Latest news with #AIchips
Reuters
28-05-2025
- Business
- Reuters
Nvidia forecasts second-quarter revenue below estimates
May 28 (Reuters) - Nvidia (NVDA.O), opens new tab forecast second-quarter revenue below market estimates on Wednesday, expecting a major hit to sales from tighter U.S. curbs on exports of its AI chips to key semiconductor market China. Shares of the world's most valuable semiconductor firm still rose 3% in extended trading. The stock is relatively flat so far this year, compared with the shares nearly tripling in the past year, as Nvidia faces trade restrictions on what it can sell and the AI datacenter market matures. Washington's years-long efforts to thwart Beijing's access to top-of-the-line U.S. technology have resulted in stricter restrictions on the export of Nvidia's AI chips - stifling the company's access to one of the largest markets for semiconductors. New U.S. restrictions on the sale of Nvidia's H20 chips to China, the only AI processors it could legally export to the country, resulted in a charge of $5.5 billion, while CEO Jensen Huang had earlier pegged the revenue impact related to the restrictions at about $15 billion. Though major cloud companies such as Microsoft and Alphabet have stood their ground on the billions they've earmarked this year for spending on expanding infrastructure for AI data centers, worries about such spending persist amid rapidly changing global trade policies. On an adjusted basis, Nvidia earned 81 cents per share in the first quarter. Analyst estimates varied widely as Wall Street tried to assess the impact of restrictions on some of Nvidia's chip sales to China. Excluding the charges, first-quarter adjusted earnings per share would have been 96 cents per share. According to data compiled by LSEG, the estimate for the company's adjusted quarterly earnings was 93 cents per share, with 17 analysts providing estimates after April 15 when Nvidia said H20 shipments would require additional licenses. The artificial intelligence market bellwether expects revenue of $45 billion, plus or minus 2%, in the second quarter, compared with analysts' average estimate of $45.90 billion, according to data compiled by LSEG. The forecast includes a loss in H20 revenue of about $8 billion due to the recent export limitations.
Wall Street Journal
28-05-2025
- Business
- Wall Street Journal
The Case for Exporting American AI
Generative artificial intelligence isn't a trend; it's the backbone of the next industrial era. Countries are racing to build the full AI stack: data centers, chips, power and platforms. On his recent trip to the Middle East, President Trump signed deals to export AI chips to Persian Gulf states, including Saudi Arabia, the United Arab Emirates and Qatar, in exchange for more than $1 trillion in investments in the U.S. economy, largely in AI infrastructure. The deals signify a shift from the Biden administration's AI Diffusion Rule, which sought to regulate the export of American-made AI chips and handed China an opening to dominate the market. By rescinding the rule on May 13, two days before the compliance deadline was scheduled to go into effect, Mr. Trump cleared the path for America to lead. Now, American allies can build AI using U.S. infrastructure, values and standards.
CTV News
27-05-2025
- Business
- CTV News
Nvidia earnings to reveal hit from U.S. export curbs on China
Nvidia investors will look for definitive answers on how much U.S. chip curbs on China will cost the company when it reports results on Wednesday, even as a pullback in other regulations is expected to open up new markets. In a fresh effort to stymie Beijing's access to cutting-edge technology, the Trump administration last month put export limits on Nvidia's H20 chip - a move the company said would result in US$5.5 billion in charges. CEO Jensen Huang, who pegged the market for AI chips in China at roughly $50 billion next year, said last week Nvidia had walked away from $15 billion of sales in the country after the curbs. Nvidia does not break out sales for the H20, the only AI chip it was allowed to sell to China, a market which accounted for 13 per cent of its revenue last year. 'The primary question around results and guidance is can Nvidia lift sales enough to offset the loss of H20 or China business,' Wedbush analysts said ahead of the earnings report. While sources have told Reuters that company is planning to launch a new AI chipset for China based on Nvidia's latest generation Blackwell architecture, the uncertainty of losing its China business has dented its stock. The stock has already been under pressure from concerns about mounting AI infrastructure costs. It was down 2 per cent this year, a far cry from their nearly three-fold gain last year. 'China will probably be the biggest swing factor for Nvidia's quarter,' said D.A. Davidson analyst Gil Luria. The company is expected to report that first-quarter revenue surged 66.2 per cent to $43.28 billion, according to data compiled by LSEG. Susquehanna analysts estimated the restrictions impacted the last three weeks of the April quarter, costing Nvidia about $1 billion in sales. For the rest of the year, lost revenue could amount to as much as $4.5 billion per quarter, they said. Wedbush estimated the quarterly hit at $3 billion to $4 billion. Adjusted gross margin is expected to drop more than 11 percentage points to 67.7 per cent. The write-downs related to H20 shipments could translate to a gross margin hit of up to 12.5 per cent, Wedbush said. Nvidia CEO Huang recently called U.S. semiconductor curbs on China 'a failure,' saying they have only pushed Chinese rivals such as Huawei to speed up development of homegrown chips. New regions Washington, however, has said it is going to modify a Biden-era export curb called the AI diffusion rule that sought to curb exports of sophisticated AI chips by dividing the world into three tiers, with China blocked entirely. This easing could open up new geographies of growth for Nvidia including the Middle East, though analysts say the region's revenue contribution in the near term will be small. As part of U.S. President Donald Trump's trade deals with some Gulf countries, Nvidia has said it would sell hundreds of thousands of AI chips to Saudi Arabia, including 18,000 of its latest 'Blackwell' chips to a startup owned by the country's sovereign wealth fund. After months of worries that investment in AI from large cloud providers was stalling, Nvidia investors have found confidence in pledges from companies including Alphabet's Google to keep spending. Still, the quarters of blowout beats may be over for the company. In its last fiscal year, Nvidia beat Wall Street's quarterly revenue estimates by 4.9 per cent on average. It delivered quarterly sales that was 12.5 per cent above estimates in the fiscal year preceding that. 'I don't think investors expectations are very high as we go into it (results),' said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sayantani Ghosh, Reuters
South China Morning Post
25-05-2025
- Business
- South China Morning Post
Latest US attack on Huawei AI chips only adds to trade tensions
The next round of talks is crucial to a positive outcome of the current pause in the United States-China trade war. But optimism that the 90-day truce widened a window for an eventual deal dimmed after the US opened a new front in the dispute. Advertisement The US has announced a new global ban on the use of advanced artificial intelligence-powered chips made by Chinese companies. China has responded by threatening action under its anti-foreign sanctions law against any organisation or individual who enforces or helps implement the ban. The ban singles out chips from domestic flagship Huawei Technologies. The latest in Huawei's Ascend series of processors, the Ascend 920, has been touted as an alternative to Nvidia's H20, which the US recently banned from sale in China. According to guidance issued by the US Department of Commerce, use of Huawei Technologies' Ascend series of artificial intelligence processors would breach US export control rules because the technology was likely developed in violation of that regime. Advertisement China slammed the guidance as 'typical non-market and unilateral bullying practices', deflating upbeat sentiment following trade talks in Geneva two weeks ago. It said the US had abused export controls to suppress China, in violation of international laws and the principles of international relations.
Yahoo
22-05-2025
- Business
- Yahoo
Alchip Technologies Reports 2025 FIRST QUARTER Financial Results
Net Income and Gross Profits Up YoY Despite Small Revenue Decline Revenue Breakdown by Region Taipei, Taiwan, May 22, 2025 (GLOBE NEWSWIRE) -- Alchip Technologies has reported year-over-year growth in first quarter 2025 net income and gross profit, despite a slight year-over-year decline in first quarter 2025 revenue. First quarter 2025 revenue is $318.7 million, down 4.4% from first quarter 2024 revenue of $333.6 million. It is also 21.1 % lower than fourth quarter 2024 revenue of $404.1 million. Net income for first quarter 2025 is $44.4 million, up 13.9 % from first quarter 2024 net income of $39 million, but down 22% from fourth quarter 2024 net income of $56.9 million. Likewise, first quarter 2025 gross profit reached $73.8 million, a 17.8% increase over first quarter 2024 gross profit of $62.7 million, but down 13.8% from fourth quarter 2024 gross profit of $85.6 million. President and CEO Johnny Shen attributed the revenue decline to a tapering off 7nm AI chip shipments to a North American customer, coupled with a seasonal shift in NRE projects. Geographically, Alchip reported that North America accounted for 93% of first quarter 2025 revenue, up from 77% from the same quarter a year before. Asia Pacific contributed 5% of first quarter 2025 revenue, while Japan accounted for 2%. On a technology basis, 5nm and more advanced geometry designs accounted for 41% of first quarter 2025 revenue, with designs at the 7nm node accounting for 55%. Designs at nodes ranging from 12nm and larger geometries accounted for the remaining 4%. The Company's bellwether high-performance computing applications accounted for 95% of first quarter 2025 revenue. Mr. Shen also provided a technology update, reporting that the North American NRE pipeline remains strong and that the company has taped out its first 3nm AI accelerator project, with mass production expected in early 2026. He also stated that the company anticipates strong demand for high-performance computing NRE projects, especially in North American, where the HPC field keeps on being robust. Alchip is traded on the Taiwan Stock Exchange, with Global Depository Receipts trading on the Luxembourg Exchange. The Company is well respected in North America, Japan, Israel, and Asia for its high-performance ASIC design methodology, flexible business model, best-in-class IP portfolio and advanced packaging technology expertise. About Alchip Alchip Technologies Ltd., founded in 2003 and headquartered in Taipei, Taiwan, is a leading global High-Performance Computing and AI infrastructure ASIC provider of IC and packaging design, and production services for companies developing complex and high-volume ASICs and SoCs. Alchip provides faster time-to-market and cost-effective solutions for SoC design at mainstream and advanced process technology. Alchip has built its reputation as a high-performance ASIC leader through its advanced 2.5D/3D CoWoS packaging, chiplet design, and manufacturing management. Customers include global leaders in artificial intelligence, high-performance computing, supercomputing, mobile communications, entertainment device, networking equipment, and other electronic product categories. Alchip is listed on the Taiwan Stock Exchange (TWSE: 3661). For more information, please visit our website: Attachment Revenue Breakdown by Region CONTACT: Charles Byers Alchip Technologies + (408)-310-9244 chuck_byers@ 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
