Latest news with #AICapEx
Yahoo
09-05-2025
- Automotive
- Yahoo
Diodes Inc (DIOD) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Rebound
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Diodes Inc (NASDAQ:DIOD) reported a 10% year-over-year revenue growth, exceeding expectations due to strong performance in the computing market in Asia. The company is seeing improving market conditions in Europe and North America, indicating a rebound from recent lows. Automotive and industrial markets contributed 42% of first-quarter product revenue, with expanding automotive content and design opportunities. Channel inventory levels have decreased, aligning more closely with real demand and historical POS levels, which is a positive sign for future demand. Diodes Inc (NASDAQ:DIOD) announced a $100 million stock repurchase program, demonstrating confidence in its business and future growth prospects. Gross margins were temporarily limited due to reduced loading at manufacturing facilities, partly because of the Chinese New Year holiday. The company reported a GAAP net loss of $4.4 million for the first quarter, compared to a net income of $14 million in the prior year quarter. Non-GAAP adjusted net income decreased to $8.8 million from $13 million in the first quarter of 2024. The global market remains dynamic, with uncertainties such as recent tariffs impacting customer demand and business operations. Inventory levels, although improving, are still slightly higher than the company's target range, indicating ongoing adjustments are needed. Warning! GuruFocus has detected 5 Warning Signs with DIOD. Q: Are you seeing any demand pull forward due to inventory levels and the tariff situation, and how do you assess the stability of current demand? A: Emily Yang, Senior Vice President of Worldwide Sales and Marketing, responded that while tariffs create uncertainty, they are closely monitoring the situation with customers. They haven't observed significant demand pull forward but noted positive signs such as increased POS and decreased channel inventory. The backlog and book-to-build ratio have improved, indicating a recovery period. Q: How does the tariff situation affect your strategy regarding internal versus external manufacturing? A: Gary Yu, President, stated that their hybrid manufacturing model remains unchanged despite the tariff situation. They continue to transition products from external to internal manufacturing and have achieved milestones in qualifying processes and products internally. Their global footprint allows flexibility to meet customer needs without significant impact from tariffs. Q: Can you provide insights into AI CapEx trends and regional demand? A: Emily Yang explained that demand is ramping up, particularly in data centers and edge computing. They see opportunities in expanding customer pipelines and new designs. The focus is on content expansion, with AI servers offering increased revenue potential compared to regular servers. Q: What are the gross margin catalysts for the second half, and how do utilization rates contribute to margin expansion? A: Emily Yang noted that lower-than-expected loading and inventory adjustments impacted margins. They plan to increase internal loading and product qualifications, though customer approval processes are slower. Revenue growth in the second half is expected to improve loading and reduce underloading costs, driving margin improvement. Q: Are inventories within your target range, and how do you view current levels? A: Emily Yang stated that while inventory is slightly above the target range of 11 to 14 weeks, they are comfortable with current levels given expected growth in the second half. They have adjusted the mix in the channel to support targeted growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
CNBC
06-05-2025
- Business
- CNBC
Watch CNBC's full interview with Nvidia CEO Jensen Huang and ServiceNow CEO Bill McDermott
Nvidia CEO Jensen Huang and ServiceNow CEO Bill McDermott, join 'Power Lunch' to discuss AI agents, joint partnership and AI CapEx and more.
CNBC
06-05-2025
- Business
- CNBC
Nvidia CEO Jensen Huang: It would be a tremendous loss not to be able to address China's AI market
Nvidia CEO Jensen Huang and ServiceNow CEO Bill McDermott, join 'Power Lunch' to discuss AI agents, joint partnership and AI CapEx.
Business Insider
23-04-2025
- Business
- Business Insider
‘Wild, Lumpy and Volatile,' But CoreWeave Stock (CRWV) is Still a Buy, says Analyst
Shares in AI group CoreWeave (CRWV) raced 8% higher today after Wall Street analysts began coverage of the stock. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. CoreWeave Likes its Chips AI cloud computing group CoreWeave, which is backed by semiconductor giant Nvidia (NVDA) went public last month on the Nasdaq exchange at $39 per share. It did zoom to a high of over $60 but now sits at just over $38 per share after it and other AI-related stocks were blasted by concerns over President Trump's tariffs policy. There have also been worries that it just doesn't have enough customers with 62% of its 2024 revenues coming from Microsoft (MSFT). CoreWeave provides computing power to Big Tech, using its mass supply of Nvidia GPUs. According to a report in Yahoo Finance, CoreWeave is one of the largest holders of AI chips. JPMorgan estimates it has the fifth- to sixth-largest pool of GPUs in existence. A number of investment firms gave the group a Buy rating as their optimistic views on the development of the AI market outweighed any concerns over the volatility of the stock. Unrelenting AI Appetite One of those Buys came from four-and-a-half-star TipRanks-rated Jefferies analyst Brent Thill who believes the company's shares will rise more than 40% to $51 over the next 12 months. 'While there are concerns over the durability of CRWV's business model, we believe that the unrelenting appetite for AI compute minimizes the downside risks,' said Thill. He added that the AI buildout is still in the very 'early innings' and CRWV is in a prime position to scale and capture the opportunity. JPMorgan, four-and-a-half-star TipRanks-rated analyst Mark Murphy, who holds a Buy rating and $43 price target was more on the fence about CoreWeave. 'There could be a wide range of outcomes for CoreWeave. For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors,' he said. Indeed, not everyone was getting carried away with Citi giving the stock a Neutral rating. 'We remain cautious due to significant reliance on MSFT. This dependency poses risks as MSFT has signaled AI CapEx slowdowns,' it said.
Yahoo
22-04-2025
- Business
- Yahoo
'Wild, lumpy, volatile': Wall Street initiates coverage on CoreWeave stock after rocky public debut
CoreWeave (CRWV) stock popped Tuesday, rising over 8% as Wall Street analysts initiated coverage of the Nvidia-backed (NVDA) AI firm that made its public debut in late March. Some six analysts at investment firms including JPMorgan (JPM), Barclays, and Jefferies gave CoreWeave a Buy rating, as their bullish takes on the AI market outweighed worries over the stock's volatility. 'While there are concerns over the durability of CRWV's business model, we believe that the unrelenting appetite for AI compute minimizes the downside risks,' said Jefferies analyst Brent Thill, who estimates shares will rise more than 40% to $51 over the next 12 months. CoreWeave provides computing power to Big Tech, using its mass supply of Nvidia (NVDA) GPUs. In fact, CoreWeave is one of the largest holders of AI chips, period: JPMorgan estimates it has the fifth- to sixth-largest pool of GPUs in existence. 'We believe we're still in the very early innings of this buildout for AI, and CRWV being one of the few who has been able to scale & host AI compute reliably, is positioned well to capture this opportunity,' Thill wrote. The company completed a rocky IPO in late March that was rescued at the last minute by Nvidia, with the AI chipmaker and CoreWeave customer purchasing $250 million worth of CoreWeave shares and anchoring their price at $40. CoreWeave stock soared more than 50% to a high of over $60 in the days following its public debut, before losing almost half its value as President Trump's trade salvos sent stocks across the board tumbling. Shares fell more than 9% Monday, closing at $35. Bears remain concerned that CoreWeave's customers are highly concentrated. Some 77% of CoreWeave's 2024 revenue came from just two customers, with 62% coming from Microsoft (MSFT). The cloud company and data center operator also faces $7.5 billion in debt repayments by the end of next year, the Financial Times reported. 'We remain cautious due to significant reliance on MSFT,' wrote Citi analysts Tuesday, giving CoreWeave a Neutral rating. 'This dependency poses risks as MSFT has signaled AI CapEx slowdowns.' Meta (META) and Big Tech 'hyperscalers' — the massive tech firms that operate mammoth data centers, including Google (GOOG), Amazon (AMZN), and Microsoft — are set to spend around $325 billion in 2025. CoreWeave also recently scored a $12 billion contract with OpenAI, though the ChatGPT-maker itself is losing money. But Big Tech's AI spending could die down as the companies look to generate a return on their mass infrastructure investments — and that path to monetizing AI remains a fear factor for investors — in an increasingly volatile macroeconomic environment. Additionally, there's a concern among investors that CoreWeave served only as a temporary backup for Big Tech during a shortage of GPUs in 2023 and 2024, as companies rushed to build out their AI capacity. And its current pool of Nvidia AI chips are set to depreciate over time. Microsoft has cancelled some commitments with the company, according to the Financial Times. CoreWeave has denied the report. JPMorgan analyst Mark Murphy, who holds a Buy rating but maintains a less bullish price target of $43 on shares, said: 'There could be a wide range of outcomes for CoreWeave.' "For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors," he added. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio
