Latest news with #MI308
Yahoo
21-05-2025
- Business
- Yahoo
Nvidia CEO Jensen Huang Calls US Curbs on Advanced Chip Exports to China ‘Failure'
Nvidia CEO Jensen Huang reportedly called Washington's export curbs on the sale of AI chips to China a 'failure' that would drive Chinese rivals to speed up developing their own semiconductors. Last month, Nvidia said it would take a $5.5 billion charge in the fiscal first quarter due to new export curbs on the sale of its H20 chips to China. Nvidia peer Advanced Micro Devices also said it expects to face charges of up to $800 million related to limits on sales of its MI308 chip to (NVDA) CEO Jensen Huang reportedly called Washington's export curbs on the sale of AI chips to China a 'failure' that would drive Chinese rivals to speed up developing their own semiconductors. 'I think all along the export control was a failure,' Huang said, according to The Wall Street Journal. 'The local companies are very talented and very determined, and the export controls give them the spirit, energy and the government support to accelerate their development,' The Journal reported Huang as saying. Huang suggested that could lead American firms like Nvidia to lose market share in China. 'Four years ago, Nvidia had 95 percent market share in China. Today, it is only 50 per cent,' the FT cited him as saying at the Computex technology show in Taipei on Wednesday. 'The rest is Chinese technology. They have a lot of local technology they would use if they didn't have Nvidia." Nvidia declined to comment beyond Huang's remarks at the event. Last month, Nvidia said it would take a $5.5 billion charge due to new export curbs on the sale of its H20 chips to China. The H20 chip is less powerful than Nvidia's newer ones and had been tailored to meet prior export limits for the Chinese market. Nvidia peer Advanced Micro Devices (AMD) also said it expects to face charges of up to $800 million related to limits on sales of its MI308 chip to China. Nvidia is set to report its fiscal first-quarter results after the closing bell next Wednesday. Shares of the AI chipmaker were up about 2% in recent trading, and have added about 2% since the start of the year. Read the original article on Investopedia 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
Yahoo
19-05-2025
- Business
- Yahoo
AMD (AMD) Price Target Raised to $135 on AI Momentum
Advanced Micro Devices (AMD, Financials) saw its stock price target raised by Mizuho to $135, citing stronger growth expectations from its AI portfolio and partnerships. Shares closed at $117.17 on the day of the report, up nearly 12% for the week. Warning! GuruFocus has detected 4 Warning Signs with AMD. Mizuho maintained its Outperform rating and raised AMDs forward earnings multiple for fiscal 2026 to 20.9x from 18.1x, pointing to greater confidence in long-term profit growth. Central to that view is AMDs $10 billion AI collaboration with HUMAIN and the expected launch of its MI355x chips in the second half of 2025. The new products may help offset the impact of the MI308 export ban to China. Mizuho also noted AMDs sound financial footing, supported by a recent $6 billion share repurchase announcement that lifts its total buyback program to $10 billion. AMD introduced its EPYC 4005 Series for small business servers, with support from OVHcloud and Supermicro. Despite a 99 basis-point drop in market share to 21.1% in Q1 2025, according to Mercury Research, Evercore ISI reiterated its $126 price target and Outperform rating on confidence in AMDs datacenter strategy. Investors are watching upcoming product rollouts and further AI deployment as key catalysts. This article first appeared on GuruFocus. 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
Forbes
15-05-2025
- Business
- Forbes
What's Next For AMD Stock After Recent 20% Gain
GERMANY - 2025/04/06: In this photo illustration, Advanced Micro Devices Inc. logo is seen displayed ... More on a monitor. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) Advanced Micro Devices stock (NASDAQ:AMD) increased by more than 4% during Tuesday's trading session and has risen by nearly 20% over the last month. What factors are contributing to the stock's upward trend? Tuesday saw AMD unveil a $10 billion agreement with Humain, a startup based in Saudi Arabia supported by the nation's sovereign fund. Humain intends to procure CPUs, GPUs, and software from AMD to enhance its data centers and AI infrastructure. Overall, Humain anticipates constructing data centers with approximately 1.9 gigawatts of power capacity by 2030. Importantly, Humain asserts that the arrangement with AMD is to avoid being dependent on a single vendor for AI-related hardware. This message is favorable for AMD stock, as we have noted that customers diversifying their suppliers away from Nvidia inherently presents an opportunity, especially considering the rapidly expanding AI market. Furthermore, sovereign AI—essentially state-funded initiatives for AI capabilities—is an area that semiconductor companies are increasingly focusing on, aiming to lessen reliance on a client base predominantly made up of large U.S. technology firms like Amazon, Google, and Microsoft. It's encouraging that AMD is also securing contracts in this sector. AMD's results for Q1 surpassed expectations, with its outlook for Q2 also exceeding predictions. Revenue grew by 36% to $7.44 billion in Q1, while earnings reached $0.96 per share. The growth was driven by robust data center sales, which surged 57% to $3.7 billion, thanks to increased GPU and CPU shipments. For quite some time now, AMD's CPUs have been gaining market share from Intel in the data center segment. Although AMD's GPU products do not match Nvidia's offerings at the high end, the AI surge is benefiting the overall market, with new large-scale models such as OpenAI's GPT-4o and China's DeepSeek R1 poised to drive increased demand for GPUs. As the company secures new GPU and AI data center agreements, and customers seek to diversify their chip sources, AMD stands to gain. Earlier this month, AMD mentioned that new U.S. export restrictions targeting its MI308 AI chips could cut its 2025 revenue by $1.5 billion. The company also indicated that it might incur a charge of up to $800 million related to inventory, purchasing commitments, and reserves associated with these restrictions. According to the new regulations, AMD must secure a license to ship advanced AI processors to China. This was perceived as a setback since China constitutes about 24% of its revenue. However, there seems to be a silver lining. U.S.-China trade relations appear to be improving, with both nations agreeing to suspend triple-digit tariffs for the next 90 days and making progress in discussions over the previous weekend. This fosters hope that chip export restrictions may soon be reviewed. The rise in AMD stock over the last four years has not been steady, with annual returns showing much more volatility compared to the S&P 500. The stock recorded returns of 57% in 2021, -55% in 2022, 128% in 2023, and -18% in 2024. The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has been significantly less volatile. Moreover, it has outperformed the S&P 500 comfortably over the last four years. What accounts for this? As a collective, HQ Portfolio stocks have delivered superior returns with lower risk compared to the benchmark index, offering a smoother performance as illustrated in HQ Portfolio performance metrics. Considering the current unpredictable macroeconomic landscape concerning rate reductions and ongoing international conflicts, could AMD experience a repeat of the underperformance seen in 2022 and 2024 compared to the S&P over the upcoming 12 months, or will it witness a notable surge? We assess AMD stock at approximately $107 per share, which aligns closely with its current market price. For further insights, see our analysis on AMD Valuation: Is AMD Stock Expensive or Cheap? for more information regarding AMD's valuation and its positioning relative to competitors. Investing in a single stock like AMD can be risky. Conversely, the Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a history of consistently outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks have yielded better returns with lower risk compared to the benchmark index, offering less volatility as demonstrated in HQ Portfolio performance metrics.
Yahoo
09-05-2025
- Business
- Yahoo
Nvidia unveils $5.5B charge to comply with Trump rule
Nvidia revealed Tuesday the Trump administration's tighter export controls on computer chips will cost the company $5.5 billion. In a filing Tuesday with the Securities and Exchange Commission (SEC), Nvidia said it will take a $5.5 billion charge for the exporting of its H20 graphics processing units to China. Exports of a similar bandwidth are also subject to the same licensing requirements, according to the filing. The licensing requirements are related to the risk that Nvidia's products would be 'used in or diverted to' a supercomputer in China, the company wrote. Shares of the tech company dropped by 7 percent Wednesday amid the news. Advanced Micro Devices (AMD), a competitor chipmaker, dropped about 6 percent after it revealed in a separate filing that export controls could result in a charge of about $800 million in 'inventory, purchase commitments and related reserve,' The Associated Press reported. The Commerce Department confirmed to the AP on Wednesday it rolled out new export licensing requirements for Nvidia's H20 and AMD's MI308 chips, as well as 'their equivalents.' The agency said it is 'committed to acting on the President's directive to safeguard our national and economic security,' according to the AP. Earlier this week, Sen. Elizabeth Warren (D-Mass.), ranking member of the Senate Banking, Housing and Urban Affairs Committee, wrote to Commerce Secretary Howard Lutnick to push for restrictions on exports of the H20 chip and others to China. She argued Nvidia's continued export of the chip will work against President Trump's goal of bringing manufacturing to the United States. While the Biden administration placed a series of export controls on chips to China, Warren pointed out that the previous White House left H20 and other chips like it 'unrestricted.' The filing was sent just one day after Nvidia announced it would manufacture up to $500 billion worth of artificial intelligence (AI) chips and supercomputers entirely in the United States over the next four years. The AI chipmaker said it commissioned more than a million square feet to build Nvidia Blackwell chips in Arizona and AI supercomputers in Texas. This comes amid Trump's broader trade war and efforts to push companies to move their manufacturing and assembly processes to the United States. Nvidia's chips are often made in Taiwan while it relies on China as a major market for its products. Trump has threatened a 32 percent tariff on products and goods from Taiwan while slapping China with a 145 percent tariff. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. 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
Yahoo
09-05-2025
- Business
- Yahoo
Cotton unveils legislation requiring location verification for advanced AI chip exports
Sen. Tom Cotton (R-Ark.) introduced a bill Friday that would require chip exports to have location-tracking systems to prevent American technology from reaching adversaries. The bill, titled the Chip Security Act, would direct the Commerce Department to require a 'location verification mechanism' on artificial intelligence (AI) chips subject to export controls. Chip exporters would then be required to report to the Commerce Department's Bureau of Industry and Security (BIS) if their products were diverted from the intended destination or tampered with. 'Expanding access to advanced technology can't come at the cost of our national security,' Cotton wrote Friday on social platform X. 'My Chips Security Act will prevent American chips from falling into the hands of adversaries like Communist China.' Earlier this week, the Trump administration confirmed it is planning to repeal the Biden administration's AI diffusion rule, which was announced in January in the final days of former President Biden's term. The rule placed caps on chip sales to most countries around the world, except for 18 U.S. allies and partners, and intended to curb foreign competition in the tech development space. In a statement Wednesday, the BIS called the rule 'overly complex, overly bureaucratic' and warned it would stifle American innovation and dominance. David Sacks, the White House AI and crypto czar, later said the rule alienated key U.S. allies and overreached on export control authority. Several other technology companies from Microsoft to Nvidia urged Trump to loosen the rules in recent months. The issue raises new challenges for the administration as it grapples with curbing competition from China and ensuring the success of American exporters. The Trump administration last month rolled out new export licensing requirements for certain chips, including Nvidia's H20 and AMD's MI308 models. Nvidia said the rules will cost the company $5.5 billion, and Reuters reported Friday that the chip manufacturer is planning to release a modified H20 AI chip in the wake of the new rules. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
