Latest news with #NvidiaGPUs
CNBC
5 days ago
- Business
- CNBC
Nvidia says its AI chips do not have a 'kill switch' after Chinese accusation
Nvidia on Tuesday rejected Chinese accusations that its data center GPUs for artificial intelligence include a hardware function that could remotely deactivate the chips, which is commonly called a "kill switch." "NVIDIA GPUs do not and should not have kill switches and backdoors," wrote Nvidia's Chief Security Officer David Reber in a blog post on Tuesday. The blog post comes after the Cyberspace Administration of China said last week that it needed Nvidia to provide documents about what it called security vulnerabilities in the H20, Nvidia's data center AI chip intended for the Chinese market. The regulator specifically mentioned "backdoor" security risks, according to the New York Times. The statement is an example of how Nvidia is navigating geopolitical conflict as its AI chips remain in high demand by countries and companies around the world. U.S. lawmakers have proposed legislation that would require AI chips under export regulations to be equipped with location-tracking systems. The U.S. has placed export controls on some Nvidia chips to China because of national security reasons, saying that the country could use the chips to gain an advantage in AI or for military purposes. Nvidia CEO Jensen Huang has argued that it is better for the U.S. if Nvidia's chips become the global standard for AI computers, especially among Chinese developers. The H20 generates billions in revenue per quarter for Nvidia in sales, although the company does not typically break out its revenue specifically. The chip was briefly banned from export to China in April. The company said its guidance would have been about $8 billion higher except for lost sales from a recent export restriction on its China-bound H20 chips. The Trump administration said in July that it would grant a waiver for the chips to resume sales. Silicon Valley technologists and security experts generally believe that backdoors — when a device has a hidden function that would allow a government or attacker to secretly take data from a computer or otherwise control it — are untenable in products. Apple, in particular, has publicly fought off government requests for what it calls "backdoors" in the past as well. Nvidia declined to comment further on its blog post. Reber argued in the blog post that secret backdoors are dangerous vulnerabilities that could be used by hackers, not just officials, and that they "violate the fundamental principles of cybersecurity." He also said that if a kill switch or backdoor were to be put in products like Nvidia GPUs, that they would harm U.S. national security interests. "Hardwiring a kill switch into a chip is something entirely different: a permanent flaw beyond user control, and an open invitation for disaster," Reber wrote. "It's like buying a car where the dealership keeps a remote control for the parking brake — just in case they decide you shouldn't be driving."
Yahoo
5 days ago
- Business
- Yahoo
Should You Buy Nvidia Stock Before Aug. 27? Here's What the Evidence Suggests.
Key Points After more than two years of phenomenal gains, investors are wary about the future of AI. Nvidia's GPUs are a staple in the AI revolution, and sales continue at a brisk pace. There's a growing body of evidence that suggests Nvidia's epic run will continue, as will the stocks volatility. 10 stocks we like better than Nvidia › The dawn of artificial intelligence (AI) in late 2022 has had a profound impact on the technology landscape. The initial fervor has since died down, and investors are looking for compelling evidence that the adoption of AI has room to run. Nvidia (NASDAQ: NVDA) graphics processing units (GPUs) were widely adopted and have become the gold standard for generative AI. The company is scheduled to release the results of its fiscal 2026 second quarter after the market closes on Wednesday, Aug. 27, and Wall Street and shareholders alike will be sitting on the edge of their seats looking for clues that strong demand for AI chips continues. Let's look at the company's most recent results, what current events suggest about the future, and determine if Nvidia stock still represents a compelling opportunity heading into the company's highly anticipated financial report. Remarkable results After generating triple-digit revenue and profit growth for two consecutive fiscal years, growth inevitably slowed, and investors got the jitters. Despite tough year-over-year comps, Nvidia's results were still enviable. For its fiscal 2026 first quarter (ended April 27), Nvidia reported record revenue of $44.1 billion, which soared 69% year over year and 12% sequentially. This resulted in adjusted earnings per share (EPS) of $0.81, up 33%, but there's an asterisk on those numbers. Nvidia took a $4.5 billion writedown on H20 chips destined for China, because of the Trump administration's moratorium on AI chip sales in that country (which has since been lifted). Without that charge, EPS would have been $0.96, a 57% increase. Make no mistake: It was the continuing adoption of AI that drove the robust results, as revenue from Nvidia's data center segment climbed 73% to $39 billion, representing 89% of its total revenue. Management expects Nvidia's growth spurt to continue, albeit at a more moderate pace. For its fiscal 2026 second quarter (ended July 27), management is guiding for revenue of $45 billion, which would represent year-over-year growth of 50%. Wall Street is equally bullish, with analysts' consensus estimates calling for revenue of $45.68 billion and adjusted EPS of $1.00. While this would represent a minor slowing compared with last quarter's robust growth, it would still be remarkable nonetheless. Same customers, expanding opportunity The biggest concern among Nvidia investors is that the adoption of AI will hit a wall, but there's simply no evidence to back that assertion. In fact, all the available evidence suggests the proliferation of AI continues. Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud, are collectively known as the "Big Three" in cloud computing, and each has recently revealed plans to increase infrastructure spending this year, beyond the already robust spending that was previously announced. Furthermore, most of that spending will be allocated to additional data centers to support the growing demand for AI -- most of which will run on Nvidia GPUs. In addition, Meta Platforms also announced that it was increasing its capital expenditure spending plans for the year. The totals are enlightening: Amazon: $118 billion, up from $100 billion. Microsoft: $100 billion, up from $80 billion. Alphabet: $85 billion, up from $75 billion. Meta: $69 billion, up from $62.5 It's no coincidence that these four companies are also Nvidia's biggest customers. Add to that the resumption of H20 chip sales and China, and it appears clear that Nvidia's AI opportunity continues to expand. Should you buy the stock before Aug. 27? To be clear, I expect Nvidia stock to remain volatile, driven by the inevitable ebbs and flows of AI spending. That said, its success thus far has been undeniable. Over the past three years, the stock has gained 882% (as of this writing) but has also fallen as much as 37% -- so it isn't for the faint of heart. This helps illustrate one of the hallmarks of investing success: Treat buying stocks as partial ownership in a business, own stocks in the best companies out there, and commit to holding for at least three to five years. That takes us back to the main question: Should you buy Nvidia stock before Aug. 27? The unspoken question here is whether Nvidia stock will be up or down following the release of its highly anticipated quarterly report. Truth be told, I have no idea, nor does anyone else for that matter. My crystal ball has been on the blink for some time, but if I were in the mood to prognosticate, I would feel comfortable making several very vague predictions: Nvidia will announce yet another in a long and growing series of quarterly revenue records. Given the company's track record of exceeding expectations, I suspect it will beat analysts' consensus estimates, which are calling for sales of $45.68 billion -- which is slightly ahead of management's guidance of $45 billion -- and adjusted EPS of $1.00. Beyond that, it's anyone's guess, and my predictions could be way off base. That said, I'm still extremely confident that my investing thesis for Nvidia remains intact. The company's cutting-edge GPUs are still the gold standard, driving the AI revolution, and rivals have yet to challenge its position as the undisputed market leader or come up with a superior product. The specter of competition remains, as there's always the possibility that a technological innovation could steal Nvidia's thunder. Most experts agree that it's still early innings for AI, but there's no consensus about the size of the market. Even the most conservative estimates start at $1 trillion. Big Four accounting firm PwC estimates the total economic impact at $15.7 trillion between now and 2030. The truth is nobody knows for sure. Nvidia stock is currently selling for roughly 30 times next year's earnings. However, that premium is backed by the company's track record of innovation, industry-leading position, and history of growth. This underpins my confidence that the runway ahead is long. For those who believe that the AI revolution will play out over the next decade and Nvidia will maintain its position as the leading provider of AI chips, the answer is clear. We don't know what the stock will do between now and Aug. 27 and for long-term investors, that doesn't matter. We'll simply buckle up for the bumpy (and profitable) ride ahead. Do the experts think Nvidia is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nvidia make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Danny Vena has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Should You Buy Nvidia Stock Before Aug. 27? Here's What the Evidence Suggests. was originally published by The Motley Fool 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
Globe and Mail
5 days ago
- Business
- Globe and Mail
Should You Buy Nvidia Stock Before Aug. 27? Here's What the Evidence Suggests.
Key Points After more than two years of phenomenal gains, investors are wary about the future of AI. Nvidia's GPUs are a staple in the AI revolution, and sales continue at a brisk pace. There's a growing body of evidence that suggests Nvidia's epic run will continue, as will the stocks volatility. 10 stocks we like better than Nvidia › The dawn of artificial intelligence (AI) in late 2022 has had a profound impact on the technology landscape. The initial fervor has since died down, and investors are looking for compelling evidence that the adoption of AI has room to run. Nvidia (NASDAQ: NVDA) graphics processing units (GPUs) were widely adopted and have become the gold standard for generative AI. The company is scheduled to release the results of its fiscal 2026 second quarter after the market closes on Wednesday, Aug. 27, and Wall Street and shareholders alike will be sitting on the edge of their seats looking for clues that strong demand for AI chips continues. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Let's look at the company's most recent results, what current events suggest about the future, and determine if Nvidia stock still represents a compelling opportunity heading into the company's highly anticipated financial report. Remarkable results After generating triple-digit revenue and profit growth for two consecutive fiscal years, growth inevitably slowed, and investors got the jitters. Despite tough year-over-year comps, Nvidia's results were still enviable. For its fiscal 2026 first quarter (ended April 27), Nvidia reported record revenue of $44.1 billion, which soared 69% year over year and 12% sequentially. This resulted in adjusted earnings per share (EPS) of $0.81, up 33%, but there's an asterisk on those numbers. Nvidia took a $4.5 billion writedown on H20 chips destined for China, because of the Trump administration's moratorium on AI chip sales in that country (which has since been lifted). Without that charge, EPS would have been $0.96, a 57% increase. Make no mistake: It was the continuing adoption of AI that drove the robust results, as revenue from Nvidia's data center segment climbed 73% to $39 billion, representing 89% of its total revenue. Management expects Nvidia's growth spurt to continue, albeit at a more moderate pace. For its fiscal 2026 second quarter (ended July 27), management is guiding for revenue of $45 billion, which would represent year-over-year growth of 50%. Wall Street is equally bullish, with analysts' consensus estimates calling for revenue of $45.68 billion and adjusted EPS of $1.00. While this would represent a minor slowing compared with last quarter's robust growth, it would still be remarkable nonetheless. Same customers, expanding opportunity The biggest concern among Nvidia investors is that the adoption of AI will hit a wall, but there's simply no evidence to back that assertion. In fact, all the available evidence suggests the proliferation of AI continues. Amazon Web Services, Microsoft Azure, and Alphabet 's Google Cloud, are collectively known as the "Big Three" in cloud computing, and each has recently revealed plans to increase infrastructure spending this year, beyond the already robust spending that was previously announced. Furthermore, most of that spending will be allocated to additional data centers to support the growing demand for AI -- most of which will run on Nvidia GPUs. In addition, Meta Platforms also announced that it was increasing its capital expenditure spending plans for the year. The totals are enlightening: Amazon: $118 billion, up from $100 billion. Microsoft: $100 billion, up from $80 billion. Alphabet: $85 billion, up from $75 billion. Meta: $69 billion, up from $62.5 billion. It's no coincidence that these four companies are also Nvidia's biggest customers. Add to that the resumption of H20 chip sales and China, and it appears clear that Nvidia's AI opportunity continues to expand. Should you buy the stock before Aug. 27? To be clear, I expect Nvidia stock to remain volatile, driven by the inevitable ebbs and flows of AI spending. That said, its success thus far has been undeniable. Over the past three years, the stock has gained 882% (as of this writing) but has also fallen as much as 37% -- so it isn't for the faint of heart. This helps illustrate one of the hallmarks of investing success: Treat buying stocks as partial ownership in a business, own stocks in the best companies out there, and commit to holding for at least three to five years. That takes us back to the main question: Should you buy Nvidia stock before Aug. 27? The unspoken question here is whether Nvidia stock will be up or down following the release of its highly anticipated quarterly report. Truth be told, I have no idea, nor does anyone else for that matter. My crystal ball has been on the blink for some time, but if I were in the mood to prognosticate, I would feel comfortable making several very vague predictions: Nvidia will announce yet another in a long and growing series of quarterly revenue records. Given the company's track record of exceeding expectations, I suspect it will beat analysts' consensus estimates, which are calling for sales of $45.68 billion -- which is slightly ahead of management's guidance of $45 billion -- and adjusted EPS of $1.00. Beyond that, it's anyone's guess, and my predictions could be way off base. That said, I'm still extremely confident that my investing thesis for Nvidia remains intact. The company's cutting-edge GPUs are still the gold standard, driving the AI revolution, and rivals have yet to challenge its position as the undisputed market leader or come up with a superior product. The specter of competition remains, as there's always the possibility that a technological innovation could steal Nvidia's thunder. Most experts agree that it's still early innings for AI, but there's no consensus about the size of the market. Even the most conservative estimates start at $1 trillion. Big Four accounting firm PwC estimates the total economic impact at $15.7 trillion between now and 2030. The truth is nobody knows for sure. Nvidia stock is currently selling for roughly 30 times next year's earnings. However, that premium is backed by the company's track record of innovation, industry-leading position, and history of growth. This underpins my confidence that the runway ahead is long. For those who believe that the AI revolution will play out over the next decade and Nvidia will maintain its position as the leading provider of AI chips, the answer is clear. We don't know what the stock will do between now and Aug. 27 and for long-term investors, that doesn't matter. We'll simply buckle up for the bumpy (and profitable) ride ahead. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
