Latest news with #KinngaiChan
Time of India
2 days ago
- Business
- Time of India
Broadcom rides on AI chip demand to deliver upbeat revenue forecast
Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. However, the company's shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology . Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," said Kinngai Chan, senior research analyst at Summit Insights Group. Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. The networking chip doubles the performance from its predecessor and significantly improves the efficiency of bits flying across data center networks. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover, Tan said on a post-earnings call. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion.
Business Times
06-05-2025
- Business
- Business Times
AMD forecasts revenue above estimates, despite US curbs on China chip exports
[BENGALURU/SAN FRANCISCO] Advanced Micro Devices (AMD) forecast second-quarter revenue above Wall Street estimates on Tuesday (May 6), in part because of the global thirst for its artificial intelligence (AI) chips even as trade tensions clouded its ability to sell into the Chinese market. The optimistic forecast from AMD could help reinforce investor confidence in its ability to compete against Nvidia, after concerns around a trailing position in the lucrative AI market had sent its shares down more than 17 per cent this year. Like AMD, Nvidia has also warned Wall Street that it will now need an export license to China for a chip tuned to comply with a raft of restrictions imposed by the US Nvidia faces a US$5.5 billion charge as a result, the company said in a securities filing. In spite of mounting tensions in the US-China trade war, demand remains robust for AMD's advanced processors that power complex AI systems for Microsoft, Meta Platforms and other customers, with cloud giants reinforcing hefty spending plans for building AI infrastructure. Shares of Santa Clara, California-based AMD were up 4.2 per cent in extended trading. Due to an US$800 million charge from new US curbs on chip exports to China, AMD forecast adjusted gross margin of 43 per cent, which represents an 11 percentage-point drop excluding the charge. The company expects revenue of about US$7.4 billion for the second quarter, plus or minus US$300 million, compared with analysts' average estimate of US$7.25 billion, according to data compiled by LSEG. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The better-than-expected forecast is a result of frenzied customer buying in order to stockpile inventory ahead of US tariffs, according to Summit Insights analyst Kinngai Chan. In February, the company steered away from a longstanding practice of giving a specific sales forecast for its AI chips, but CEO Lisa Su had said AMD expects 'tens of billions' of dollars in sales 'in the next couple of years.' AMD reported data centre sales jumped 57 per cent to US$3.7 billion, which topped estimates of US$3.62 billion. The company includes much of its AI hardware in its data centre segment. Chip maker Marvell Technology and server maker Super Micro both disappointed investors on Tuesday afternoon. Marvell pushed back a planned Investor Day until calendar 2026, citing the uncertain economy, and Super Micro trimmed its 2025 revenue forecast, adding to concerns about its position in the AI market. Marvell shares dropped 6 per cent after hours and Super Micro fell 4 per cent. According to Bob O'Donnell, chief analyst of Technalysis Research, AMD continues to gain share in AI data centre chips, which include its central processing units (CPUs), which do not receive as much attention as graphics processing units (GPUs) used for AI. The company reported first-quarter net profit of 96 cents a share, adjusted for stock compensation among other things. Analysts had expected adjusted earnings of 94 cents a share. Revenue jumped 36 per cent to US$7.44 billion, beating estimates of US$7.13 billion. 'We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data centre and AI momentum,' Su said. REUTERS
Time of India
24-04-2025
- Business
- Time of India
Texas Instruments forecasts second-quarter revenue above estimates, abating tariff concerns
By Arsheeya Bajwa Texas Instruments forecast second-quarter revenue above Wall Street estimates on Wednesday, betting on robust demand for its analog chips despite widespread economic uncertainty stemming from U.S. tariffs. The optimistic outlook from TI- the first among major U.S. chipmakers to report results for the March quarter - could help allay some of the concerns over the adverse impact of tariffs on semiconductor companies. Shares of the company rose more than 6% in extended trading after dropping more than 17% this year as investor anxiety stemming from a worsening macroeconomic outlook weighed on the sector. The company's strong quarterly forecast is being driven by "cyclical demand recovery and possibly some tariff pull-ins," said Kinngai Chan, a senior analyst at Summit Insights Group. All of TI's markets grew sequentially with the exception of a seasonal decline in personal electronics, the company said in a statement. TI's results signal a gradual rebalancing of supply and demand in the analog semiconductor market, as the company works to clear surplus inventory that resulted from customers over-purchasing during the pandemic. The company expects revenue in the range of $4.17 billion to $4.53 billion for the second quarter, compared with analysts' average estimate of $4.10 billion, according to data compiled by LSEG. It might still be too early to ascertain the impact of increased levies and escalating Sino-U.S. trade tensions on the company and the broader chip industry due to pending tariff negotiations, said Stifel analyst Tore Svanberg. "There does not seem to be much of an impact (from tariffs) for now." TI expects earnings between $1.21 per share and $1.47 per share for the second quarter, compared with analysts' average estimate of profit of $1.23 per share. Revenue in the first quarter rose 11% to $4.07 billion, beating estimates of $3.91 billion and snapping a nine-quarter streak of sales declines.
Yahoo
23-04-2025
- Business
- Yahoo
Lam Research beats quarterly revenue estimates on surging AI chip demand
By Priyanka G (Reuters) -Chip-making equipment supplier Lam Research beat Wall Street expectations for third-quarter revenue on Wednesday, fueled by robust demand for advanced AI chips, sending the company's shares up 4.5% in extended trading. The increased appetite for high-performance AI chips and processors — essential for powering AI workloads — is prompting major chip manufacturers like Taiwan Semiconductor Manufacturing Co, one of Lam's biggest customers, to ramp up orders. This surge is benefiting equipment suppliers such as Lam as well. Lam posted revenue of $4.72 billion for the three months ended March 30, beating analysts' estimate of $4.65 billion, according to data compiled by LSEG. Kinngai Chan, senior analyst at Summit Insights Group, said the third-quarter "outperformance was due to stronger shipments to Taiwan, while shipments into China remain robust." Lam derived 31% revenue from China and 24% from Taiwan in the reported quarter. The strong results have come despite ongoing concerns related to U.S. export controls and tariffs, which have posed challenges for the semiconductor industry. "Our outlook remains strong even as we address near-term tariff-related uncertainty" said Lam CEO Tim Archer. For the fourth quarter, the company expects revenue of $5 billion, plus or minus $300 million, compared with analysts' estimate of $4.59 billion. In February, Lam's CFO Douglas Bettinger said the company expects revenue between $25 billion and $28 billion by 2028, a sharp increase from $16.2 billion in 2024. Lam develops tools essential for semiconductor manufacturing. Its products are primarily used in a wide range of wafer processing and wiring of semiconductor devices. The company posted an adjusted profit of $1.04 per share, beating analysts' estimate of $1.01. The company's systems revenue which includes sales of new leading-edge equipment in deposition, etch, clean and other wafer fabrication markets generated $3.04 billion in the third quarter. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
TI forecasts second-quarter revenue above estimates, abating tariff concerns
By Arsheeya Bajwa (Reuters) -Texas Instruments forecast second-quarter revenue above Wall Street estimates on Wednesday, betting on robust demand for its analog chips despite widespread economic uncertainty stemming from U.S. tariffs. The optimistic outlook from TI- the first among major U.S. chipmakers to report results for the March quarter - could help allay some of the concerns over the adverse impact of tariffs on semiconductor companies. Shares of the company rose more than 6% in extended trading after dropping more than 17% this year as investor anxiety stemming from a worsening macroeconomic outlook weighed on the sector. The company's strong quarterly forecast is being driven by "cyclical demand recovery and possibly some tariff pull-ins," said Kinngai Chan, a senior analyst at Summit Insights Group. All of TI's markets grew sequentially with the exception of a seasonal decline in personal electronics, the company said in a statement. TI's results signal a gradual rebalancing of supply and demand in the analog semiconductor market, as the company works to clear surplus inventory that resulted from customers over-purchasing during the pandemic. The company expects revenue in the range of $4.17 billion to $4.53 billion for the second quarter, compared with analysts' average estimate of $4.10 billion, according to data compiled by LSEG. It might still be too early to ascertain the impact of increased levies and escalating Sino-U.S. trade tensions on the company and the broader chip industry due to pending tariff negotiations, said Stifel analyst Tore Svanberg. "There does not seem to be much of an impact (from tariffs) for now." TI expects earnings between $1.21 per share and $1.47 per share for the second quarter, compared with analysts' average estimate of profit of $1.23 per share. Revenue in the first quarter rose 11% to $4.07 billion, beating estimates of $3.91 billion and snapping a nine-quarter streak of sales declines.
