Latest news with #H20
Straits Times
35 minutes ago
- Business
- Straits Times
US tightens China chip curbs by targeting design software: Sources
WASHINGTON – The Trump administration is moving to restrict the sale of chip design software to China, people familiar with the matter said, as the US government evaluates a broader policy announcement on the issue. The Commerce Department's Bureau of Industry and Security sent letters to at least some of the leading providers of electronic design automation, or EDA, on May 23 telling them to halt shipments to Chinese customers, said the people. Top makers of the technology include Cadence Design Systems, Synopsys and Germany's Siemens. Software from Cadence and Synopsys is used to design everything from the highest-end processors for the likes of Nvidia and Apple, as well as simple parts that, for example, regulate power. 'The Commerce Department is reviewing exports of strategic significance to China,' an agency spokesperson said. 'In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.' It's unclear how broad the restrictions will be, although it could mean an effective ban on doing business in China, according to one of the people. Synopsys gets about 16 per cent of its revenue from China, while Cadence gets about 12 per cent. Cadence and Synopsys declined to comment, while Siemens didn't immediately respond to a request for comment. Washington has employed an escalating approach to curbing Beijing's ambitions to build a domestic semiconductor industry. It started by cutting China off from equipment used to make the most advanced electronic components then gradually broadened the impact of the rules. The US has also moved to keep the most advanced semiconductors out of China. Nvidia has been the main target of increasingly strict US export controls – in part because its chips are the gold standard for training artificial-intelligence models. The Trump administration this year banned Nvidia from selling its H20 chips to Chinese customers, the third round of restrictions since 2022. Nvidia chief executive officer Jensen Huang has publicly objected to such restrictions and declared the US policy a 'failure.' Export controls by the US have emerged as a flashpoint in trade negotiations between Washington and Beijing. Chinese officials claiming that US restrictions – along with efforts to pressure allies not to use Huawei Technologies' latest Ascend chip – violated the spirit of recent discussions in Geneva aimed at defusing broader tensions over tariffs on the world's second largest economy by President Donald Trump. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
36 minutes ago
- Business
- Yahoo
Nvidia reports Q1 earnings this week: Here's what to expect
Nvidia's earnings have become some of the most closely watched numbers on Wall Street. The company makes up about 6.5% of the Nasdaq 100 and 5.5% of the S&P 500, so a good quarter can send the Nasdaq index soaring. A marginal or poor one can send it tumbling. Lego's first book nook is an addictively interactive diorama The return-to-office mandate is here. So is the open office. One has to go. Homebuilder unsold inventory swells to 2009 levels: Housing markets to watch On Wednesday, May 28, after the market closes, the innovative chip giant will report its fiscal first-quarter results for 2025, and expectations are once again high. Analysts expect Q1 revenue to grow 66% year over year to $43.28 billion, according to the London Stock Exchange Group (LSEG). That's not the 262% increase it had in Q1 of last year, but it's still an impressive advance. Adjusted earnings are expected to come in at $0.73 per share. Nvidia stock (Nasdaq: NVDA) is already on the rise in advance of earnings, gaining more than 3% as of 3 p.m. ET Tuesday, with shares topping $135. Year to date, shares of NVDA are down 2%. Despite the high hopes, though, Nvidia is facing some substantial obstacles—and investors will be looking to see what sort of impact those will have. Last month, the Trump administration put export limits on Nvidia's H20 chip. That led the company to announce a Q2 write-down of $5.5 billion that was related to inventory and purchase commitments for the chip. The longer-term impact of those restrictions could be worse. David O'Connor, of BNP Paribas, wrote in a note Tuesday: 'This inventory write-off implies a $15 billion H20 revenue hit on a rolling 12-month basis.' The limitations on sales to China could wreak some havoc in the near term for Nvidia. Bank of America analysts warned that guidance for the second quarter could be 'messy,' saying '[Nvidia] could guide [second fiscal quarter revenue] to as low as $41 billion, below recently lowered ~$46 billion consensus.' Earnings per share consensus (an average of analyst expectations) could be lowered significantly as well in the second fiscal quarter. While the short term could be rocky, analysts are more interested in the back half of the year—and will be listening to what the company has to say about the third and fourth quarters. Nvidia is reportedly working on a new chipset for China that would be compliant with the most recent regulations. And big contracts beyond China could potentially help make up any near-term shortfall. Analysts have remained positive in advance of earnings. On Tuesday, Piper Sandler reiterated its 'overweight' rating on the company (meaning a belief that NVDA stock will outperform its peers or the market over the next six to 12 months), saying in a note: 'We advise investors to weather the uncertainty and stay long the stock, as this is likely largely the last wave of negative news for NVDA this year.' And despite its warning, Bank of America maintained its 'buy' rating and price target for Nvidia. It raised that target from $150 to $160 last week following the announcement of a deal with Humain, a subsidiary of Saudi Arabia's Public Investment Fund that is building a massive AI data center. (This deal seems less likely to face restrictions, as the Trump administration has given its blessing to the arrangement, with AI czar David Sacks calling it a 'game-changer in the global AI race.') Nvidia is set to receive an estimated $7 billion in direct contracts from that deal. Phase 1 includes 18,000 Blackwell GPUs valued at roughly $700 million. Bank of America expects 'several hundred thousand of Nvidia's most advanced GPUs' to be shipped over the next five years. Collectively, 87% of the analysts who cover NVDA stock have a buy rating on the company. The share price has increased more than 600% in the past three years, and the company is the second-largest public company in the world by market cap (behind Microsoft) with $3.3 trillion. There are some bears, though. Michael Burry, who rose to prominence by predicting the subprime mortgage crisis in 2008, has purchased put options on the company, essentially betting against it. And other critics question how much longer the robust growth can continue as competitors, such as Huawei, attract clients, and cloud companies, such as Microsoft and Google, work to create their own AI chips. This post originally appeared at to get the Fast Company newsletter: 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
New Straits Times
an hour ago
- Automotive
- New Straits Times
Nvidia discloses more China risks, but CEO praises Trump
SAN FRANCISCO: Even as Nvidia reported another blockbuster quarter of 69 per cent sales growth on Wednesday, the maker of artificial intelligence chips warned of more risks to its business emerging in the technology conflict between the US and China. Tucked into Nvidia's quarterly filing with US securities regulators, Nvidia for the first time said that restrictions on the use of open-source AI models from China such as DeepSeek and Qwen could hurt its business, as could US rules barring connected vehicle technology from China, where Nvidia's long-struggling car chip business has finally flourished. While Nvidia CEO Jensen Huang on a conference call with analysts praised US President Donald Trump's decision to rescind an export rule put in place by President Joe Biden that would have regulated the flow of Nvidia's chips around the world, the company's quarterly filing noted that no new rule had been issued in its place and that a "replacement rule may impose new restrictions on our products or operations." On the other hand, Huang criticized new export curbs imposed by the Trump administration in April. The curbs stop the company from selling its H20 chip made for the Chinese market, which Huang called "a springboard to global success." The export limits cost Nvidia US$2.5 billion in sales during its just-ended fiscal first quarter, and it expects another US$8 billion sales hit during the current fiscal second quarter. Sales of the H20 in China earned Nvidia US$4.6 billion in revenue as customers stockpiled the chips before the curbs set in. The China business accounted for 12.5 per cent of overall revenue. "The question is not whether China will have AI - it already does. The question is whether one of the world's largest AI markets will run on American platforms," Huang said, later adding that "AI export controls should strengthen US platforms, not drive half of the world's AI talent to rivals." Huang also argued that keeping Chinese open-source models such as DeepSeek and Qwen running on Nvidia chips provides US firms with valuable insight on where the global AI industry is headed. "US platforms must remain the preferred platform for open-source AI," he said. "That means supporting collaboration with top developers globally, including in China. America wins when models like DeepSeek and Qwen run best on American infrastructure." SALES GROWTH POWERS ON Despite the curbs, Nvidia forecast sales of US$45 billion, plus or minus 2 per cent, in the second quarter, only slightly below analysts' average estimate of US$45.90 billion, according to data compiled by LSEG. That would imply growth of about 50 per cent from a year earlier. Executives also highlighted deals worth potentially billions of dollars in the coming months and years in Saudi Arabia, the United Arab Emirates and Taiwan, sending Nvidia shares up after hours and leading analysts to conclude the impact of US-China trade tensions was not as bad as feared. "Rather than downplay the China hit, (Huang) contextualised it as a known, manageable speed bump in an otherwise hyper-accelerated growth narrative," said Michael Ashley Schulman, chief investment officer of Running Point Capital. In his praise for Trump, Huang highlighted the President's deal-filled tour of the Middle East. "President Trump wants US tech to lead," Huang said. "The deals he announced are wins for America, creating jobs, advancing infrastructure, generating tax revenue and reducing the US trade deficit." Huang also said that he agreed with a vision expressed by cabinet officials such as Commerce Secretary Howard Lutnick of bringing factories back to the United States and staffing them with robots.
Economic Times
an hour ago
- Business
- Economic Times
Nvidia shares rise as sales hit from China export curbs not as bad as feared
Nvidia beat quarterly sales expectations as customers stockpiled its AI chips before fresh U.S. curbs on China exports took effect, but the same restrictions will slice off $8 billion in sales from the company's current quarter, forcing the company to offer a forecast below Wall Street estimates on Wednesday. ADVERTISEMENT Shares of the world's most valuable semiconductor firm still rose 5% in extended trading as investors digested news that the hit in the current fiscal second quarter was not as bad as feared, and Nvidia talked up demand for its new Blackwell chips from customers including Microsoft. The stock is relatively flat so far this year, compared with 2024 when the shares nearly tripled in value. Nvidia now faces trade restrictions on what it can sell, and the AI data center market is also maturing. Washington's years-long efforts to thwart Beijing's access to top-of-the-line U.S. technology have resulted in stricter restrictions on the export of Nvidia's AI chips - stifling the company's access to one of the largest markets for semiconductors. Midway through a conference call with analysts, CEO Jensen Huang made impassioned remarks about U.S.-China policy, saying that Nvidia was at risk of being cut off from China's massive AI developer base and arguing that China's chip industry was sophisticated and closing in on the United States' dominance. But he praised U.S. President Donald Trump's recent move to rescind a so-called AI diffusion rule that would have regulated global flows of U.S. AI chips. "President Trump wants America to win. And he also realizes that we're not the only country in the race," Huang said. Huang told analysts that Nvidia's Hopper chips could no longer be modified for the Chinese market but did not comment on its Blackwell chips. Reuters has reported that Nvidia is preparing a Blackwell variant for the Chinese market. Though unlikely to make up for the loss in Chinese revenue, a spate of new deals that Nvidia signed earlier this month in the Middle East could offer fresh avenues of growth - including the first phases of a 10-square-mile data center site in the United Arab Emirates that could eventually use 5 gigawatts' worth of AI infrastructure. The company has also announced similar deals in Saudi Arabia and Taiwan. "We have a line of sight to projects requiring tens of gigawatts of Nvidia AI infrastructure in the not-too-distant future," Nvidia Chief Financial Officer Colette Kress said on the conference call. ADVERTISEMENT But in the shorter term, restrictions on China exports will hurt. Kress said data center revenue in that country declined. U.S. restrictions on the sale of Nvidia's H20 chips to China, the only AI processors it could legally export to the country, prompted Nvidia to disclose in April that it expected a $5.5 billion charge, while Huang had in May pegged the revenue impact related to the restrictions at about $15 billion. On Wednesday, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. It said it lost $2.5 billion in H20 sales in the first quarter and expected to miss $8 billion in the second quarter. ADVERTISEMENT However, Nvidia also said the H20 brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue in the first quarter. Gil Luria, an analyst with D.A. Davidson, said the overall impact of the H20 restrictions was less than feared. ADVERTISEMENT "There was a removal of some China revenue from the July quarter guides, but there was also China revenue that was pulled into the first quarter. Chinese buyers were stocking up on H20 ahead of the restrictions, which is what propped up the April quarter," Luria said. Though major cloud companies such as Microsoft and Alphabet have stood their ground on the billions they have earmarked this year for spending on expanding infrastructure for AI data centers, worries about such spending persist amid rapidly changing global trade policies. ADVERTISEMENT On an adjusted basis, Nvidia earned 81 cents per share in the first quarter. Analyst estimates varied widely as Wall Street tried to assess the impact of restrictions on some of Nvidia's chip sales to China. Excluding the charges, first-quarter adjusted earnings per share would have been 96 cents. According to data compiled by LSEG, the estimate for the company's adjusted quarterly earnings was 93 cents per share, with 17 analysts providing estimates after April 15 when Nvidia said H20 shipments would require additional licenses. Nvidia's data center segment revenue was $39.1 billion in the first quarter, compared with analyst estimates of $39.3 billion, according to LSEG data. The company said it has $29.8 billion in commitments to have its products manufactured, an increase from the year before but down quarter-over-quarter. Nvidia, a bellwether of the artificial-intelligence market, expects revenue of $45 billion, plus or minus 2%, in the second quarter, compared with analysts' average estimate of $45.90 billion, according to data compiled by LSEG. The forecast includes a loss in H20 revenue of about $8 billion due to the recent export limitations. "The broader concern is that trade tensions and potential tariff impacts on data center expansion could create headwinds for AI chip demand in upcoming quarters," said Emarketer analyst Jacob Bourne. "This doesn't signal an end to Nvidia's dominance, but highlights that sustaining it will require navigating an increasingly complex landscape of geopolitical, competitive, and economic challenges." (You can now subscribe to our ETMarkets WhatsApp channel)
Yahoo
an hour ago
- Business
- Yahoo
Watch These Nvidia Price Levels as Stock Surges After Strong Earnings Report
Nvidia shares jumped in extended trading on Wednesday after the chip giant surpassed Wall Street's quarterly revenue expectations amid booming AI demand. The stock has broken out from a flag pattern, a move that has coincided with the 50-day moving average crossing above the 200-day MA to form a bullish golden cross. Investors should watch major overhead areas on Nvidia's chart around $143, $150 and $160, while also monitoring a crucial support level near $ (NVDA) shares jumped in extended trading on Wednesday after the AI chipmaker surpassed Wall Street's quarterly revenue expectations. The company announced after the closing bell that its fiscal first-quarter sales rose 69% to a record $44.06 billion, as major technology companies continue to ramp up spending on AI infrastructure. Profit was lower than analysts had estimated, as the company recorded a $4.5 billion charge in the quarter due to restrictions on the sale of its H20 chips to China, though the amount was less than the $5.5 billion the company said it anticipated last month. CEO Jensen Huang said global demand for Nvidia's AI infrastructure remains "incredibly strong", adding that he sees accelerating demand for AI computing with the use of AI agents becoming mainstream. Nvidia shares slumped between January and early April amid concerns of a slowdown in AI spending and the Trump administration's unpredictable trade policies. However, the stock has rebounded 56% from last month's low as trade tensions eased and the chipmaker announced a partnership with an AI subsidiary of Saudi Arabia's sovereign wealth fund. The stock rose nearly 5% to just above $141 in after-hours trading Wednesday. The stock hasn't traded above $140 during regular trading hours since February. Below, we dial into Nvidia's four-hour chart and apply technical analysis to identify major price levels that investors will likely be watching. Nvidia shares rallied sharply after breaking out from a pennant earlier this month, before consolidating again within a flag pattern above the closely watched 200-day moving average (MA). More recently, the stock has broken out above the flag pattern's upper trendline, a move that has coincided with the 50-day moving average crossing above the 200-day MA to form a bullish golden cross. Indeed, the stock's upside momentum looks set to continue, though investors should watch if trading volume confirms the move higher. During the lead-up to earnings, share turnover had declined, indicating investors remained on the sidelines ahead of the highly anticipated results. Let's identify three major overhead areas on Nvidia's chart to watch if the stock continues tracking higher and also locate a support level worth monitoring during potential retracements. Investors should initially keep their eyes peeled on the $143 area. The shares may run into overhead resistance at this level near the prominent mid-February swing high, which also closely corresponds with a range of trading activity on the chart extending back to late October. A close above this area could see the shares climb to around $150. Investors who have averaged into the stock at lower prices may decide to lock in profits in this location near several peaks that formed on the chart between November and January just below the stock's record high. To projects an upside price target if the stock moves into price discovery mode, investors can use the bars pattern tool. When applying the analysis to Nvidia's chart, we take the strong move higher that preceded the flag and reposition it from the pattern's breakout point. This projects a target of around $160, nearly 20% above Wednesday's closing price. During retracements, it's worth monitoring the $130 level. Investors may look for buying opportunities in this region near a multi-month horizontal line that connects the bottom of the flag pattern with a series of peaks and troughs on the chart stretching back to August last year. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
