Latest news with #Blackwell-based
Time of India
11-08-2025
- Business
- Time of India
Nvidia strikes $3 billion revenue-sharing deal with Trump administration to resume AI chip sales in China
Nvidia struck a deal with the Trump administration to continue selling chips to China. The agreement involves Nvidia sharing revenue with the US government. This decision followed earlier export restrictions on Nvidia's H20 chips. Analysts suggest this move is better than letting Chinese companies dominate the AI market. However, some worry it might push China towards domestic chipmakers like Huawei. Tired of too many ads? Remove Ads Nvidia and AMD face criticism over China deal Tired of too many ads? Remove Ads China's chip market and Nvidia's challenges FAQs Nvidia made a special deal with the Trump administration to keep selling chips to China. The deal means Nvidia will share up to $3 billion in revenue with the US government this fiscal year to sell its H20 chips in Trump confirmed the deal on Monday, saying he granted export licenses to Nvidia in exchange for 15% of the China sales revenue. Trump called Nvidia CEO Jensen Huang 'a brilliant guy' during the from multiple media outlets, including the Financial Times and Washington Post, said Nvidia and AMD made similar deals with Trump, citing unnamed sources. Some trade experts called the deal 'blackmail' and said it might violate the US Constitution's ban on export taxes, as per the report by Washington did not officially confirm the deal but said they follow US government rules and hope export controls allow them to compete in China and worldwide. Nvidia and AMD shares dropped slightly on Monday after the news. China is very important to Nvidia, making up 13% of its revenue last fiscal year, as stated by Yahoo has tried selling lower-power chips to China due to tighter US export controls for national security reasons. Nvidia launched its H20 chips (based on Hopper technology) in 2024. In April, the Trump administration unexpectedly banned Nvidia from exporting H20 chips to China, causing Nvidia to lose billions and its stock to fall sharply. The export ban was lifted in July, but US lawmakers still worry about China's AI Street expects Nvidia to recover $15 billion in lost sales in the second half of the year, reaching about $20 billion total revenue from China for fiscal year 2026. If the revenue reaches $20 billion, the US government could earn $3 billion from the deal (15% of sales).Analyst Stacy Rasgon from Bernstein said it's better for Nvidia and AMD to sell AI chips to China than to let Chinese companies like Huawei take over the AI market, as per the Yahoo Finance is a big Chinese tech company making chips to compete with Nvidia's H20 chips. Nvidia says US export controls might help Chinese rivals like Huawei to grow stronger. Currently, the revenue-sharing deal covers only Nvidia's H20 chips. (Trump's comment).In July, Nvidia also released new chips with its latest Blackwell architecture for the Chinese Rasgon expects China to start buying these new Blackwell-based chips from Nvidia as export rules allow. However, analyst Gil Luria from DA Davidson warns the deal could push China to rely more on domestic chipmakers like Huawei. Luria says China might not want to buy from US companies if they have to share money with the US government, according to the report by Yahoo made the deal to get permission to sell its H20 AI chips to China while sharing part of the revenue with the US US government could earn up to $3 billion from Nvidia's revenue-sharing deal based on 15% of the China sales.
CNBC
06-08-2025
- Business
- CNBC
Evercore ISI sees big gains for this under-the-radar 'AI pure play'
Evercore ISI is pounding the table on Astera Labs after the semiconductor company's blowout quarterly results. Analyst Mark Lipacis reiterated his outperform rating on Astera, calling the stock an "AI pure play in [an] accelerating capex market." He lifted his price target by $109 to $215, which suggests the stock can jump 58.6% from its latest close. Astera shares popped more than 34% on Wednesday, reaching an all-time high on the back of the company's strong second-quarter results. The company's third-quarter earnings and revenue guidance also beat analyst expectations. ALAB 1Y mountain Astera Labs performance over the past year. Lipacis is bullish on Astera's AI infrastructure product growth. "We are Buyers of ALAB following its 'Big Beat, Big Raise quarter as we think it is hitting its AI product cycle stride on three dimensions," Lipacis wrote in a Wednesday note to clients. "Against the backdrop of accelerating Cloud CapEx (we model 72% growth in 2025 from 56% in 2024), we think ALAB is positioned to surprise on the upside given its multi-pronged product cycle over the next 1-to-2 years." For the so-called first dimension, the analyst cited growth in Astera's Scorpio P Series, which saw stronger-than-expected ramp in the second quarter. He noted that management announced multiple new designs for the product and said it should ramp in 2026. The Scorpio P Series is a fabric switch purpose-built for AI servers that integrate with Nvidia's Blackwell-based MGX platform. Additionally, Lipacis highlighted Astera Lab's upcoming X-Series fabric switch product line that he said should increase the company's "content per accelerator," or how much revenue it generates for each AI accelerator. He added that customer interest in the X Series is already "robust" with at least 10 unique customers in the pipeline. AI infrastructure has been an increasingly hot investment spot. Astera Labs remains favored among Wall Street analysts, with 14 out of 16 covering the name rating the stock a strong buy or buy, according to LSEG. Their consensus price target suggests shares could be overvalued and drop about 20%, however. Shares of Astera are up 97% over the past month and nearly 35% year to date.
CNBC
23-07-2025
- Business
- CNBC
No near-term lifeline from China for Nvidia's H20 chips
Nvidia investors should expect a slow, methodical China recovery and not a near-term sales spike. Earlier this month, the company announced plans to resume sales of H20 chips to China . The less-advanced semiconductors, built on its Hopper architecture, are designed for artificial intelligence computing, but remain compliant with U.S. export restrictions to China. However, a report in The Information suggested Nvidia is facing production delays in restarting H20 shipments to China. The report flags logistical setbacks, but Nvidia has already outlined a similiar timeline , indicating that revenue from these chips will likely be negligible until at least the fourth quarter. Analysts at Morgan Stanley, Piper Sandler, and Rosenblatt cite a mix of hurdles: export licenses are still pending, previous orders were canceled , and Nvidia has little finished inventory. The company's supply chain also takes nine months to ramp. "We would keep near-term expectations in check, given licenses have not yet been issued, and we see questions around available supply of H20 and whether RTX chips (formerly B30/B40) will also be included, but it is a significant positive for 2026 for all AI stocks, including our Top Pick NVDA," Morgan Stanley analyst Charlie Chan wrote in a research note Sunday. NVDA YTD mountain Nvidia shares year to date Nvidia shares have risen 24% year to date, with a nearly 6% gain so far this month. To propel future gains, investor attention is likely to continue shifting toward Nvidia's next-gen Blackwell-based RTX chips, potentially accelerating a move away from the older Hopper line. For now, the path to recovery in China is more about rebuilding momentum than generating near-term upside – with the potential for a more material revenue impact starting next year.
Business Insider
13-07-2025
- Business
- Business Insider
Nvidia Stock (NVDA) Is on Fire—But Can the AI Boom Keep It Going?
Nvidia (NVDA) stock closed at a record $164.92 on July 11, capping a strong week where it gained more than 4%. The stock also briefly crossed the $4 trillion market cap mark on July 9, reinforcing its position as one of the most valuable companies in the world. With five gains in the last six sessions, momentum is clearly holding as investors look ahead to next month's earnings. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Much of that strength is tied to ongoing demand for Nvidia's AI chips. Its latest Blackwell platform is witnessing strong adoption, with cloud players like CoreWeave (CRWV) deploying Blackwell-powered servers in their data centers. Nvidia has also partnered with companies like Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), and Super Micro Computer (SMCI) to deliver Blackwell-based systems globally. Why Wall Street Is Still Bullish on NVDA Analysts say early demand for Blackwell is encouraging, and with earnings and growth holding strong, many believe there's still room for the stock to climb. In its Q1 FY26, Nvidia posted $44.06 billion in revenue, up 69.2% year-over-year, driven by record demand in its data center segment. Also, earnings per share came in at $0.81, which beat analysts' consensus estimate of $0.74 per share. Recently, Goldman Sachs analyst James Schneider began coverage on Nvidia with a Buy rating and a $185 price target. He pointed to the company's leadership in AI and rising demand across industries. Despite the stock's strong run, Schneider sees more upside ahead and views it as a solid entry point for long-term investors. Several top firms share the same view. Bernstein, UBS, and Citi have all reiterated Buy ratings, with price targets between $175 and $200. Analysts see Nvidia as more than just a chipmaker—they view it as the core supplier of the tools that power AI across the globe. All Eyes on August Earnings The next big catalyst is Nvidia's Q2 FY26 earnings report, expected on August 27. Wall Street analysts expect the company to post earnings of $1.00 per share, on revenue of $45.62 billion. Investors will be watching closely to see if the company can keep up its strong growth. A key watch point is China-related headwinds, after Nvidia took a $4.5 billion hit to Q1 FY26 revenue due to U.S. export restrictions on its H20 chips. If the company gives strong guidance or raises its outlook, the stock could break out again. But if the update falls short, or if China worries return, there could be some short-term pressure. Is Nvidia a Good Stock to Buy? According to TipRanks, NVDA stock has received a Strong Buy consensus rating, with 37 Buys, four Holds, and one Sell assigned in the last three months. The average Nvidia stock price target is $176.29, suggesting a potential upside of 6.89% from the current level.
Yahoo
23-06-2025
- Business
- Yahoo
Nvidia Secures Entire Wistron Plant Through 2026 to Build AI Servers
Nvidia (NVDA, Financials) reportedly locked in all production capacity at Wistron's newly launched Taiwan server facility through 2026 to meet surging AI server demand, according to a report by Economic Daily. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Nvidia reportedly booked all server manufacturing capacity at Wistron's recently launched facility in Zhubei, Taiwan, to produce its next-generation Blackwell and Rubin AI systems. The orders, which extend through 2026, reflect Nvidia's aggressive push to secure critical AI infrastructure capacity as demand continues to outstrip supply. The plant began operating this quarter and was officially inaugurated on June 19. Wistron's CEO confirmed at the event that contracts for AI server production already extend at least a year, while Economic Daily and Commercial Times reported that Nvidia has effectively locked in all future output. Wistron's collective operations produce an estimated 240,000 Blackwell-based systems per quarter, and the company has warned that its capacity may not be able to meet future demand by 2026. To address this, Wistron has secured an adjacent buildingset to become a second AI server site next yearto double its Taiwan-based output. AI server shipments have become a primary growth engine not only for Wistron but also for Quanta and Foxconn. Wistron is simultaneously expanding its U.S. presence with a new facility near Dallas, Texas. By reserving full production at Wistron's Zhubei plant, Nvidia is ensuring that its cloud and system partners receive AI servers in required quantities while competitors face tighter supply constraints. Nvidia's control of the CoWoS supply chain and now server assembly capacity signals its strategic intent to dominate the AI hardware ecosystem. This article first appeared on GuruFocus.
