Latest news with #Blackwell-based
Yahoo
4 days ago
- Business
- Yahoo
Nvidia 'Fastest Ramp' Breakthrough Unleashes a Massive Payday for Dell & Super Micro
June 3 - Dell Technologies (NYSE:DELL), Hewlett Packard Enterprise (NYSE:HPE), and Super Micro Computer (NASDAQ:SMCI) are among the server makers positioned to benefit from Nvidia's (NASDAQ:NVDA) accelerating rollout of its latest AI chips, according to JPMorgan. Warning! GuruFocus has detected 2 Warning Sign with DELL. Analyst Samik Chatterjee said Nvidia's Blackwell architecture accounted for about $24 billion in Compute revenue during the fiscal first quarter of 2026. That marked a sharp rise from $11 billion in the prior quarter, helped by a swift transition from Hopper chips. Nvidia's total revenue rose 12% sequentially and 69% from a year earlier, reaching $44.1 billion, modestly ahead of consensus. Datacenter revenue grew 10% Q/Q and 73% Y/Y to $39.1 billion, driven by strong uptake of Blackwell-based systems. JPMorgan noted hyperscalers are deploying 1,000 NVL 72 racks per week, with management calling it the fastest ramp in the company's history. Nvidia expects fiscal Q2 revenue to range from $44.1 billion to $45.9 billion, implying about 2% growth Q/Q. The forecast includes an $8 billion headwind from H20 export restrictions. Chatterjee flagged solid server demand from Dell, HPE, and SMCI as a potential tailwind, especially heading into the July quarter. With hyperscalers ramping Blackwell deployments at unprecedented speed, Dell, HPE, and Super Micro stand to capture substantial incremental revenue and expand market share by supplying the critical server infrastructure needed to power Nvidia's AI-driven growth. This article first appeared on GuruFocus.
Yahoo
29-05-2025
- Business
- Yahoo
Mizuho Raises Nvidia (NVDA) Price Target to $170 Following Q1 Results, Keeps Buy Rating
On May 29, Mizuho raised its price target on NVIDIA Corporation (NASDAQ:NVDA) from $168 to $170, keeping a Buy rating on the shares. Vijay Rakesh from Mizuho has increased the price target on NVDA following the Q1 print, as the chip maker exceeded revenue estimates. Nvidia reported $44.06 billion in revenue for Q1 2025, surpassing the estimated $43.2 billion mark. The company's Blackwell NVL72AI supercomputer is in mass production as Nvidia continues to grow its AI footprint globally. Nvidia's Blackwell ramp was the highlight this quarter, Rakesh noted. The new architecture now makes up 70% of shipments, indicating robust adoption. Rakesh remains optimistic about Nvidia's growing AI infrastructure presence as the company projects its revenue to be around $45 billion during Q2. The analyst highlights its forecast for the July quarter as 'Better than some concerns,' especially given the drag from ongoing U.S. export limitations to China. The China ban reflects an estimated $8 billion revenue impact in Q1. Rakesh believes that this damage will be 'partially offset' by continued global rollouts of Blackwell. The analyst sees a promising future for Blackwell chips as cloud service providers are installing more than 1,000 Blackwell-based racks per week. Moreover, the upcoming launch of the GB300 Ultra will support this momentum. NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company, leading the AI chips market. The company is engaged in accelerated computing to help solve various computational problems. Nvidia operates through two segments: Compute & Networking and Graphics. While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Nvidia will release cheaper Blackwell AI chips in China to avoid U.S. restrictions, report says
Nvidia's (NVDA) delicate dance in China continues. Amid U.S. export restrictions on its advanced AI chips, the chip giant valued at $3.3 trillion is reworking its product line — again — to maintain its hold on one of its most important markets without crossing Washington. Reuters (TRI), citing unnamed sources familiar with the matter, reported that the company is preparing to release a stripped-down version of its popular Blackwell AI chips that have been specifically designed to comply with U.S. export rules. The news comes days before Nvidia prepares to release its first-quarter 2025 earnings. The Blackwell-based, China-only chip will reportedly cost from $6,000 to $8,000 and use conventional GDDR7 memory, a step down from the high-bandwidth tech in Nvidia's flagship models. The previous H20 chips offered in the country sold for between $10,000 and $12,000. This coming chip also would ditch packaging in technology from Taiwan Semiconductor Manufacturing Co. (TSM) An Nvidia spokesperson told Reuters that the company is looking at its 'limited' options: 'Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China's $50 billion data center market.' This isn't Nvidia's first regulatory rodeo. After the U.S. blocked chip exports to China in 2022, the company responded with watered-down versions. When those got swept up in restrictions in late 2023, Nvidia developed chips with further reduced performance to comply with regulations. And that regulatory merry-go-round has continued. In April, Nvidia took a $5.5 billion charge after the U.S. government moved to block exports of the company's H20 AI chips to China. Now, Nvidia is hoping that this China-specific chip variant will thread the needle. CEO Jensen Huang has been increasingly vocal about his frustrations with U.S. policy. At an event earlier this month, he called the export controls 'a failure,' saying they've only accelerated China's push to develop domestic AI hardware — sidelining U.S. players in the process. Tech has become the next battleground in the trade war between the U.S. and China. As a result of Nvidia's export restrictions, Chinese telecommunications giant Huawei is gaining ground with its AI chips, which are quickly becoming the preferred alternative for Chinese tech firms. Nvidia's market share in China has reportedly fallen from 90% to around 50% since 2022. But China remains a huge market for Nvidia, accounting for 13% of its sales in the past financial year. And this new chip is expected to help the company keep pace overseas despite its market share loss — because as good as Huawei is becoming, Nvidia is still considered better. For the latest news, Facebook, Twitter and Instagram.
Yahoo
27-05-2025
- Business
- Yahoo
Nvidia (NVDA) to Launch Cheaper AI Chip in China to Bypass Export Curbs
Nvidia (NVDA, Financials) is preparing to launch a lower-cost AI chip for the Chinese market, with mass production expected as early as June, according to a Reuters report citing unnamed sources. The new Blackwell-architecture GPU will be priced between $6,500 and $8,000significantly cheaper than the recently banned H20 model, which sold for $10,000 to $12,000. Warning! GuruFocus has detected 3 Warning Signs with NVDA. The upcoming chip will use conventional GDDR7 memory and omit advanced packaging from Taiwan Semiconductor Manufacturing Co., allowing it to comply with tightened U.S. export restrictions that limit GPU memory bandwidth. The updated design aims to deliver around 1.7 terabytes per second of bandwidth, just under the regulatory cap. China accounted for 13% of Nvidia's revenue last fiscal year, but its local market share has dropped from 95% in 2022 to roughly 50% after U.S. sanctions. Nvidia's CEO Jensen Huang said further restrictions could drive more customers to Chinese rivals like Huawei, which produces the Ascend 910B chip. Despite reduced performance compared to the H20, Nvidia's software stack and CUDA platform may help preserve its edge. A second Blackwell-based chip for China is also in development and could enter production by September. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Down 17%, Is It Time to Buy the Dip on Nvidia Stock?
Over the last few years, Nvidia (NASDAQ: NVDA) has emerged as the leader of America's tech industry -- riding a tidal wave of demand for its cutting-edge chips used to train and run AI algorithms. However, with shares down 17% year to date, the company has hit a roadblock as a combination of trade uncertainty and possible foreign competition calls its growth thesis into question. Should investors buy the dip or stay far away from this technology leader? Let's dig deeper to find out. While it's easy to blame Nvidia's recent dip on the Trump administration's trade policy, that's only part of the story. Semiconductors are exempt from U.S. tariffs (although this could change in the future), and Nvidia has already made significant strides to onshore its supply chain -- even sourcing its latest Blackwell-based graphics processing units (GPUs) from Taiwan Semiconductor Manufacturing's new manufacturing facility in Arizona. The real problem started in January, with the launch of DeepSeek R1 -- a Chinese large language model (LLM) that reportedly matched the performance of industry leaders like ChatGPT despite using less-advanced H800 chips. While there has been debate about DeepSeek training costs and possible intellectual property violations, it raises some alarming questions. Can cheaper alternatives replace Nvidia's most advanced GPUs? Will the high-cost American AI software industry be undermined by more affordable options in China and other parts of the world? It is still too early to have an answer to these questions, but the uncertainty clearly weighs on Nvidia's stock price, even though growth remains strong. While DeepSeek's full impact is yet to be seen, there is already evidence that Nvidia's clients are seeking to reduce their reliance on the company by turning to in-house hardware solutions. In February, OpenAI finalized an agreement with TSMC to develop its first generation of custom AI chips with plans to launch them in 2026. Custom chips are AI chips designed for a specific workload. This characteristic means they can operate with fewer unneeded components, making them more efficient than Nvidia's one-size-fits-all solutions. Perhaps more importantly, they allow clients to skip a costly middleman. Nvidia's products aren't cheap. In the fiscal fourth quarter, the company boasted a gross margin of 73.5%, which is surprisingly high for a hardware company. To put that number into perspective, software-as-a-service (SaaS) giant Microsoft has a gross margin of 69%. Custom chips can allow customers to buy AI hardware for closer to their production cost. And OpenAI isn't the only major Nvidia client exploring this option. Alphabet, Amazon, and Meta Platforms already make custom chips, while Tesla is working on Dojo D1, which is designed for its AI supercomputer. As a fabless chip designer (that doesn't actually manufacture its chips), Nvidia's business model is a target for competition from its high-tech rivals, who can also make deals with its manufacturing partner, TSMC. So far, Nvidia's potential challenges from DeepSeek and custom chips have had no noticeable impact on its operational results. Business is booming, with fourth-quarter revenue surging 78% year over year to $39.3 billion, driven by the successful rollout of the company's new Blackwell AI data center chips. Net income soared 80% to $22.1 billion. Against these stellar results, Nvidia's forward price-to-earnings (P/E) multiple of just 25 looks perplexingly cheap. That said, investors shouldn't rush to buy the stock until there is more clarity on these long-term challenges. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $502,231!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $678,552!* Now, it's worth noting Stock Advisor's total average return is 800% — a market-crushing outperformance compared to 156% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Down 17%, Is It Time to Buy the Dip on Nvidia Stock? was originally published by The Motley Fool Sign in to access your portfolio
