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Time of India
27-05-2025
- Business
- Time of India
Nvidia earnings to reveal hit from US 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 $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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CFDco IA: gana hasta $2,700 a la semana trabajando desde casa Digital Group Prueba ahora Undo 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% 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. Live Events 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. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The stock has already been under pressure from concerns about mounting AI infrastructure costs . It was down 2% 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% 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%. The write-downs related to H20 shipments could translate to a gross margin hit of up to 12.5%, 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% on average. It delivered quarterly sales that was 12.5% 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.
Time of India
27-05-2025
- Business
- Time of India
Nikkei reverses course to end higher as yields fall sharply, yen weakens
Japan's Nikkei share average reversed early declines to end higher on Tuesday, as a weaker yen and falling yields on super long-dated bonds lifted sentiment. The Nikkei rose 0.51% to close at 37,724.11, after falling as much as 0.3% earlier in the session. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CFDco IA: gana hasta $2,700 a la semana trabajando desde casa Digital Group Prueba ahora Undo The broader Topix rose 0.64% to 2,769.49. Yields on Japanese government bonds (JGBs) fell sharply, extending declines, after Reuters reported that Japan would consider trimming the issuance of super-long bonds in the wake of recent sharp rises in yields for the notes. "The market's attention is more on JGB yields now, rather than stocks , and the decline in yields on super-long bonds supports sentiment for equity investors," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. Live Events The yields on super-long bonds surged to record levels last week, after a weak auction of the 20-year bonds and on concerns about political jockeying over a government stimulus program. The yen also weakened against the dollar - which typically tends to boost shares of local firms, as it increases the value of overseas profits in yen terms when firms repatriate them to Japan. Technology investor SoftBank Group rose 2.23%, becoming the biggest boost for the Nikkei. Shares of staffing agency Recruit Holdings rose 1.88%, while game-maker Sony also advanced 1.84%. Chip-making equipment maker Tokyo Electron fell 0.69% to drag the Nikkei the most. Drugstore operator Tsuruha Holdings trimmed its early losses to rise 0.53% after shareholders approved its merger with Welcia Holdings, despite opposition from U.K.-based fund Orbis Investment. On the Tokyo Stock Exchange's prime market, 68% of the over 1,600 listed stocks advanced, 26% declined, and 4% remained unchanged.
