Latest news with #ProcessingUnits
Yahoo
29-07-2025
- Business
- Yahoo
Alphabet's AI Push Is Accelerating -- Is the Stock a Buy Now?
Key Points Alphabet turned in a strong quarter, led by cloud computing growth. Its Google search business saw growth accelerate in the quarter, helped by its AI Overviews. The stock is cheap for a company with a lot of opportunities ahead. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) once again defied its critics who continue to believe the company will be a loser in artificial intelligence (AI). Not only did the company once again produce strong search revenue growth in its most recent earnings report, but that growth accelerated. In addition, Alphabet said that AI was positively impacting every part of its business. With cloud computing demand continuing to surge, the company upped its capital expenditure (capex) budget by an additional $10 billion to build out its data center capacity. It said in its Q2 earnings report that it now plans to spend $85 billion in capex this year, and anticipates spending even more in 2026, given the strong demand it's seeing for Google Cloud products and services. AI driving growth AI was the biggest growth driver behind Alphabet's strong results, with cloud computing once again leading the way. Google Cloud revenue surged 32% to $13.6 billion in the second quarter, while segment operating income skyrocketed from $1.2 billion a year ago to $2.8 billion. However, the company said its current capacity constraints could extend into 2026, despite its large capex investments. Ultimately, that's not a bad problem to have, as it's just a sign of how strong demand is. Alphabet called out its Gemini 2.5 models as catalysts for growth, saying that 9 million developers have now built with Gemini. It also noted how leading AI research labs are turning to use Google's Tensor Processing Units (TPUs) as their AI chips of choice. While cloud computing is leading the way with growth, all eyes continue to be on Alphabet's core Google Search business. On that front, the company once again delivered. Google Search revenue climbed 12% to $52.2 billion, which was an acceleration from the 10% growth it saw in Q1. Alphabet said over 2 million people in more than 200 countries use AI Overviews monthly, while AI Mode has over 100 million monthly active users, despite only being launched in the U.S. and India so far. It said that AI is contributing significantly to increased search usage, with AI Overviews now driving over 10% more queries globally. Meanwhile, the Gemini app now has more than 450 million monthly active users. Alphabet said the number of daily requests on the app jumped over 50% sequentially. The company also called out its strength in multimodal search, with Google Lens and Circle to Search. It said visual searches grew 70% year over year, and that many are shopping queries. YouTube continues to deliver strong results, with ad revenue rising 13% to $9.8 billion. YouTube, along with Google One (cloud storage) and Music, also helped drive a 20% increase in subscription and device revenue to $11.2 billion. The company said Shorts are becoming a significant contributor, and that the format allows for more ad opportunities on average. It recently introduced Veo 3 to Shorts; the AI tool can create videos from photos and add generative effects to make content creation easier on the platform. Alphabet is also continuing to expand its Waymo robotaxi business. It recently launched in Atlanta and is currently testing the service across 10 cities, including New York and Philadelphia. It hopes to launch the service in all 10 cities in the near future. Overall, Alphabet grew total quarterly revenue by 14% (13% on a constant currency basis), to $96.4 billion. Earnings per share jumped 22% year over year to $2.31. The results easily surpassed analyst consensus estimates (as compiled by LSEG), which were looking for EPS of $2.18 on revenue of $94 billion. Looking ahead, Alphabet said it was cautious on the advertising outlook because it's lapping strong spending in the financial services vertical last year and will see no benefit from political ad spending this year. However, it does expect to see a tailwind in Q3 from current foreign exchange rates. Is it time to buy the stock? Alphabet yet again turned in a strong quarter, demonstrating that the company is on track to be an AI winner. It continues to see solid growth in its search business, though its new AI Mode is currently only in two countries. Gemini has become a top AI model. And with the huge distribution edge it has with the Chrome browser and Android operating system, the company is well positioned in a shifting AI-search landscape. At the same time, Google Cloud continues to be a monster, generating robust revenue growth; it has scaled up to the point that it now has incredible operating leverage. Throw in the strength at YouTube and the emerging Waymo robotaxi business, and Alphabet is cooking. Best of all, you can still get into Alphabet stock on the cheap. The stock only trades at a forward price-to-earnings ratio (P/E) of around 19 times 2025 analyst estimates, and a forward price/earnings-to-growth ratio (PEG) of 0.8. (Stocks with PEG ratios below 1 are typically considered undervalued.) With AI helping drive growth and Alphabet's AI push only accelerating, now is a great time to buy the stock. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% 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 July 21, 2025 Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Alphabet's AI Push Is Accelerating -- Is the Stock a Buy Now? 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
The Hindu
21-07-2025
- Business
- The Hindu
Jensen Huang, Nvidia CEO and AI visionary in a leather jacket
Unknown to the general public just three years ago, Jensen Huang is now one of the most powerful entrepreneurs in the world as head of chip giant Nvidia. The unassuming 62-year-old draws stadium crowds of more than 10,000 people as his company's products push the boundaries of artificial intelligence. Chips designed by Nvidia, known as graphics cards or GPUs (Graphics Processing Units), are essential in developing the generative artificial intelligence powering technology like ChatGPT. Big tech's insatiable appetite for Nvidia's GPUs, which sell for tens of thousands of dollars each, has catapulted the California chipmaker beyond $4 trillion in market valuation, the first company ever to surpass that mark. Nvidia's meteoric rise has boosted Huang's personal fortune to $150 billion, making him one of the world's richest people, thanks to the roughly 3.5% stake he holds in the company he founded three decades ago with two friends in a Silicon Valley diner. In a clear demonstration of his clout, he recently convinced U.S. President Donald Trump to lift restrictions on certain GPU exports to China, despite the fact that China is locked in a battle with the United States for AI supremacy. "That was brilliantly done," said Jeffrey Sonnenfeld, a governance professor at Yale University. Huang was able to explain to Trump that "having the world using a US tech platform as the core protocol is definitely in the interest of this country" and won't help the Chinese military, Sonnenfeld said. Born in Taipei in 1963, Jensen Huang (originally named Jen-Hsun) embodies the American success story. At nine years old, he was sent away with his brother to boarding school in small-town Kentucky. His uncle recommended the school to his Taiwanese parents believing it to be a prestigious institution, when it was actually a school for troubled youth. Too young to be a student, Huang boarded there but attended a nearby public school alongside the children of tobacco farmers. With his poor English, he was bullied and forced to clean toilets, a two-year ordeal that transformed him. "We worked really hard, we studied really hard, and the kids were really tough," he recounted in an interview with U.S. broadcaster NPR. But "the ending of the story is I loved the time I was there," Huang said. Brought home by his parents, who had by then settled in the northwestern U.S. state of Oregon, he graduated from university at just 20 and joined AMD, then LSI Logic, to design chips as per his passion. But he wanted to go further and founded Nvidia in 1993 to "solve problems that normal computers can't," using semiconductors powerful enough to handle 3D graphics, as he explained on the "No Priors" podcast. Nvidia created the first GPU in 1999, riding the intersection of video games, data centres, cloud computing, and now, generative AI. Always dressed in a black T-shirt and leather jacket, Huang sports a Nvidia logo tattoo and has a taste for sports cars. But it's his relentless optimism, low-key personality and lack of political alignment that sets him apart from the likes of Elon Musk and Mark Zuckerberg. Unlike them, Huang was notably absent from Trump's inauguration ceremony. "He backpedals his own aura and has the star be the technology rather than himself," observed Sonnenfeld, who believes Huang may be "the most respected of all today's tech titans." One former high-ranking Nvidia employee described him to AFP as "the most driven person" he'd ever met. On visits to his native Taiwan, Huang is treated like a megastar, with fans crowding him for autographs and selfies as journalists follow him to the barber shop and his favourite night market. "He has created the phenomena because of his personal charm," noted Wayne Lin of Witology Market Trend Research Institute. "A person like him must be very busy and his schedule should be full every day meeting big bosses. But he remembers to eat street food when he comes to Taiwan," he said, calling Huang "unusually friendly." Nvidia is a tight ship and takes great care to project a drama-free image of Huang. But the former high-ranking employee painted a more nuanced picture, describing a "very paradoxical" individual who is fiercely protective of his employees but also capable, within Nvidia's executive circle, of "ripping people to shreds" over major mistakes or poor choices.
Mint
20-07-2025
- Business
- Mint
Jensen Huang, AI visionary in a leather jacket
Unknown to the general public just three years ago, Jensen Huang is now one of the most powerful entrepreneurs in the world as head of chip giant Nvidia. The unassuming 62-year-old draws stadium crowds of more than 10,000 people as his company's products push the boundaries of artificial intelligence. Chips designed by Nvidia, known as graphics cards or GPUs (Graphics Processing Units), are essential in developing the generative artificial intelligence powering technology like ChatGPT. Big tech's insatiable appetite for Nvidia's GPUs, which sell for tens of thousands of dollars each, has catapulted the California chipmaker beyond $4 trillion in market valuation, the first company ever to surpass that mark. Nvidia's meteoric rise has boosted Huang's personal fortune to $150 billion -- making him one of the world's richest people -- thanks to the roughly 3.5 percent stake he holds in the company he founded three decades ago with two friends in a Silicon Valley diner. In a clear demonstration of his clout, he recently convinced President Donald Trump to lift restrictions on certain GPU exports to China, despite the fact that China is locked in a battle with the United States for AI supremacy. "That was brilliantly done," said Jeffrey Sonnenfeld, a governance professor at Yale University. Huang was able to explain to Trump that "having the world using a US tech platform as the core protocol is definitely in the interest of this country" and won't help the Chinese military, Sonnenfeld said. Born in Taipei in 1963, Jensen Huang (originally named Jen-Hsun) embodies the American success story. At nine years old, he was sent away with his brother to boarding school in small-town Kentucky. His uncle recommended the school to his Taiwanese parents believing it to be a prestigious institution, when it was actually a school for troubled youth. Too young to be a student, Huang boarded there but attended a nearby public school alongside the children of tobacco farmers. With his poor English, he was bullied and forced to clean toilets -- a two-year ordeal that transformed him. "We worked really hard, we studied really hard, and the kids were really tough," he recounted in an interview with US broadcaster NPR. But "the ending of the story is I loved the time I was there," Huang said. Brought home by his parents, who had by then settled in the northwestern US state of Oregon, he graduated from university at just 20 and joined AMD, then LSI Logic, to design chips -- his passion. But he wanted to go further and founded Nvidia in 1993 to "solve problems that normal computers can't," using semiconductors powerful enough to handle 3D graphics, as he explained on the "No Priors" podcast. Nvidia created the first GPU in 1999, riding the intersection of video games, data centers, cloud computing, and now, generative AI. Always dressed in a black T-shirt and leather jacket, Huang sports a Nvidia logo tattoo and has a taste for sports cars. But it's his relentless optimism, low-key personality and lack of political alignment that sets him apart from the likes of Elon Musk and Mark Zuckerberg. Unlike them, Huang was notably absent from Trump's inauguration ceremony. "He backpedals his own aura and has the star be the technology rather than himself," observed Sonnenfeld, who believes Huang may be "the most respected of all today's tech titans." One former high-ranking Nvidia employee described him to AFP as "the most driven person" he'd ever met. On visits to his native Taiwan, Huang is treated like a megastar, with fans crowding him for autographs and selfies as journalists follow him to the barber shop and his favorite night market. "He has created the phenomena because of his personal charm," noted Wayne Lin of Witology Market Trend Research Institute. "A person like him must be very busy and his schedule should be full every day meeting big bosses. But he remembers to eat street food when he comes to Taiwan," he said, calling Huang "unusually friendly." Nvidia is a tight ship and takes great care to project a drama-free image of Huang. But the former high-ranking employee painted a more nuanced picture, describing a "very paradoxical" individual who is fiercely protective of his employees but also capable, within Nvidia's executive circle, of "ripping people to shreds" over major mistakes or poor choices.
Int'l Business Times
20-07-2025
- Business
- Int'l Business Times
Jensen Huang, AI Visionary In A Leather Jacket
Unknown to the general public just three years ago, Jensen Huang is now one of the most powerful entrepreneurs in the world as head of chip giant Nvidia. The unassuming 62-year-old draws stadium crowds of more than 10,000 people as his company's products push the boundaries of artificial intelligence. Chips designed by Nvidia, known as graphics cards or GPUs (Graphics Processing Units), are essential in developing the generative artificial intelligence powering technology like ChatGPT. Big tech's insatiable appetite for Nvidia's GPUs, which sell for tens of thousands of dollars each, has catapulted the California chipmaker beyond $4 trillion in market valuation, the first company ever to surpass that mark. Nvidia's meteoric rise has boosted Huang's personal fortune to $150 billion -- making him one of the world's richest people -- thanks to the roughly 3.5 percent stake he holds in the company he founded three decades ago with two friends in a Silicon Valley diner. In a clear demonstration of his clout, he recently convinced President Donald Trump to lift restrictions on certain GPU exports to China, despite the fact that China is locked in a battle with the United States for AI supremacy. "That was brilliantly done," said Jeffrey Sonnenfeld, a governance professor at Yale University. Huang was able to explain to Trump that "having the world using a US tech platform as the core protocol is definitely in the interest of this country" and won't help the Chinese military, Sonnenfeld said. Born in Taipei in 1963, Jensen Huang (originally named Jen-Hsun) embodies the American success story. At nine years old, he was sent away with his brother to boarding school in small-town Kentucky. His uncle recommended the school to his Taiwanese parents believing it to be a prestigious institution, when it was actually a school for troubled youth. Too young to be a student, Huang boarded there but attended a nearby public school alongside the children of tobacco farmers. With his poor English, he was bullied and forced to clean toilets -- a two-year ordeal that transformed him. "We worked really hard, we studied really hard, and the kids were really tough," he recounted in an interview with US broadcaster NPR. But "the ending of the story is I loved the time I was there," Huang said. Brought home by his parents, who had by then settled in the northwestern US state of Oregon, he graduated from university at just 20 and joined AMD, then LSI Logic, to design chips -- his passion. But he wanted to go further and founded Nvidia in 1993 to "solve problems that normal computers can't," using semiconductors powerful enough to handle 3D graphics, as he explained on the "No Priors" podcast. Nvidia created the first GPU in 1999, riding the intersection of video games, data centers, cloud computing, and now, generative AI. Always dressed in a black T-shirt and leather jacket, Huang sports a Nvidia logo tattoo and has a taste for sports cars. But it's his relentless optimism, low-key personality and lack of political alignment that sets him apart from the likes of Elon Musk and Mark Zuckerberg. Unlike them, Huang was notably absent from Trump's inauguration ceremony. "He backpedals his own aura and has the star be the technology rather than himself," observed Sonnenfeld, who believes Huang may be "the most respected of all today's tech titans." One former high-ranking Nvidia employee described him to AFP as "the most driven person" he'd ever met. On visits to his native Taiwan, Huang is treated like a megastar, with fans crowding him for autographs and selfies as journalists follow him to the barber shop and his favorite night market. "He has created the phenomena because of his personal charm," noted Wayne Lin of Witology Market Trend Research Institute. "A person like him must be very busy and his schedule should be full every day meeting big bosses. But he remembers to eat street food when he comes to Taiwan," he said, calling Huang "unusually friendly." Nvidia is a tight ship and takes great care to project a drama-free image of Huang. But the former high-ranking employee painted a more nuanced picture, describing a "very paradoxical" individual who is fiercely protective of his employees but also capable, within Nvidia's executive circle, of "ripping people to shreds" over major mistakes or poor choices.
Business Insider
17-07-2025
- Business
- Business Insider
AMD Stock Rally Is ‘Empty Calories,' Says Citi's Top Analyst
Citi's top analyst, Christopher Danely, calls the recent rally in AMD stock (AMD) 'empty calories' because he believes the chip ban can be reinstated at any time. Yesterday, Advanced Micro Devices rallied 6.4% after President Donald Trump lifted the ban on export of artificial intelligence (AI) chips to China. The news also boosted shares of major semiconductor companies, including Nvidia (NVDA), which rose 4% to reach a new all-time high of $172.40. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Danely has a 'Hold' rating on AMD stock and a price target of $145, which implies 6.8% downside potential from current levels. Danely ranks #588 out of 9,861 analysts tracked on TipRanks. He boasts a 66% success rate and an average return per rating of 11.40%. Here's Why Citi Is Skeptical About the AI Ban Reversal The easing of export restrictions means AMD can now resume shipments of its MI308 AI chips to China. The White House had previously imposed a ban on the export of advanced AI chips to China due to national security concerns. Notably, AMD was expected to take an $800 million hit from the ban, while Nvidia faced a larger $5.5 billion impact. However, the situation has changed following the easing of trade tensions between the U.S. and China. Danely has a rather skeptical view on the news. He noted that the resumption of MI308 chip sales to China is 'not sustainable' as they could be banned again. The U.S.-China trade relations remain fragile, and even a minor incident could prompt substantial policy shifts. Having said that, Danely believes that the Trump administration's $70 billion investment in Pennsylvania for AI and energy could be highly beneficial for chipmakers, including AMD, NVDA, Broadcom (AVGO), and Micron (MU). AMD Is Positioning as a Serious Rival to Nvidia For years, AMD has been seen as secondary to Nvidia, with the latter's advanced AI chips and GPUs (Graphics Processing Units) commanding global attention. However, AMD is rapidly advancing with its own chip innovations to compete more effectively with Nvidia. Recently, AMD launched its new line of MI350 AI chips, which are expected to be nearly 30% cheaper than Nvidia's comparable chips. Also, AMD's MI355X features high-bandwidth memory (HBM), which is reportedly three times that offered by Nvidia's Blackwell B200. Is AMD a Good Stock to Buy? Despite the current optimism surrounding Advanced Micro Devices, analysts remain divided about its long-term outlook. On TipRanks, AMD stock has a Moderate Buy consensus rating based on 25 Buys and 10 Hold ratings. Also, the average AMD price target of $135.97 implies 12.6% downside potential from current levels. Year-to-date, AMD stock has gained nearly 29%.
