Latest news with #NewStreetResearch
Yahoo
29-05-2025
- Business
- Yahoo
Nvidia's 'surge in inference demand' is the key earnings takeaway
Nvidia (NVDA) stock jumps on the chipmaker's first quarter earnings results. Antoine Chkaiban, technology infrastructure analyst at New Street Research, joins Morning Brief to break down the company's outlook amid an $8 billion China headwind and surging demand for Nvidia's new Blackwell chips. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Nvidia sparking a chip rally after topping first-quarter expectations with revenue soaring 69%. The company also warning of an $8 billion revenue hit in the second quarter due to China export rules. CEO Jensen Huang says the curbs weaken America's position. China is one of the world's largest AI markets and a springboard to global success. With half of the world's AI researchers based there, the platform that wins China is positioned to lead globally. Today, however, the $50 billion China market is effectively closed to US industry. China's AI moves on with or without US chips. Joining us now, we've got Antoine Chkaiban, who is the New Street Research Technology Infrastructure Analyst. Just want to start with your biggest takeaways from the results, especially considering what we just heard in the soundbite there from Jensen Huang. Yes, hey Brad and Alison. Thanks for having me. So, yeah, of course, there's this $8 billion headwind in the second quarter. And despite that, you have Nvidia guiding data center revenues up modestly. So that's, you know, a very significant guide up if you account for the headwind. And I think the key takeaway here is that there's a surge in inference demand. You know, all these reasoning models that have been introduced over the course of the year, O3, O4, deep seek, you know, that are capable of generating a lot of tokens to improve upon their answers. That's driving a lot of demand for compute and that's I think is the key takeaway from this earnings. Of course, that translates into a lot of demand for the latest generation Blackwell. I think there were a lot of concerns around potentially production challenges there. I was in Asia last week. I got the opportunity to talk about the supply chain. And indeed, Nvidia faced a lot of challenges. It's a very challenging product to ramp. And now, we have visibility into 1,000 of these racks being installed at their hyperscale customers every week. So you know, that's kind of dismissing any concern around inventories building up at OEMs for Blackwell. So I would say those are the key takeaways from the print yesterday. And I know you mentioned in your notes you sent over to us that you are still buyers of any weakness. What is your long-term bull case for Nvidia, especially given some of the concerns that we'll get to regarding some competition with China specifically? Yes, so on the demand side of things, you know, our view is that the token is the new transistor. That's our motto. So when you're able to innovate at a pace that allows you to lower the cost per token, that drives tremendous demand. And you know, to go back to the reasoning models I was talking about earlier, there's an opportunity to solve humanity's greatest challenges by putting AI at work, you know, in data centers, in huge data centers that are going to comprise millions of XPUs in the next couple of years. Putting those data centers at work to try and solve quantum physics, to try and help companies design products, to try and help governments, you know, optimize their budget. And I think, you know, that's that's our long-term view for AI in general. Now, with regards to your question on competitive dynamics, so there's the China problem. There's more generally, you know, the debate around whether hyperscalers are going to ramp in-house chips. I would say, you know, Nvidia has a head start, clearly, because they have a very strong ecosystem. They have a very large installed base. People know how to use their GPUs. You know, you have universities who are teaching their students with Nvidia GPUs and who have been doing so for 10 years, like in computer science departments. And so that's very hard, you know, to to break that kind of ecosystem strength. And then with regards to China, so yes, as Jensen mentioned yesterday, there is a huge market there. And if Nvidia doesn't address it, if the US platforms don't address it, well, China is of course ramping. You know, we've heard about Huawei's Ascend chip who who is reportedly becoming competitive, excluding these ecosystem barriers. Who is becoming, you know, competitive on paper progressively? I mean, there's still a gap, but they're trying to catch up, you know? And and if you don't, you know, maintain Nvidia's leadership thanks to its ecosystem, and you allow, you know, that new ecosystem to emerge, well, yes, that's a lost opportunity for the US. So that's, you know, Jensen's message yesterday as well. Sign in to access your portfolio
Phone Arena
24-05-2025
- Business
- Phone Arena
AT&T still has money left allowing it to improve its 5G coverage in the U.S.
According to the tea leaf readers (AKA analysts) working for New Street Research, AT&T still has some money left in the bank after the $5.75 billion deal to buy consumer fiber firm Lumen Technologies. The deal was announced Wednesday and on Friday, New Street Research said that the aforementioned transaction isn't expected to stop the nation's third largest wireless carrier from buying more mid-band 3.45GHz spectrum for its 5G wireless service. We often pass along the story about how T-Mobile became the 5G leader in the U.S. AT&T and Verizon started building out their 5G networks using its fastest airwaves, millimeter wave (mmWave), which is in the high-band. What AT&T and Verizon failed to take into consideration was that as fast as mmWave spectrum is, it travels extremely short distances which limits the number of customers able to connect to these signals. T-Mobile's 5G layer cake which helped it take the early 4G lead in the States. | Image credit-T-Mobile Meanwhile, T-Mobile had a different idea. Using the 2.5GHz mid-band spectrum it picked up from Sprint in the $26 billion acquisition of its rival, T-Mobile proved that using mid-band was the way to build a 5G network in the U.S. Not as fast as mmWave, mid-band is still faster than low-band. While mid-band signals don't travel as far as low-band, they do travel longer distances than mmWave. T-Mobile rode its Goldilocks mid-band spectrum to become the early 5G leader in the U.S., a position it still has to this day. But the story doesn't end there. Taking notice of T-Mobile 's success using mid-band airwaves, AT&T and Verizon spent more than $68 billion to win several C-band licenses during an FCC auction. Still, AT&T has admitted that it seriously trails T-Mobile and Verizon in mid-band and is using a strategy that includes using C-band spectrum (3.7GHz-4.2GHz) and 3.45GHz mi-band spectrum to catch up to its rivals. - AT&T New Street says that AT&T has the financial wherewithal to buy more spectrum. A new report from Light Reading says that AT&T is already kicking the tires on the purchase of $1.2 billion of 3.45GHz spectrum from UScellular and SoniqWave. That would leave AT&T with $3 billion available for additional spectrum purchases according to AT&T . New Street's analysis puts that figure at $7 billion. If New Street's forecast of AT&T 's cash is correct, the $7 billion would give AT&T enough juice to buy the 3.45GHz spectrum that T-Mobile sold Columbia Capital last September, and some AWS-3 licenses that AT&T is expected to buy. However, it should be pointed out that if AT&T plans on buying Columbia Capital's 3.45GHz holdings, it will have to sell part of Lumen's fiber business to an equity partner. Such a move was already baked into the AT&T -Lumen deal. Back in March, AT&T requested a waiver from the FCC allowing it to exceed the regulatory agency's limit of 40MHz of 3.45GHz spectrum that a carrier can control. The 40MHz limit expires next January 4th. But because its acquisition of 3.45 GHz spectrum holdings from UScellular would put AT&T over the FCC limit in some markets, AT&T asked for this waiver which has yet to be granted. If the waiver is not approved, AT&T might have to scrap or revise its plan to obtain more 3.45GHz spectrum. In a recent filing made with the FCC, AT&T disclosed its 3.45GHz holdings and wrote, " Verizon and T-Mobile hold the majority of the remaining unpaired mid-band spectrum outside the 3.45GHz band. As things currently stand, AT&T 's most realistic catch-up opportunities lie in the 3.45GHz spectrum band. Given the lack of a clear spectrum pipeline or mid-band spectrum auction on the horizon, the secondary market represents the only opportunity for AT&T to catch up in the near- to mid-term."
Yahoo
16-05-2025
- Business
- Yahoo
Cisco cut to Neutral at New Street Research as 'recovery played out'
-- On Friday, analysts at New Street Research downgraded Cisco Systems (NASDAQ:CSCO) to Neutral, saying the company's post-downturn rebound has largely run its course and investors should now "wait for the next entry point." In a note, Jefferies analysts acknowledged that Cisco delivered strong third-quarter results, beating expectations across the board. Revenue rose 11% year over year, while earnings per share were 7% higher than expected. 'Strong orders, up 9% YoY ex-Splunk, with broad-based strength across end markets,' the analysts wrote. However, Jefferies said, 'The recovery we expected has played out,' noting that Cisco's July-quarter revenues are now back to their long-term trendline and likely to grow at a more modest pace of 3% to 5% annually going forward. While Cisco's software mix offers a long-term path for margin expansion, near-term profitability pressures are said to remain. The analysts pointed to a 10 basis point decline in gross margins last quarter, with a further 60 basis point drop forecast for the upcoming quarter, 'driven by tariffs.' Despite a decent outlook—Jefferies sees 3% dividend yield and 8% earnings growth—Cisco's valuation 'metrics are in their higher tier and present a risk without much upside.' The analysts added that revenue growth 'is likely to slow from here.' Jefferies cut its rating from Buy to Neutral and maintained a $70 price target, saying the stock is 'in a good place' but that the best opportunity to buy has passed. Related articles Cisco cut to Neutral at New Street Research as 'recovery played out' Five TSX stocks that reported earnings, and what analysts are saying Clean energy tax credit proposal positive for Sunrun - Clear Street 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
Time of India
12-05-2025
- Business
- Time of India
IPO, buyback hurdles hit Airtel Africa
Kolkata: A deferral of the much-awaited initial public offering (IPO) of Airtel Africa's $4.9-billion mobile money business, and uncertainties around the timing of the second tranche of the company's share buyback plans are key concerns despite strong business resurgence of Bharti Airtel's Africa unit, analysts said. "Airtel Africa is still looking to IPO its mobile money (MoMo) business, which we value at $4.9 billion, but this is now delayed to H1, calendar 2026, which is headline negative but doesn't impact value," London-based NewStreet Research said in a note seen by ET. The IPO was earlier planned in mid-2025. Airtel Africa has grown faster than its African peers consistently over time in the lucrative mobile money space, the reason analysts have repeatedly pitched the much awaited IPO of Airtel Africa's mobile money business as a key business growth catalyst. NewStreet Research added that lack of commentary around when Airtel Africa would start the second tranche of its share-buyback is also a perceived "negative". Airtel's Africa arm had completed the first trance of its $100 million share buyback in late-April. Analysts, though, said Airtel Africa had reported a solid set of Q4FY25 earnings numbers on the back of a continued improvement in underlying trends and lower-than-expected capex. FY25 capex at $670 million was well below the $750 million guidance due to deferral of a data centre investment, they added. The FY26 capex guidance is estimated at $750 million. Swings to Profit Airtel Africa reported an $80 million net profit in the March quarter - compared with a $91 million net loss in the year-ago period - while quarterly revenue rose 18 % on-year to $1.31 billion on the back of tariff adjustments in the key Nigeria market and easing of currency headwinds. "The March quarter results indicate a positive underlying operational growth trajectory for Airtel Africa, driven by a growing customer base and increasing data customers penetration," Macquarie said in a research note. Airtel Africa's leadership, though, expects the full impact of recent tariff hikes taken in Nigeria to come through only in the June quarter.
Time of India
11-05-2025
- Business
- Time of India
IPO, buyback hurdles hit Airtel Africa
Kolkata: A deferral of the much-awaited initial public offering (IPO) of Airtel Africa's $4.9-billion mobile money business , and uncertainties around the timing of the second tranche of the company's share buyback plans are key concerns despite strong business resurgence of Bharti Airtel 's Africa unit, analysts said. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations "Airtel Africa is still looking to IPO its mobile money (MoMo) business, which we value at $4.9 billion, but this is now delayed to H1, calendar 2026, which is headline negative but doesn't impact value," London-based NewStreet Research said in a note seen by ET. The IPO was earlier planned in mid-2025. Airtel Africa has grown faster than its African peers consistently over time in the lucrative mobile money space, the reason analysts have repeatedly pitched the much awaited IPO of Airtel Africa's mobile money business as a key business growth catalyst. NewStreet Research added that lack of commentary around when Airtel Africa would start the second tranche of its share-buyback is also a perceived "negative". Airtel's Africa arm had completed the first trance of its $100 million share buyback in late-April. Analysts, though, said Airtel Africa had reported a solid set of Q4FY25 earnings numbers on the back of a continued improvement in underlying trends and lower-than-expected capex. FY25 capex at $670 million was well below the $750 million guidance due to deferral of a data centre investment, they added. The FY26 capex guidance is estimated at $750 million. Swings to Profit Airtel Africa reported an $80 million net profit in the March quarter - compared with a $91 million net loss in the year-ago period - while quarterly revenue rose 18 % on-year to $1.31 billion on the back of tariff adjustments in the key Nigeria market and easing of currency headwinds. "The March quarter results indicate a positive underlying operational growth trajectory for Airtel Africa, driven by a growing customer base and increasing data customers penetration," Macquarie said in a research note. Airtel Africa's leadership, though, expects the full impact of recent tariff hikes taken in Nigeria to come through only in the June quarter. Economic Times WhatsApp channel )
