Latest news with #BlackwellNVL72
Business Insider
19 hours ago
- Business
- Business Insider
Sector Spotlight: Nvidia results highlight notable week for semiconductors
Welcome to the latest edition of 'Sector Spotlight,' where The Fly looks at a new industry every week and highlights its happenings. Confident Investing Starts Here: EARNINGS RECAP: Nvidia shares rose above $141 per share, up 5%, after reporting first quarter warnings on Wednesday. The company's Q1 beat was followed by inline Q2 guidance. Jensen Huang, founder and CEO of Nvidia, said: '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. 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.' Summit Insights upgraded Nvidia to Buy from Hold after its Q1 results and guidance. The risk of double-ordering on its Hopper generation AI GPU and the risk of China export controls are now priced into the stock, the analyst told investors. Summit also believes that the data center capex spending for the training market will remain robust and benefit Nvidia AI GP and data center networking businesses, the firm added. SECTOR NEWS: A jury determined following a trial in the U.S. District Court for the Western District of Texas that Intel's (INTC) 2012 licensing pact with Finjan covered VLSI's patents because the entities are affiliated under the control of asset management firm Fortress Investment, Bloomberg's Lauren Castle reported. The development sets up a potential escape for Intel from the more than $3B in patent-infringement verdicts against the company in the long-running dispute, the author noted. Nvidia (NVDA) disclosed in its quarterly filing that its CEO Jen-Hsun Huang adopted a trading arrangement to sell 6M of the company's shares between March 20 and December 31, 2025. Nvidia is also facing new accusations from U.S. lawmakers arguing the company is too close to China, criticism which may signal new challenges for the company, Olivia Beavers and Amrith Ramkumar of The Wall Street Journal wrote. Senator Jim Banks and Senator Elizabeth Warren recently wrote in a letter to CEO Jensen Huang that plans for an Nvidia facility in Shanghai risk giving China access to cutting edge technology. In an interview on CNBC's Mad Money, Jensen Huang said Nvidia's market share in China was 95% four years ago, but is now only 50%. He said it's critically important that AI is built out on an American technology stack, not Chinese. 'We want to be the preferred technology stack,' he noted. He plans to keep the dialogue going with the Trump Administration. He sees robotics as the next growth opportunity. 'We are an infrastructure company, not just a chips company,' he added. In a conference call following the company's Q1 results, Nvidia said it will consult the U.S. government if it develops new China chips and is considering options for China chips. The company added it has no new product for China data centers ready now and that limits are quite stringent on China chips. Nvidia contended that export rules will help foreign rivals and that it expects a meaningful decrease in China data center revenue. On Tuesday, Liam Mo and Fanny Potkin of Reuters reported that Nvidia is planning to launch a new AI chipset for China at a much lower price than its recently restricted H20 model and plans to begin mass production as early as June. The graphics processing unit, GPU, will be part of Nvidia's Blackwell-architecture AI processors and is expected to cost between $6,500-$8,000. Nvidia's suppliers, including Foxconn, Inventec, Dell (DELL) and Wistron, have made a series of breakthroughs that have allowed them to accelerate production of its flagship AI data center 'racks' and start shipments of the highly anticipated 'Blackwell' AI servers, according to Financial Times' Eleanor Olcott and Michael Acton, citing several people familiar with the matter. TSMC (TSM) executive Kevin Zhang said the company is still weighing whether it plans to use ASML 's (ASML) high numerical aperture, or NA, machines for its future process nodes, Reuters' Nathan Vifflin wrote. 'A14, the enhancement I talk about, is very substantial without using High-NA. So our technology team continues to find a way to extend the life of current (Low-NA EUV machines) by harvesting the scaling benefit,' Zhang said at a press briefing. 'As long as they continue to find a way, obviously we don't have to use it,' he added. The report noted that Intel has planned to use the high-NA machine in its future manufacturing process. A Swedish business consortium and Nvidia unveiled plans to build new AI infrastructure with Nvidia accelerated computing, networking and software in Sweden to transform and prepare the country's industries for the age of AI. Swedish industry giants AstraZeneca (AZN), Ericsson (ERIC), Saab (SAABF), SEB, in partnership with Wallenberg Investments, will build the system that will be operated by a joint company to offer secure, sovereign compute access to the industry partners. The intention is that the first phase of the deployment will be two Nvidia DGX SuperPODs featuring Nvidia's latest generation Grace Blackwell GB300 systems, making it the largest enterprise AI supercomputer in Sweden once operational. It will be used to run compute-heavy AI workloads to speed up processes such as training of domain specific AI models and large-scale inference, including reasoning AI. Oracle (ORCL) will spend around $40B on Nvidia's high-performance computer chips to power OpenAI's new giant U.S. data center, according to Financial Times. Oracle will purchase around 400,000 of Nvidia's GB200 chips, its latest 'superchip' for training and running AI systems, and lease the computing power to OpenAI, according to FT's Tabby Kinder and George Hammond, citing several people familiar with the matter. ANALYST COMMENTARY: Citi analyst Atif Malik raised the firm's price target on Nvidia to $180 from $150 and keeps a Buy rating on the shares. The company reported April quarter results in-line and issued a July quarter sales outlook $1B above Citi's expectations, 'clearing the final hurdle of the China H20 ban transition quarter,' the analyst tells investors in a research note. Moreover, Blackwell sales of $24B topped Citi's $20B expectations and management maintained mid 70's gross margins target on improving Blackwell profitability with no major tariff impact, the firm contends. Citi believes that with margins expanding, Nvidia shares should 'break its range bound trend' since mid-last year and will likely make a fresh 52 week high. Needham keeps a Buy rating and $54 price target on Semtech (SMTC) after its 'solid' Q1 results driven by data center related infrastructure shipments and LoRa-enabled solutions. Demand for data center related products remains robust as the company reported a record quarter, while the momentum in Data Center is expected to carry through the second half of FY26, driven by continued strength in FiberEdge and non-NVIDIA CopperEdge and LPO ramps, the analyst tells investors in a research note. Redburn Atlantic analyst Mike Harrison initiated coverage of Broadcom (AVGO) with a Buy rating and $301 price target. The company is arguably the 'pre-eminent' application-specific integrated circuits co-partner with a strong pipeline of future customers, the analyst tells investors in a research note. Further, the firm believes the company's networking products are prevalent through the different types of networking within artificial intelligence data centers, from the compute fabric to the back-end network, as well as the interconnects that permeate throughout. The consensus is not giving Broadcom sufficient credit for the strength of its ASICs pipeline, contended Redburn. Stifel noted that Nvidia recently published a blog post providing details on its new 800V high voltage DC power architecture for next-gen AI data centers and specifically named Infineon (IFNNY), Monolithic Power (MPWR), Navitas Semiconductor (NVTS), Rohm, STMicroelectronics (STM) and Texas Instruments (TXN) as power IC/solutions supplier partners. While three of the semiconductor companies mentioned have issued press releases in conjunction with Nvidia – namely Infineon, Navitas and TI – the firm noted there were few details beyond what was discussed in Nvidia's blog post. However, it expects all of the companies called out by Nvidia to benefit from the accelerating increase in power requirements for AI data centers that are expected to require megawatt-scale racks by 2027.
Yahoo
2 days ago
- Business
- Yahoo
Nvidia shares rise on strong Q1 earnings, despite export control headwinds
Tech giant Nvidia reported its first-quarter earnings on Wednesday, beating analysts' expectations, though it projected second-quarter sales below estimates amid tightening export controls to China that cover some of its AI chips. Nvidia, a leader in the artificial intelligence (AI) space, saw shares rise 3% in after-hours trading following the announcement. The earnings report showed that first-quarter net income was up 26% from a year ago at nearly $19 billion, with revenue rising to $44 billion, up 69% from last year. The company's revenue from data centers was $39 billion in the first quarter – up 10% from the previous quarter and 73% from last year. Nvidia is also building factories in the U.S. and working to produce AI supercomputers in the U.S. with its partners. "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 Nvidia CEO Jensen Huang. Ai Chipmaker Nvidia To Invest Billions In Us Amid Trump Onshoring Push: Ceo "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," he continued. Read On The Fox Business App "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," Huang added. Nvidia's earnings release noted that on April 9, the company was informed by the U.S. government that it will require a license to export its H20 products to China, which caused the company to incur a charge of several billion dollars in the quarter. How Nvidia Became The King Chipmaker, From A Denny's To $2.3T Market Cap The U.S. has, in recent years, imposed increasingly stringent export controls on China that apply to the most advanced AI chips, as a means of denying a geopolitical adversary access to cutting-edge technology in a competitive sector of the economy. "As a result of these new requirements, Nvidia incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished," the company said. "Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. Nvidia was unable to ship an additional $2.5 billion of H20 revenue in the first quarter." Nvidia added it expects to miss $8 billion in sales in the second quarter due to the export restrictions. Reuters contributed to this article source: Nvidia shares rise on strong Q1 earnings, despite export control headwinds 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
Qatar Tribune
2 days ago
- Business
- Qatar Tribune
Nvidia earnings top expectations despite United States export curbs
Agencies Chip giant Nvidia on Wednesday reported earnings that surpassed market expectations, with a $4.5 billion hit from U.S. export controls being less than the company had feared. However, Nvidia CFO Colette Kress warned in an earnings call that export constraints are expected to cost the AI chip titan about $8 billion in the current quarter. In April, Nvidia notified regulators that it expected a $5.5 billion hit in the recently ended quarter due to a new U.S. licensing requirement on the primary chip it can legally sell in China. U.S. officials had told Nvidia that it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the company said in a Securities and Exchange Commission (SEC) filing. The new licensing rule applies to Nvidia graphics processing units, or GPUs, with bandwidth similar to that of the H20. 'China is one of the world's largest AI markets and a springboard to global success,' Nvidia chief executive Jensen Huang said in an earnings call. 'The platform that wins China is positioned to lead globally; however, the $50 billion China market is effectively closed to us.' Nvidia cannot dial back the capabilities of its H20 chips any further to comply with U.S. export constraints, winding up forced to write off billions of dollars on inventory that can't be sold or repurposed, according to Huang. 'The U.S. has based its policy on the assumption that China cannot make AI chips,' Huang said.'That assumption was always questionable and now it's clearly wrong.' China's AI is moving on without Nvidia technology, while that country's chip-makers innovate products and ramp up operations, according to Huang. 'The question is not whether China will have AI; it already does,' he said. 'The question is whether one of the world's largest markets will run on American platforms.' The new requirements resulted in Nvidia incurring a charge of $4.5 billion in the quarter, associated with H20 excess inventory and purchase obligations, 'as demand for H20 diminished,' the chipmaker said in an earnings report. U.S. export constraints stopped Nvidia from bringing in an additional $2.5 billion worth of H20 revenue in the quarter, according to the said it made a profit of $18.8 billion on revenue of $44.1 billion, causing shares to rise more than 4% in after-market trades. Hot demand Huang said demand for the company's AI-powering technology remains strong, and a new Blackwell NVL72 AI supercomputer referred to as a 'thinking machine' is in full-scale production. '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,' Huang said. Nvidia high-end GPUs are in hot demand from tech giants building data centers to power artificial intelligence. The company said its data center division revenue in the quarter was $39.1 billion, up 10% from the same period last the market had expected more from the unit, 'Nvidia beat expectations again, but in a market where maintaining this dominance is becoming more challenging,' said Emarketer analyst Jacob Bourne.'The China export restrictions underscore the immediate pressure from geopolitical headwinds, but Nvidia also faces mounting competitive pressure as rivals like AMD gain ground,' said Emarketer analyst Jacob Bourne. Revenue in Nvidia's gaming chip business hit a record high of $3.8 billion, leaping 48% and eclipsing forecasts. The AI boom has propelled Nvidia's stock price, which has regained much of the ground lost in a steep sell-off in January triggered by the sudden success of DeepSeek. China's DeepSeek unveiled its R1 chatbot, which it claims can match the capacity of top U.S. AI products for a fraction of their costs. '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,' analyst Bourne said of Nvidia.
Yahoo
2 days ago
- Business
- Yahoo
NVIDIA Crushes Earnings--But One $8 Billion Problem Could Haunt Its AI Future
NVIDIA (NASDAQ:NVDA) just posted another jaw-dropping quarter, with Q1 revenue hitting $44.1 billionup 69% from a year agodriven by relentless demand for AI data center chips. Its data center unit alone pulled in $39.1 billion, thanks to full-scale rollout of the new Blackwell NVL72, dubbed by CEO Jensen Huang as a thinking machine built for AI reasoning. Gaming revenue climbed to a record $3.8 billion, and NVIDIA continued planting stakes globallyfrom AI factories in Saudi Arabia and the UAE to a new quantum research hub in Japan. Warning! GuruFocus has detected 4 Warning Signs with NVDA. But there's a twist in the story: new U.S. export restrictions on NVIDIA's H20 AI chips to China slammed the brakes on a key revenue stream. The company recorded a $4.5 billion charge for unsold H20 inventory and missed out on another $2.5 billion in potential sales last quarter. It's bracing for an $8 billion hit this coming quarter. That said, NVIDIA still sees Q2 revenue coming in around $45 billion, and is guiding gross margins to reach into the low-70% range, even with China off the table. Huang struck a confidentbut measuredtone, signaling that AI infrastructure is fast becoming as vital as electricity. NVIDIA's global expansion efforts and continued partnershipswith the likes of Google, Oracle, and Foxconncould cushion some of the blow from China. Still, with geopolitical risk rising and regulation tightening, this next leg of the AI cycle may get bumpy. Investors may want to watch how fast those international AI factories scaleand whether demand holds as NVIDIA navigates this new global chessboard. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
NVIDIA Crushes Earnings--But One $8 Billion Problem Could Haunt Its AI Future
NVIDIA (NASDAQ:NVDA) just posted another jaw-dropping quarter, with Q1 revenue hitting $44.1 billionup 69% from a year agodriven by relentless demand for AI data center chips. Its data center unit alone pulled in $39.1 billion, thanks to full-scale rollout of the new Blackwell NVL72, dubbed by CEO Jensen Huang as a thinking machine built for AI reasoning. Gaming revenue climbed to a record $3.8 billion, and NVIDIA continued planting stakes globallyfrom AI factories in Saudi Arabia and the UAE to a new quantum research hub in Japan. Warning! GuruFocus has detected 4 Warning Signs with NVDA. But there's a twist in the story: new U.S. export restrictions on NVIDIA's H20 AI chips to China slammed the brakes on a key revenue stream. The company recorded a $4.5 billion charge for unsold H20 inventory and missed out on another $2.5 billion in potential sales last quarter. It's bracing for an $8 billion hit this coming quarter. That said, NVIDIA still sees Q2 revenue coming in around $45 billion, and is guiding gross margins to reach into the low-70% range, even with China off the table. Huang struck a confidentbut measuredtone, signaling that AI infrastructure is fast becoming as vital as electricity. NVIDIA's global expansion efforts and continued partnershipswith the likes of Google, Oracle, and Foxconncould cushion some of the blow from China. Still, with geopolitical risk rising and regulation tightening, this next leg of the AI cycle may get bumpy. Investors may want to watch how fast those international AI factories scaleand whether demand holds as NVIDIA navigates this new global chessboard. This article first appeared on GuruFocus.
