Latest news with #DanielNewman
CNBC
a day ago
- Business
- CNBC
Nvidia's China return buys time for Beijing to boost its chip drive
As semiconductors have become a geopolitical hot potato over the past few years, it's no surprise that Nvidia , the leader in artificial intelligence-related chips, has been caught up in escalating tensions between the U.S. and China. When Nvidia returned to the China market last week , seemingly with the blessing of Washington, it sparked debate over the strategic implications for the U.S.' dominance in AI and China's own focus on boosting its domestic chip and tech industry. For the U.S., Nvidia's return could help cement American strength in AI globally, experts told CNBC. For China, it could buy the country time as it continues on its own path to build Nvidia rivals and keep pace with AI software development. It's a tricky relationship, underscoring the strategic importance of the graphics processing units (GPUs) that Nvidia designs and that currently underpin the world's AI. "The relationship is symbiotic but I do believe China needs the U.S. technology more at this moment in time," Daniel Newman, CEO of Futurum, told CNBC's "The China Connection" last week. Nvidia's warnings Earlier this year, the U.S. government restricted exports of Nvidia's H20 chip to China. The product, a less-advanced version of Nvidia's leading hardware, had been created to comply with previous U.S. export restrictions. Washington has expressed concerned that these chips could be used in areas such as advancing the Chinese military and China's own AI industry. Nvidia took a $4.5 billion writedown on the unsold inventory and warned the China restrictions could impact billions of dollars of potential sales. Jensen Huang, the CEO of Nvidia, has been critical of export curbs . He has said it would be a "tremendous loss" for Nvidia not to participate in China and that rival Huawei would be able to fulfil the needs of the country in its absence. Huang has argued that the restrictions could boost China's domestic semiconductor industry and that it risks eroding America's technological edge. That message appears to have got through to the White House. Nvidia said last week that it received backing from the U.S. government to resume sales of H20 in China. How the move will benefit the U.S. From a business perspective, Nvidia is expected to gain. But for Washington, the move is more strategic. "We want to keep having the Chinese use the American technology stack, because they still rely upon it," Commerce Secretary Howard Lutnick told CNBC last week. Nvidia has managed to gain a formidable position in the market for semiconductors required to train and run AI applications, not just because of its hardware but also because of the popularity of its software platform known as CUDA, that developers build on. This creates an "ecosystem" around Nvidia's products which has proven sticky for its users. The return of the H20 to the world's second-largest economy will "buy China time" to boost its domestic industry, according to Pranay Kotasthane, deputy director at the Takshashila Institution. "But it will also buy the U.S. companies some respite. China is Nvidia's largest market and is home to 50 per cent of AI developers according to Jensen Huang. If that path is completely closed, American firms like Nvidia will find it difficult to raise revenues and re-invest them in the next round of research and development," Kotasthane said. "It might be justifiable to restrain access to the most advanced chips but to expand the scope of the restrictions doesn't make strategic sense." China domestic chips in focus Huawei has been China's leading player in developing AI-focused chips. The country's technology companies are using some of Huawei's hardware but the firm has yet to overtake the dominance of Nvidia's latest chips. One possible outcome is that U.S. export curbs will accelerate China's domestic efforts. China has been looking to boost its domestic semiconductor industry with a particular focus on AI chips. There are a whole host of startups working on new products in the country. Nvidia's return to China could slowdown that progress. "If Nvidia's chips are made available to Chinese firms, it could weaken momentum behind domestic chip projects, cut off capital, and delay progress in domestic Chinese hardware. This retains U.S. tech influence over global AI rails," Tejas Dessai, director of research at Global X ETFs, told CNBC by email. Ultimately, it all goes back to Nvidia's software which keeps developers locked into its hardware. "Chinese model developers still prefer to use Nvidia hardware, because the domestic alternative AI stack, particularly the software development environment from Huawei is still difficult to use and lacks the depth and flexibility of Nvidia's offering," Paul Triolo, a partner at DGA-Albright Stonebridge Group, told CNBC by email. Can China catch up to Nvidia? Still, China's direction of travel and its quest for domestic providers of AI chips is unlikely to change. "Eventually Chinese AI model developers will have to transitions to a domestic AI stack," Triolo said. Nvidia's chips have proved very effective at training huge AI models that require massive amounts of data to be processed. The actual running of those AI model in products like chatbots is known as inferencing. This process may require a different type of chip, which Chinese tech giants as well as startups are working on. "In chips, China's opportunity could come when the focus shifts to inference. That's when demand for lower cost, efficient processors could scale, and we believe custom chip programs from big Chinese tech companies could ultimately serve that demand," Dessai of Global X ETFs said.
CNBC
a day ago
- Business
- CNBC
Alphabet looks really well positioned, says Futurum CEO Daniel Newman
Daniel Newman, Futurum CEO, joins 'Power Lunch' to discuss where the opportunities exist in technology stocks, Apple's earnings next week and much more.
Yahoo
21-06-2025
- Business
- Yahoo
15 AI stocks to watch outside of the Magnificent 7
Some investors may be wondering if they missed out on Nvidia's (NVDA) artificial intelligence (AI) run. Futurum CEO Daniel Newman joins Morning Brief to highlight 15 alternative AI plays, including Broadcom (AVGO), Palantir (PLTR), and Oracle (ORCL), that could benefit from the next wave of custom chip demand. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. According to the Bank of America Global Fund Manager survey, Long Mag 7 is one of the most crowded trades on Wall Street, but my next guest has some alternative ways to play artificial intelligence. I want to bring in Dan Newman, who is the Futurum CEO. Great to have you here back in studio with us. Brad, good to see you. So let's talk about this because a lot of people have already piled into Mag 7, but. You believe that there are other places that are non-MG 7 that they could find some exposure to generative AI and this broader kind of thesis that's driven the market for the past two years. I mean there's been nothing that is, you know, deemed more attention than AI. You've seen just the news in the last couple of days, whether it's Microsoft wanting to, or sorry, Meta offering hundreds of millions of dollars to potential researchers to join. Their AI talent team or you know you saw Marvel came out yesterday with the custom AI silicon road map and their stock is popping. We could probably talk a little bit about that, um, but you're seeing it really across the board and then of course so many people have kind of felt like, well did I miss Nvidia and so the the the question I get asked most by, you know, by clients, by the, by retail investors and why we basically launched the Future on AI 15 which. Is the extended list beyond is what else is out there besides maybe Nvidia, Microsoft, and Meta. What are the plays, you know, and so you can hear about kind of what are the difference difference makers. So for instance, uh, companies like Evago, you know, Broadcom, um, you know, there's a $500 billion t we believe in the next 4 years for custom AI silicon, um. Nvidia's gonna get a lot of that, you know, Nvidia gets 92% of that market right now, we believe, but they're not going to keep 92% in our opinion. They're probably gonna fall to maybe 80%, 70%. So it still means Nvidia, by the way, can triple to $300 billion. There's gonna be $100 billion that's gonna go into custom. And so we have Avago, for instance, as our number two name to play because that $100 billion dollar opportunity that sits with the Google custom chips they're doing, it sits with custom chips that companies like OpenAI are planning to do. So that's one of the plays of course you've seen uh Brad TSMC. TSMC, you know, people think about it as a foundry and of course it's a very big name and there's a lot of dollars invested in it right now, but people don't always make that connection that whether it's invi making chips, metama chips, Microsoft and Amazon doing their custom chips, all of them are dependent right now on TSMC and as much as I think the US needs a strong intel, we aren't there yet. So right now TSMC. All the pricing power so it sits at the very top of our list. And then there's some eclectic names. I'll pause here, but basically there's eclectic names like Oracle that we put on there. You saw what a pop they've gotten, but they've absolutely nailed this AI transformation and they are in a perfect position. And just yesterday, XAI and Oracle made a big announcement together that they're going to be using Oracle's infrastructure to train XAI models.
Yahoo
19-06-2025
- Business
- Yahoo
15 AI stocks to watch outside of the Magnificent 7
Some investors may be wondering if they missed out on Nvidia's (NVDA) artificial intelligence (AI) run. Futurum CEO Daniel Newman joins Morning Brief to highlight 15 alternative AI plays, including Broadcom (AVGO), Palantir (PLTR), and Oracle (ORCL), that could benefit from the next wave of custom chip demand. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. According to the Bank of America Global Fund Manager survey, Long Mag 7 is one of the most crowded trades on Wall Street. But, my next guest has some alternative ways to play artificial intelligence. I'm going to bring in Dan Newman who is the Futurum CEO. Great to have you here back in studio with us. Hey Brad, good to see you. So, let's talk about this because a lot of people have already piled into Mag 7, but you believe that there are other places that are non Mag 7 that they could find some exposure to generative AI and this broader kind of thesis that's driven the market for the past two years. Yeah, I mean there's been nothing that has, you know, deemed more attention than AI. You've seen just the news in the last couple of days, whether it's Microsoft wanting to, or sorry, meta offering hundreds of millions of dollars to potential researchers to join their AI talent team. Or, you know, you saw Marvell came out yesterday with the custom AI Silicon roadmap and their stock is popping, we'll probably talk a little bit about that. Um, but you're seeing it really across the board. And then of course so many people have kind of felt like, well, did I miss Nvidia? And so the the question I get asked most by, you know, by clients, by the by retail investors and why we basically launched the Futurum AI 15, which is the extended list beyond is what else is out there besides maybe Nvidia, Microsoft, and meta? What are the plays, you know? And so, you hear about kind of what are the difference difference makers? So for instance, uh, companies like Avago, you know, Broadcom. Um, you know there's a $500 billion TAM, we believe, in the next four years for custom AI Silicon. Yeah. Um, Nvidia's going to get a lot of that, you know, Nvidia gets 92% of that market right now, we believe. Right. But they're not going to keep 92% in our opinion. They're probably going to fall to maybe 80%, 70%. So it still means Nvidia, by the way, can triple to $300 billion. There's going to be $100 billion that's going to go into custom. And so we have Avago, for instance, at as our number two name to play, because that $100 billion opportunity, that sits with the Google custom chips they're doing, sits with custom chips that companies like Open AI are planning to do. So that's one of the plays. Of course, you're seeing, uh, Brad, TSMC. TSMC, you know, people think about it as a foundry, and of course, it's a very big name and there's a lot of dollars invested in it right now, but people don't always make that connection that whether it's Nvidia making chips, meta making chips, Microsoft, and Amazon doing their custom chips, all of them are dependent right now on TSMC. And as much as I think the US needs a strong Intel, we aren't there yet. So, right now, TSMC has all the pricing power. So it sits at the very top of our list. And then there's some eclectic names, I'll pause here, but basically there's eclectic names like Oracle, that we put on there. You saw what a pop they've gotten, but they've absolutely nailed this AI transformation and they're in a perfect position. And just yesterday, XAI and Oracle made a big announcement together that they're going to be using X Oracle's infrastructure to train XAI models. Right.
CNBC
10-06-2025
- Business
- CNBC
Meta's one of AI's leaders not a laggard, says Futurum Group CEO Daniel Newman
Daniel Newman, Futurum Group CEO, joins 'Power Lunch' to discuss if Meta's behind on its AI progress.
