Latest news with #Huawei
Straits Times
2 hours ago
- Business
- Straits Times
Nvidia CEO warns that Chinese AI rivals are now ‘formidable'
US restrictions on exports to China have effectively locked Nvidia out of the country. PHOTO: REUTERS WASHINGTON – Nvidia Corp. Chief Executive Officer Jensen Huang said that Chinese AI rivals are filling the void left by the departure of US companies from that market, and their technology is becoming more powerful. 'The Chinese competitors have evolved,' he said on May 28 in an interview with Bloomberg Television. Huawei Technologies Co., a Chinese tech company blacklisted by the US government, has become 'quite formidable,' he said. US restrictions on exports to China have effectively locked Nvidia out of the country, the largest market for chips, and as a result the company expects to lose out on US$8 billion (S$10.3 billion) in sales this quarter alone. During a quarterly earnings call on May 28 , Mr Huang spent much of the time arguing that the American government should ease the curbs. Rather than keeping AI technology out of Chinese hands - the intended purpose - local companies are just finding alternatives, he said. Tencent Holdings Ltd. and other major purchasers of his products can't be blamed for turning to Huawei because they can no longer depend on US suppliers, he said. 'Like everybody else, they are doubling, quadrupling capabilities every year,' Mr Huang said. 'And the volume is increasing substantially.' Mr Huang cautioned that the gap between US products and Chinese alternatives is decreasing. Huawei's latest AI chip is similar to the performance of Nvidia's own H200 – a component that was state-of-the-art until its replacement in recent months. Under new rules, Nvidia isn't able to even ship its H20 chip to China. That component is a downgraded version of the H200. It's not possible to degrade the product's capabilities further, he told Bloomberg Technology. Nvidia is considering potential alternatives to the H20, but has no current chip planned, Mr Huang said. When it does, the company will have to seek permission from Washington. 'You cannot underestimate the importance of the China market,' Mr Huang said. 'This is the home of the world's largest population of AI researchers.' Mr Huang said he wants all the world's AI researchers and developers to be using American technology. 'Irrespective of the near-term revenue success we have had, we can't ignore the fact that the Chinese market is very important,' he said. In the interview, Mr Huang was also asked about the US revoking some Chinese student visas and how that might affect Nvidia. 'I believe the administration still feels very strongly about the incredible importance of immigration,' said Mr Huang, who was born in Taiwan. 'Look, I'm an immigrant. I know many immigrants that came to the US to build a great life, and many of us have contributed greatly to the technology industry in the US.' Mr Huang said he believed that will continue. 'We would like the brightest to come here,' he said. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
2 hours ago
- Business
- Yahoo
Why Synopsis Stock Fell Today
The Trump administration has ordered Synopsis to stop doing business with Chinese chip companies. The company had already been under investigation by the Biden administration for dealing with the Chinese chip giant Huawei. 10 stocks we like better than Synopsys › Shares of Synopsys (NASDAQ: SNPS) fell on Wednesday. The company's stock dropped 10% as of market close. The move down came as the S&P 500 (SNPINDEX: ^GSPC) lost 0.6% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.6%. The chip design company's stock fell after news broke that the Trump administration told the company to stop selling its services to China. The Bureau of Industry and Security, which operated under the U.S. Commerce Department, sent letters to Synopsis, as well as two other companies, the Financial Times reported Wednesday. The command to end its ties with Chinese chipmakers will be a blow to the company's balance sheet. The company does substantial business in China; 16% of Synopsys's $6.1 billion revenue in 2024 came from the country. In the past, Synopsis had dealings with Huawei, one of China's largest chipmakers and the target of pressure from the Trump administration. That relationship with Huawei made Synopsis the target of the previous administration as well. The company was under investigation by Biden's Commerce Department, which believed it had passed critical chipmaking software to the Chinese company when it was banned from doing so. The case wasn't officially resolved, and no punitive action was taken. Although the Chinese-American trade war de-escalated last month, today's move shows things are far from over, especially when dealing with strategically important semiconductors. A spokesperson for China's Ministry of Commerce said this undermines the preliminary trade agreement forged last month and demanded that the White House "correct its mistakes." I would stay away from Synopsis until more information comes to light. Before you buy stock in Synopsys, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Synopsys wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Synopsys. The Motley Fool has a disclosure policy. Why Synopsis Stock Fell Today was originally published by The Motley Fool
Bloomberg
4 hours ago
- Business
- Bloomberg
Nvidia CEO Warns That Chinese AI Rivals Have Become ‘Formidable'
Nvidia Corp. Chief Executive Officer Jensen Huang said that Chinese AI rivals are filling the void left by the departure of US companies from that market, and their technology is becoming more powerful. 'The Chinese competitors have evolved,' he said Wednesday in an interview with Bloomberg Television. Huawei Technologies Co., a Chinese tech company blacklisted by the US government, has become 'quite formidable,' he said.
CNBC
5 hours ago
- Business
- CNBC
Nvidia CEO Jensen Huang hammers chip controls that 'effectively closed' China market
As pleased as Wall Street was with Nvidia's quarterly results on Wednesday, CEO Jensen Huang said the company is leaving billions of dollars in revenue on the table because it can no longer sell to China. "The $50 billion China market is effectively closed to U.S. industry," Huang told analysts at the beginning of his prepared remarks on the earnings call. "As a result, we are taking a multibillion-dollar writeoff on inventory that cannot be sold or repurposed." Even without access to the world's second-biggest economy, Nvidia reported 69% year-over-year revenue growth to $44 billion in the fiscal first quarter, topping analysts' estimates. The stock rose about 4% in extended trading to a level that would be the highest since January if it stays there on Thursday. Nvidia shares are now up for the year, after a difficult start to 2025, adding to a rally that lifted the company's market cap by almost 240% in 2023 and over 170% last year. Still, Huang is making his displeasure with the China situation quite clear. In April, the Trump administration told Nvidia that its previously approved H20 processor for China would require an export license, which effectively cut off sales with "no grace period," the company said on Wednesday. The U.S. government has highlighted the national security concerns of having Nvidia's sophisticated AI chips sold to a chief adversary. The H20 was introduced by Nvidia after the Biden administration restricted AI chip exports in 2022. It's a slowed-down version intended to comply with U.S. export controls. Nvidia said on Wednesday that sales in the latest quarter would have been $2.5 billion higher if the company could have sold H20 chips for the full quarter, instead of stopping in April when it got the government letter. It had to write off $4.5 billion in inventory it couldn't use anymore. In the current quarter, Nvidia said it had $8 billion in planned H20 orders that now have to be scrapped. Nvidia's guidance is for $45 billion in the current period, a number that would've been roughly 18% higher if not for the restriction. In Huang's view, the export controls not only hurt Nvidia, but the whole of the U.S. He said China will "move on" with or without Nvidia's chips, and that Chinese AI researchers will turn to homegrown chips and technology from companies including Huawei. "The U.S. has based its policy on the assumption that China cannot make AI chips," Huang said. "That assumption was always questionable, and now it's clearly wrong." "The question is not whether China will have AI," Huang added. "It already does." While Huang has become increasingly public in his disagreements with the export control policy, he's very careful not to criticize President Donald Trump, who has made a habit out of making life difficult for companies and individuals that openly oppose him. Huang thanked Trump for rescinding the pending "AI diffusion" rule that would have put AI chip quotas on most countries, and praised him for helping strike deals with Saudi Arabia and the United Arab Emirates to build massive data centers in the Middle East. He said Nvidia was building its latest chips and systems on U.S. soil, a nod to Trump's plan to bring high-tech manufacturing stateside. "We share this vision" of highly automated manufacturing with Trump, Huang said. But Huang admitted that Nvidia doesn't have another answer to the China issue. When asked on Wednesday if the company is working on a new China-focused chip to sell into the region or if Nvidia expected to get any relief from the administration, Huang said there's no replacement product at the moment, and that the latest U.S. limits are "quite stringent." "The president has a plan," Huang said. "He has a vision, and I trust him."
Yahoo
5 hours ago
- Business
- Yahoo
Nvidia sees $2.5 billion Q1 revenue loss from Trump's China chip export ban, warns of more
Nvidia (NVDA) said it lost $2.5 billion in revenue from China during its fiscal first quarter and projected an additional $8 billion loss in the second quarter. Nvidia also said it took a $4.5 billion charge due to a write-down in inventory (chips it produced but now can't sell) in the first quarter due to the new export rules. However, that was less than the $5.5 billion hit expected. Nvidia's fiscal first quarter ended on April 27, shortly after the Trump administration enacted a ban on sales of Nvidia's H20 chips to China. China is one of Nvidia's biggest markets, and investors were closely watching the company's commentary about how the ban would impact future sales. Nvidia's first quarter revenue from China of $5.5 billion was below the $6.2 billion expected by Wall Street analysts tracked by Bloomberg. The China market also accounted for a smaller share of Nvidia's revenue than the prior two quarters — 12.5% in the first quarter, compared with roughly 14% and 15% in the prior two periods, respectively. "[T]he $50 billion China market is effectively closed to US industry," CEO Jensen Huang told analysts in a call following its earnings report. "The H20 export ban ended our Hopper data center business in China," he said, later adding, "The new set of limits are pretty much make it impossible for us to reduce Hopper any further for any productive use." Nvidia has made specialized chips called H20 — based on the company's prior-generation Hopper AI graphics processing units (GPUs) — for export to China to comply with US export controls. Huang said the company will "see if we can come up with interesting products that could continue to serve the Chinese market" but said "we don't have anything at the moment." Nvidia has repeatedly updated its chips for the Chinese market in the past several years to comply with ever-tightening trade restrictions, making the chips less and less powerful with each new iteration. Over that time frame, China has also declined as a share of Nvidia's total revenue. "China's AI moves on with or without US chips. ... The question is not whether China will have it. It already does," Huang said. "The question is whether one of the world's largest AI markets will run on American platforms." "Shielding Chinese chipmakers from US competition only strengthens them abroad and weakens America's position. Export restrictions have spurred China's innovation and scale," he added. Nvidia's competition in the Chinese market is heating up from domestic tech giant Huawei. Huawei is reportedly readying a new advanced AI chip competitive with Nvidia's prior-generation H100 chips. "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward, and benefit our foreign competitors in China and worldwide," said CFO Colette Kress. Also in the first quarter, revenue from Singapore surpassed Wall Street's expectations to hit $9 billion, once again notching a spot as Nvidia's second-largest market behind the US. Notably, Singapore has been a source of chip smuggling to China. Because of the burgeoning chip-smuggling industry, DA Davidson analyst Gil Luria estimates that Chinese companies actually represent between 20% to 40% of Nvidia's end customers. Despite the hit from the new export restrictions, Nvidia still projects it will see revenue between $44.1 billion and $45.9 billion in the second quarter, roughly in line with the $45.5 billion expected. Shares of the chipmaker rose over 4% after the bell Wednesday as its first quarter revenue topped expectations. Nvidia stock has struggled in 2025. Shares plunged in January when a new cheap AI model from Chinese startup DeepSeek prompted demand concerns for its AI chips, and again in April as Trump's trade war rocked the stock market. Shares rose over 4% after the report's release. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at 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
