Latest news with #Huang
Yomiuri Shimbun
37 minutes ago
- Business
- Yomiuri Shimbun
Nvidia Overcomes Tariff-Driven Turbulence to Deliver Q1 Results That Eclipsed Projections
AP file photo People take a look to Nvidia's new products during the Computex 2025 exhibition in Taipei, Taiwan, Wednesday, May 21, 2025. SAN FRANCISCO (AP) — Artificial intelligence technology bellwether Nvidia overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth amid feverish demand for its high-powered chips that are making computers seem more human. The results announced Wednesday for the February-April period came against the backdrop of President Donald Trump's on-again, off-again trade war that has whipsawed Nvidia and other Big Tech companies riding AI mania to propel their revenue and stock prices upward. But Trump's tariffs — many of which have been reduced or temporarily suspended – hammered the market values of Nvidia and other tech powerhouses heading into the springtime earnings season as investors fretted about the trade turmoil dimming the industry's prospects. Those worries have eased during the past six weeks as most Big Tech companies lived up to or exceeded the analyst projections that steer investors, capped by Nvidia's report for its fiscal first quarter. Nvidia earned $18.8 billion, or 76 cents per share, for the period, a 26% increase from the same time last year. Revenue surged 69% from a year ago to $44.1 billion. If not for a $4.5 billion charge that Nvidia absorbed to account for the U.S. government's restrictions on its chip sales to China, Nvidia would have made 96 cents per share, far above the 73 cents per share envisioned by analysts. In another positive sign, Nvidia predicted its revenue for the May-July period would be about $45 billion, roughly the level that investors had been anticipating. The forecast includes an estimated $8 billion loss in sales to China due to the export controls during its fiscal second quarter, after the restrictions cost it about $2.5 billion in revenue during the first quarter. In a conference call with analysts, Nvidia CEO Jensen Huang lamented that the U.S. government had effectively blocked off AI chip sales to China — a market that he estimated at $50 billion. Huang warned the export controls have spurred China to build more of its own chips in a shift that he predicted the U.S. will eventually regret. 'The U.S. based its policy on the assumption that China cannot make AI chips. That assumption was always questionable, and now it's clearly wrong,' Huang said. Despite Nvidia's lost opportunities in China, investors were heartened by the company's first-quarter performance. Nvidia's shares gained more than 4% in extended trading after the numbers came out. Nvidia's stock price ended Wednesday's regular trading session at $134.81, just slightly below where it stood before Trump's Jan. 20 inauguration. The price had plunged to as low as $86.62 last month during a nosedive that temporarily erased $1.2 trillion in shareholder wealth. The outlook began brightening for Nvidia last month after AI leaders such as Microsoft, Alphabet and Meta Platforms reaffirmed their plans to invest heavily in AI. That spending has been a boon for Nvidia because its chipsets provide the technology's brainpower, an advantage that has helped the company's annual revenue from $27 billion to $130 billion in just two years. Wedbush Securities analyst Dan Ives estimates Big Tech companies will spend about $325 billion on long-term investments primarily revolving around AI this year, with a substantial chunk of that money budgeted for Nvidia's chips 'There is one chip in the world fueling the AI revolution and it's Nvidia. That narrative is clear from these results,' Ives wrote in a research note. Trump's trade war has been raising doubts about Nvidia's ability to maintain its astounding momentum by threatening to close off other key markets besides China. In apparent attempt to curry favor with the president, Huang last month announced Nvidia will help boost U.S. manufacturing by building some of its AI chips and supercomputers in plants located in Arizona and Texas. Huang also accompanied Trump on a trip to Saudi Arabia earlier this month, signaling Nvidia's ambitions to sell more of its AI chips in the Middle East as that region attempts to lessen its economy dependence on oil. Trump also extended a helping hand to Nvidia of by rescinding the scheduled start export controls that had been drawn up under President Joe Biden's administration that would have broadened the restrictions on chips sales in foreign markets beyond the limits already in place on deals with China and Russia. 'The U.S. will always be Nvidia's largest market and home to the largest installed base of our infrastructure,' Huang said. 'Every nation now sees AI as core to the next industrial revolution.'
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)
Time of India
an hour ago
- Business
- Time of India
Nvidia shares rise as sales hit from China export curbs not as bad as feared
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 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 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 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 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 Luria, an analyst with D.A. Davidson, said the overall impact of the H20 restrictions was less than feared."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 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 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 the charges, first-quarter adjusted earnings per share would have been 96 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 data center segment revenue was $39.1 billion in the first quarter, compared with analyst estimates of $39.3 billion, according to LSEG company said it has $29.8 billion in commitments to have its products manufactured, an increase from the year before but down 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 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."
Time of India
an hour ago
- Automotive
- Time of India
Nvidia discloses more China risks, but CEO praises Trump
Even as Nvidia reported another blockbuster quarter of 69% sales growth on Wednesday, the maker of artificial intelligence chips warned of more risks to its business emerging in the technology conflict between the U.S. and China. Tucked into Nvidia's quarterly filing with U.S. 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 U.S. 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 $2.5 billion in sales during its just-ended fiscal first quarter, and it expects another $8 billion sales hit during the current fiscal second quarter. Sales of the H20 in China earned Nvidia $4.6 billion in revenue as customers stockpiled the chips before the curbs set in. The China business accounted for 12.5% of overall revenue. Live Events "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 U.S. platforms, not drive half of the world's AI talent to rivals." Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Huang also argued that keeping Chinese open-source models such as DeepSeek and Qwen running on Nvidia chips provides U.S. firms with valuable insight on where the global AI industry is headed. "U.S. 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 $45 billion, plus or minus 2%, in the second quarter, only slightly below analysts' average estimate of $45.90 billion, according to data compiled by LSEG. That would imply growth of about 50% 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 U.S.-China trade tensions was not as bad as feared. "Rather than downplay the China hit, (Huang) contextualized 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 U.S. tech to lead," Huang said. "The deals he announced are wins for America, creating jobs, advancing infrastructure, generating tax revenue and reducing the U.S. 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. "Future plants will be highly computerized in robotics. We share this vision," Huang said.
