Latest news with #GPU
Yahoo
7 hours ago
- Business
- Yahoo
Nvidia beats on Q1 revenue, says it expects an additional $8 billion charge on H20 losses in Q2
Nvidia (NVDA) reported its first quarter earnings after the bell on Wednesday beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 chips to China. The company also said it expects to miss out on roughly $8 billion in revenue due to losses from the ban. Nvidia stock was up 2.6% following the announcement For the quarter, Nvidia reported EPS of $0.81 on revenue of $44.1 billion. Analysts' expectations of $0.93 on revenue of $43.3 billion, according to Bloomberg analyst consensus data. The company reported adjusted EPS of $0.61 on revenue of $26 billion in the same period last year. Nvidia's data center segment, its largest business, saw revenue of $39.1 billion, up from $22.5 billion last year, but behind Wall Street expectations of $39.2 billion. Nvidia had to write down $4.5 billion in charges related to the Trump administration's ban on sales of its H20 chip to China. The company announced the news in an April regulatory filing. Nvidia's shares have fluctuated wildly since the start of the year as the company has dealt with setbacks ranging from export controls to concerns related to expected semiconductor tariffs. But a last-minute reprieve from Washington's planned AI diffusion rule, which was put in place by the Biden administration to limit GPU sales to certain countries, and major investment announcements during Trump's visit to the Middle East have increased Nvidia's share price to more than $136 — slightly less than 2% up from the stock's value at the start of the year, and up roughly 20% over the past 12 months as of Wednesday. Nvidia's report follows the company's showing at the annual Computex Taipei trade show in Taiwan, where it showcased new technologies, such as a cloud offering that gives customers access to cloud-based versions of Nvidia's GPUs via third-party providers like CoreWeave (CRWV) and Foxconn ( Read more: How does Nvidia make money? Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. "There is simply no offset to this," Morgan Stanley analyst Joseph Moore wrote in an investor note ahead of the earnings report. "Blackwell demand is very strong ... but they are supply constrained, and lost H20 does not result in more Blackwell supply. We assume that this takes about $1 billion out of the April [quarter] — impact was effective April 7, so 23 days of lost H20 revenue—and about $5 billion of lost revenue in July. We actually think demand for H20 is much higher, driven by the surge of inference in China." According to Reuters, Nvidia is now working on a modified version of the H20 that meets the Trump administration's performance requirements. During a press conference at Computex, Nvidia CEO Jensen Huang came out swinging against the US's policies, saying that they've been a failure and that they benefit China's own AI chipmakers, according to Bloomberg. Nvidia received relief from some export restrictions when the Trump administration axed the Biden administration's planned AI diffusion rules, which would have created a tiered system that determined which countries could purchase AI chips and which required special licenses or couldn't get them at all. The administration plans to introduce a new set of export requirements in the future. The move set up Nvidia's announcement that it will provide hundreds of thousands of GPUs over the next five years to Humain, an artificial intelligence startup backed by Saudi Arabia's sovereign wealth fund. The news came during Trump's trip to the Middle East, which also included the announcement of a second Project Stargate that will be built in the United Arab Emirates using Nvidia's Blackwell systems. "For investors worried about AI capex sustainability, we now have another deep pocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub," Bernstein analyst Stacy Rasgon wrote in an investor note. Read more about Nvidia: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years 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
7 hours ago
- Business
- Yahoo
Nvidia beats on Q1 earnings, but says it expects an additional $8 billion charge on H20 losses
Nvidia (NVDA) reported its first quarter earnings after the bell on Wednesday beating expectations on adjusted earnings per share, revenue, as data center revenue came up short due to the ban on shipments of its H20 chips to China. The company, however, said it expectes to miss out on roughly $8 billion in revenue due to losses from the ban. For the quarter, Nvidia reported adjusted earnings per share (EPS) of $0.96 on revenue of $44.1 billion. Analysts' expectations of $0.93 on revenue of $43.3 billion, according to Bloomberg analyst consensus data. The company reported adjusted EPS of $0.61 on revenue of $26 billion in the same period last year. Nvidia's data center segment, its largest business, saw revenue of $39.1 billion, up from $22.5 billion last year, but behind Wall Street expectations of $39.2 billion. Nvidia had to write down $5.5 billion in charges related to the Trump administration's ban on sales of its H20 chip to China. The company announced the news in an April regulatory filing. Nvidia's shares have fluctuated wildly since the start of the year as the company has dealt with setbacks ranging from export controls to concerns related to expected semiconductor tariffs. But a last-minute reprieve from Washington's planned AI diffusion rule, which was put in place by the Biden administration to limit GPU sales to certain countries, and major investment announcements during Trump's visit to the Middle East have increased Nvidia's share price to more than $136 — slightly less than 2% up from the stock's value at the start of the year, and up roughly 20% over the past 12 months as of Wednesday. Nvidia's report follows the company's showing at the annual Computex Taipei trade show in Taiwan, where it showcased new technologies, such as a cloud offering that gives customers access to cloud-based versions of Nvidia's GPUs via third-party providers like CoreWeave (CRWV) and Foxconn ( Read more: How does Nvidia make money? Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. "There is simply no offset to this," Morgan Stanley analyst Joseph Moore wrote in an investor note ahead of the earnings report. "Blackwell demand is very strong ... but they are supply constrained, and lost H20 does not result in more Blackwell supply. We assume that this takes about $1 billion out of the April [quarter] — impact was effective April 7, so 23 days of lost H20 revenue—and about $5 billion of lost revenue in July. We actually think demand for H20 is much higher, driven by the surge of inference in China." According to Reuters, Nvidia is now working on a modified version of the H20 that meets the Trump administration's performance requirements. During a press conference at Computex, Nvidia CEO Jensen Huang came out swinging against the US's policies, saying that they've been a failure and that they benefit China's own AI chipmakers, according to Bloomberg. Nvidia received relief from some export restrictions when the Trump administration axed the Biden administration's planned AI diffusion rules, which would have created a tiered system that determined which countries could purchase AI chips and which required special licenses or couldn't get them at all. The administration plans to introduce a new set of export requirements in the future. The move set up Nvidia's announcement that it will provide hundreds of thousands of GPUs over the next five years to Humain, an artificial intelligence startup backed by Saudi Arabia's sovereign wealth fund. The news came during Trump's trip to the Middle East, which also included the announcement of a second Project Stargate that will be built in the United Arab Emirates using Nvidia's Blackwell systems. "For investors worried about AI capex sustainability, we now have another deep pocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub," Bernstein analyst Stacy Rasgon wrote in an investor note. Read more about Nvidia: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
Yahoo
18 hours ago
- Business
- Yahoo
Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock
Nvidia (NVDA) will report its fiscal first quarter results after the bell on Wednesday in the most-anticipated earnings announcement of the season. Nvidia stock has fluctuated wildly since the start of the year as the company has dealt with setbacks ranging from the Trump administration's ban on shipments of its H20 chips bound for China to concerns related to expected semiconductor tariffs. But a last-minute reprieve from Washington's planned AI diffusion rule, which was put in place by the Biden administration to limit GPU sales to certain countries, and major investment announcements during Trump's visit to the Middle East have brought Nvidia's share price to $135.50 — 1% over the value at the start of the year, and up roughly 27% over the past 12 months as of Tuesday. Nvidia's report follows the company's showing at the annual Computex Taipei tradeshow in Taiwan, where it showcased new technologies, such as its new cloud offering, which gives customers access to cloud-based versions of Nvidia's GPUs via third-party providers, including CoreWeave (CRWV) and Foxconn ( For the quarter, Nvidia is expected to report adjusted earnings per share (EPS) of $0.88 on revenue of $43.3 billion, according to Bloomberg analyst consensus data. The company reported adjusted EPS of $0.61 on revenue of $26 billion in the same period last year. Wall Street anticipates Nvidia's data center revenue to top out at $39.2 billion, up from $22.5 billion, which works out to a 74% year-over-year increase. Gaming revenue, the company's second-largest segment, is set to hit $2.8 billion, up from $2.6 billion. Read more: How does Nvidia make money? Analysts anticipate Nvidia's China revenue to come in at $6.2 billion, up 150% from the $2.4 billion it sold in the region in Q1 last year. The US is expected to account for $21.6 billion of the company's sales. Nvidia, however, said it will have to write down $5.5 billion in charges related to the Trump administration's ban on sales of its H20 chip. The company announced the news in an April regulatory filing. Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. "There is simply no offset to this," Morgan Stanley analyst Joseph Moore wrote in an investor note ahead of the earnings report. "Blackwell demand is very strong ... but they are supply constrained, and lost H20 does not result in more Blackwell supply. We assume that this takes about $1 bn out of the April [quarter]—impact was effective April 7, so 23 days of lost H20 revenue—and about $5 bn of lost revenue in July. We actually think demand for H20 is much higher, driven by the surge of inference in China." According to Reuters, Nvidia is now working on a modified version of the H20 that meets the Trump administration's performance requirements. During a press conference at Computex, Nvidia CEO Jensen Huang came out swinging against the US's policies, saying that they've been a failure and that they benefit China's own AI chipmakers, according to Bloomberg. Nvidia received relief from some export restrictions when the Trump administration axed the Biden administration's planned AI diffusion rules, which would have created a tiered system that determined which countries could purchase AI chips and which required special licenses or couldn't get them at all. The administration plans to introduce a new set of export requirements in the future. The move set up Nvidia's announcement that it will provide hundreds of thousands of GPUs over the next five years to Humain, an artificial intelligence startup backed by Saudi Arabia's sovereign wealth fund. The news came during Trump's trip to the Middle East, which also included the announcement of a second Project Stargate that will be built in the United Arab Emirates using Nvidia's Blackwell systems. "For investors worried about AI capex sustainability, we now have another deeppocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub," Bernstein analyst Stacy Rasgon wrote in an investor note. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
Yahoo
a day ago
- Business
- Yahoo
Nvidia, Costco, Salesforce.com, Ulta Beauty and Amazon are part of Zacks Earnings Preview
Chicago, IL – May 27, 2025 – releases the list of companies likely to issue earnings surprises. This week's list includes Nvidia NVDA, Costco COST, CRM, Ulta Beauty ULTA and Amazon AMZN. The earnings release from Nvidia is the true highlight of this week's earnings docket, though there are a few other bellwethers on deck to report results as well, including Costco, and Ulta Beauty. We have close to 100 companies reporting results this week, including 14 S&P 500 members. It is no exaggeration to say that Nvidia has emerged as a leader of the broader artificial intelligence (AI) ecosystem, with its chips running the models. The stock has struggled this year, as sentiment on the AI space soured in the aftermath of the DeepSeek announcement in January. There had already been some angst in the market about the ever-rising AI-focused spending by Mag 7 players like Alphabet, Amazon, and Microsoft, with the issue becoming front and center following the DeepSeek announcement. Nvidia is expected to bring in 85 cents in EPS on $42.6 billion in revenues, representing year-over-year changes of +39.3% and +63.7%, respectively. Estimates have been under pressure, with the current 85 cents estimate down from 87 cents a week ago and 93 cents two months back. A big contributing factor to the pressure on estimates has been worries among analysts that Nvidia's near-term margins may face some squeeze as it transitions to the new Blackwell GPU from the Hopper unit. There had been some concern over the last couple of quarters about Nvidia's ability to ramp up Blackwell production efficiently, but all indications are that the ramp-up is proceeding smoothly and the demand for the unit is significantly above what had been experienced in the comparable period the year before for Hopper. Jensen Huang, the Nvidia CEO, noted at a recent industry conference that Blackwell demand from the four largest hyperscalers was running three times as much as was the case from the same customers for Hopper at the comparable period in 2024. The company has outlined a Blackwell Ultra version to follow the full Blackwell ramp-up. While hyperscaler demand over the near-to-medium-term is expected to remain robust, it will eventually taper off. But the recent announcements of major datacenter deals with sovereign wealth funds in the UAE and Saudi Arabia suggest that Nvidia likely has a big runway ahead of it. In terms of valuation, Nvidia shares aren't cheap, but they are hardly the nose-bleed valuation of a couple of years back. With Nvidia as the only Mag 7 member that has yet to report Q1 results, earnings for the group are on track to +27.2% from the same period last year on +12.2% higher revenues. Beyond Nvidia, the earnings focus will remain on big-box retailers, with Costco coming out with results. Costco has been a true category leader, with a higher-income customer group that is loyal to the company's value offerings. Costco is better positioned to navigate the uncertain tariff environment than many other retailers. The company's U.S. business accounts for more than 70% of its revenues, and two-thirds of the merchandise in Costco U.S. is sourced domestically. Of the imported merchandise, roughly one-third of the total comes from China, Mexico, and Canada combined, and no one country is a dominant supplier. Costco is expected to report $4.25 per share in earnings on $63.1 billion in revenues, representing year-over-year changes of +12.4% and +7.9%, respectively. Estimates have inched up since the quarter got underway, with the current $4.25 estimate up from $4.24 a month back and $4.23 two months ago. Costco's earnings and revenues in the current fiscal year (ends in August 2025) are expected to increase +11.5% and +7.9% from the preceding year's levels, respectively. The company remains well-positioned to sustain this growth momentum in the following year as well on the back of mid-single-digit comp growth and growth in membership fee income in high-single digits. No doubt, the stock has been a standout performer, handily outperforming the broader market (+10.3% vs. -1.2%) in the year-to-date period. With respect to the Retail sector 2025 Q1 earnings season scorecard, we now have results from 28 of the 33 retailers in the S&P 500 index. Regular readers know that Zacks has a dedicated stand-alone economic sector for the retail space, unlike the placement of the space in the Consumer Staples and Consumer Discretionary sectors in the Standard & Poor's standard industry classification. The Zacks Retail sector includes Costco, Walmart, other traditional retailers, online vendors like Amazon, and restaurant players. Total Q1 earnings for these 28 retailers that have reported are up +11.2% from the same period last year on +5% higher revenues, with 60.7% beating EPS estimates and only 57.1% beating revenue estimates. The EPS and revenue beats percentages for these companies are tracking significantly below the historical averages for this group of companies. Concerning the elevated earnings growth rate at this stage, we like to show the group's performance with and without Amazon, whose results are among the 28 companies that have reported already. As we know, Amazon's Q1 earnings were up +42.6% on +8.6% higher revenues, beating EPS and top-line expectations. As we all know, the digital and brick-and-mortar operators have been converging for some time now. Amazon is now a decent-sized brick-and-mortar operator after Whole Foods and Walmart is a growing online vendor. This long-standing trend got a huge boost from the COVID-19 lockdowns. Earnings for the group outside of Amazon are down -5% on a +3.8% top-line gain, which points to margin pressures for the group. Through Friday, May 23rd, we have seen Q1 results from 478 S&P 500 members or 95.6% of the index's total membership. With less than two dozen S&P 500 members still to report results at this stage, the Q1 reporting cycle has actually ended for 10 of the 16 Zacks sectors, with just a few companies still left to report for each of the remaining 6 sectors. Earnings for these 478 index members that have reported results are up +11.6% from the same period last year on +4.3% revenue gains, with 74.3% of the companies beating EPS estimates and 63% beating revenue estimates. The EPS and revenue beats percentages are tracking below historical averages, with the Q1 EPS beats percentage of 74.3% comparing to the average for the same group of 78.3% over the preceding 20-quarter period (5 years). The Q1 revenue beats percentage of 63% compares to the 5-year average for this group of index members of 71.1%. Looking at Q1 as a whole, combining the actuals from the 478 S&P 500 members with estimates for the still-to-come companies, the expectation is that earnings will be up +12.3% from the same period last year on +4.6% higher revenues, which would follow the +14.1% earnings growth on +5.7% revenue gains in the preceding period. The magnitude of cuts to 2025 Q2 estimates since the start of the period is bigger and more widespread relative to what we have become used to seeing in the post-COVID period. But you have likely noticed in recent weeks that we have been pointing to signs of stabilization in Tech sector estimates, both for Q2 as well as full-year 2025. We knew something was up, as the early signs of these revision trends started showing up in the data. It may be premature to say that the trend has completely reversed. But it nevertheless shows that the revisions trend has stabilized. For more details about the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> A Closer Look At Retail Earnings Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Bloomberg
2 days ago
- Business
- Bloomberg
Silicon Data Creates First-of-Its-Kind Index for AI Chips
Silicon Data, a market-intelligence firm that focuses on the cost of graphics processing units, created what it says is the first daily index to track the specialized chips vital to powering artificial intelligence. The company's Silicon Data H100 Rental Index tracks the hourly cost of renting a GPU, according to founder and Chief Executive Officer Carmen Li.
