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Yahoo
5 hours ago
- Business
- Yahoo
Zareef Hamid on the Rise of AI-Native Organizations
Zareef Hamid explores how AI-native organizations are transforming the nature of business. Harvard MBA and former BCG consultant explores how organizations "built from the ground up" and "architected around AI" are breaking business physics and redefining how work is structured. BOSTON, June 1, 2025 /PRNewswire/ -- Zareef Hamid published "The AI-Native Revolution: How Small Teams Are Redefining Business," documenting how AI-native organizations achieve extraordinary efficiency through fundamental structural changes. Unlike traditional businesses using AI as a tool, these organizations are "built from the ground up" and "architected around AI capabilities from inception." The research reveals startups reaching $10 million in annual recurring revenue within 60 days using teams of just 15-18 people—representing what experts call "superlinear scaling." Revenue per employee figures demonstrate exponential differences: leading AI-powered platforms generate $8.3 million per employee while traditional tech companies manage $2.4 million per employee. This creates "a step-change in how value is created and scaled in the digital economy." The transformation shifts routine tasks to AI systems, enabling human work to focus on creativity, empathy, judgment, and purpose. As routine tasks shift to AI systems, organizations optimize "the partnership between human and machine intelligence." The AI-native revolution isn't replacing humans—it's "redefining how we work together with increasingly intelligent systems." Read the full article here: Contact:***@ Photo(s): Press release distributed by PRLog View original content: SOURCE Zareef Hamid
Yahoo
4 days ago
- Business
- Yahoo
Nvidia earnings live: Nvidia stock pops as Wall Street looks through China sales hit
Nvidia (NVDA) stock popped more than 5% in premarket trading Thursday after the poster child for artificial intelligence reported mixed first quarter results after the close on Wednesday. Positive signals from Nvidia and CEO Jensen Huang about AI infrastructure demand and the Blackwell ramp-up eclipsed an $8 billion revenue hit from the US's China export rules, according to the initial reaction from Wall Street. "There is one chip in the world fueling the AI Revolution and it's Nvidia," Wedbush's Dan Ives, one of Wall Street's biggest tech bulls, wrote in a note Wednesday. "That narrative is clear from these results and the positive commentary from Jensen." According to HSBC analyst Ryan Mellor, the results "were good enough to avoid disappointment." The AI hardware giant reported revenue of $44.1 billion for the quarter, topping analyst estimates of $43.3 billion, according to data compiled by Bloomberg. Nvidia reported $26 billion in the same period last year. Adjusted earnings per share, excluding the charge for the H20 chips, were $0.96, beating estimates for $0.93 and surpassing earnings per share of $0.61 last year. Data center revenue fell slightly short of estimates, coming in at $39.1 billion versus $39.2 billion estimated and $22.5 billion last year. Investors also zeroed in on an expected $8 billion revenue hit in the second quarter related to export rules, which banned shipments of its H20 chips to China. In an interview last week, Nvidia CEO Jensen Huang said the company had lost $15 billion in sales as a result of these rules. "The $50 billion China market is effectively closed to US industry," Nvidia CEO Jensen Huang said about the restrictions. "We are exploring limited ways to compete, but Hopper is no longer an option. China's AI moves on with or without US chips." The company's results have been powered by chip investments from some of its Big Tech peers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META). Here's the latest: Nvidia's (NVDA) first quarter results left much to be desired, but it looks like Wall Street is shaking off the obvious bad news for now, Yahoo Finance's Brian Sozzi reports. Read more here on what Wall Street is saying about Nvidia's quarter. Nvidia's post-earnings call with investors was highly focused on the chipmaker's billions in lost revenue from Trump's ban on its chip exports to China. Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with ever-tightening US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." The China market accounted for a smaller share of Nvidia's revenue in the first quarter than the prior two periods — 12.5% for the three months that ended on April 27, compared with roughly 14% and 15% in the prior two quarters, respectively. Read more about Nvidia's hit from the Trump administration's new export ban here. Nvidia's earnings call just wrapped up, and the stock remains solidly higher. Shares are up over 4% just after 6 p.m. ET. We have some early reaction to Nvidia's report from one of Wall Street's biggest tech bulls, Wedbush analyst Dan Ives. In a note titled, in part, "The Godfather of AI Delivers Again," Ives called the quarter "very robust" despite clear headwinds from US curbs on its China sales. The report should be "music to the ears of tech bulls listening to this conference call," Ives wrote. Ives also highlighted recent Middle East deals as a growth catalyst despite the China headwinds. "There is one chip in the world fueling the AI Revolution and it's Nvidia. ... That narrative is clear from these results and the positive commentary from Jensen," he said. While Nvidia executives lamented lost revenue from China in the quarter, Nvidia CEO Jensen Huang offered support for President Trump's aim of building manufacturing capacity in the US. "In Houston, we're partnering with Foxconn to construct a million-square-foot factory to build AI supercomputers," he said. "Wistron is building a similar plant in Fort Worth, Texas. To encourage and support these investments, we've made substantial, long-term purchase commitments, a deep investment in America's AI manufacturing future." "Our goal, from chip to supercomputer, built in America within a year." Nvidia CEO Jensen Huang remarked on the Trump administration's ban on a less powerful version of its Hopper chips for China during a call with analysts following its first quarter earnings results: Listen live to the Nvidia earnings call here. The earnings call has begun, and Nvidia CFO Colette Kress noted that Big Tech companies continue to ramp up data center spending. "Major hyperscalers are each deploying nearly ... 72,000 Blackwell GPUs per week, and are on track to clear ramp output this quarter," Kress said. "Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers." Listen live to the Nvidia earnings call here Nvidia's (NVDA) latest quarterly earnings — which as a whole topped Wall Street's estimates — showed the company expects to see $8 billion in lost revenue from the Trump administration's ban on sales of its H20 AI chips to China in the second quarter (which ends in late July). That's on top of the $2.5 billion of revenue from the H20 ban the chipmaker said it lost in the first quarter (which ended April 27). That means Nvidia is set to lose $10.5 billion in revenue due to the ban in the first and second quarters of its 2026 fiscal year alone. The Trump administration effectively banned sales of Nvidia's chips to China in early April, weeks before the end of its first quarter. Nvidia's sales to China (including Hong Kong) during the period totaled $5.5 billion, less than the $6.2 billion expected, according to Bloomberg data. That means China accounted for more than 12% of the company's total revenue. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules — less than the $5.5 billion hit expected. "We are still evaluating our limited options to supply data center GPU products compliant with the US government's revised export control rules," said CFO Colette Kress. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide." Singapore was once again the second-largest market for Nvidia, which gets over half of its revenue (53%) from abroad. Revenue from the region was roughly $9 billion. Notably, Singapore has been a source of chip smuggling to China. Listen live to the Nvidia earnings call here. Hyperscalers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), continued to power Nvidia's results. "We saw our Blackwell architecture ramp expand to all customer categories, while large cloud service providers remained our largest at just under 50% of Data Center revenue," the company reported in its quarterly filing. Shares of Nvidia's "Magnificent Seven" Big Tech peers — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA) — didn't swing significantly after Nvidia's earnings. Other than Nvidia, Tesla led after-hours gains in the tech stock complex, rising 1.3%, while Apple was roughly flat. The others were up less than 1%. Nvidia (NVDA) stock jumped more than 3%, as Wall Street saw strength in the chipmaker's quarter. 'I thought it was a really strong quarter, all things considered,' Benchmark Company managing director Cody Acree told Yahoo Finance (see video below). "Given all the issues with China and all of the concerns about slowing capital budgets, to see the company come in with an $8 billion loss for the Chinese revenue and still come within the marginal range of estimates, I think is a victory," Acree added. Nvidia reported record revenue of $44.1 billion in the first quarter. While that marks a 69% increase over the prior year, it pales in comparison to the 262% revenue growth the AI chip giant reported a year ago. Nvidia CEO Jensen Huang said Wednesday in the company's earnings release: Nvidia's first quarter results on Wednesday came in a bit shy of Wall Street estimates, with adjusted earnings per share and revenue in its data center business falling short of expectations. In the first quarter, Nvidia earned $0.96 per share on an adjusted basis, which excludes charges related to export controls and associated tax implications, with headline revenue coming in at $44.1 billion. Diluted earnings per share came in at $0.81. Wall Street expected the company to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to estimates from Bloomberg. A year ago, Nvidia reported adjusted EPS of $0.61 on revenue of $26 billion. Nvidia's data center business — which captures spending on its AI chips — tallied revenue of $39.1 billion, just below the $39.22 billion forecasted by the Street. Shares of the company were up about 3% in extended trading in immediate reaction to the numbers. Nvidia (NVDA) stock has rallied hard in May, gaining 24% in the past month. That leaves many investors wondering if it's a good time to pile into the stock ahead of the chip giant's earnings report. We've pointed out here that Nvidia stock tends to swing 7% in either direction the day after it reports. My colleague Laura Bratton has also noted that Nvidia's earnings often surprise Wall Street. According to tastylive founder and CEO Tom Sosnoff, volatility in the stock is low, even heading into earnings, suggesting that "the expectations are for something rangebound to happen." Sosnoff outlined several key points investors should keep in mind when determining whether to invest in a popular name like Nvidia: Pros: "It's super liquid," Sosnoff said on Wealth. "It's got a very liquid derivatives marketplace. So you can do lots of different strategies and things like that." Sosnoff also pointed out that Nvidia remains a market leader. "It's the bluest of all blue chips right now," he said. Cons: A major con, according to Sosnoff, is that "it's a crowded trade. Nvidia is pretty fully priced." He added that "for the first time, we're not seeing any call skew in there, which means that the derivatives markets, which are pretty good at pricing upside expectations, are kind of mixed right now. They're saying, 'you know what, upside and downside, we have similar expectations.'" "So I think the con is that if Nvidia misses, there's pretty decent pot odds that the downside move could be greater than the upside move if they hit it," he explained. Yahoo Finance's Josh Schafer highlighted one chart that shows how Nvidia became the dominant chipmaker and one of the most valuable companies in the world, with a market capitalization of over $3 trillion: Check out more charts like this that show Nvidia's rise. Yahoo Finance's Laura Bratton reports: Read more here. The countdown to Nvidia's earnings has begun. Beyond the top and bottom line figures, which Wall Street expects to be solid, Yahoo Finance's Brian Sozzi and Brooke Sweeney have compiled three things that investors should watch out for: Read more here. Nvidia stock (NVDA) opened modestly higher ahead of its earnings report but fluctuated in early trading. At last check, shares were down 0.3%. While some volatility is expected, investors will be watching to see how Nvidia trades around earnings — and whether its "Magnificent Seven" tech peers and the broader market move in tandem, as AI is seen as an engine to the growth of the recent bull market. Nvidia's earnings will also create an important benchmark for other AI plays and stocks tied to the technology, such as utilities and companies involved in data center infrastructure. FT reports: Read more here. Reuters reports: Read more here. Nvidia's (NVDA) first quarter results left much to be desired, but it looks like Wall Street is shaking off the obvious bad news for now, Yahoo Finance's Brian Sozzi reports. Read more here on what Wall Street is saying about Nvidia's quarter. Nvidia's post-earnings call with investors was highly focused on the chipmaker's billions in lost revenue from Trump's ban on its chip exports to China. Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with ever-tightening US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." The China market accounted for a smaller share of Nvidia's revenue in the first quarter than the prior two periods — 12.5% for the three months that ended on April 27, compared with roughly 14% and 15% in the prior two quarters, respectively. Read more about Nvidia's hit from the Trump administration's new export ban here. Nvidia's earnings call just wrapped up, and the stock remains solidly higher. Shares are up over 4% just after 6 p.m. ET. We have some early reaction to Nvidia's report from one of Wall Street's biggest tech bulls, Wedbush analyst Dan Ives. In a note titled, in part, "The Godfather of AI Delivers Again," Ives called the quarter "very robust" despite clear headwinds from US curbs on its China sales. The report should be "music to the ears of tech bulls listening to this conference call," Ives wrote. Ives also highlighted recent Middle East deals as a growth catalyst despite the China headwinds. "There is one chip in the world fueling the AI Revolution and it's Nvidia. ... That narrative is clear from these results and the positive commentary from Jensen," he said. While Nvidia executives lamented lost revenue from China in the quarter, Nvidia CEO Jensen Huang offered support for President Trump's aim of building manufacturing capacity in the US. "In Houston, we're partnering with Foxconn to construct a million-square-foot factory to build AI supercomputers," he said. "Wistron is building a similar plant in Fort Worth, Texas. To encourage and support these investments, we've made substantial, long-term purchase commitments, a deep investment in America's AI manufacturing future." "Our goal, from chip to supercomputer, built in America within a year." Nvidia CEO Jensen Huang remarked on the Trump administration's ban on a less powerful version of its Hopper chips for China during a call with analysts following its first quarter earnings results: Listen live to the Nvidia earnings call here. The earnings call has begun, and Nvidia CFO Colette Kress noted that Big Tech companies continue to ramp up data center spending. "Major hyperscalers are each deploying nearly ... 72,000 Blackwell GPUs per week, and are on track to clear ramp output this quarter," Kress said. "Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers." Listen live to the Nvidia earnings call here Nvidia's (NVDA) latest quarterly earnings — which as a whole topped Wall Street's estimates — showed the company expects to see $8 billion in lost revenue from the Trump administration's ban on sales of its H20 AI chips to China in the second quarter (which ends in late July). That's on top of the $2.5 billion of revenue from the H20 ban the chipmaker said it lost in the first quarter (which ended April 27). That means Nvidia is set to lose $10.5 billion in revenue due to the ban in the first and second quarters of its 2026 fiscal year alone. The Trump administration effectively banned sales of Nvidia's chips to China in early April, weeks before the end of its first quarter. Nvidia's sales to China (including Hong Kong) during the period totaled $5.5 billion, less than the $6.2 billion expected, according to Bloomberg data. That means China accounted for more than 12% of the company's total revenue. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules — less than the $5.5 billion hit expected. "We are still evaluating our limited options to supply data center GPU products compliant with the US government's revised export control rules," said CFO Colette Kress. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide." Singapore was once again the second-largest market for Nvidia, which gets over half of its revenue (53%) from abroad. Revenue from the region was roughly $9 billion. Notably, Singapore has been a source of chip smuggling to China. Listen live to the Nvidia earnings call here. Hyperscalers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), continued to power Nvidia's results. "We saw our Blackwell architecture ramp expand to all customer categories, while large cloud service providers remained our largest at just under 50% of Data Center revenue," the company reported in its quarterly filing. Shares of Nvidia's "Magnificent Seven" Big Tech peers — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA) — didn't swing significantly after Nvidia's earnings. Other than Nvidia, Tesla led after-hours gains in the tech stock complex, rising 1.3%, while Apple was roughly flat. The others were up less than 1%. Nvidia (NVDA) stock jumped more than 3%, as Wall Street saw strength in the chipmaker's quarter. 'I thought it was a really strong quarter, all things considered,' Benchmark Company managing director Cody Acree told Yahoo Finance (see video below). "Given all the issues with China and all of the concerns about slowing capital budgets, to see the company come in with an $8 billion loss for the Chinese revenue and still come within the marginal range of estimates, I think is a victory," Acree added. Nvidia reported record revenue of $44.1 billion in the first quarter. While that marks a 69% increase over the prior year, it pales in comparison to the 262% revenue growth the AI chip giant reported a year ago. Nvidia CEO Jensen Huang said Wednesday in the company's earnings release: Nvidia's first quarter results on Wednesday came in a bit shy of Wall Street estimates, with adjusted earnings per share and revenue in its data center business falling short of expectations. In the first quarter, Nvidia earned $0.96 per share on an adjusted basis, which excludes charges related to export controls and associated tax implications, with headline revenue coming in at $44.1 billion. Diluted earnings per share came in at $0.81. Wall Street expected the company to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to estimates from Bloomberg. A year ago, Nvidia reported adjusted EPS of $0.61 on revenue of $26 billion. Nvidia's data center business — which captures spending on its AI chips — tallied revenue of $39.1 billion, just below the $39.22 billion forecasted by the Street. Shares of the company were up about 3% in extended trading in immediate reaction to the numbers. Nvidia (NVDA) stock has rallied hard in May, gaining 24% in the past month. That leaves many investors wondering if it's a good time to pile into the stock ahead of the chip giant's earnings report. We've pointed out here that Nvidia stock tends to swing 7% in either direction the day after it reports. My colleague Laura Bratton has also noted that Nvidia's earnings often surprise Wall Street. According to tastylive founder and CEO Tom Sosnoff, volatility in the stock is low, even heading into earnings, suggesting that "the expectations are for something rangebound to happen." Sosnoff outlined several key points investors should keep in mind when determining whether to invest in a popular name like Nvidia: Pros: "It's super liquid," Sosnoff said on Wealth. "It's got a very liquid derivatives marketplace. So you can do lots of different strategies and things like that." Sosnoff also pointed out that Nvidia remains a market leader. "It's the bluest of all blue chips right now," he said. Cons: A major con, according to Sosnoff, is that "it's a crowded trade. Nvidia is pretty fully priced." He added that "for the first time, we're not seeing any call skew in there, which means that the derivatives markets, which are pretty good at pricing upside expectations, are kind of mixed right now. They're saying, 'you know what, upside and downside, we have similar expectations.'" "So I think the con is that if Nvidia misses, there's pretty decent pot odds that the downside move could be greater than the upside move if they hit it," he explained. Yahoo Finance's Josh Schafer highlighted one chart that shows how Nvidia became the dominant chipmaker and one of the most valuable companies in the world, with a market capitalization of over $3 trillion: Check out more charts like this that show Nvidia's rise. Yahoo Finance's Laura Bratton reports: Read more here. The countdown to Nvidia's earnings has begun. Beyond the top and bottom line figures, which Wall Street expects to be solid, Yahoo Finance's Brian Sozzi and Brooke Sweeney have compiled three things that investors should watch out for: Read more here. Nvidia stock (NVDA) opened modestly higher ahead of its earnings report but fluctuated in early trading. At last check, shares were down 0.3%. While some volatility is expected, investors will be watching to see how Nvidia trades around earnings — and whether its "Magnificent Seven" tech peers and the broader market move in tandem, as AI is seen as an engine to the growth of the recent bull market. Nvidia's earnings will also create an important benchmark for other AI plays and stocks tied to the technology, such as utilities and companies involved in data center infrastructure. FT reports: Read more here. Reuters reports: Read more here. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Nvidia earnings live: Nvidia stock pops as Wall Street looks through China sales hit
Nvidia (NVDA) stock popped more than 5% in premarket trading Thursday after the poster child for artificial intelligence reported mixed first quarter results after the close on Wednesday. Positive signals from Nvidia and CEO Jensen Huang about AI infrastructure demand and the Blackwell ramp-up eclipsed an $8 billion revenue hit from the US's China export rules, according to the initial reaction from Wall Street. "There is one chip in the world fueling the AI Revolution and it's Nvidia," Wedbush's Dan Ives, one of Wall Street's biggest tech bulls, wrote in a note Wednesday. "That narrative is clear from these results and the positive commentary from Jensen." According to HSBC analyst Ryan Mellor, the results "were good enough to avoid disappointment." The AI hardware giant reported revenue of $44.1 billion for the quarter, topping analyst estimates of $43.3 billion, according to data compiled by Bloomberg. Nvidia reported $26 billion in the same period last year. Adjusted earnings per share, excluding the charge for the H20 chips, were $0.96, beating estimates for $0.93 and surpassing earnings per share of $0.61 last year. Data center revenue fell slightly short of estimates, coming in at $39.1 billion versus $39.2 billion estimated and $22.5 billion last year. Investors also zeroed in on an expected $8 billion revenue hit in the second quarter related to export rules, which banned shipments of its H20 chips to China. In an interview last week, Nvidia CEO Jensen Huang said the company had lost $15 billion in sales as a result of these rules. "The $50 billion China market is effectively closed to US industry," Nvidia CEO Jensen Huang said about the restrictions. "We are exploring limited ways to compete, but Hopper is no longer an option. China's AI moves on with or without US chips." The company's results have been powered by chip investments from some of its Big Tech peers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META). Here's the latest: Nvidia's (NVDA) first quarter results left much to be desired, but it looks like Wall Street is shaking off the obvious bad news for now, Yahoo Finance's Brian Sozzi reports. Read more here on what Wall Street is saying about Nvidia's quarter. Nvidia's post-earnings call with investors was highly focused on the chipmaker's billions in lost revenue from Trump's ban on its chip exports to China. Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with ever-tightening US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." The China market accounted for a smaller share of Nvidia's revenue in the first quarter than the prior two periods — 12.5% for the three months that ended on April 27, compared with roughly 14% and 15% in the prior two quarters, respectively. Read more about Nvidia's hit from the Trump administration's new export ban here. Nvidia's earnings call just wrapped up, and the stock remains solidly higher. Shares are up over 4% just after 6 p.m. ET. We have some early reaction to Nvidia's report from one of Wall Street's biggest tech bulls, Wedbush analyst Dan Ives. In a note titled, in part, "The Godfather of AI Delivers Again," Ives called the quarter "very robust" despite clear headwinds from US curbs on its China sales. The report should be "music to the ears of tech bulls listening to this conference call," Ives wrote. Ives also highlighted recent Middle East deals as a growth catalyst despite the China headwinds. "There is one chip in the world fueling the AI Revolution and it's Nvidia. ... That narrative is clear from these results and the positive commentary from Jensen," he said. While Nvidia executives lamented lost revenue from China in the quarter, Nvidia CEO Jensen Huang offered support for President Trump's aim of building manufacturing capacity in the US. "In Houston, we're partnering with Foxconn to construct a million-square-foot factory to build AI supercomputers," he said. "Wistron is building a similar plant in Fort Worth, Texas. To encourage and support these investments, we've made substantial, long-term purchase commitments, a deep investment in America's AI manufacturing future." "Our goal, from chip to supercomputer, built in America within a year." Nvidia CEO Jensen Huang remarked on the Trump administration's ban on a less powerful version of its Hopper chips for China during a call with analysts following its first quarter earnings results: Listen live to the Nvidia earnings call here. The earnings call has begun, and Nvidia CFO Colette Kress noted that Big Tech companies continue to ramp up data center spending. "Major hyperscalers are each deploying nearly ... 72,000 Blackwell GPUs per week, and are on track to clear ramp output this quarter," Kress said. "Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers." Listen live to the Nvidia earnings call here Nvidia's (NVDA) latest quarterly earnings — which as a whole topped Wall Street's estimates — showed the company expects to see $8 billion in lost revenue from the Trump administration's ban on sales of its H20 AI chips to China in the second quarter (which ends in late July). That's on top of the $2.5 billion of revenue from the H20 ban the chipmaker said it lost in the first quarter (which ended April 27). That means Nvidia is set to lose $10.5 billion in revenue due to the ban in the first and second quarters of its 2026 fiscal year alone. The Trump administration effectively banned sales of Nvidia's chips to China in early April, weeks before the end of its first quarter. Nvidia's sales to China (including Hong Kong) during the period totaled $5.5 billion, less than the $6.2 billion expected, according to Bloomberg data. That means China accounted for more than 12% of the company's total revenue. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules — less than the $5.5 billion hit expected. "We are still evaluating our limited options to supply data center GPU products compliant with the US government's revised export control rules," said CFO Colette Kress. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide." Singapore was once again the second-largest market for Nvidia, which gets over half of its revenue (53%) from abroad. Revenue from the region was roughly $9 billion. Notably, Singapore has been a source of chip smuggling to China. Listen live to the Nvidia earnings call here. Hyperscalers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), continued to power Nvidia's results. "We saw our Blackwell architecture ramp expand to all customer categories, while large cloud service providers remained our largest at just under 50% of Data Center revenue," the company reported in its quarterly filing. Shares of Nvidia's "Magnificent Seven" Big Tech peers — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA) — didn't swing significantly after Nvidia's earnings. Other than Nvidia, Tesla led after-hours gains in the tech stock complex, rising 1.3%, while Apple was roughly flat. The others were up less than 1%. Nvidia (NVDA) stock jumped more than 3%, as Wall Street saw strength in the chipmaker's quarter. 'I thought it was a really strong quarter, all things considered,' Benchmark Company managing director Cody Acree told Yahoo Finance (see video below). "Given all the issues with China and all of the concerns about slowing capital budgets, to see the company come in with an $8 billion loss for the Chinese revenue and still come within the marginal range of estimates, I think is a victory," Acree added. Nvidia reported record revenue of $44.1 billion in the first quarter. While that marks a 69% increase over the prior year, it pales in comparison to the 262% revenue growth the AI chip giant reported a year ago. Nvidia CEO Jensen Huang said Wednesday in the company's earnings release: Nvidia's first quarter results on Wednesday came in a bit shy of Wall Street estimates, with adjusted earnings per share and revenue in its data center business falling short of expectations. In the first quarter, Nvidia earned $0.96 per share on an adjusted basis, which excludes charges related to export controls and associated tax implications, with headline revenue coming in at $44.1 billion. Diluted earnings per share came in at $0.81. Wall Street expected the company to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to estimates from Bloomberg. A year ago, Nvidia reported adjusted EPS of $0.61 on revenue of $26 billion. Nvidia's data center business — which captures spending on its AI chips — tallied revenue of $39.1 billion, just below the $39.22 billion forecasted by the Street. Shares of the company were up about 3% in extended trading in immediate reaction to the numbers. Nvidia (NVDA) stock has rallied hard in May, gaining 24% in the past month. That leaves many investors wondering if it's a good time to pile into the stock ahead of the chip giant's earnings report. We've pointed out here that Nvidia stock tends to swing 7% in either direction the day after it reports. My colleague Laura Bratton has also noted that Nvidia's earnings often surprise Wall Street. According to tastylive founder and CEO Tom Sosnoff, volatility in the stock is low, even heading into earnings, suggesting that "the expectations are for something rangebound to happen." Sosnoff outlined several key points investors should keep in mind when determining whether to invest in a popular name like Nvidia: Pros: "It's super liquid," Sosnoff said on Wealth. "It's got a very liquid derivatives marketplace. So you can do lots of different strategies and things like that." Sosnoff also pointed out that Nvidia remains a market leader. "It's the bluest of all blue chips right now," he said. Cons: A major con, according to Sosnoff, is that "it's a crowded trade. Nvidia is pretty fully priced." He added that "for the first time, we're not seeing any call skew in there, which means that the derivatives markets, which are pretty good at pricing upside expectations, are kind of mixed right now. They're saying, 'you know what, upside and downside, we have similar expectations.'" "So I think the con is that if Nvidia misses, there's pretty decent pot odds that the downside move could be greater than the upside move if they hit it," he explained. Yahoo Finance's Josh Schafer highlighted one chart that shows how Nvidia became the dominant chipmaker and one of the most valuable companies in the world, with a market capitalization of over $3 trillion: Check out more charts like this that show Nvidia's rise. Yahoo Finance's Laura Bratton reports: Read more here. The countdown to Nvidia's earnings has begun. Beyond the top and bottom line figures, which Wall Street expects to be solid, Yahoo Finance's Brian Sozzi and Brooke Sweeney have compiled three things that investors should watch out for: Read more here. Nvidia stock (NVDA) opened modestly higher ahead of its earnings report but fluctuated in early trading. At last check, shares were down 0.3%. While some volatility is expected, investors will be watching to see how Nvidia trades around earnings — and whether its "Magnificent Seven" tech peers and the broader market move in tandem, as AI is seen as an engine to the growth of the recent bull market. Nvidia's earnings will also create an important benchmark for other AI plays and stocks tied to the technology, such as utilities and companies involved in data center infrastructure. FT reports: Read more here. Reuters reports: Read more here. Nvidia's (NVDA) first quarter results left much to be desired, but it looks like Wall Street is shaking off the obvious bad news for now, Yahoo Finance's Brian Sozzi reports. Read more here on what Wall Street is saying about Nvidia's quarter. Nvidia's post-earnings call with investors was highly focused on the chipmaker's billions in lost revenue from Trump's ban on its chip exports to China. Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with ever-tightening US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." The China market accounted for a smaller share of Nvidia's revenue in the first quarter than the prior two periods — 12.5% for the three months that ended on April 27, compared with roughly 14% and 15% in the prior two quarters, respectively. Read more about Nvidia's hit from the Trump administration's new export ban here. Nvidia's earnings call just wrapped up, and the stock remains solidly higher. Shares are up over 4% just after 6 p.m. ET. We have some early reaction to Nvidia's report from one of Wall Street's biggest tech bulls, Wedbush analyst Dan Ives. In a note titled, in part, "The Godfather of AI Delivers Again," Ives called the quarter "very robust" despite clear headwinds from US curbs on its China sales. The report should be "music to the ears of tech bulls listening to this conference call," Ives wrote. Ives also highlighted recent Middle East deals as a growth catalyst despite the China headwinds. "There is one chip in the world fueling the AI Revolution and it's Nvidia. ... That narrative is clear from these results and the positive commentary from Jensen," he said. While Nvidia executives lamented lost revenue from China in the quarter, Nvidia CEO Jensen Huang offered support for President Trump's aim of building manufacturing capacity in the US. "In Houston, we're partnering with Foxconn to construct a million-square-foot factory to build AI supercomputers," he said. "Wistron is building a similar plant in Fort Worth, Texas. To encourage and support these investments, we've made substantial, long-term purchase commitments, a deep investment in America's AI manufacturing future." "Our goal, from chip to supercomputer, built in America within a year." Nvidia CEO Jensen Huang remarked on the Trump administration's ban on a less powerful version of its Hopper chips for China during a call with analysts following its first quarter earnings results: Listen live to the Nvidia earnings call here. The earnings call has begun, and Nvidia CFO Colette Kress noted that Big Tech companies continue to ramp up data center spending. "Major hyperscalers are each deploying nearly ... 72,000 Blackwell GPUs per week, and are on track to clear ramp output this quarter," Kress said. "Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers." Listen live to the Nvidia earnings call here Nvidia's (NVDA) latest quarterly earnings — which as a whole topped Wall Street's estimates — showed the company expects to see $8 billion in lost revenue from the Trump administration's ban on sales of its H20 AI chips to China in the second quarter (which ends in late July). That's on top of the $2.5 billion of revenue from the H20 ban the chipmaker said it lost in the first quarter (which ended April 27). That means Nvidia is set to lose $10.5 billion in revenue due to the ban in the first and second quarters of its 2026 fiscal year alone. The Trump administration effectively banned sales of Nvidia's chips to China in early April, weeks before the end of its first quarter. Nvidia's sales to China (including Hong Kong) during the period totaled $5.5 billion, less than the $6.2 billion expected, according to Bloomberg data. That means China accounted for more than 12% of the company's total revenue. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules — less than the $5.5 billion hit expected. "We are still evaluating our limited options to supply data center GPU products compliant with the US government's revised export control rules," said CFO Colette Kress. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide." Singapore was once again the second-largest market for Nvidia, which gets over half of its revenue (53%) from abroad. Revenue from the region was roughly $9 billion. Notably, Singapore has been a source of chip smuggling to China. Listen live to the Nvidia earnings call here. Hyperscalers, including Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META), continued to power Nvidia's results. "We saw our Blackwell architecture ramp expand to all customer categories, while large cloud service providers remained our largest at just under 50% of Data Center revenue," the company reported in its quarterly filing. Shares of Nvidia's "Magnificent Seven" Big Tech peers — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA) — didn't swing significantly after Nvidia's earnings. Other than Nvidia, Tesla led after-hours gains in the tech stock complex, rising 1.3%, while Apple was roughly flat. The others were up less than 1%. Nvidia (NVDA) stock jumped more than 3%, as Wall Street saw strength in the chipmaker's quarter. 'I thought it was a really strong quarter, all things considered,' Benchmark Company managing director Cody Acree told Yahoo Finance (see video below). "Given all the issues with China and all of the concerns about slowing capital budgets, to see the company come in with an $8 billion loss for the Chinese revenue and still come within the marginal range of estimates, I think is a victory," Acree added. Nvidia reported record revenue of $44.1 billion in the first quarter. While that marks a 69% increase over the prior year, it pales in comparison to the 262% revenue growth the AI chip giant reported a year ago. Nvidia CEO Jensen Huang said Wednesday in the company's earnings release: Nvidia's first quarter results on Wednesday came in a bit shy of Wall Street estimates, with adjusted earnings per share and revenue in its data center business falling short of expectations. In the first quarter, Nvidia earned $0.96 per share on an adjusted basis, which excludes charges related to export controls and associated tax implications, with headline revenue coming in at $44.1 billion. Diluted earnings per share came in at $0.81. Wall Street expected the company to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to estimates from Bloomberg. A year ago, Nvidia reported adjusted EPS of $0.61 on revenue of $26 billion. Nvidia's data center business — which captures spending on its AI chips — tallied revenue of $39.1 billion, just below the $39.22 billion forecasted by the Street. Shares of the company were up about 3% in extended trading in immediate reaction to the numbers. Nvidia (NVDA) stock has rallied hard in May, gaining 24% in the past month. That leaves many investors wondering if it's a good time to pile into the stock ahead of the chip giant's earnings report. We've pointed out here that Nvidia stock tends to swing 7% in either direction the day after it reports. My colleague Laura Bratton has also noted that Nvidia's earnings often surprise Wall Street. According to tastylive founder and CEO Tom Sosnoff, volatility in the stock is low, even heading into earnings, suggesting that "the expectations are for something rangebound to happen." Sosnoff outlined several key points investors should keep in mind when determining whether to invest in a popular name like Nvidia: Pros: "It's super liquid," Sosnoff said on Wealth. "It's got a very liquid derivatives marketplace. So you can do lots of different strategies and things like that." Sosnoff also pointed out that Nvidia remains a market leader. "It's the bluest of all blue chips right now," he said. Cons: A major con, according to Sosnoff, is that "it's a crowded trade. Nvidia is pretty fully priced." He added that "for the first time, we're not seeing any call skew in there, which means that the derivatives markets, which are pretty good at pricing upside expectations, are kind of mixed right now. They're saying, 'you know what, upside and downside, we have similar expectations.'" "So I think the con is that if Nvidia misses, there's pretty decent pot odds that the downside move could be greater than the upside move if they hit it," he explained. Yahoo Finance's Josh Schafer highlighted one chart that shows how Nvidia became the dominant chipmaker and one of the most valuable companies in the world, with a market capitalization of over $3 trillion: Check out more charts like this that show Nvidia's rise. Yahoo Finance's Laura Bratton reports: Read more here. The countdown to Nvidia's earnings has begun. Beyond the top and bottom line figures, which Wall Street expects to be solid, Yahoo Finance's Brian Sozzi and Brooke Sweeney have compiled three things that investors should watch out for: Read more here. Nvidia stock (NVDA) opened modestly higher ahead of its earnings report but fluctuated in early trading. At last check, shares were down 0.3%. While some volatility is expected, investors will be watching to see how Nvidia trades around earnings — and whether its "Magnificent Seven" tech peers and the broader market move in tandem, as AI is seen as an engine to the growth of the recent bull market. Nvidia's earnings will also create an important benchmark for other AI plays and stocks tied to the technology, such as utilities and companies involved in data center infrastructure. FT reports: Read more here. 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
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4 days ago
- Business
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Nvidia beats on earnings again — even while it's locked out of China
Nvidia (NVDA) continues to soar beyond expectations — even if things are a little more complicated this time around. Its strong first-quarter headline numbers show that Nvidia's AI thesis is as strong as ever and that its margins remain elite, despite facing significant headwinds due to U.S. export restrictions on its H20 processors to China and other geopolitical concerns. After the bell on Wednesday, the $3.3 trillion chipmaker reported $44.1 billion in revenue for the fiscal first quarter, up 69% from the same period a year ago, and the company reported a $18.78 billion profit. Analysts had forecasted a revenue surge to $43.26 billion. The H20 restrictions led to a $4.5 billion write-down related to excess inventory and a $2.5 billion revenue shortfall, affecting the company's gross margins. Adjusted earnings per share came in at $0.81, ahead of Wall Street estimates of $0.75. Nvidia took a $4.5 billion charge related to exports of its H20 chips to China; without that charge and the related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96. Stock soared over 5% in after-hours trading. With demand for generative AI infrastructure still booming and competitors struggling to catch up, Nvidia's performance exceeded expectations. In a Tuesday note, Wedbush analysts led by Dan Ives said that Nvidia's earnings would likely be a 'bright green light' for the tech sector — especially companies heavily invested in the 'AI Revolution.' And it was. The company's Data Center division brought in an almost unreal $39.1 billion in the first quarter, up 10% from the previous quarter and up 73% from a year ago. That means Nvidia's fastest-growing segment is now responsible for nearly 89% of all revenue — a sign of how deeply embedded its chips are in the AI build-out. Analysts had expected this division to generate $21.27 billion in Q1 revenue. Looking ahead, Nvidia projects Q2 revenue around $43 billion, slightly below Q1 figures, with gross margins expected to remain in the low 70% range. In his note, Ives wrote that, over the past several years, Nvidia's set-up has been about by how much the company would beat Wall Street's expectations, but this quarter, the earnings were 'more about strong numbers and the ability to maintain guidance despite the China blockade. Investors are more laser focused on the medium term and long-term outlook.' Nvidia has long relied on the Chinese market for a sizable chunk of its revenue, but that has changed dramatically in the wake of tightening U.S. export controls and tariffs. To maintain its foothold, Nvidia is pursuing R&D efforts in Shanghai and developing China-specific downgraded chips that comply with current restrictions. The company is ground zero in the U.S.-China tech rivalry — its GPUs might just be the most valuable components in the AI arms race, and its position is increasingly shaped by policy, not just engineering. Nvidia has beat analysts' earnings expectations in 14 of the past 16 quarters. So can anything slow Nvidia down? Maybe. Competition is heating up. AMD (AMD) and Intel (INTC) are sharpening their AI chip offerings, while hyperscalers are continuing to invest in custom silicon. And export restrictions remain a geopolitical wild card. Still, as the first-quarter earnings show, Nvidia's moat is wide. Its software ecosystem, deep relationships with cloud providers, and product cadence make it more than just a chipmaker. It's the AI era's platform company. For the latest news, Facebook, Twitter and Instagram.
Yahoo
4 days ago
- Business
- Yahoo
3 things Nvidia investors should look out for in its earnings call
The earnings event of the season is here. Nvidia (NVDA) will report its first quarter results for fiscal year 2026 after the market close today. Wall Street is expecting the AI chip darling to post another strong showing for earnings and revenue. Analysts forecast that earnings per share (EPS) will jump 46% year over year to $0.88. Revenue is expected to increase 66% to $43.3 billion. These are some sizzling growth numbers, though less sizzling than what Nvidia posted in 2024. "Nvidia is the one chip fueling the AI Revolution and the stock is not expensive. We see a $5 trillion market cap on the horizon for the Godfather of AI Jensen Huang and Nvidia," Wedbush tech analyst Dan Ives told Yahoo Finance. Nvidia's earnings report is about more than just the company, however. It's a bellwether for the AI boom, which is showing some signs of a slowdown. This time last year, Nvidia reported record quarterly revenue, up 262% year over year. Despite briefly becoming the world's most valuable company by market cap earlier this month, Nvidia shares are now slightly down year to date. The pullback reflects investor anxiety about the pace of AI adoption and whether Nvidia can maintain its explosive growth. On the Q1 earnings call last year, co-founder and CEO Jensen Huang said, "The next Industrial Revolution has begun." Well, now investors want to know where it's headed. Here are the top three things investors will be looking out for on Nvidia's market-moving earnings call. Nvidia's data center segment, driven by AI chips like the H100 and its Blackwell platform, accounts for the lion's share of its revenue. Analysts will be listening for signals about cloud providers and hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Google (GOOG). Are they still placing large orders? Are there any hints of softening demand or delayed deployments? If so, that could rattle investor confidence in the AI infrastructure build-out and Nvidia's future. Read more: How does Nvidia make money? Nvidia has been benefiting from premium pricing on its high-performance chips. But with increasing competition from AMD (AMD) and custom silicon efforts from Big Tech companies, margins may come under more pressure. Investors will want to know if Nvidia is maintaining its pricing power or if it's beginning to feel cost compression, especially as it prepares for the high-volume rollout of Blackwell chips. Investors want to know whether demand is still accelerating or beginning to plateau. Any hint of slowing revenue or capital expenditures from key customers could prompt a reassessment of Nvidia's valuation. On the flip side, a bullish forecast — especially tied to Blackwell adoption or new enterprise use cases — could reignite momentum. Also listen for updates on supply chain capacity, chip-launch timelines, and geopolitical risks. Analysts may press Huang on the impact of tighter US export controls, which led to a $5.5 billion loss due to restricted chip sales to China. Huang has criticized the policy, warning it could accelerate China's domestic AI chip development. While China now accounts for just 5% of Nvidia's revenue, investors will be watching for any signs of further disruption. Don't forget: This isn't just Nvidia's moment — it's a checkpoint for the AI trade. Read more about Nvidia in the lead-up to earnings: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia "played a central role" in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram and on LinkedIn. Tips on stories? Email Brooke Sweeney is a senior producer at Yahoo Finance. 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
