign exchange rates and greater demand for energy drinks and healthier soda brands, like its prebiotic soda brand Poppi. For the quarter, Pepsi's adjusted earnings per share were $2.12 on revenue of $22.7 billion. Read more here or listen to Pepsi's earnings call live on its stock ticker page. PepsiCo (PEP) stock rose 2% after the company reported better-than-expected quarterly results. Pepsi still expects a drop in annual profit, though not as severe as it expected previously. It sees its full-year core earnings per share falling 1.5% instead of the 3% previously forecast. The Gatorade and Lay's maker benefited from favorable foreign exchange rates and greater demand for energy drinks and healthier soda brands, like its prebiotic soda brand Poppi. For the quarter, Pepsi's adjusted earnings per share were $2.12 on revenue of $22.7 billion. Read more here or listen to Pepsi's earnings call live on its stock ticker page. TSMC stock pops 3% on record quarterly earnings Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday, sending the stock 3% higher in premarket trading. The company reported net profit of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year. TSMC, which is Nvidia's (NVDA) primary chip manufacturer, said that artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year. In a policy reversal, Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue. Nvidia shares were up half a percent on Thursday morning. "China is a big market, and my customer can continue to supply the chip to the big market," TSMC CEO C.C. Wei said at a press conference. "It's very positive news for them, and in return, it's very positive news for TSMC." While TSMC has not seen changes in customers' behavior so far, it cautioned that tariffs could affect income in the fourth quarter. Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday, sending the stock 3% higher in premarket trading. The company reported net profit of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year. TSMC, which is Nvidia's (NVDA) primary chip manufacturer, said that artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year. In a policy reversal, Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue. Nvidia shares were up half a percent on Thursday morning. "China is a big market, and my customer can continue to supply the chip to the big market," TSMC CEO C.C. Wei said at a press conference. "It's very positive news for them, and in return, it's very positive news for TSMC." While TSMC has not seen changes in customers' behavior so far, it cautioned that tariffs could affect income in the fourth quarter. Netflix earnings on deck: What Wall Street is watching Netflix (NFLX) is set to report second quarter earnings after the bell on Thursday. Shares have soared about 40% since the start of the year, with the stock's valuation a top debate on Wall Street as the streamer doubles down on live events and sports content. Yahoo Finance's Allie Canal reports on what to expect: Read more here. Netflix (NFLX) is set to report second quarter earnings after the bell on Thursday. Shares have soared about 40% since the start of the year, with the stock's valuation a top debate on Wall Street as the streamer doubles down on live events and sports content. Yahoo Finance's Allie Canal reports on what to expect: Read more here. United Airlines stock slides in wake of fresh profit guidance United Airlines shares fell in premarket after the US carrier reset its full-year profit outlook, saying travel demand has picked up thanks to an easing in economic and geopolitical uncertainty. The airline now expects to post adjusted profit of $9 to $11 a share for 2025, compared with Wall Street expectations for $10.04 a share. "United saw a positive shift in demand beginning in early July, and, like 2024, anticipates another inflection in industry supply in mid-August," United CEO Scott Kirby said in a company statement. "The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year," he added. But United's revised guidance still undershot the range of $11.50 to $13.50 a share that it laid out at the start of the year. In April, the company issued two sets of profit outlooks based on whether the US fell into recession, with a range of $7 to $9 a share in the worse scenario. At the same time, it flagged it still might meet its higher target. Profit in the second quarter beat estimates, but its revenue growth fell short. Read more on United's earnings here, from Reuters. United Airlines shares fell in premarket after the US carrier reset its full-year profit outlook, saying travel demand has picked up thanks to an easing in economic and geopolitical uncertainty. The airline now expects to post adjusted profit of $9 to $11 a share for 2025, compared with Wall Street expectations for $10.04 a share. "United saw a positive shift in demand beginning in early July, and, like 2024, anticipates another inflection in industry supply in mid-August," United CEO Scott Kirby said in a company statement. "The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year," he added. But United's revised guidance still undershot the range of $11.50 to $13.50 a share that it laid out at the start of the year. In April, the company issued two sets of profit outlooks based on whether the US fell into recession, with a range of $7 to $9 a share in the worse scenario. At the same time, it flagged it still might meet its higher target. Profit in the second quarter beat estimates, but its revenue growth fell short. Read more on United's earnings here, from Reuters. TSMC profits soar over 60% in Q2, notching all time high Taiwan Semiconductor Manufacturing Co. (TSM), the global leader in contract chip production, delivered a blockbuster second quarter. It reported net profit of T$398.3 billion ($13.53 billion), a 60.7% year-over-year surge that shattered analyst expectations and marked an all-time high for the company. TSMC's robust momentum comes as tech giants like Apple (AAPL) and Nvidia (NVDA) ramp up chip orders to support AI advancements and next-gen devices. Shares in the chip giant closed at $237.56 on Thursday, up 0.3%, before jumping more than 5.6% in overnight trading, pushing past $250 before steadying. Taiwan Semiconductor Manufacturing Co. (TSM), the global leader in contract chip production, delivered a blockbuster second quarter. It reported net profit of T$398.3 billion ($13.53 billion), a 60.7% year-over-year surge that shattered analyst expectations and marked an all-time high for the company. TSMC's robust momentum comes as tech giants like Apple (AAPL) and Nvidia (NVDA) ramp up chip orders to support AI advancements and next-gen devices. Shares in the chip giant closed at $237.56 on Thursday, up 0.3%, before jumping more than 5.6% in overnight trading, pushing past $250 before steadying. Oil prices bounce back from early week losses Oil prices rose overnight Wednesday despite recent fears of oversupply by OPEC+ producers. Reuters reports: Read more here. Oil prices rose overnight Wednesday despite recent fears of oversupply by OPEC+ producers. Reuters reports: Read more here. 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
25 minutes ago
- Yahoo
Elevance Health Hit By Medicaid Troubles, Trims Outlook
Elevance Health Inc. (NYSE:ELV) shares plummeted nearly 12% on Thursday after the health insurer reported second-quarter 2025 adjusted earnings that missed analyst expectations and significantly lowered its full-year guidance, overshadowing strong revenue growth. The company reported second-quarter 2025 revenues of $49.42 billion, up 14.3% year over year, higher than the consensus of $48.34 billion. The increase was driven by higher premium yields in the Health Benefits segment, recently closed acquisitions, and growth in Medicare Advantage membership, partially offset by membership attrition in the Medicaid Health reported adjusted earnings of $8.84 per share, missing the consensus of $9.20. The benefit expense ratio was 88.9%, an increase of 260 basis points year over year, reflecting higher medical cost trend primarily in Medicaid business and ACA health plans. The operating expense ratio was 10.1 percent, an improvement of 160 basis points. The adjusted operating expense ratio was 10%, an improvement of 140 basis points, primarily driven by expense leverage associated with growth in operating revenue and ongoing expense discipline as the company prioritizes investments to support long-term strategy. View more earnings on ELV Health Benefits segment operating revenue was $41.6 billion in the second quarter of 2025, up 12% compared to the prior year quarter, driven primarily by higher premium yields, recently closed acquisitions, and growth in Medicare Advantage membership, partially offset by lower Medicaid membership. Medical membership totaled approximately 45.6 million, a decline of 212 thousand from the first quarter of 2025, driven by lower Medicaid membership and attrition resulting from lower effectuation rates in Individual ACA business. Operating revenue for Carelon was $18.1 billion, up 36%, driven by recent acquisitions in home health and pharmacy services, growth in CarelonRx product revenue, and the scaling of risk-based capabilities in Carelon Services. Guidance Elevance Health lowered its fiscal year 2025 adjusted earnings guidance from $34.15-$34.85 per share to approximately $30, versus the consensus of $34.40. 'We are updating our outlook to reflect elevated medical cost trends in ACA and slower rate alignment in Medicaid. While the external environment continues to evolve, we are focused on the areas within our control – managing healthcare costs, deploying targeted investments in advanced technology and value-based care delivery, and reinforcing the operational foundation that supports long-term value creation,' said Gail Boudreaux, President and CEO, in a statement on Thursday. Industry Context and Peer Impact This guidance shock from Elevance Health follows a similar move by Centene Corp (NYSE:CNC). Centene recently withdrew its entire 2025 GAAP and adjusted diluted EPS guidance. This decision by Centene was prompted by its initial review of 2025 industry data from Wakely, an independent actuarial firm. Centene's analysis indicated lower-than-anticipated market growth and significantly higher implied market morbidity (prevalence of illness) in their Health Insurance Marketplace states, leading to a substantial reduction in their expected risk adjustment revenue transfer. These events highlight a broader industry concern among health insurers regarding elevated medical costs and challenges in accurately predicting risk and pricing in government-sponsored programs like Medicaid and the ACA. Price Action: ELV stock is trading lower by 11.8% to $303.92 at last check Thursday. Read Next:Photo by Jonathan Weiss via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Elevance Health Hit By Medicaid Troubles, Trims Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
