Latest news with #JacobBourne
Reuters
23-07-2025
- Automotive
- Reuters
Tesla says it started building initial versions of an affordable car; posts a steep sales decline
July 23 (Reuters) - Tesla(TSLA.O), opens new tab said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world. Elon Musk's electric vehicle maker posted the worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, but its profit margin on making cars was better than many feared. Tesla shares were down 2.6% in after-hours trading. Tesla said it expects volume production of the long-promised cheaper vehicle in the second half of this year, raising hopes it will rekindle demand as it battles rising competition from cheaper EVs, especially in China, and a persistent backlash against Musk's far-right political views. Tesla Chief Financial Officer Vaibhav Taneja said on a call with investors that production of the cheaper car would ramp up next quarter, slower than initially expected, and the company did not provide an update on its full-year deliveries forecast. "Tesla's disappointing results aren't surprising given the rocky road it's traveled recently," said Emarketer analyst Jacob Bourne. "A truly affordable model will hit the bullseye in terms of boosting sales if Tesla can effectively position it right without detracting from its higher-priced models." The second straight quarterly revenue drop, with a 12% fall, comes despite rolling out a refreshed version of its best-selling Model Y SUV that investors had hoped would help revive demand. A 51% dive in sales of automotive regulatory credits, which other automakers who have difficulty complying with government emissions rules buy from Tesla, also hurt revenue and profit. Revenue fell to $22.5 billion for the April-June quarter from $25.50 billion a year earlier. Analysts on average were expecting revenue of $22.74 billion, according to data compiled by LSEG. Adjusted profit per share of 40 cents lagged the consensus of 43 cents per share. The automotive gross margin, which excludes regulatory credits, was 14.96%, above Wall Street estimates, helped in part by lower cost per vehicle. Tesla global deliveries dropped 13.5% in the second quarter, which was below Wall Street targets. Tesla had said in April it would start producing the more affordable model by the end of the first half and sources had told Reuters the vehicle, a stripped-down version of its Model Y SUV, would be delayed by at least months. Tesla on Wednesday did not disclose any details on the model, how many units it had made, or how it would be priced. The company said it continued to expect volume production of its custom-built robotaxi - called the Cybercab - and Semi truck in 2026. Much of the company's trillion-dollar valuation hangs on its bet on its robotaxi service - a small trial of which was started in Austin, Texas, last month with about a dozen Model Y SUVs - and on its development of humanoid robots. Investors are concerned about whether Musk will be able to devote enough time and attention to Tesla after he locked horns with President Donald Trump by forming a new political party this month. He had promised weeks earlier that he would cut back on government work and focus on his companies. A series of high-profile executive exits, including a longtime Musk confidant who oversaw sales and manufacturing in North America and Europe, is also adding to the concerns.
France 24
28-05-2025
- Business
- France 24
Nvidia earnings beat expectations despite US export controls
Nvidia said it made a profit of $18.8 billion on revenue of $44.1 billion, causing shares to rise nearly four percent in after-market trades. Nvidia in April notified regulators that it expected a $5.5 billion hit in the quarter due to a new US licensing requirement on the primary chip it can legally sell in China. US officials had told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the Silicon Valley company said in a Securities and Exchange Commission filing. The new licensing rule applies to Nvidia GPUs with bandwidth similar to that of the H20. The United States had already restricted exports to China of Nvidia's most sophisticated GPUs, tailored for powering top-end artificial intelligence models. Nvidia was told the licensing requirement on H20 chips would last indefinitely, it said in the filing. The new requirements resulted in Nvidia incurring a charge of $4.5 billion in the quarter, associated with H20 excess inventory and purchase obligations "as demand for H20 diminished," the chip-maker said in an earnings report. US export constraints stopped Nvidia from bringing in an additional $2.5 billion worth of H20 revenue in the quarter, according to the company. Nvidia chief executive Jensen Huang said demand for the company's technology for powering AI remains strong, and a new Blackwell NVL72 AI supercomputer referred to as a "thinking machine" is in full-scale production, "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," Huang said. Hot demand Nvidia high-end GPUs (graphics processing units) are in hot demand from tech giants building data centers to power artificial intelligence. Nvidia said its data center division revenue in the quarter was $39.1 billion, up 10 percent from the same period a year earlier. The market had expected more from the unit, however. "Nvidia beat expectations again but in a market where maintaining this dominance is becoming more challenging," said Emarketer analyst Jacob Bourne. "The China export restrictions underscore the immediate pressure from geopolitical headwinds but Nvidia also faces mounting competitive pressure as rivals like AMD gain ground on cost-effectiveness metrics for certain AI workloads," said Emarketer analyst Jacob Bourne. Revenue in Nvidia's gaming chip business hit a record high of $3.8 billion, leaping 48 percent in a year-over-year comparison and eclipsing forecasts. The AI boom has propelled Nvidia's stock price, which has regained much of the ground lost in a steep sell-off in January triggered by the sudden success of DeepSeek. China's DeepSeek unveiled its R1 chatbot, which it claims can match the capacity of top US AI products for a fraction of their costs. "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," analyst Bourne said of Nvidia. © 2025 AFP
Int'l Business Times
28-05-2025
- Business
- Int'l Business Times
Nvidia Earnings Beat Expectations Despite US Export Controls
Nvidia on Wednesday reported earnings that topped market expectations, with a $4.5 billion hit from US export controls being less than the Silicon Valley chip juggernaut had feared. Nvidia said it made a profit of $18.8 billion on revenue of $44.1 billion, causing shares to rise nearly four percent in after-market trades. Nvidia in April notified regulators that it expected a $5.5 billion hit in the quarter due to a new US licensing requirement on the primary chip it can legally sell in China. US officials had told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the Silicon Valley company said in a Securities and Exchange Commission filing. The new licensing rule applies to Nvidia GPUs with bandwidth similar to that of the H20. The United States had already restricted exports to China of Nvidia's most sophisticated GPUs, tailored for powering top-end artificial intelligence models. Nvidia was told the licensing requirement on H20 chips would last indefinitely, it said in the filing. The new requirements resulted in Nvidia incurring a charge of $4.5 billion in the quarter, associated with H20 excess inventory and purchase obligations "as demand for H20 diminished," the chip-maker said in an earnings report. US export constraints stopped Nvidia from bringing in an additional $2.5 billion worth of H20 revenue in the quarter, according to the company. Nvidia chief executive Jensen Huang said demand for the company's technology for powering AI remains strong, and a new Blackwell NVL72 AI supercomputer referred to as a "thinking machine" is in full-scale production, "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," Huang said. Nvidia high-end GPUs (graphics processing units) are in hot demand from tech giants building data centers to power artificial intelligence. Nvidia said its data center division revenue in the quarter was $39.1 billion, up 10 percent from the same period a year earlier. The market had expected more from the unit, however. "Nvidia beat expectations again but in a market where maintaining this dominance is becoming more challenging," said Emarketer analyst Jacob Bourne. "The China export restrictions underscore the immediate pressure from geopolitical headwinds but Nvidia also faces mounting competitive pressure as rivals like AMD gain ground on cost-effectiveness metrics for certain AI workloads," said Emarketer analyst Jacob Bourne. Revenue in Nvidia's gaming chip business hit a record high of $3.8 billion, leaping 48 percent in a year-over-year comparison and eclipsing forecasts. The AI boom has propelled Nvidia's stock price, which has regained much of the ground lost in a steep sell-off in January triggered by the sudden success of DeepSeek. China's DeepSeek unveiled its R1 chatbot, which it claims can match the capacity of top US AI products for a fraction of their costs. "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," analyst Bourne said of Nvidia. "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."
Asharq Al-Awsat
27-02-2025
- Business
- Asharq Al-Awsat
Nvidia Earnings Offer Little Cheer for Tech Shares
Nvidia's quarterly outlook on Wednesday suggested demand from Microsoft, Amazon and other heavyweight tech companies racing to build out AI infrastructure remains robust, though the outcome failed to significantly quell fears of overspending in the booming industry. Shares of Nvidia edged down 0.18% in Frankfurt on Thursday, having fallen 1.5% in extended trade in New York on Wednesday after the dominant AI chipmaker forecast quarterly revenue above analysts' estimates. Microsoft, Amazon, Meta Platforms and Alphabet, among Nvidia's largest customers, were mostly unchanged. Shares of those companies, among the components of the so-called "Magnificent Seven", have delivered big returns as they raced to dominate emerging AI technology following the debut of ChatGPT in November 2022. More recently, most of those stocks have stumbled and investors have become more cautious, especially after China's DeepSeek said it achieved significant AI performance at low cost. While Nvidia delivered a 78% surge in quarterly revenue, it said its first-quarter margin would tighten to about 71% from 73.5%, lower than the 72.2% estimated by analysts, as it ramps production of its new flagship Blackwell AI chips. "Despite market jitters over DeepSeek's efficient model and early Blackwell deployment challenges, Nvidia's results reaffirm that it continues to lead the AI landscape," said Jacob Bourne, an analyst at eMarketer. "Competitors are making strides but frontier models require the kind of advanced computing resources that Nvidia provides." Still, the highly anticipated earnings report from Nvidia was met with lackluster response from technology companies in Asia on Thursday. Shares of Taiwan Semiconductor Manufacturing Co (TSMC), Nvidia's main supplier of chips, slipped 0.47%, while South Korean chipmakers Samsung Electronics and SK Hynix fell 0.18% and 1%, respectively. Tokyo's Nikkei technology sub-index was up 0.2%. "Nvidia's earnings came with much less volatility than expected. The absence of major surprises may have kept sentiment relatively calm," said Yeap Jun Rong, a market strategist at IG. LOSING SHINE The launch of low-cost AI models from DeepSeek last month raised fears of a pullback in spending on Nvidia's priciest AI chips and evaporated more than half a trillion dollars of its stock market value in a single day, a record on Wall Street. Adding to worries, an analyst report suggested Microsoft was scrapping some data center leases. The Magnificent Seven stocks have retreated from their late-2024 peaks and the group is in correction territory, with the Roundhill Magnificent Seven ETF down more than 11% from its December 17 closing high. Nvidia has routinely exceeded analyst estimates over the last two years, but the magnitude of its revenue beats has narrowed as it faces tough comparisons from strong growth a year ago. "DeepSeek rattled investors but given Nvidia's first-mover advantage and the huge infrastructure investment plans from tech giants like Meta, it's an indication that Nvidia's high-end chips will remain in demand," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Magnificent Seven stocks added roughly $11 trillion in market capitalization between the debut of ChatGPT in November 2022 and their combined peak in mid-December 2024, with Nvidia adding $2.7 trillion in market value, making it the world's second-most valuable company at $3.2 trillion. Nvidia's stock has surged around 1,800% in the last five years. Magnificent Seven stocks on average more than tripled in that time, while the benchmark S&P 500 has gained about 65%.
Zawya
27-02-2025
- Business
- Zawya
Nvidia: AI boom not dead yet
Nvidia's strong growth forecast for the first quarter on Wednesday signaled that booming demand for its artificial intelligence chips was intact, and the company said orders for its new Blackwell semiconductors were "amazing." The company's forecast helps allay doubts around a slowdown in spending on its hardware that emerged last month, following Chinese AI startup DeepSeek's claims that it had developed AI models rivaling Western counterparts at a fraction of their cost. Its shares rose, before declining slightly in choppy extended trading, after closing up 3.7% in regular trading. Nvidia is the biggest beneficiary of a rally in AI-linked stocks, with its shares up more than 400% over the last two years. CEO Jensen Huang struck an optimistic note saying "AI is advancing at light speed," and that "demand for Blackwell is amazing," in commentary that should bode well for AI-related stocks that have taken a hit in the past week. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter," he said. Nvidia is undergoing a critical product transition as it moves to a new chip architecture called Blackwell, shifting from selling individual chips to full AI computing systems that integrate graphic chips, processors and networking equipment. The Santa Clara, California-based company generated $11 billion of revenue from Blackwell-related products in the fourth quarter, roughly 50% of the company's overall data center revenue. The company expects total revenue of $43 billion, plus or minus 2% for the first quarter, compared with analysts' average estimate of $41.78 billion, according to LSEG. "Unlike previous quarters, there was heightened skepticism going into this report due to concerns about DeepSeek's efficient model and questions surrounding the Blackwell rollout," said eMarketer analyst Jacob Bourne. "But the results have removed the doubts." The Blackwell ramp-up has been complicated and costly, weighing on the company's margins, however. Nvidia on Wednesday forecast first-quarter gross margin slightly below expectations - it will sink to 71%, below the 72.2% forecast by Wall Street, according to data compiled by LSEG. Still, Nvidia's Chief Financial Officer Colette Kress said on a conference call that Nvidia would return to the mid-70% gross margin range later in the fiscal year as it further increased production of its Blackwell chips, lowering costs. The AI rally lost some of its steam last month after DeepSeek's sudden rise, resulting in Nvidia losing $593 billion in market value, the largest one-day loss for any U.S. company. Investors questioned whether demand for AI chips was sustainable and the enormous capital expenses promised by large U.S. tech companies including Microsoft. Microsoft has earmarked $80 billion for AI in its current fiscal year, while Meta Platforms has pledged as much as $65 billion. A recent brokerage report suggested that Microsoft has scrapped leases for sizable U.S. data center capacity, suggesting potential oversupply. But Reuters reported on Monday that Chinese companies are ramping up orders for Nvidia's H20 AI chip due to booming demand for DeepSeek's low-cost AI model. "Despite the breakthroughs from DeepSeek, Nvidia's momentum with Hyperscalers seems to continue," Third Bridge analyst Lucas Keh said, referring to large cloud-computing companies. In more positive news for Nvidia, CFO Kress said the Stargate data center project announced last month by U.S. President Donald Trump will use Nvidia's Spectrum X ethernet for networking. The ethernet products are included in the company's data center segment. Nvidia reported adjusted per-share profit of 89 cents, compared with estimates of 84 cents a share. Revenue for the fourth quarter grew 78% to $39.3 billion, beating estimates of $38.04 billion. Sales in the data-center segment, which accounts for most of Nvidia's revenue, grew 93% to $35.6 billion in the quarter ended January 26, above estimates of $33.59 billion. The segment had recorded growth of 112% in the prior quarter.
