Latest news with #Blackwell
Japan Times
an hour ago
- Business
- Japan Times
Nvidia eases concerns about China with upbeat sales forecast
Nvidia Chief Executive Officer Jensen Huang soothed investor fears about a China slowdown by delivering a solid sales forecast, saying that the AI computing market is still poised for "exponential growth.' The company expects revenue of about $45 billion in its second fiscal quarter, which runs through July. New export restrictions will cost Nvidia about $8 billion in Chinese revenue during the period, but the forecast still met analysts' estimates. That helped propel the shares about 4% Wednesday in extended trading. The outlook shows that Nvidia is ramping up production of Blackwell, its latest semiconductor design. The chipmaker — now the world's largest by revenue and market value — dominates the field of AI accelerators, the components that help develop and run artificial intelligence models. And an ever-broader lineup of hardware and software is letting Nvidia sell more products to customers. As part of that push, the company is offering its chips as part of whole computer systems — a move it says is necessary to speed up the deployment of more complex and powerful technology. Nvidia expects AI infrastructure to eventually transform economies around the world. "Every nation now sees AI as core to the next industrial revolution — a new industry that produces intelligence and essential infrastructure for every economy,' Huang said on a conference call with analysts. Nvidia shares had earlier closed at $134.81 in New York, leaving the stock little changed in 2025. Sales in the first quarter, which ended April 27, rose 69% to $44.1 billion. That compared with an average estimate of $43.3 billion. That growth would be enviable for most chipmakers, though it was the smallest percentage gain in two years. Profit was 96 cents a share, minus certain items. Wall Street was looking for 93 cents. The data center unit, a division that's larger by itself than all of Nvidia's nearest rivals combined, had sales of $39.1 billion. That was just shy of the average estimate of $39.2 billion. Gaming-related sales — once Nvidia's main business — were $3.8 billion. Analysts projected $2.85 billion on average. Automotive was $567 million. One lingering question is whether U.S. trade restrictions on China will hinder Nvidia's long-term growth. In April, the Trump administration placed new curbs on exports of data center processors to Chinese customers, effectively shutting Nvidia out of the market. The chipmaker said on Wednesday that it incurred a $4.5 billion writedown because of the issue. Attendees walk through the exhibition hall at Nvidia GTC, a global artificial intelligence conference for developers, in San Jose, California, on March 19. | Mike Kai Chen / The New York Times "The broader concern is that trade tensions and potential tariff impacts on data center expansion could create headwinds for AI chip demand in upcoming quarters,' Emarketer analyst Jacob Bourne said in a note. Nvidia also disclosed that it's facing scrutiny inside China, where regulators have demanded that it keep supplying local companies in return for regulatory approval of its acquisition of Mellanox. The company warned that it may face penalties in that case. Nvidia completed the purchase of Mellanox, a maker of networking technology, in 2020. "Regulators in China are investigating whether complying with applicable U.S. export controls discriminates unfairly against customers in the China market,' it said in a filing. "If regulators conclude that we have failed to fulfill such commitments or we have violated any applicable law in China, we could be subject to financial penalties, restrictions on our ability to conduct our business.' On the call with analysts, Huang was asked whether the company will produce a new chip that will let it resume shipping to China. It had earlier created the less-powerful H20 product for that purpose, tailoring it to meet previous U.S. rules. But stricter curbs now limit its sale in the country. Huang said that Nvidia couldn't reduce the capabilities of the H20 further and still field a product that was useful. However, the company is pondering whether it can come up with something "interesting' for the market. He said Nvidia is just discussing the idea and has nothing currently. Nvidia will consult with the U.S. government if it's able to design something. The CEO used the call to renew his appeal to the Trump administration to allow it to produce chips for China again. Without getting that clearance, global leadership in AI isn't guaranteed, he said. Chinese companies will succeed in AI by themselves, Huang said. "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,' he said. Nvidia isn't the only tech company grappling with the Trump administration's tougher stance toward China. HP, which also released results on Wednesday, warned of "trade-related' costs in the face of tariffs and a slowing economy. Its shares tumbled about 8% in late trading following the report. Some providers of chip design software, meanwhile, have been warned by the administration to stop selling their products in China. Nvidia, which first gained fame selling graphics cards to gamers, has become an AI powerhouse in the past two years. The Santa Clara, California-based company was quick to realize the potential for what it calls accelerated computing — a hardware-and-software arrangement that is setting the stage for machines that can learn and reason like humans. The chipmaker's ascent to a market value of more than $3 trillion, about 10% of the total value of the Nasdaq, has investors judging it by extremely high standards. They've become accustomed to rapid growth and stratospheric profitability. Even marginal misses relative to those lofty estimates stoke fears about the AI boom slowing down. Nvidia accounts for about 90% of the market for AI accelerator chips, an area that's proven extremely lucrative. This fiscal year, the company will near $200 billion in annual sales, up from $27 billion just two years ago. While Nvidia is being squeezed out of China, other policy changes may help open up additional markets. The U.S. president recently visited Saudi Arabia and other states in the Middle East, where he announced large AI projects. That reversed a push by his predecessor to clamp down on the region's access to AI technology. Huang was asked whether he'll unveil similar plans in other countries. He said he's traveling to Europe next week. "I will be in France, U.K., Germany, Belgium,' he said in an interview. "And I think it is very clear now that every country recognizes that artificial intelligence, like electricity, internet and communications, is part of a national infrastructure.'
Mint
an hour ago
- Business
- Mint
Nvidia share price surges 6% after robust performance in Q1
Nvidia share price jumped as much as 6 per cent in afterhours trading on Wall Street after the IT giant posting record-breaking revenue and data center sales for the first quarter. The IT giant stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50. The company posted fiscal first-quarter revenue of $44.06 billion, marking a 69% increase compared to the same period last year and surpassing analysts' forecast of $43.31 billion. Adjusted earnings per share were $0.96, exceeding the expected $0.93. Net income climbed to $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year. Nvidia's data center unit—which includes its AI chips and networking products—achieved a record $39.1 billion in sales, marking a 73% increase year over year. This segment now contributes a massive 88% of the company's overall revenue. According to CFO Colette Kress, Microsoft alone has already deployed 'tens of thousands' of Nvidia's Blackwell GPUs and is projected to expand that number to 'hundreds of thousands.' For the quarter, GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%. For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96. "Our breakthrough Blackwell NVL72 AI supercomputer — a 'thinking machine' designed for reasoning— is now in full-scale production across system makers and cloud service providers,' said Jensen Huang, founder and CEO of NVIDIA. Huang added, "Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.' The company also announced a cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
an hour ago
- Business
- Economic Times
Nvidia shares rise as sales hit from China export curbs not as bad as feared
Nvidia beat quarterly sales expectations as customers stockpiled its AI chips before fresh U.S. curbs on China exports took effect, but the same restrictions will slice off $8 billion in sales from the company's current quarter, forcing the company to offer a forecast below Wall Street estimates on Wednesday. ADVERTISEMENT Shares of the world's most valuable semiconductor firm still rose 5% in extended trading as investors digested news that the hit in the current fiscal second quarter was not as bad as feared, and Nvidia talked up demand for its new Blackwell chips from customers including Microsoft. The stock is relatively flat so far this year, compared with 2024 when the shares nearly tripled in value. Nvidia now faces trade restrictions on what it can sell, and the AI data center market is also maturing. 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. Midway through a conference call with analysts, CEO Jensen Huang made impassioned remarks about U.S.-China policy, saying that Nvidia was at risk of being cut off from China's massive AI developer base and arguing that China's chip industry was sophisticated and closing in on the United States' dominance. But he praised U.S. President Donald Trump's recent move to rescind a so-called AI diffusion rule that would have regulated global flows of U.S. AI chips. "President Trump wants America to win. And he also realizes that we're not the only country in the race," Huang said. Huang told analysts that Nvidia's Hopper chips could no longer be modified for the Chinese market but did not comment on its Blackwell chips. Reuters has reported that Nvidia is preparing a Blackwell variant for the Chinese market. Though unlikely to make up for the loss in Chinese revenue, a spate of new deals that Nvidia signed earlier this month in the Middle East could offer fresh avenues of growth - including the first phases of a 10-square-mile data center site in the United Arab Emirates that could eventually use 5 gigawatts' worth of AI infrastructure. The company has also announced similar deals in Saudi Arabia and Taiwan. "We have a line of sight to projects requiring tens of gigawatts of Nvidia AI infrastructure in the not-too-distant future," Nvidia Chief Financial Officer Colette Kress said on the conference call. ADVERTISEMENT But in the shorter term, restrictions on China exports will hurt. Kress said data center revenue in that country declined. U.S. restrictions on the sale of Nvidia's H20 chips to China, the only AI processors it could legally export to the country, prompted Nvidia to disclose in April that it expected a $5.5 billion charge, while Huang had in May pegged the revenue impact related to the restrictions at about $15 billion. On Wednesday, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. It said it lost $2.5 billion in H20 sales in the first quarter and expected to miss $8 billion in the second quarter. ADVERTISEMENT However, Nvidia also said the H20 brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue in the first quarter. Gil Luria, an analyst with D.A. Davidson, said the overall impact of the H20 restrictions was less than feared. ADVERTISEMENT "There was a removal of some China revenue from the July quarter guides, but there was also China revenue that was pulled into the first quarter. Chinese buyers were stocking up on H20 ahead of the restrictions, which is what propped up the April quarter," Luria said. Though major cloud companies such as Microsoft and Alphabet have stood their ground on the billions they have earmarked this year for spending on expanding infrastructure for AI data centers, worries about such spending persist amid rapidly changing global trade policies. ADVERTISEMENT 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. 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. Nvidia's data center segment revenue was $39.1 billion in the first quarter, compared with analyst estimates of $39.3 billion, according to LSEG data. The company said it has $29.8 billion in commitments to have its products manufactured, an increase from the year before but down quarter-over-quarter. Nvidia, a bellwether of the artificial-intelligence market, 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. "The broader concern is that trade tensions and potential tariff impacts on data center expansion could create headwinds for AI chip demand in upcoming quarters," said Emarketer analyst Jacob Bourne. "This doesn't signal an end to Nvidia's dominance, but highlights that sustaining it will require navigating an increasingly complex landscape of geopolitical, competitive, and economic challenges." (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
an hour ago
- Business
- Time of India
Nvidia shares rise as sales hit from China export curbs not as bad as feared
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Nvidia beat quarterly sales expectations as customers stockpiled its AI chips before fresh U.S. curbs on China exports took effect, but the same restrictions will slice off $8 billion in sales from the company's current quarter, forcing the company to offer a forecast below Wall Street estimates on of the world's most valuable semiconductor firm still rose 5% in extended trading as investors digested news that the hit in the current fiscal second quarter was not as bad as feared, and Nvidia talked up demand for its new Blackwell chips from customers including Microsoft. The stock is relatively flat so far this year, compared with 2024 when the shares nearly tripled in value. Nvidia now faces trade restrictions on what it can sell, and the AI data center market is also 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 through a conference call with analysts, CEO Jensen Huang made impassioned remarks about U.S.-China policy, saying that Nvidia was at risk of being cut off from China's massive AI developer base and arguing that China's chip industry was sophisticated and closing in on the United States' dominance. But he praised U.S. President Donald Trump's recent move to rescind a so-called AI diffusion rule that would have regulated global flows of U.S. AI chips."President Trump wants America to win. And he also realizes that we're not the only country in the race," Huang said. Huang told analysts that Nvidia's Hopper chips could no longer be modified for the Chinese market but did not comment on its Blackwell chips. Reuters has reported that Nvidia is preparing a Blackwell variant for the Chinese market. Though unlikely to make up for the loss in Chinese revenue, a spate of new deals that Nvidia signed earlier this month in the Middle East could offer fresh avenues of growth - including the first phases of a 10-square-mile data center site in the United Arab Emirates that could eventually use 5 gigawatts' worth of AI infrastructure. The company has also announced similar deals in Saudi Arabia and Taiwan."We have a line of sight to projects requiring tens of gigawatts of Nvidia AI infrastructure in the not-too-distant future," Nvidia Chief Financial Officer Colette Kress said on the conference in the shorter term, restrictions on China exports will hurt. Kress said data center revenue in that country declined.U.S. restrictions on the sale of Nvidia's H20 chips to China, the only AI processors it could legally export to the country, prompted Nvidia to disclose in April that it expected a $5.5 billion charge, while Huang had in May pegged the revenue impact related to the restrictions at about $15 billion. On Wednesday, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. It said it lost $2.5 billion in H20 sales in the first quarter and expected to miss $8 billion in the second Nvidia also said the H20 brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue in the first Luria, an analyst with D.A. Davidson, said the overall impact of the H20 restrictions was less than feared."There was a removal of some China revenue from the July quarter guides, but there was also China revenue that was pulled into the first quarter. Chinese buyers were stocking up on H20 ahead of the restrictions, which is what propped up the April quarter," Luria major cloud companies such as Microsoft and Alphabet have stood their ground on the billions they have earmarked this year for spending on expanding infrastructure for AI data centers, worries about such spending persist amid rapidly changing global trade 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 the charges, first-quarter adjusted earnings per share would have been 96 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 data center segment revenue was $39.1 billion in the first quarter, compared with analyst estimates of $39.3 billion, according to LSEG company said it has $29.8 billion in commitments to have its products manufactured, an increase from the year before but down a bellwether of the artificial-intelligence market, 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 forecast includes a loss in H20 revenue of about $8 billion due to the recent export limitations."The broader concern is that trade tensions and potential tariff impacts on data center expansion could create headwinds for AI chip demand in upcoming quarters," said Emarketer analyst Jacob Bourne. "This doesn't signal an end to Nvidia's dominance, but highlights that sustaining it will require navigating an increasingly complex landscape of geopolitical, competitive, and economic challenges."
Yahoo
3 hours ago
- Business
- Yahoo
Nvidia shares rise as sales hit from China export curbs not as bad as feared
By Arsheeya Bajwa, Stephen Nellis (Reuters) -Nvidia beat quarterly sales expectations as customers stockpiled its AI chips before fresh U.S. curbs on China exports took effect, but the same restrictions will slice off $8 billion in sales from the company's current quarter, forcing the company to offer a forecast below Wall Street estimates on Wednesday. Shares of the world's most valuable semiconductor firm still rose 5% in extended trading as investors digested news that the hit in the current fiscal second quarter was not as bad as feared, and Nvidia talked up demand for its new Blackwell chips from customers including Microsoft. The stock is relatively flat so far this year, compared with 2024 when the shares nearly tripled in value. Nvidia now faces trade restrictions on what it can sell, and the AI data center market is also maturing. 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. Midway through a conference call with analysts, CEO Jensen Huang made impassioned remarks about U.S.-China policy, saying that Nvidia was at risk of being cut off from China's massive AI developer base and arguing that China's chip industry was sophisticated and closing in on the United States' dominance. But he praised U.S. President Donald Trump's recent move to rescind a so-called AI diffusion rule that would have regulated global flows of U.S. AI chips. "President Trump wants America to win. And he also realizes that we're not the only country in the race," Huang said. Huang told analysts that Nvidia's Hopper chips could no longer be modified for the Chinese market but did not comment on its Blackwell chips. Reuters has reported that Nvidia is preparing a Blackwell variant for the Chinese market. Though unlikely to make up for the loss in Chinese revenue, a spate of new deals that Nvidia signed earlier this month in the Middle East could offer fresh avenues of growth - including the first phases of a 10-square-mile data center site in the United Arab Emirates that could eventually use 5 gigawatts' worth of AI infrastructure. The company has also announced similar deals in Saudi Arabia and Taiwan. "We have a line of sight to projects requiring tens of gigawatts of Nvidia AI infrastructure in the not-too-distant future," Nvidia Chief Financial Officer Colette Kress said on the conference call. But in the shorter term, restrictions on China exports will hurt. Kress said data center revenue in that country declined. U.S. restrictions on the sale of Nvidia's H20 chips to China, the only AI processors it could legally export to the country, prompted Nvidia to disclose in April that it expected a $5.5 billion charge, while Huang had in May pegged the revenue impact related to the restrictions at about $15 billion. On Wednesday, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. It said it lost $2.5 billion in H20 sales in the first quarter and expected to miss $8 billion in the second quarter. However, Nvidia also said the H20 brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue in the first quarter. Gil Luria, an analyst with D.A. Davidson, said the overall impact of the H20 restrictions was less than feared. "There was a removal of some China revenue from the July quarter guides, but there was also China revenue that was pulled into the first quarter. Chinese buyers were stocking up on H20 ahead of the restrictions, which is what propped up the April quarter," Luria said. Though major cloud companies such as Microsoft and Alphabet have stood their ground on the billions they have 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. 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. Nvidia's data center segment revenue was $39.1 billion in the first quarter, compared with analyst estimates of $39.3 billion, according to LSEG data. The company said it has $29.8 billion in commitments to have its products manufactured, an increase from the year before but down quarter-over-quarter. Nvidia, a bellwether of the artificial-intelligence market, 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. "The broader concern is that trade tensions and potential tariff impacts on data center expansion could create headwinds for AI chip demand in upcoming quarters," said Emarketer analyst Jacob Bourne. "This doesn't signal an end to Nvidia's dominance, but highlights that sustaining it will require navigating an increasingly complex landscape of geopolitical, competitive, and economic challenges." 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
