Latest news with #China-specific
Yahoo
2 days ago
- Automotive
- Yahoo
Nvidia to sell H20 chips to China again after US gives export approval
US tech giant Nvidia will start selling its H20 AI chip in China again after the Trump administration relaxed export restrictions. The White House gave assurances that it would grant licenses for the product in the Chinese market, the firm said on Tuesday in a blog post. The move is a U-turn for the government, which in April banned sales of the chip to China, linked to concerns that the technology could be used for military purposes. At the time, Nvidia said it had been told that the export control would stay in place for the 'indefinite future". Nvidia claimed in May that it had taken a $4.5 billion (€3.8bn) inventory cost hit in the April quarter because of the restrictions and added that it had missed out on an additional $2.5bn (€2.1bn) in sales. The announcement temporarily sent its share price plunging. The H20 chip was specifically designed for the Chinese market, in line with restrictions introduced by former president Joe Biden in 2023. When in office, Trump overhauled the Biden-era curbs but imposed restrictions on Nvidia's H20 AI chip. On Tuesday, Nvidia also announced a new China-specific AI chip it said was 'fully compliant' with export rules. Tuesday's announcement comes after Nvidia CEO Jensen Huang has spent months lobbying in both the US and China. Related Chipmaker Nvidia hits $4 trillion making it world's most valuable company Volvo Cars CEO: dual tech for China and the West is new trade reality Huang argued that Trump's restrictions were a 'failure' in the sense that they were boosting China's AI capabilities, notably as the market could no longer rely on American products. Exports of the chip do, however, help Chinese AI companies like DeepSeek, that use Nvidia chips to create their products. The breakthrough comes as relations between Washington and Beijing have thawed in recent weeks. Earlier this year, the Trump administration threatened a 145% duty on Chinese goods sent to the US, and Beijing responded with a 125% retaliatory tariff. The two sides decided to lower these taxes in May, and then agreed on a trade framework last month. The trade agreement seeks to ease restrictions on exports of raw materials and other critical technologies. Throughout earlier talks, Donald Trump had nonetheless suggested that curbs on the H20 AI chip wouldn't be relaxed as part of the framework. Both China and the US are seeking to find a permanent solution to replace the temporary trade truce before a 12 August deadline. Nvidia's Huang is currently in Beijing to hold talks with government officials, after meeting with President Trump last week. The CEO also announced plans to create a new graphics processing unit, the RTX PRO, for the Chinese market, which he said is fully compliant with US export controls.
The Hill
2 days ago
- Business
- The Hill
Businesses raising prices due to tariffs
The Big Story Higher costs from tariffs were reported by businesses in all of the Federal Reserve's 12 regional districts, and many made the choice to raise prices as a result. © The Associated Press 'Many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges,' the Fed's July Beige Book — an anecdotal survey of domestic economic conditions — reported. Those businesses that didn't push the additional costs through to their customers saw restricted profit margins, the beige book said, noting consumers' 'growing price sensitivity.' Inflation in the Labor Department's consumer price index jumped in June, partly as a result of the tariffs. While President Trump has instituted a 10-percent general tariff, along with China-specific tariffs and targeted tariffs on some individual goods, his country-specific 'reciprocal' tariffs have been paused until Aug. 1 as trade negotiations continue. Import prices advanced by 0.1 percent in June and deflated by 0.2 percent relative to last year, the Labor Department reported Thursday. The number was below economists' expectations and reflected lower energy prices. The Hill's Tobias Burns has more here. Welcome to The Hill's Business & Economy newsletter, I'm Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue. Did someone forward you this newsletter? Subscribe here. Essential Reads Key business and economic news with implications this week and beyond: Meta investors, Zuckerberg settle Facebook privacy suit Meta investors and Meta CEO Mark Zuckerberg settled an $8 billion lawsuit with shareholders on Thursday. Murkowski: Vought 'disrespects' the government funding process Sen. Lisa Murkowski (R-Alaska) on Thursday said she thinks White House budget chief Russell Vought 'disrespects' Congress's annual funding process after he said it should be 'less bipartisan.' What's the average salary in the US? Median weekly wages for full-time and salaried workers in the U.S. rose nearly 5 percent from last year, according to the latest report from the Bureau of Labor Statistics. The Ticker Upcoming news themes and events we're watching: In Other News Branch out with more stories from the day: Trump administration to subject solar and wind projects to elevated review The Trump administration plans to put solar and wind projects through an elevated review process, saying that moves toward approval will have to be vetted by Interior Secretary Doug Burgum's office. Good to Know Business and economic news we've flagged from other outlets: What People Think Opinions related to business and economic issues submitted to The Hill: You're all caught up. See you tomorrow! Thank you for signing up! Subscribe to more newsletters here
The Hill
3 days ago
- Business
- The Hill
Businesses are passing along tariff costs, Fed reports
Businesses across the economy are passing increased input costs from tariffs along to consumers in the form of higher prices, the Federal Reserve's latest anecdotal survey of domestic economic conditions found. Higher costs from tariffs were reported by businesses in all of the Fed's 12 regional districts, and many made the choice to raise prices as a result. 'Many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges,' the Fed's July beige book, released Wednesday, reported. Those businesses that didn't push the additional costs through to their customers saw restricted profit margins, the beige book said, noting consumers' 'growing price sensitivity.' Inflation in the Labor Department's consumer price index (CPI) jumped in June, partly as a result of the tariffs. The CPI ticked up to a 2.7-percent annual increase last month from 2.4 percent in May and 2.3 percent in April. The move was in line with expectations. Many economists have been predicting that inflation coming from tariffs would show up in prices over the summer after the clearing of inventories of wholesale goods purchases made prior to the tariffs. Fitch Ratings recently put the aggregate U.S. tariff rate at 14.1 percent, the highest in decades. While President Trump has instituted a 10-percent general tariff along with China-specific tariffs, and targeted tariffs on some individual goods, his country-specific 'reciprocal' tariffs have been paused until Aug. 1 as trade negotiations continue. Import prices advanced by 0.1 percent in June and deflated by 0.2 percent relative to last year, the Labor Department reported Thursday. The number was below economists' expectations and reflected lower energy prices. Fuel import prices slid by 0.7 percent last month after dropping 5 percent during the previous month amid rising tensions and conflict in the Middle East. West Texas Intermediate crude oil is down more than 10 percent on the month. Taking out fuel and food imports, core import prices increased by 0.2 percent in June after rising 0.1 percent in May. The U.S. dollar is also losing value now relative to other currencies, having fallen about 9 percent since the beginning of the year amid President Trump's trade war. Economists say the weaker dollar could boost inflation. 'Since the Trump administration began imposing tariffs, the dollar has depreciated, which could lead to a larger pass-through from tariffs to consumer prices,' Michael Pearce, deputy chief U.S. economist at Oxford Economics, told the Reuters news agency. 'A weaker dollar boosts the likelihood that firms pass on a larger share of tariffs.'
Yahoo
4 days ago
- Business
- Yahoo
Jensen Huang Just Delivered Massive News for Nvidia Investors
Key Points Nvidia CEO Jensen Huang says that the company will be granted the licenses required to export its H20 AI chips to Chinese customers. The company was losing a chunk of revenue because of the restrictions on the export of its chips to China. Nvidia investors can now expect stronger-than-expected growth from the company this year. 10 stocks we like better than Nvidia › When Nvidia (NASDAQ: NVDA) released its fiscal 2026 first-quarter results (for the three months ended April 27) a couple of months ago, the company had bad news in store for investors as it was losing business in a key market thanks to export restrictions. Specifically, Nvidia pointed out in its previous earnings report that it bore a multibillion-dollar charge because of its inability to ship its H20 artificial intelligence (AI) chips to China. Its revenue during the quarter took a hit, while the guidance could have been much better if there were no restrictions on the sales of its chips to Chinese customers. But now, it looks like Nvidia is set to resume its sales in China. Let's take a closer look at this latest development that could give its business a big boost. Jensen Huang says that Nvidia is set to start shipments of its H20 chips to China Nvidia was informed by the U.S. government in April that it needs a license to export its China-specific H20 chip into that market. The company took a $4.5 billion charge on account of the excess inventory of the unsold H20 chips that it was left with. Nvidia also lost $2.5 billion in revenue because of this restriction during the quarter. Even worse, the company said that it will lose $8 billion in H20 revenue in the ongoing quarter thanks to the restrictions. However, a blog published by Nvidia on July 14 states that CEO Jensen Huang met with President Donald Trump and other policymakers, giving an update that the company "is filing applications to sell the NVIDIA H20 GPU again." More importantly, the blog points out that the U.S. government assured Nvidia that licenses will be granted and the company hopes for deliveries to begin soon. Nvidia shipped $4.6 billion worth of H20 processors to China in fiscal Q1 before the export restrictions kicked in. Including the lost sales during the quarter, Nvidia's Chinese revenue would have been just over $7 billion. And when we consider the $8 billion revenue that the company was expecting from this market in fiscal Q2, Nvidia's revenue from that market would have hit $15 billion in the first half of the current fiscal year. The Chinese business, therefore, was on track to generate $30 billion in annual revenue for the company this year before it was hamstrung by the export controls. Analysts are expecting $200 billion in revenue from Nvidia in the current fiscal year. That figure could have been significantly higher if the company were allowed to uninterruptedly sell its H20 processors into the Chinese market. However, Nvidia was caught in the crosshairs of the tariff-fueled trade war between the U.S. and China. The good part is that both countries show\ signs of easing restrictions on exports of key products, and it looks like Nvidia has benefited from the same. As such, it won't be surprising to see the chipmaker finish the current fiscal year in a stronger-than-expected position. The return of the lost business could be a tailwind for the stock in the second half of 2025 We already saw how much revenue Nvidia could have minted from China in the current fiscal year. Now that the company is set to receive licenses to export its chips, there is a good chance that it could get back that lost revenue. Nvidia is going to be in a position to fulfill the $8 billion worth of orders that it had lined up for fiscal Q2, along with the $2.5 billion worth of shipments that it was unable to fulfill in the previous quarter. This could help Nvidia generate more revenue than what Wall Street is anticipating in the current fiscal year. Assuming that Nvidia manages to sustain the run rate of its H20 business in China in the second half of the fiscal year, it could generate $15 billion in revenue from that market. Analysts at equity research firm Bernstein estimate that Nvidia has the potential to generate incremental revenue of $15 billion to $20 billion in the current fiscal year once it gets the H20 export licenses. What's more, the company could generate an additional $0.40 to $0.50 per share in earnings based on the incremental revenue estimate. In the end, it can be concluded that Nvidia could deliver stronger-than-expected growth in fiscal 2026, which it can sustain in the long run as well thanks to the opportunities it is witnessing in other countries. Investors, therefore, have another reason to buy Nvidia stock right now as a potential acceleration in its revenue and earnings growth following this latest development could lead to more upside. Should you buy stock in Nvidia right now? 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Jensen Huang Just Delivered Massive News for Nvidia Investors was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Inflation ticks up in June following tariffs
Inflation rose by 2.7 percent in June following warnings from economists that the cost of President Trump's tariffs would make it through value chains and start to show up in consumer prices over the summer. The Labor Department's consumer price index (CPI) rose by 0.3 percent on the month to hit an increase of 2.7 percent compared to last year. The Federal Reserve's target for inflation is 2 percent. Economists were expecting an annual rise in the June index of between 2.6 percent and 3.0 percent, so the increase is in line with their expectations. 'And so it begins?' UBS economist Paul Donovan wrote in an analysis Tuesday, noting the expectation of higher prices from tariffs and the uncertainty of when exactly they would manifest. 'Only half the expected trade tax rise has hit the economy so far. Inventory stockpiling means pre-tax items are still available. How readily US firms can pass on price increases matters,' he added. June marks the second consecutive month with a rise in the CPI, which climbed to a 2.4 percent annual increase in May from 2.3 percent in April. Though some of Trump's tariffs started earlier, his wide-ranging 'reciprocal' tariffs were announced in early April — but many of them have been paused until Aug. 1. U.S. inventories take roughly three months to clear, and there was a huge pull-ahead in orders from U.S. importers prior to the tariffs, so the April-to-July price lag confirms many economic forecasts. Trump's 'reciprocal' tariffs were initially paused until July 9, but the president extended that delay earlier this month as trade negotiations with multiple countries continue. Tentative trade deals with China, the United Kingdom and Vietnam have been announced so far. A general 10 percent tariff, along with China-specific tariffs and import taxes on automobiles and various metals, have been put in place. The Fitch ratings agency recently put the overall U.S. tariff rate at 14.1 percent, the highest level in decades. Taking out the more volatile categories of food and energy, the 'core' CPI for June increased to a 2.9 percent annual rise, up from 2.8 percent in May. Core prices, a more important measurement for the path of interest rates as set by the Federal Reserve, had been falling between January and May, making June's their first increase in four months. Shelter prices climbed 0.2 percent in June. The Labor Department said shelter was the primary factor in the monthly increase. Household furnishings and apparel, which is heavily imported in the U.S., also saw increases. The household furnishings index rose 1.0 percent in June, and apparel increased 0.4 percent. 'Import levies are slowly filtering through to core goods prices,' Principal Asset Management strategist Seema Shah wrote in a commentary. Economists expect this trend to continue. 'There is a trickle of what is likely tariff-induced inflation in some categories, particularly household appliances and furnishings. This trickle is likely to gain momentum in the coming months,' wrote Olu Sonola, head of U.S. economic research at Fitch Ratings. The uptick in inflation diminishes the odds the Federal Reserve will resume its interest rate cuts, which it paused at the beginning of this year. This is likely to exacerbate tensions between the White House and the Federal Reserve. 'A July cut is clearly off the table,' Sonola wrote. 'But the Fed will view this report as the first of three that will shape the decision on a possible rate cut in September.' Import prices have been holding steady so far this year, reaching an index level of 141.8 in May, the same number as January. The Fed has been waiting to see where exactly the cost of the tariffs within different value chains is going to be borne. It could be paid by foreign manufacturers, exporters, wholesalers or retailers, or it could be passed along to consumers. It could also simply sap wholesale demand for certain products. Inflation also recently hit an inflection point in another major price metric, the personal consumption expenditures (PCE) price index, which rose to a 2.3-percent annual increase in May from 2.2 percent in April. Updated at 9:17 a.m. EDT Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Sign in to access your portfolio
