Latest news with #Hopper
CNBC
4 hours ago
- Business
- CNBC
Travelers are taking ‘a more frugal approach' to summer vacations this year, expert says
Earlier this spring, consumers were feeling good about their summer vacation prospects. More people were planning to take a trip compared to last year, and summer travel budgets were up, too, according to a new report from Deloitte. But just a few weeks later — after President Donald Trump announced widescale tariffs and the stock market dropped precipitously, bubbling up recession fears — some would-be vacationers abruptly scaled back their spending plans, a second round of the survey found. About 53% of respondents plan to take leisure vacations this summer, up from 48% in 2024, according to a new report by Deloitte. The report is based on two surveys: one was conducted between March 26 and April 1, 2025, and another between April 7 and April 9. The first survey reached 1,794 travelers and 2,132 non-travelers while the second reached 1,064 travelers and 880 non-travelers. Initially, Deloitte found, the average summer travel budget was set to grow 21% year over year, to $4,967. In the second round of the survey, travelers expected to spend just 13% more than last year, or about $4,606. When looking at budgets for their longest trip of the season, respondents initially planned to spend an average $3,987, 13% more than 2024. That anticipated budget declined to $3,471 in the second poll, an increase of less than 1% from a year ago. More from Personal Finance:Trade tensions drive consumers to cut backStudent loan borrowers brace for wage garnishmentHouse Republican tax bill favors the rich — how much they stand to gain, and why Deloitte conducted a second poll because the firm noticed "softness" in consumer spending across other areas of their research, said Kate Ferrara, the transportation, hospitality and services sector leader at Deloitte. "We still see a strong summer travel season, but perhaps with a more frugal approach," said Ferrara. Broadly, travel costs have declined, which may help travelers looking to stretch their budget. Hotel room rates are down 2.4% from a year ago, according to a recent report by NerdWallet. Rental car costs are also down 2.1% in that same timeframe, while airfares are down 7.9%. Round-trip domestic airfare for this summer is averaging $265 per ticket, according to the 2025 summer outlook by Hopper, a travel site. That's down 3% from $274 in 2024 and down 8% since 2019, the lowest level in three years. Travel costs for international travel are generally down, said Hayley Berg, the lead economist at Hopper. The average round-trip airfare between the U.S. and Europe, the most popular international destination, costs $850 per ticket this summer, down 8% from 2024, Hopper found. In spite of slightly lower prices for travel, people are generally spending more due to inflation, and might have less leftover money to spend on non-essential items like travel, said Deloitte's Ferrara. Of those who reduced their summer travel budgets, 34% of respondents plan to cut back on their in-destination spending activity, such as food or paid guided excursions, Deloitte found. About 30% plan to stay with family and friends instead of paying for lodging, and 21% chose to drive instead of flying to their destination. You can also save money this summer if you can be flexible with things like when you take the time off, your destination, what you do while you're there and your mode of transportation, experts say. "The root of all of our hacks for saving this summer is flexibility," said Berg. Airfare tends to spike or be higher during federal holiday weekends like the Fourth of July and Labor Day, Hopper found. This year, prices on these weekends will be about 34% higher compared to other weekends. Instead of flying in the middle of the summer, consider delaying trips toward the end of the season, in late August or even early September, Berg said. Both price and travel demand will typically drop off by then as the new school year starts and employees go back to regular work schedules, she said. What's more, flying in the middle of the week can help save as much as 20% on airfare, per the site's report. Traveling on a Tuesday or Wednesday can also help vacationers save about $67 on a round trip domestic flight this summer, Hopper found. That flexibility can help travelers save over $100 on international trips to Europe or Asia.
Arabian Post
8 hours ago
- Business
- Arabian Post
Nvidia Chief Sounds Alarm Over China's AI Surge Amid U.S. Export Controls
Nvidia CEO Jensen Huang has issued a stark warning that U.S. export restrictions on advanced semiconductors are inadvertently accelerating China's progress in artificial intelligence , potentially undermining America's technological leadership. Huang contends that the sanctions, intended to curb China's access to cutting-edge AI chips, have instead galvanized Chinese firms to develop domestic alternatives. 'The Chinese competitors have evolved,' Huang remarked, highlighting Huawei's rapid advancements. He emphasized that companies like Tencent are significantly enhancing their capabilities annually, indicating a swift narrowing of the technological gap. The U.S. government's export controls, initiated in October 2022, aimed to limit China's access to advanced computing and semiconductor manufacturing items, citing national security concerns. These measures have restricted Nvidia from selling its high-performance AI chips, such as the Hopper series, to Chinese firms. Consequently, Nvidia anticipates an $8 billion revenue loss in the current quarter due to the curbs, following a $4.5 billion charge in the previous quarter. ADVERTISEMENT Despite these setbacks, Nvidia reported a 69% year-over-year revenue increase, reaching $44.1 billion in the first quarter. This surge is attributed to global demand for AI infrastructure, with significant growth observed in markets like the Middle East and Taiwan. However, the loss of the Chinese market, previously accounting for a substantial portion of Nvidia's sales, poses a significant challenge. Huang criticized the underlying assumption of U.S. policy that China lacks the capability to produce advanced AI chips. 'That assumption was always questionable, and now it's clearly wrong,' he stated, noting that China's AI ecosystem is rapidly maturing. He warned that shielding Chinese chipmakers from U.S. competition only strengthens them abroad and weakens America's position. The impact of U.S. sanctions has been profound. Nvidia's market share in China has plummeted from 95% before 2022 to 50% currently. In response, the company is developing a variant of its Blackwell AI chip tailored for the Chinese market, aiming to comply with export regulations while maintaining a presence in the region. Chinese companies have seized the opportunity to fill the void left by U.S. firms. Huawei, for instance, has made significant strides in AI hardware, reportedly outperforming Nvidia in certain benchmarks despite using less sophisticated chips. Similarly, Cambricon Technologies has experienced a resurgence, achieving its first-ever quarterly profit and seeing a 383% rise in shares in 2024, driven by increased domestic demand for AI processors. The broader implications of these developments are significant. China's 'Made in China 2025' initiative, aimed at achieving self-sufficiency in key technologies, has gained momentum. The country has achieved global leadership in several sectors, including electric vehicles and solar panels, and is rapidly closing the gap in others.
Yahoo
21 hours ago
- Business
- Yahoo
Analyst resets Nvidia stock price target after CEO slams U.S. chip policy
Analyst resets Nvidia stock price target after CEO slams U.S. chip policy originally appeared on TheStreet. Jensen Huang does not hide his frustration with U.S. chip policies. On Nvidia's latest earnings call, the CEO said the $50 billion market for AI chips in China is now 'effectively closed to U.S. industry.' That followed the U.S. government's April decision to require Nvidia's H20 processor, previously approved for China, to obtain an export license. 💵💰💰💵 As a result, the chipmaker booked a $4.5 billion charge for the fiscal first quarter, ended April 27, and added that it would have recorded an additional $2.5 billion in revenue without the restriction. 'The H20 export ban ended our Hopper data-center business in China,' Huang said. Nvidia wasn't the only company caught in the geopolitical crossfire. Hours before its earnings report, shares of chip-design firms Cadence () and Synopsys () slid after the Financial Times reported that the Trump administration had told them to stop selling software to customers in China. Nvidia is the top supplier of graphics-processing units, which are essential to power and train large AI models worldwide. China remains a key market for Nvidia, accounting for 13% of its sales in the past financial year. To adapt to the new rules, the company plans to launch a cheaper AI chip for the Chinese market, with production set to begin as early as September, according to Reuters. While Huang has long warned that export controls could hurt U.S. chipmakers, some experts argue that policymakers could hardly reverse course as broader national-security interests justify the tradeoffs. 'U.S. semiconductor policy isn't about one firm's earnings or market access — it's about protecting America's strategic edge in a high-stakes geopolitical contest,' Dewardric McNeal, managing director at Longview Global, wrote on CNBC.'Sometimes that means stepping back from markets that were never going to remain open anyway,' he added. Even so, Nvidia stock () performed well. The stock rose 3.25% to close at $139.19 on May 29 — a sharp contrast to the previous quarter, when it plunged 8.48% after the company reported earnings. Back in 2022, Huang cautioned that U.S. export controls could significantly harm Nvidia by restricting its ability to sell advanced chips to China. Since then, Nvidia's stock has increased roughly tenfold, and data-center revenue has grown at a remarkable pace, driven by demand across the U.S., Europe, and the Gulf States. In fiscal 2024, revenue for the data-center segment tripled (up 217%) year over year. That growth trend continued this quarter. On May 28, Nvidia reported adjusted earnings of 96 cents per share on $44.06 billion in revenue for its fiscal first quarter, beating Wall Street's expectations of 93 cents and $43.31 billion. The company forecasts $45 billion, plus or minus 2%, of revenue for the July quarter, while analysts had projected $45.9 billion. But it noted that the figure would have been roughly $8 billion higher without the China export curbs. Gross margin came in at 61%, but would have been 71.3% without the H20-related inventory charge. Despite rising tensions between Washington and Beijing, Nvidia's core business remains in expansion mode. 'Global demand for Nvidia's AI infrastructure is incredibly strong,' Huang said in a statement. "Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation,' he added. Since April 4, when the stock hit a recent bottom price of $94.31, it has surged by more than 47%. Bank of America has lifted its price target for Nvidia stock to $180 from $160 and reiterated a buy rating, according to a research report following the earnings. The analysts saw three positive upsides from the company's earnings call: Blackwell racks in full production, China derisked, and gross margin likely to go back to mid-70s percent by investment firm increased its pro-forma EPS estimates by 6% for fiscal 2026, 2% for 2027, and 12% for 2028, bringing the projections to $4.21, $5.87, and $7.23, respectively. Nvidia remains the firm's Top Pick stock. Still, Bank of America highlights risks such as potential delays and supply-chain issues from a faster, annual product cycle, along with geopolitical threats to AI products. "NVDA's plan to launch cutting-edge products every year (October) is admirable but increases execution risks, similar to the [about two-quarter] delay we saw in Blackwell rack execution," the analysts wrote. More Nvidia: Analysts issue rare warning on Nvidia stock before key earnings Analysts double price target of new AI stock backed by Nvidia Nvidia CEO shares blunt message on China chip sales ban "Last, we can't ignore headline or real risks from use of (or restriction on) AI products as a bargaining tool in global trade deals," the analysts added. Year to date, Nvidia stock is up 3.65% while the S&P 500 Index is up 0.52%.Analyst resets Nvidia stock price target after CEO slams U.S. chip policy first appeared on TheStreet on May 30, 2025 This story was originally reported by TheStreet on May 30, 2025, where it first appeared. Sign in to access your portfolio
Travel Weekly
a day ago
- Business
- Travel Weekly
Are Americans traveling this summer? Where are they headed?
Clockwise from top left: Hopper lead economist Hayley Berg, host Rebecca Tobin and cruise editor Teri West talk about Americans' summer 2025 travel plans. Subscribe now using your favorite service: What is going on with summer travel? As Memorial Day passes and Americans prepare to take to the roads and skies, we've heard a lot of mixed messages from travel companies about what this year might bring. Just a few weeks ago we spoke on the Folo podcast about "chop" and "noise" in projecting future booking patterns. In this episode Hopper lead economist Hayley Berg returns to talk about her data: Whether Americans are traveling and, if so, where their summer plans might take them. We talk about the obvious destinations and the hidden gems -- plus one great summer-booking tip. With us is cruise editor Teri West, who looks into research from the Mastercard Economics Institute on its travel trend report. This episode was recorded Thursday, May 22 and has been edited for length and clarity. Episode sponsor: This episode is sponsored by the Globus Family of Brands Related links: Asian Cities shine in Mastercard Economics Institute's 2025 travel trends report Volatility is making hotel forecasting difficult Travel advisors voice their concerns about job cuts and the economy Related Folo by Travel Weekly episodes:
Miami Herald
a day ago
- Business
- Miami Herald
Analyst resets Nvidia stock price target after CEO slams U.S. chip policy
Jensen Huang does not hide his frustration with U.S. chip policies. On Nvidia's latest earnings call, the CEO said the $50 billion market for AI chips in China is now "effectively closed to U.S. industry." That followed the U.S. government's April decision to require Nvidia's H20 processor, previously approved for China, to obtain an export license. Don't miss the move: Subscribe to TheStreet's free daily newsletter As a result, the chipmaker booked a $4.5 billion charge for the fiscal first quarter, ended April 27, and added that it would have recorded an additional $2.5 billion in revenue without the restriction. "The H20 export ban ended our Hopper data-center business in China," Huang said. Nvidia wasn't the only company caught in the geopolitical crossfire. Hours before its earnings report, shares of chip-design firms Cadence (CDNS) and Synopsys (SNPS) slid after the Financial Times reported that the Trump administration had told them to stop selling software to customers in China. Nvidia is the top supplier of graphics-processing units, which are essential to power and train large AI models worldwide. China remains a key market for Nvidia, accounting for 13% of its sales in the past financial year. To adapt to the new rules, the company plans to launch a cheaper AI chip for the Chinese market, with production set to begin as early as September, according to Reuters. While Huang has long warned that export controls could hurt U.S. chipmakers, some experts argue that policymakers could hardly reverse course as broader national-security interests justify the tradeoffs. "U.S. semiconductor policy isn't about one firm's earnings or market access - it's about protecting America's strategic edge in a high-stakes geopolitical contest," Dewardric McNeal, managing director at Longview Global, wrote on CNBC. Related: Analyst resets Nvidia-backed AI stock price target after 200% surge "Sometimes that means stepping back from markets that were never going to remain open anyway," he added. Even so, Nvidia stock (NVDA) performed well. The stock rose 3.25% to close at $139.19 on May 29 - a sharp contrast to the previous quarter, when it plunged 8.48% after the company reported earnings. Back in 2022, Huang cautioned that U.S. export controls could significantly harm Nvidia by restricting its ability to sell advanced chips to China. Since then, Nvidia's stock has increased roughly tenfold, and data-center revenue has grown at a remarkable pace, driven by demand across the U.S., Europe, and the Gulf States. In fiscal 2024, revenue for the data-center segment tripled (up 217%) year over year. That growth trend continued this quarter. On May 28, Nvidia reported adjusted earnings of 96 cents per share on $44.06 billion in revenue for its fiscal first quarter, beating Wall Street's expectations of 93 cents and $43.31 billion. The company forecasts $45 billion, plus or minus 2%, of revenue for the July quarter, while analysts had projected $45.9 billion. But it noted that the figure would have been roughly $8 billion higher without the China export curbs. Gross margin came in at 61%, but would have been 71.3% without the H20-related inventory charge. Despite rising tensions between Washington and Beijing, Nvidia's core business remains in expansion mode. "Global demand for Nvidia's AI infrastructure is incredibly strong," Huang said in a statement. "Countries around the world are recognizing AI as essential infrastructure - just like electricity and the internet - and Nvidia stands at the center of this profound transformation," he added. Since April 4, when the stock hit a recent bottom price of $94.31, it has surged by more than 47%. Bank of America has lifted its price target for Nvidia stock to $180 from $160 and reiterated a buy rating, according to a research report following the earnings. The analysts saw three positive upsides from the company's earnings call: Blackwell racks in full production, China derisked, and gross margin likely to go back to mid-70s percent by year-end. Related: Cathie Wood buys $46 million of surging top semiconductor stock The investment firm increased its pro-forma EPS estimates by 6% for fiscal 2026, 2% for 2027, and 12% for 2028, bringing the projections to $4.21, $5.87, and $7.23, respectively. Nvidia remains the firm's Top Pick stock. Still, Bank of America highlights risks such as potential delays and supply-chain issues from a faster, annual product cycle, along with geopolitical threats to AI products. "NVDA's plan to launch cutting-edge products every year (October) is admirable but increases execution risks, similar to the [about two-quarter] delay we saw in Blackwell rack execution," the analysts wrote. More Nvidia: Analysts issue rare warning on Nvidia stock before key earningsAnalysts double price target of new AI stock backed by NvidiaNvidia CEO shares blunt message on China chip sales ban "Last, we can't ignore headline or real risks from use of (or restriction on) AI products as a bargaining tool in global trade deals," the analysts added. Year to date, Nvidia stock is up 3.65% while the S&P 500 Index is up 0.52%. Related: Top analyst sends bold message on S&P 500 The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
