Latest news with #GTC
CNBC
7 hours ago
- Business
- CNBC
We're raising our Nvidia price target after a great quarter and rosy guidance
Nvidia shares jumped in extended trading Wednesday evening after the AI chipmaker reported better-than-expected quarterly revenue and earnings. It also provided an upbeat view of its current second quarter despite restrictions on what it can sell to China. Revenue in its fiscal 2026 first quarter increased 69% year over year to $44.06 billion, beating the $43.31 billion the Street was looking for, according to estimates compiled by data provider LSEG. Adjusted earnings per share increased 57% year over year to 96 cents in the three-month period ended April 27, exceeding the consensus of 93 cents, LSEG data showed. Both EPS and the quarterly estimate excluded charges related to the H20 chip ban in China. Why we own it Nvidia's high-performance graphic processing units (GPUs) are the key driver behind the AI revolution, powering the accelerated data centers being rapidly built around the world. But Nvidia is more than just a hardware story. Through its Nvidia AI Enterprise service, Nvidia is building out its software business. Competitors : Advanced Micro Devices and Intel Most recent buy : Aug 31, 2022 Initiation : March 2019 Bottom line Nvidia's results are proof that there has been no slowdown in the buildout of AI. During the post-earnings conference call, CEO Jensen Huang pointed out four positive surprises since the company's annual GTC event in March that have driven a surge in demand. The first surprise was advancements in reasoning AI, which is included in popular large language models like ChatGPT. According to Huang, reasoning models are creating a step function surge in inference demand, which in turn increases the demand for chips because they are extremely compute-intensive. Another positive surprise was the rescinding of the so-called AI diffusion rules, which ended right at the same time that countries woke up to the importance of AI as an infrastructure, according to Huang. A third positive surprise was the development of enterprise AI agents, which he called "game-changing." The fourth and last surprise is related to industrial AI, and all the on-shoring manufacturing and the building of plants around the world, creating demand for the Nvidia Omniverse. These are important callouts, as they underscore the rapid pace of advancements in artificial intelligence, which continues to drive strong demand for Nvidia's chips. The growing integration of AI into everyday life further reinforces this trend. This is clear evidence that the AI story is still in its early innings. NVDA YTD mountain Nvidia YTD Accordingly, we're raising our price target to $170 from $165. But given Nvidia's rapid 55% stock rise from its 52-week low on April 4 through Wednesday's close of $134, we are keeping our hold-equivalent 2 rating. In after-hours trading, shares added another 5%. Commentary Heading into earnings , some of our key questions centered on the Blackwell ramp, Sovereign AI, hyperscaler demand, and developments in China. 1. Blackwell : After some early supply chain issues, the ramp of the new Blackwell superchip called GB200 has gone well. Despite the vast complexities of building it, Nvidia saw a significant improvement in manufacturing yields and an increase in rack shipments to customers. Blackwell contributed 70% of the $34.16 billion of data center compute revenue in the quarter. Overall, data center revenues, which also included networking sales, increased 73% year over year to $39.1 billion, slightly missing estimates of $39.36 billion, according to FactSet. Nvidia is always innovating its chipsets, making them more powerful and efficient with every new iteration, but also backwards compatible. The next product on its roadmap is the Blackwell Ultra or GB300. The company said samplings of these systems began earlier this month at the major cloud service providers, and it expects production shipments to start later this quarter. Nvidia is anticipating a smooth ramp of the Blackwell Ultra based on what it learned from Blackwell. 2. Sovereign AI: During the call, Huang called Sovereign AI "a new growth engine" for the company as countries around the world build out national AI factories. " Countries are racing to build national AI platforms to elevate their digital capabilities," the CEO said. Later, he likened the need for countries to invest in AI infrastructure to their past investments in electricity and the internet. Rules on how countries are purchasing AI chips from Nvidia have been dynamic lately, with President Donald Trump ending the AI diffusion rules in favor of a new policy to promote AI tech with trusted partners. One way is through trade agreements, like what we saw out of the Middle East a few weeks ago. Next up could be Europe. Huang said he will be traveling through the continent next week and " just about every country needs to build out AI infrastructure and there are umpteen AI factories being planned." 3. Hyperscalers : There's been no let-up or digestion in demand from the so-called hyperscalers, which is another term for large data center and cloud service providers like Alphabet and Oracle as well as Club names Amazon , Microsoft , and Meta Platforms . They all signaled alongside, their latest earnings reports, their intentions to keep spending aggressively on AI. Nvidia said Wednesday that on average, major hyperscalers are each deploying nearly 1,000 NVL72 racks or 72,000 Blackwell GPUs per week and are on track to further increase output this quarter. One example that CFO Colette Kress gave was that Microsoft has already deployed tens of thousands of Blackwell GPUs, but that's expected to increase to the hundreds of thousands. 4. China : As for its business in China, Nvidia shipped out $4.6 billion worth of H20s prior to the new export licensing requirement. It was unable to ship an additional $2.5 billion of H20 revenue in the quarter. The export license changes, which went into effect in mid-April, caused the company to disclose it will record a $5.5 billion charge in the quarter tied to H20 inventory, purchase commitments, and "related reserves." In a bit of good news, Nvidia said Wednesday it only had to record a $4.5 billion charge this quarter, less than originally anticipated, because it was able to reuse certain materials. Nvidia said it is still evaluating its options to supply chips to the region in compliance with the U.S. government's export control rules. Reuters reported over the weekend that Nvidia is planning mass production of a new AI chip for China that is compliant with restrictions. Huang said on the earnings call that Nvidia does not have anything right now to announce, but the company is "considering it" and "thinking about it." Losing access to the China AI accelerator market would have a material adverse impact on Nvidia's business, Kress said on the earnings call, a market she thinks will grow to nearly $50 billion. Huang echoed that sentiment in an interview with Jim Cramer for Wednesday evening's "Mad Money." Huang said that trade with China is important if the U.S. wants to be the global AI leader. "There are so many developers there [in China], and because the world is going to adopt technology from one country or another — and we prefer it to be the American technology stack," the CEO told Jim. Guidance Looking at Nvidia's fiscal 2026 second quarter outlook, the company expects revenue to be approximately $45 billion, plus or minus 2%. This view was slightly below the consensus estimate of $45.9 billion, according to LSEG. However, it reflects a loss of approximately $8 billion in H20 revenue due to the export control limitations. Moving down the line, Nvidia expects fiscal Q2 adjusted gross margins of 72%, plus or minus 50 basis points. That's roughly inline with the 72.1% expected per FactSet. According to an earnings snapshot note from Truist, Nvidia's implied fiscal second quarter EPS guidance is 98 cents at the midpoint, one penny shy of the 99-cent consensus, according to LSEG. This is pretty solid considering the loss of sales of H20 chips in China. (Jim Cramer's Charitable Trust is long NVDA, AMZN, META, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
STV News
3 days ago
- STV News
Teacher defrauded 'vulnerable' family friend to pay for rent and shopping trips
A teacher has been banned from the profession for using her power of attorney to steal money from a 'vulnerable' pensioner. The supply teacher, who was granted anonymity by the General Teaching Council (GTC), pleaded guilty to fraudulently obtaining access to an elderly family friend's bank account to pay her own rent, go shopping, and buy petrol. She was found to have activated power of attorney when it wasn't necessary or appropriate by taking a bank card to the person's bank account without consent between May 2021 and March 2023. Purchases were made from Amazon, Klarna, Clearpay, various petrol stations, Tesco, M&S and ASDA. A report by the GTC found that the family friend was vulnerable, elderly and housebound. The teacher sentenced to do 150 hours of unpaid work and pay compensation at Hamilton Sheriff Court. Following her sentencing, the GTC for Scotland opened an investigation and found her fitness to teach to be 'impaired'. The teacher, who is now retired, told the panel she was borrowing the funds as a 'short-term measure', but fully accepts the borrowing was in fact a fraud and expressed 'considerable remorse' for her actions. She said a number of factors resulted in her behaviour, including her requirement to shield during the Covid pandemic that impacted her ability to earn an income. She added she was under financial pressure, being in rent arrears, various debts, and having health struggles. She told the panel none of these circumstances impact her life now, and said the sums taken were repaid. The GTC panel considered this but said an informed member of the public would be 'concerned' over the conduct the teacher directed against a vulnerable person whilst in a position of trust. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Express Tribune
5 days ago
- Business
- Express Tribune
Nvidia to launch cheaper AI chip for China, mass production set for June
Nvidia CEO Jensen Huang delivers the keynote for the Nvidia GPU Technology Conference (GTC) at the SAP Center in San Jose, California, US March 18, 2025. PHOTO: REUTERS Listen to article Nvidia will launch a new artificial intelligence chipset for China at a significantly lower price than its recently restricted H20 model and plans to start mass production as early as June, sources familiar with the matter said. The GPU or graphics processing unit will be part of Nvidia's latest generation Blackwell-architecture AI processors and is expected to be priced between $6,500 and $8,000, well below the $10,000-$12,000 the H20 sold for, according to two of the sources. The lower price reflects its weaker specifications and simpler manufacturing requirements. It will be based on Nvidia's RTX Pro 6000D, a server-class graphics processor and will use conventional GDDR7 memory instead of more advanced high bandwidth memory, the two sources said. They added it would not use Taiwan Semiconductor Manufacturing Co's advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging technology. The new chip's price, specifications and production timing have not previously been reported. The three sources Reuters spoke to for this article declined to be identified as they were not authorised to speak to media. An Nvidia spokesperson said the company was still evaluating its "limited" options. "Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China's $50 billion data center market." TSMC declined to comment. Market share plunge China remains a huge market for Nvidia, accounting for 13% of its sales in the past financial year. It's the third time that Nvidia has had to tailor a GPU for the world's second-largest economy after restrictions from US authorities who are keen to stymie Chinese technological development. After the US effectively banned the H20 in April, Nvidia initially considered developing a downgraded version of the H20 for China, sources have said, but that plan didn't work out. Nvidia CEO Jensen Huang said last week the company's older Hopper architecture - which the H20 uses - can no longer accommodate further modifications under current US export restrictions. Reuters was unable to determine the product's final name. Chinese brokerage GF Securities said in a note published on Tuesday that the new GPU would likely be called the 6000D or the B40, though it did not disclose pricing or cite sources for the information. According to two of the sources, Nvidia is also developing another Blackwell-architecture chip for China that is set to begin production as early as September. Reuters was not immediately able to confirm specifications of that variant. Nvidia's market share in China has plummeted from 95% before 2022, when US export curbs that impacted its products began, to 50% currently, Huang told reporters in Taipei this week. Its main competitor is Huawei which produces the Ascend 910B chip. Huang also warned that if US export curbs continue, more Chinese customers will buy Huawei's chips. The H20 ban forced Nvidia to write off $5.5 billion in inventory and Huang told the Stratechery podcast on Monday that the company also had to walk away from $15 billion in sales. The latest export restrictions introduced new limits on GPU memory bandwidth - a crucial metric measuring data transmission speeds between the main processor and memory chips. This capability is particularly important for AI workloads that require extensive data processing. Investment bank Jefferies estimates that the new regulations cap memory bandwidth at 1.7-1.8 terabytes per second. That compares with the 4 terabytes per second that the H20 is capable of. GF Securities forecast the new GPU will achieve approximately 1.7 terabytes per second using GDDR7 memory technology, just within the export control limits.
Globe and Mail
20-05-2025
- Business
- Globe and Mail
NextPlat (NASDAQ: NXPL) Named Exclusive UK and EEA Distributor for ZOLEO Satellite Devices
NextPlat (NASDAQ: NXPL, NXPLW) announced that its subsidiary, Global Telesat Communications Ltd (GTC), has been appointed the exclusive distributor for ZOLEO Inc. across the UK and European Economic Area. ZOLEO's flagship global satellite communicator extends smartphone messaging coverage via the Iridium(R) satellite network and has earned accolades including Outdoor Retailer's Innovation Award 'Product of the Year.' The partnership adds to GTC's expanding e-commerce and Amazon storefront portfolio of satellite connectivity solutions for remote workers, outdoor enthusiasts, and global travelers. To view the full press release, visit: About NextPlat Corp NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets including technology and healthcare. Through acquisitions, joint ventures and collaborations, the company intends to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-commerce presence and revenue. NextPlat currently operates an e-commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in the United States through its subsidiary, Progressive Care Inc. About TechMediaWire TechMediaWire ('TMW') is a specialized communications platform with a focus on pioneering public and private companies driving the future of technology. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, TMW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today's market, TMW brings its clients unparalleled recognition and brand awareness. TMW is where breaking news, insightful content and actionable information converge. To receive SMS alerts from TechMediaWire, text 'TECH' to 888-902-4192 (U.S. Mobile Phones Only) For more information, please visit Please see full terms of use and disclaimers on the TechMediaWire website applicable to all content provided by TMW, wherever published or re-published: TechMediaWire is powered by IBN
Business Wire
20-05-2025
- Business
- Business Wire
Summit Health Announces Internalization of Genomic Testing Cooperative State-of-The-Art Next Generation Sequencing DNA and RNA Profiling Tests for Tissue and Liquid Biopsy of Solid Tumors and Hematologic Neoplasms
LAKE FOREST, Calif. & WOODLAND PARK, N.J.--(BUSINESS WIRE)-- Summit Health, part of Village MD and Genomic Testing Cooperative (GTC), the global leader in RNA innovation, are excited to announce today the launch of a newly established next generation sequencing service at the Summit Health laboratory in Woodland Park, NJ to offer comprehensive DNA and RNA profiling of solid tumors and hematologic neoplasms. The internalized GTC testing menu includes tissue and bone marrow-based DNA and RNA next generation sequencing of hematologic neoplasms and solid tumors. Summit Health will now offer GTC's peripheral blood and CSF-based liquid biopsy, Liquid Trace. This revolutionary liquid biopsy assay analyzes cell free DNA and RNA (cfDNA and cfRNA) for hematologic neoplasms and solid tumors. This testing provides Summit/Village MD clinicians with a comprehensive precision diagnosis and monitoring tools to deliver state-of-the-art precision care for their patients. By running the tests locally in-house, Summit Health will reduce their send-out burden to multiple labs, standardize collection of data, shorten turn-around time and have the opportunity to participate in R&D, clinical trials and the development of IP. As a member of the GTC Co-Op group, Summit Health will gain access to cutting-edge scientific capabilities, access to a pipeline of innovation in diagnostics, and proprietary technology and datasets for R&D. "We are very thrilled to partner with GTC in internalizing and adopting their comprehensive portfolio of tissue and liquid biopsy tests for hematologic neoplasms and solid tumors. We believe that this testing is currently essential for the practice of precision medicine,' said Dr. Gordana Katava, DO, Chief of Pathology and Laboratory Medicine, Summit Health/Village MD. Dr. Maher Albitar, Founder, CEO and Chief Medical Officer at GTC, stated, 'We are excited to add Summit and Village MD physicians to our Co-Op network. GTC was established on the promise of democratizing genomic science and next generation sequencing. This partnership is a step forward toward achieving our goal,' Dr. Albitar added. 'The Co-OP model is not only standardizing next generation sequencing, but also providing ecosystem for cooperation, sharing knowledge and AI-based software, and reducing cost of internalizing NGS.' About Summit Health Summit Health, which is a part of VillageMD, helps patients with all their comprehensive primary care and multi-specialty care needs. Whether it's getting annual checkups, raising a family, or prioritizing healthy aging, Summit Health works as a team to deliver care that helps patients make the right choices and stay a step ahead of any issues. Summit Health offers high-quality connected care services covering nearly every medical specialty including orthopedics, urology, dermatology, cardiology, gastroenterology, and more. When patients need urgent care, they can visit Summit Health's urgent care partner, CityMD, which has 180+ locations throughout N.Y. and N.J. Together, Summit Health and CityMD are one connected care team. About GTC Genomic Testing Cooperative [GTC], the global leader in RNA innovation, is a privately owned molecular testing company located in Lake Forest, California. Since its inception in 2018 GTC has been focused on facilitating the acceleration of access to NGS enabled precision medicine in Oncology through innovative science and differentiated business models and practices and has grown through the realization of these strategies to become a leading partner/provider in the Oncology NGS space helping healthcare organizations to tackle the biggest problems in Next Generation Sequencing for Oncology today. Forward Looking Statements All the statements, expectations and assumptions contained in this press release are forward-looking statements. Such forward-looking statements are based on GTC and Summit Health management's current expectations and include statements regarding the value of Molecular profiling, testing, therapy, and the ability of testing to provide clinically useful information. All information in this press release is as of the date of the release, and Summit Health or GTC undertake no duty to update this information unless required by law.
