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Time of India
18 hours ago
- Business
- Time of India
Analyst Warning for Intel: Nvidia, AMD and other customers don't want to use Intel's manufacturing services because…
Intel CEO Lip-Bu Tan delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP Photo/Chiang Ying-ying) Major chip companies including Nvidia and AMD are reluctant to use Intel 's manufacturing services because they compete directly with Intel's chip-design business, creating a fundamental conflict of interest that threatens the struggling chipmaker's turnaround efforts. Gus Richard, a Northland Capital Markets analyst quoted by the Wall Street Journal, said Intel "can create a design environment that works for Intel, but it's hard if not impossible for anybody else to use." The warning highlights how Intel's unified structure prevents its factories from competing effectively with contract manufacturers like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung. Intel's manufacturing operation also lacks the customer-service culture that has made TSMC successful with contract clients, according to the WSJ analysis. The company has struggled to adapt its factories, originally built exclusively for Intel chips, to serve external customers' diverse needs. Breakup pressure mounts as losses spiral The customer acquisition problems have contributed to massive financial losses at Intel's chip factories, which posted a $2.32 billion operating loss in Q1 2025 following $13.4 billion in losses last year. CEO Lip-Bu Tan faces mounting pressure to break up the company as its unified structure appears increasingly unsustainable. Separating Intel's chip-design operations from its manufacturing facilities could solve the critical business problems that have plagued turnaround efforts under former CEO Pat Gelsinger, who was ousted in December after three unsuccessful years, the WSJ reported. Intel's stock has plummeted 65% over five years while rivals AMD more than doubled and Nvidia surged 16 times in value, reflecting investor frustration with the 56-year-old semiconductor giant's struggles. Federal support provides limited relief Intel began preparing for potential separation in September by establishing its factories as a separate subsidiary with independent directors. CFO David Zinsner told the WSJ in January that the company was exploring strategic investments from financial partners and customers. Despite maintaining nearly $9 billion in cash, manufacturing assets valued at over $100 billion, and receiving $7.865 billion in federal CHIPS Act funding , reaching the billions in new revenue needed to make the manufacturing arm profitable remains uncertain. Intel hopes the unit will break even by 2027, having secured customers including Microsoft and Amazon's cloud division, though these represent smaller clients compared to major chip designers. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Glasgow Times
29-05-2025
- Business
- Glasgow Times
Wall Street climbs after US court shoots down Trump's tariffs
The S&P 500 was 0.8% higher in early trading on Thursday. The Dow Jones Industrial Average was up 64 points, or 0.1%, and the Nasdaq composite was 1.4% higher. Technology stocks led the way after Nvidia once again topped analysts' expectations for profit and revenue in the latest quarter. The gains were even bigger in Asia, where markets had the first chance to react to the ruling issued late on Wednesday. Japan's Nikkei added 1.9%. US Court of International Trade in New York found that the 1977 International Emergency Economic Powers Act, which Mr Trump has cited as his basis for ordering massive increases in import duties, does not authorise the use of tariffs. The White House immediately appealed and it was unclear if Mr Trump would abide by the ruling in the interim. The long-term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Mr Trump's trade war. Nvidia shares jumped 6% in off-hours trading after the chipmaker and artificial intelligence bellwether delivered another quarter of robust growth despite tariff-driven turbulence. Nvidia's share price shot up (AP Photo/Chiang Ying-ying, File) Heading into its earnings announcement on Wednesday, Nvidia's share price was right where it was at the beginning of 2025, before Mr Trump took office and started his tariff rollouts. Nvidia's earnings, along with the court's tariff ruling, helped to propel other chipmakers and technology companies higher. Broadcom and Advanced Micro Devices each rose 3.1%, while Super Micro Computer jumped 4%. Apple and Amazon both rose about 2.5%. A three-judge panel ruled on several lawsuits arguing Mr Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy. Many of Mr Trump's double-digit tariff hikes – including the huge levies on China – were already paused for up to 90 days to allow time for trade negotiations. But the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead. 'Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific,' Stephen Innes of SPI Asset Management said. Donald Trump's tariffs have been cast into doubt by a court ruling (AP Photo/Evan Vucci) The ruling was, at the least, 'a brief respite before the next thunderclap,' he said. In Europe at midday, Germany's DAX gained 0.4% and the CAC 40 in Paris jumped 0.8%. Britain's FTSE was unchanged. Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Mr Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos. The ruling also initially pushed the dollar sharply higher against the Japanese yen, but it settled back down overnight. It was trading at 144.98 yen early on Thursday, up from 144.87 yen late on Wednesday. Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45. Australia's S&P/ASX 200 gained 0.2% to 8,409.80. In South Korea, which like Japan relies heavily on exports to the US, the Kospi surged 1.9% to 2,720.64. Shares were also helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy. Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%. The yield on the 10-year Treasury rose to 4.52% early on Thursday from 4.47% late on Wednesday. US benchmark crude oil gained 32 cents to 62.16 dollars per barrel. Brent crude, the international standard, added 26 cents to 64.58 dollars per barrel. The euro slipped to 1.1280 dollars from 1.1292 dollars.
Western Telegraph
29-05-2025
- Business
- Western Telegraph
Wall Street climbs after US court shoots down Trump's tariffs
Futures for the S&P 500 rose 1% before the opening bell and futures for the Dow Jones Industrial Average were up 0.4%. Futures for the Nasdaq, home to Nvidia, other chipmakers and the biggest American technology companies, climbed 1.5%. US Court of International Trade in New York found that the 1977 International Emergency Economic Powers Act, which Mr Trump has cited as his basis for ordering massive increases in import duties, does not authorise the use of tariffs. The White House immediately appealed and it was unclear if Mr Trump would abide by the ruling in the interim. The long-term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Mr Trump's trade war. Nvidia shares jumped 6% in off-hours trading after the chipmaker and artificial intelligence bellwether delivered another quarter of robust growth despite tariff-driven turbulence. Nvidia's share price shot up (AP Photo/Chiang Ying-ying, File) Heading into its earnings announcement on Wednesday, Nvidia's share price was right where it was at the beginning of 2025, before Mr Trump took office and started his tariff rollouts. Nvidia's earnings, along with the court's tariff ruling, helped to propel other chipmakers and technology companies higher. Broadcom and Advanced Micro Devices each rose 3.1%, while Super Micro Computer jumped 4%. Apple and Amazon both rose about 2.5%. A three-judge panel ruled on several lawsuits arguing Mr Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy. Many of Mr Trump's double-digit tariff hikes – including the huge levies on China – were already paused for up to 90 days to allow time for trade negotiations. But the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead. 'Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific,' Stephen Innes of SPI Asset Management said. Donald Trump's tariffs have been cast into doubt by a court ruling (AP Photo/Evan Vucci) The ruling was, at the least, 'a brief respite before the next thunderclap,' he said. In Europe at midday, Germany's DAX gained 0.4% and the CAC 40 in Paris jumped 0.8%. Britain's FTSE was unchanged. Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Mr Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos. The ruling also initially pushed the dollar sharply higher against the Japanese yen, but it settled back down overnight. It was trading at 144.98 yen early on Thursday, up from 144.87 yen late on Wednesday. Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45. Australia's S&P/ASX 200 gained 0.2% to 8,409.80. In South Korea, which like Japan relies heavily on exports to the US, the Kospi surged 1.9% to 2,720.64. Shares were also helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy. Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%. The yield on the 10-year Treasury rose to 4.52% early on Thursday from 4.47% late on Wednesday. US benchmark crude oil gained 32 cents to 62.16 dollars per barrel. Brent crude, the international standard, added 26 cents to 64.58 dollars per barrel. The euro slipped to 1.1280 dollars from 1.1292 dollars.
Japan Today
28-05-2025
- Business
- Japan Today
Nvidia overcomes tariff-driven turbulence to deliver results that eclipse analyst projections
FILE - People take a look to Nvidia''s new products during the Computex 2025 exhibition in Taipei, Taiwan, Wednesday, May 21, 2025. (AP Photo/Chiang Ying-ying, File) By MICHAEL LIEDTKE Artificial intelligence technology bellwether Nvidia overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth amid feverish demand for its high-powered chips that are making computers seem more human. The results announced Wednesday for the February-April period came against the backdrop of President Donald Trump's on-again, off-again trade war that has whipsawed Nvidia and other Big Tech companies riding AI mania to propel their revenue and stock prices upward. But Trump's tariffs — many of which have been reduced or temporarily suspended – hammered the market values of Nvidia and other tech powerhouses heading into the springtime earnings season as investors fretted about the trade turmoil dimming the industry's prospects. Those worries have eased during the past six weeks as most Big Tech companies lived up to or exceeded the analyst projections that steer investors, capped by Nvidia's report for its fiscal first quarter. Nvidia earned $18.8 billion, or 76 cents per share, for the period, a 26% increase from the same time last year. Revenue surged 69% from a year ago to $44.1 billion. If not for a $4.5 billion charge that Nvidia absorbed to account for the U.S. government's restrictions on its chip sales to China, Nvidia would have made 96 cents per share, far above the 73 cents per share envisioned by analysts. In another positive sign, Nvidia predicted its revenue for the May-July period would be about $45 billion, roughly the level that investors had been anticipating. The forecast includes an estimated $8 billion loss in sales to China due to the export controls during its fiscal second quarter, after the restrictions cost it about $2.5 billion in revenue during the first quarter. 'Global demand for NVIDIA's AI infrastructure is incredibly strong,' Nvidia CEO Jensen Huang said. The performance bolstered Nvidia's shares, which gained more than 4% in extended trading after the numbers came out. Nvidia's stock price ended Wednesday's regular trading session at $134.81, just slightly below where it stood before Trump's Jan. 20 inauguration. The price had plunged to as low as $86.62 last month during a nosedive that temporarily erased $1.2 trillion in shareholder wealth. The outlook began brightening for Nvidia last month after AI leaders such as Microsoft, Alphabet and Meta Platforms reaffirmed their plans to invest heavily in AI. That spending has been a boon for Nvidia because its chipsets provide the technology's brainpower, an advantage that has helped the company's annual revenue from $27 billion to $130 billion in just two years. Wedbush Securities analyst estimates Big Tech companies will spend about $325 billion on long-term investments primarily revolving around AI this year, with a substantial chunk of that money budgeted for Nvidia's chips. Trump's trade war has been raising doubts about Nvidia's ability to maintain its astounding momentum by threatening to close off key market, especially China. In apparent attempt to curry favor with the president, Huang last month announced Nvidia will help boost U.S. manufacturing by building some of its AI chips and supercomputers in plants located in Arizona and Texas. Huang also accompanied Trump on a trip to Saudi Arabia earlier this month, signaling Nvidia's ambitions to sell more of its AI chips in the Middle East as that region attempts to lessen its economy dependence on oil. Trump also extended a helping hand to Nvidia of by rescinding the scheduled start export controls that had been drawn up under President Joe Biden's administration that would have broadened the restrictions on chips sales in foreign markets beyond the limits already in place on deals with China and Russia. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
The Star
19-05-2025
- Business
- The Star
Nvidia CEO unveils new tech to keep global AI expansion going
Now back in his native Taiwan, Huang introduced updates to the ecosystem around Nvidia's accelerator chips, which are key to developing and running AI software and services. — AP Photo/Chiang Ying-ying Nvidia Corp. unveiled the latest raft of technologies aimed at sustaining the boom in demand for AI computing – and ensuring that its products stay at the centre of the action. Chief Executive Officer Jensen Huang on Monday kicked off Computex in Taiwan, Asia's biggest electronics forum, touting new products and cementing ties with a region vital to the tech supply chain. His company's shares are riding a fresh rally following a dealmaking trip to the Middle East as part of a trade delegation led by President Donald Trump. Now back in his native Taiwan, Huang introduced updates to the ecosystem around Nvidia's accelerator chips, which are key to developing and running AI software and services. The central goal is to broaden the reach of Nvidia products and eliminate barriers to AI adoption by more industries and countries. "When new markets have to be created, they have to be created starting here, at the centre of the computer ecosystem,' Huang said about the island. Huang opened with an update on timing for Nvidia's next-generation GB300 systems for artificial intelligence workloads, which he said are coming in the third quarter of this year. They'll mark an upgrade on the current top-of-the-line Grace Blackwell AI systems, which are now being installed by major cloud service providers. The chipmaker is offering a new version of complete computers that it provides to data centre owners. NVLink Fusion products will allow customers the option to either use their own central processor units with Nvidia's AI chips or use Nvidia's CPUs with another provider's AI accelerators. To date, Nvidia has only offered such systems built with its own components. This opening-up of its designs – which include crucial connectivity components that ensure a high-speed link between processors and accelerators – gives Nvidia's data centre customers more flexibility and allows a measure of competition while still keeping Nvidia technology at the centre. Major customers such as Microsoft Corp. and Inc. are trying to design their own processors and accelerators, and that risks making Nvidia less essential to data centres. MediaTek Inc., Marvell Technology Inc. and Alchip Technologies Ltd. will create custom AI chips that work with Nvidia processor-based gear, Huang said. Qualcomm Inc. and Fujitsu Ltd. plan to make custom processors that will work with Nvidia accelerators in the computers. – Bloomberg
