Latest news with #DeepwaterAssetManagement
Yahoo
6 days ago
- Business
- Yahoo
Wall Street is looking past Nvidia's China problem… for now
Wall Street is brushing aside Nvidia's (NVDA) China worries, pointing to the company's strong sales growth in the rest of the world following its fiscal first quarter earnings on Wednesday. Nvidia stock jumped more than 5% in early trading Thursday. Nvidia reported better-than-anticipated revenue of $44.1 billion in Q1, up 69% year over year, but fell short on adjusted earnings per share, which topped out at $0.81. Wall Street was anticipating adj. EPS of $0.93. Data Center revenue was also light, coming in at $39.1 billion versus expectations of $39.2 billion. Normally, that kind of report would send Wall Street into a panic, but investors shrugged off the misses, which Nvidia attributed to the $4.5 billion charge it took on H20 chips the Trump administration banned it from selling to China in April. That's because, putting the H20 charge aside, Nvidia would have pushed well past earnings expectations. And while the company said it would take an $8 billion hit in lost sales due to the H20 ban in Q2, analysts are upbeat about Nvidia's outlook. 'Nvidia's business, excluding China, is booming,' Deepwater Asset Management managing partner Gene Munster wrote in a note following Nvidia's earnings announcement. 'For the July quarter, they effectively raised guidance for everything except China by 10%. Today's July guidance was for $45 billion. Adding back the $8 billion impact of the curbs gets us to $53 billion,' Munster wrote. 'The bottom line: These revisions are evidence that we are still early in the AI buildout.' Nvidia notified investors on April 15 that the US government ordered it to stop selling its H20 chips into China. The company built its H20 processor specifically for the Chinese market to comply with controls banning the sale of a more powerful chip to the region. During Nvidia's earnings call on Wednesday, CEO Jensen Huang said the company would no longer be able to continue modifying its prior-generation Hopper chips, which it used to build the H20, to produce less powerful offerings for China. But William Blair analyst Sebastien Naji wrote in an investor note that even if Nvidia is locked out of China, it will continue to benefit from further growth elsewhere. 'While tight US export controls essentially withdraw Nvidia from a $50 billion China [total addressable market] for AI, we see ample room for Nvidia to maintain its industry-leading growth over a multiyear period addressing the much broader non-China AI opportunity across hyperscalers, enterprises, and increasingly sovereigns,' he wrote. Sovereigns, or sovereign AI platforms, are AI services built and sometimes run by individual governments. And Nvidia appears ready to reap the benefits of sovereign AI buildouts, with Huang joining President Trump during his recent trip to the Middle East where Trump announced a deal that will see Nvidia provide hundreds of thousands of AI chips to Saudi Arabia and the United Arab Emirates (UAE) to power their own AI data centers. Despite Wall Street's general approval of Nvidia's results and outlook without China, Huang isn't giving up on the region. The CEO issued a dire warning during the company's earnings call, saying that whatever chip AI platform wins in China is positioned to lead globally. 'China is one of the world's largest AI markets and a springboard to AI success,' Huang said, adding that China's AI will move on with or without US-made chips like Nvidia's. According to Reuters, Nvidia is working on a new AI chip based on the company's Blackwell architecture that will meet the Trump administration's export controls. But it will need to ensure it can get that product on the market soon if it hopes to regain its lost market share in the country. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. 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
Yahoo
6 days ago
- Business
- Yahoo
Wall Street is looking past Nvidia's China problem … for now
Wall Street is brushing aside Nvidia's (NVDA) China worries, pointing to the company's strong sales growth in the rest of the world following its fiscal first quarter earnings on Wednesday. Nvidia stock jumped more than 5% in early trading Thursday. Nvidia reported better-than-anticipated revenue of $44.1 billion in Q1, up 69% year over year, but fell short on adjusted earnings per share, which topped out at $0.81. Wall Street was anticipating adj. EPS of $0.93. Data Center revenue was also light, coming in at $39.1 billion versus expectations of $39.2 billion. Normally, that kind of report would send Wall Street into a panic, but investors shrugged off the misses, which Nvidia attributed to the $4.5 billion charge it took on H20 chips the Trump administration banned it from selling to China in April. That's because, putting the H20 charge aside, Nvidia would have pushed well past earnings expectations. And while the company said it would take an $8 billion hit in lost sales due to the H20 ban in Q2, analysts are upbeat about Nvidia's outlook. 'Nvidia's business, excluding China, is booming,' Deepwater Asset Management managing partner Gene Munster wrote in a note following Nvidia's earnings announcement. 'For the July quarter, they effectively raised guidance for everything except China by 10%. Today's July guidance was for $45 billion. Adding back the $8 billion impact of the curbs gets us to $53 billion,' Munster wrote. 'The bottom line: These revisions are evidence that we are still early in the AI buildout.' Nvidia notified investors on April 15 that the US government ordered it to stop selling its H20 chips into China. The company built its H20 processor specifically for the Chinese market to comply with controls banning the sale of a more powerful chip to the region. During Nvidia's earnings call on Wednesday, CEO Jensen Huang said the company would no longer be able to continue modifying its prior-generation Hopper chips, which it used to build the H20, to produce less powerful offerings for China. But William Blair analyst Sebastien Naji wrote in an investor note that even if Nvidia is locked out of China, it will continue to benefit from further growth elsewhere. 'While tight US export controls essentially withdraw Nvidia from a $50 billion China [total addressable market] for AI, we see ample room for Nvidia to maintain its industry-leading growth over a multiyear period addressing the much broader non-China AI opportunity across hyperscalers, enterprises, and increasingly sovereigns,' he wrote. Sovereigns, or sovereign AI platforms, are AI services built and sometimes run by individual governments. And Nvidia appears ready to reap the benefits of sovereign AI buildouts, with Huang joining President Trump during his recent trip to the Middle East where Trump announced a deal that will see Nvidia provide hundreds of thousands of AI chips to Saudi Arabia and the United Arab Emirates (UAE) to power their own AI data centers. Despite Wall Street's general approval of Nvidia's results and outlook without China, Huang isn't giving up on the region. The CEO issued a dire warning during the company's earnings call, saying that whatever chip AI platform wins in China is positioned to lead globally. 'China is one of the world's largest AI markets and a springboard to AI success,' Huang said, adding that China's AI will move on with or without US-made chips like Nvidia's. According to Reuters, Nvidia is working on a new AI chip based on the company's Blackwell architecture that will meet the Trump administration's export controls. But it will need to ensure it can get that product on the market soon if it hopes to regain its lost market share in the country. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
CNBC
27-05-2025
- Business
- CNBC
The next 1-3 months will be a transition period for Apple investors, says Deepwater's Gene Munster
Gene Munster, Deepwater Asset Management managing partner, joins 'Squawk Box' to discuss the uncertainty facing Apple, President Trump's 25% iPhone tariff threat, the pressure facing CEO Tim Cook, the company's AI investment, and more.
Yahoo
25-05-2025
- Business
- Yahoo
Are people ‘panic buying'? Economist explains which big purchases you may want to make now
(NEXSTAR) – As the White House announced a slate of tariffs, Americans headed straight to car lots. Reddit threads encouraged expecting parents to act now and secure a car seat and stroller before it's too late. Others questioned whether they should buy Christmas presents now, far ahead of the holiday season. As tariffs have been announced and then scaled back, many consumers are left unsure of what to do and tempted to make big purchases or stock their pantries now in case prices suddenly skyrocket. 'There's panic buying going on and panic selling by investors, too,' Gene Munster, managing partner at Deepwater Asset Management, told the New York Times. 'It's more turmoil than I've seen in 20 years following the company. The speed of it has been crazy.' Panic buying is an emotional response to disaster or uncertainty, explained Tyler Schipper, associate professor of economics at the University of St. Thomas. It's often driven by a fear that there will be big price increases or shortages. Home prices record first monthly drop since 2022: Redfin 'The last time people probably saw a lot of panic buying would have been during the pandemic when there wasn't enough hand sanitizer on the shelves. So when you saw it, then you bought four or five big things of sanitizer, and that led to a shortage of goods for the next person,' he said. There may be a decent amount of panic buying going on, Schipper admitted, but finding data on it is hard. It's not easy to tell how many people are stocking up on stuff they don't need (which would be panic buying) or if people are just moving up purchases they would otherwise be making. Automobile sales, for example, have accelerated since the Trump administration's tariff announcements. 'People have pretty clearly moved up buying cars because they're afraid about cars being more expensive in the future,' Schipper said. 'But in a lot of ways, I put that in a different category from panic buying. I think that's people being forward-looking and not wanting to face higher prices, versus going and buying 10 things of hairspray because you're worried about it being more expensive. I think that's in a different category.' What is TikTok Shop, and where does all the stuff come from? If you know you're going to need a new car or stroller or laundry machine soon, Schipper said it may make sense to buy it now. 'You know you're going to have need of a stroller, so you might move that purchase up because it's likely going to be more expensive once current inventory runs out.' Fulfilling a known need is different than buying lots of new undershirts, toys or electronics in case you may need them later. Consumers should strongly consider their overall finances before stocking up, Schipper warned. Racking up credit card debt means you'll be paying more in interest for your panic buying, and you won't end up saving any money after all. As some people go on spending sprees, others are pulling back on spending, nervous about the economy. Those two factors counteracted each other somewhat, the Commerce Department said this month. Retail and restaurant sales rose just 0.1% between March and April. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
25-05-2025
- Business
- The Hill
Are people ‘panic buying'? Economist explains which big purchases you may want to make now
(NEXSTAR) – As the White House announced a slate of tariffs, Americans headed straight to car lots. Reddit threads encouraged expecting parents to act now and secure a car seat and stroller before it's too late. Others questioned whether they should buy Christmas presents now, far ahead of the holiday season. As tariffs have been announced and then scaled back, many consumers are left unsure of what to do and tempted to make big purchases or stock their pantries now in case prices suddenly skyrocket. 'There's panic buying going on and panic selling by investors, too,' Gene Munster, managing partner at Deepwater Asset Management, told the New York Times. 'It's more turmoil than I've seen in 20 years following the company. The speed of it has been crazy.' Panic buying is an emotional response to disaster or uncertainty, explained Tyler Schipper, associate professor of economics at the University of St. Thomas. It's often driven by a fear that there will be big price increases or shortages. 'The last time people probably saw a lot of panic buying would have been during the pandemic when there wasn't enough hand sanitizer on the shelves. So when you saw it, then you bought four or five big things of sanitizer, and that led to a shortage of goods for the next person,' he said. There may be a decent amount of panic buying going on, Schipper admitted, but finding data on it is hard. It's not easy to tell how many people are stocking up on stuff they don't need (which would be panic buying) or if people are just moving up purchases they would otherwise be making. Automobile sales, for example, have accelerated since the Trump administration's tariff announcements. 'People have pretty clearly moved up buying cars because they're afraid about cars being more expensive in the future,' Schipper said. 'But in a lot of ways, I put that in a different category from panic buying. I think that's people being forward-looking and not wanting to face higher prices, versus going and buying 10 things of hairspray because you're worried about it being more expensive. I think that's in a different category.' If you know you're going to need a new car or stroller or laundry machine soon, Schipper said it may make sense to buy it now. 'You know you're going to have need of a stroller, so you might move that purchase up because it's likely going to be more expensive once current inventory runs out.' Fulfilling a known need is different than buying lots of new undershirts, toys or electronics in case you may need them later. Consumers should strongly consider their overall finances before stocking up, Schipper warned. Racking up credit card debt means you'll be paying more in interest for your panic buying, and you won't end up saving any money after all. As some people go on spending sprees, others are pulling back on spending, nervous about the economy. Those two factors counteracted each other somewhat, the Commerce Department said this month. Retail and restaurant sales rose just 0.1% between March and April.
