Latest news with #Microsoft
Yomiuri Shimbun
15 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.'
Business Times
18 minutes ago
- Business
- Business Times
Meta AI bot used a billion times monthly: Mark Zuckerberg
[SAN FRANCISCO] Meta chief Mark Zuckerberg touted the tech firm's generative artificial intelligence (Gen AI) assistant on Wednesday, telling shareholders it is used by a billion people each month across its platforms. Zuckerberg noted the milestone anew at Meta's annual gathering of shareholders and as the social media behemoth vies with Google, Microsoft, OpenAI and others to be a leader in Gen AI. It was not clear how much Meta AI use involved people seeking out the chatbot versus passive users of Meta AI, as it is built into features in its family of apps. Since Google debuted AI Overviews in search results a year ago, it has grown to more than 1.5 billion users, according to Google chief executive Sundar Pichai. 'That means Google Search is bringing Gen AI to more people than any other product in the world,' Pichai said. Google's AI Overviews are automatically provided summaries of search results that appear instead of the previous practice of simply showing pages of blue links to revelant websites. 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 Pichai said last week that Google's dedicated Gemini AI app has more than 400 million monthly users. Tech rivals are rapidly releasing new AI products despite ongoing challenges with preventing misinformation and establishing clear business models, and little sense of how the tech will affect society. Meta unveiled its first standalone AI assistant app on April 29, giving users a direct path to its Gen AI models. 'A billion people are using Meta AI across our apps now, so we made a new standalone Meta AI app for you to check out,' Meta CEO and founder Mark Zuckerberg said in a video posted on Instagram at the time. Zuckerberg said the app 'is designed to be your personal AI' and would be primarily accessed through voice conversations with the interactions personalised to the individual user. Use of Meta AI is growing fastest on WhatsApp, according to chief financial officer Susan Li. 'Our focus for this year is deepening the experience and making Meta AI the leading personal AI,' Zuckerberg said when Meta announced quarterly earnings at the end of April. AFP
Indian Express
33 minutes ago
- Business
- Indian Express
Is AI leading to reduced jobs? What it means for software engineers
The debate over whether the use of artificial intelligence tools is leading to fewer roles for software engineers and coders has been ongoing for over a year. While some initially argued that AI would augment the average worker's efficiency rather than replace them, it seems the latter is becoming a reality—at least in big tech. The latest company to join this trend is Salesforce, which now says its internal use of AI tools has enabled it to hire fewer employees, particularly engineers and customer service workers. This appears to be becoming the norm among large tech firms, offering a clearer indication of the impact AI could have on jobs for software developers, coders, and engineers. Chief Financial and Operations Officer Robin Washington told Bloomberg in an interview that the company is hiring fewer software engineers due to productivity gains from artificial intelligence. 'We view these as assistants, but they are going to allow us to hire fewer people and, hopefully, make our existing team more productive,' she said. As millions of students around the world, particularly in India, prepare to become software engineers—and many even consider studying abroad for their master's degrees—their chances of landing a job at the world's biggest tech companies are beginning to look slimmer, all thanks to AI. Initially, AI tools from companies like OpenAI, Google, and Salesforce, which have been rolled out over the past few months, were seen as a way to boost productivity and improve efficiency. But now, it seems that those in the tech industry may be among the most vulnerable to displacement by AI. 'Now it is our office workers who are staring down the same kind of technological and economic disruption,' LinkedIn's chief economic opportunity officer, Aneesh Raman, wrote in a recent New York Times op-ed. 'Breaking first is the bottom rung of the career ladder.' Hiring hasn't come to a complete halt, but there's growing chatter that getting a first job in tech—especially fresh out of college—is becoming increasingly difficult. Leaders at tech companies all indicated in recent months that AI is indeed taking over jobs. With Salesforce now openly admitting that its hiring has been reduced due to AI, it's becoming clear that more tech companies are beginning to rely on artificial intelligence over human labor for certain tasks. At Microsoft, engineers are using AI to write 20% to 30% of code for company projects, CEO Satya Nadella said last month at Meta's LlamaCon conference. In a conversation with Meta CEO Mark Zuckerberg, Nadella noted that the exact percentage of AI-generated code varies by programming language. He said AI writes 'fantastic' Python code, though its C++ capabilities are 'not that great.' Nadella also shared that Microsoft is increasingly relying on more advanced AI agents—software programs that perform complex tasks without human assistance—to review code. As for Meta, Zuckerberg said he isn't sure exactly how much code AI is currently writing, but the company plans to use AI for half of its software development within the next year. 'That will just kind of increase from there,' he said. On a podcast with Joe Rogan in January, Zuckerberg stated that Meta is developing AI that can write code at the level of a mid-level engineer. He added that the company plans to have 'a lot' of its code 'built by AI engineers instead of people engineers' this year. At Google, CEO Sundar Pichai said on an earnings call last month that the company was using AI to write 'well over 30%' of new code—up from 25% in October. He also noted that employees are increasingly accepting AI-suggested code. 'I still see it as early days, and there's going to be a lot more to do,' Pichai said. Anthropic CEO Dario Amodei also acknowledged that AI is already writing code. In just 12 months, 'we may be in a world where AI is writing essentially all of the code,' he said during a talk at the Council on Foreign Relations earlier this year. In fact, Amodei predicted that in just three to six months, AI could be writing 90% of all new code. Duolingo CEO Luis von Ahn is another executive embracing the shift, noting that the company will replace many of its human contract workers with AI. AI chatbots like ChatGPT and GitHub Copilot were initially seen as tools for basic tasks such as rephrasing sentences or fixing grammar. But as these LLMs grow more powerful, they are increasingly being used to write full code. OpenAI recently released Codex, an AI coding engine within ChatGPT, powered by its codex-1 model—an optimized version of its o3 AI reasoning model designed specifically for software engineering tasks. Similarly, Google has introduced Gemini Code Assist, a code-review agent that automatically identifies bugs and offers suggestions within GitHub. Code Assist allows developers to interact with a Google AI model in natural language to access and edit their codebase—much like GitHub's popular Copilot tool. The impact of AI is real—particularly on entry-level tech jobs. SignalFire, a venture capital firm that analyses job movements across over 650 million employees and 80 million companies on LinkedIn, reported last week that major tech companies—including Meta, Microsoft, and Google—recruited fewer recent graduates in 2024 compared to previous years. New graduates accounted for just 7% of new hires in 2024, down 25% from 2023 and over 50% from pre-pandemic levels in 2019. At startups, the rate of new graduate hiring dropped from 30% in 2019 to under 6% in 2024. While big tech companies are spending billions of dollars to build AI infrastructure, layoffs continue. So far this year, more than 62,114 tech workers have been laid off from both large and small tech firms, according to the independent tracker Anuj Bhatia is a personal technology writer at who has been covering smartphones, personal computers, gaming, apps, and lifestyle tech actively since 2011. He specialises in writing longer-form feature articles and explainers on trending tech topics. His unique interests encompass delving into vintage tech, retro gaming and composing in-depth narratives on the intersection of history, technology, and popular culture. He covers major international tech conferences and product launches from the world's biggest and most valuable tech brands including Apple, Google and others. At the same time, he also extensively covers indie, home-grown tech startups. Prior to joining The Indian Express in late 2016, he served as a senior tech writer at My Mobile magazine and previously held roles as a reviewer and tech writer at Gizbot. Anuj holds a postgraduate degree from Banaras Hindu University. You can find Anuj on Linkedin. Email: ... Read More
Mint
an hour ago
- Business
- Mint
Nvidia share price surges 6% after robust performance in Q1
Nvidia share price jumped as much as 6 per cent in afterhours trading on Wall Street after the IT giant posting record-breaking revenue and data center sales for the first quarter. The IT giant stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50. The company posted fiscal first-quarter revenue of $44.06 billion, marking a 69% increase compared to the same period last year and surpassing analysts' forecast of $43.31 billion. Adjusted earnings per share were $0.96, exceeding the expected $0.93. Net income climbed to $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year. Nvidia's data center unit—which includes its AI chips and networking products—achieved a record $39.1 billion in sales, marking a 73% increase year over year. This segment now contributes a massive 88% of the company's overall revenue. According to CFO Colette Kress, Microsoft alone has already deployed 'tens of thousands' of Nvidia's Blackwell GPUs and is projected to expand that number to 'hundreds of thousands.' For the quarter, GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%. For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96. "Our breakthrough Blackwell NVL72 AI supercomputer — a 'thinking machine' designed for reasoning— is now in full-scale production across system makers and cloud service providers,' said Jensen Huang, founder and CEO of NVIDIA. Huang added, "Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. 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.' The company also announced a cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Indian Express
an hour ago
- Business
- Indian Express
Salesforce joins other large tech companies in citing AI as reason for fewer engineering hires.
The debate over whether the use of artificial intelligence tools is leading to fewer roles for software engineers and coders has been ongoing for over a year. While some initially argued that AI would augment the average worker's efficiency rather than replace them, it seems the latter is becoming a reality—at least in big tech. The latest company to join this trend is Salesforce, which now says its internal use of AI tools has enabled it to hire fewer employees, particularly engineers and customer service workers. This appears to be becoming the norm among large tech firms, offering a clearer indication of the impact AI could have on jobs for software developers, coders, and engineers. Chief Financial and Operations Officer Robin Washington told Bloomberg in an interview that the company is hiring fewer software engineers due to productivity gains from artificial intelligence. 'We view these as assistants, but they are going to allow us to hire fewer people and, hopefully, make our existing team more productive,' she said. As millions of students around the world, particularly in India, prepare to become software engineers—and many even consider studying abroad for their master's degrees—their chances of landing a job at the world's biggest tech companies are beginning to look slimmer, all thanks to AI. Initially, AI tools from companies like OpenAI, Google, and Salesforce, which have been rolled out over the past few months, were seen as a way to boost productivity and improve efficiency. But now, it seems that those in the tech industry may be among the most vulnerable to displacement by AI. 'Now it is our office workers who are staring down the same kind of technological and economic disruption,' LinkedIn's chief economic opportunity officer, Aneesh Raman, wrote in a recent New York Times op-ed. 'Breaking first is the bottom rung of the career ladder.' Hiring hasn't come to a complete halt, but there's growing chatter that getting a first job in tech—especially fresh out of college—is becoming increasingly difficult. Leaders at tech companies all indicated in recent months that AI is indeed taking over jobs. With Salesforce now openly admitting that its hiring has been reduced due to AI, it's becoming clear that more tech companies are beginning to rely on artificial intelligence over human labor for certain tasks. At Microsoft, engineers are using AI to write 20% to 30% of code for company projects, CEO Satya Nadella said last month at Meta's LlamaCon conference. In a conversation with Meta CEO Mark Zuckerberg, Nadella noted that the exact percentage of AI-generated code varies by programming language. He said AI writes 'fantastic' Python code, though its C++ capabilities are 'not that great.' Nadella also shared that Microsoft is increasingly relying on more advanced AI agents—software programs that perform complex tasks without human assistance—to review code. As for Meta, Zuckerberg said he isn't sure exactly how much code AI is currently writing, but the company plans to use AI for half of its software development within the next year. 'That will just kind of increase from there,' he said. On a podcast with Joe Rogan in January, Zuckerberg stated that Meta is developing AI that can write code at the level of a mid-level engineer. He added that the company plans to have 'a lot' of its code 'built by AI engineers instead of people engineers' this year. At Google, CEO Sundar Pichai said on an earnings call last month that the company was using AI to write 'well over 30%' of new code—up from 25% in October. He also noted that employees are increasingly accepting AI-suggested code. 'I still see it as early days, and there's going to be a lot more to do,' Pichai said. Anthropic CEO Dario Amodei also acknowledged that AI is already writing code. In just 12 months, 'we may be in a world where AI is writing essentially all of the code,' he said during a talk at the Council on Foreign Relations earlier this year. In fact, Amodei predicted that in just three to six months, AI could be writing 90% of all new code. Duolingo CEO Luis von Ahn is another executive embracing the shift, noting that the company will replace many of its human contract workers with AI. AI chatbots like ChatGPT and GitHub Copilot were initially seen as tools for basic tasks such as rephrasing sentences or fixing grammar. But as these LLMs grow more powerful, they are increasingly being used to write full code. OpenAI recently released Codex, an AI coding engine within ChatGPT, powered by its codex-1 model—an optimized version of its o3 AI reasoning model designed specifically for software engineering tasks. Similarly, Google has introduced Gemini Code Assist, a code-review agent that automatically identifies bugs and offers suggestions within GitHub. Code Assist allows developers to interact with a Google AI model in natural language to access and edit their codebase—much like GitHub's popular Copilot tool. The impact of AI is real—particularly on entry-level tech jobs. SignalFire, a venture capital firm that analyses job movements across over 650 million employees and 80 million companies on LinkedIn, reported last week that major tech companies—including Meta, Microsoft, and Google—recruited fewer recent graduates in 2024 compared to previous years. New graduates accounted for just 7% of new hires in 2024, down 25% from 2023 and over 50% from pre-pandemic levels in 2019. At startups, the rate of new graduate hiring dropped from 30% in 2019 to under 6% in 2024. While big tech companies are spending billions of dollars to build AI infrastructure, layoffs continue. So far this year, more than 62,114 tech workers have been laid off from both large and small tech firms, according to the independent tracker Anuj Bhatia is a personal technology writer at who has been covering smartphones, personal computers, gaming, apps, and lifestyle tech actively since 2011. He specialises in writing longer-form feature articles and explainers on trending tech topics. His unique interests encompass delving into vintage tech, retro gaming and composing in-depth narratives on the intersection of history, technology, and popular culture. He covers major international tech conferences and product launches from the world's biggest and most valuable tech brands including Apple, Google and others. At the same time, he also extensively covers indie, home-grown tech startups. Prior to joining The Indian Express in late 2016, he served as a senior tech writer at My Mobile magazine and previously held roles as a reviewer and tech writer at Gizbot. Anuj holds a postgraduate degree from Banaras Hindu University. You can find Anuj on Linkedin. Email: ... Read More
