Latest news with #R-1
Yahoo
06-03-2025
- Business
- Yahoo
Nvidia leads chipmaker stocks lower as investor fears over AI demand continue to weigh
Nvidia (NVDA) stock fell as much as 2.6% early Thursday, leading other chipmakers down as fears over AI demand continued to weigh on the sector. The drop puts Nvidia shares down nearly 13% year-to-date, with the AI chipmaking giant seeing its worst monthly performance in February since July 2022. "It's been a rough year for NVDA so stock (along with many of its AI-semi peers) has suffered, battered by a storm of growth fears, supply chain noise, and tariff and regulatory risks," Bernstein analyst Stacy Rasgon wrote in a note to investors earlier this week. "Sentiment has clearly pivoted for now on the AI group." Industry news late Wednesday and early Thursday did little to quell investor anxieties. The Financial Times reported Wednesday night that CoreWeave — a private cloud services company prepping to launch a $35 billion IPO — has lost business from Microsoft over delivery issues and missed deadlines. CoreWeave is a large Nvidia customer. Separately, custom AI chipmaker Marvell Technology (MRVL) — which supplies semiconductors to Amazon and Microsoft — reported quarterly financial results after the bell Wednesday that failed to impress investors looking for an AI payoff. Also on Thursday, Chinese tech giant Alibaba (BABA) unveiled an AI model it said rivals DeepSeek's R-1, whose introduction spurred market fears over a reduction in AI hardware spending as models become more cost-efficient. Raymond James analysts said the Marvel's fourth quarter earnings and guidance were "more modest than we anticipated, which is a surprise given the strong results from peers." Marvell shares plunged more than 17% in early trading on Thursday. Other artificial intelligence chipmakers and AI adjacent stocks also suffered early Thursday. Custom AI semiconductor maker Broadcom (AVGO) fell 5%, while GPU-maker Advanced Micro Devices (AMD) fell 2%. British chip architecture designer Arm (ARM) dropped 4%, Micron (MU) sank 3.5%, and Qualcomm (QCOM) dipped more than 1.4%. Broadcom and AMD are seen as a rival to Nvidia, while Arm and Micron are partners whose products are used in Nvidia's server designs. Broadcom is set to report earnings after the bell Thursday. The declines come as investors size up the hype over artificial intelligence and digest Big Tech's stated AI investments. Tech giants Microsoft, Meta, Google, and Amazon are set to spend more than $300 billion in 2025 alone. TSMC and Apple have committed to spending $100 billion and $500 billion, respectively, in new investments in the US over the next several years to expand their US manufacturing footprint for AI chips and servers. On the other hand, Microsoft — which accounts for the lion's share of expected AI spending this year — recently reportedly walked away from existing data center leases and abandoned potential new ones worth over 1 gigawatt of capacity, which TD Cowen analysts said "indicates the loss of a major demand signal," adding that "the shift in their appetite for capacity is tied to OpenAI." For context, the power generated by one gigawatt in an hour could sustain 700 electric vehicles for a full year. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Nvidia CEO Jensen Huang reinforces the company's role in the 'evolving' AI trade
Nvidia (NVDA) CEO Jensen Huang took to the company's fourth quarter earnings call on Wednesday, looking to reaffirm the chip giant's place in the AI trade — and calm Wall Street jitters around the technology's future growth. Shares of Nvidia have been off more than 7% on the year going into Wednesday's print as investors and analysts have raised questions about Big Tech's continued AI spending. The fears: that the rise of DeepSeek's AI models meant developers didn't need to use pricey chips like Nvidia's Blackwell GPUs — and that custom chips developed by Nvidia customers like Amazon (AMZN) and Google (GOOG, GOOGL) could threaten the company's long-term health. Huang held off on making opening remarks during Nvidia's call. Instead, he answered analysts' questions throughout and closed with comments explaining how models like DeepSeek's will require even more power than earlier models. When DeepSeek debuted its R-1 model in January, it sent AI stocks into a tailspin. That's because the company says it developed the software, which rivals OpenAI's platform, using Nvidia's H20 chips. Those processors are far less powerful than the AI titan's Blackwell chips, leading investors to question whether Nvidia was facing an existential crisis. After all, if companies could create AI platforms using more affordable chips, why would they need to spend billions on Nvidia's high-end processors? Huang, however, explained that because DeepSeek's model, and others like it, provided better responses when using more powerful AI chips, Nvidia will continue to benefit from their use. 'The more the model thinks the smarter the answer. Models like OpenAI, Grok 3, DeepSeek-R1 are reasoning models that apply inference time scaling,' Huang said. 'Reasoning models can consume 100x more compute. Future reasoning models can consume much more compute." Huang also explained that models like DeepSeek are driving demand for inferencing, the process of running AI applications. Training AI models requires a massive amount of power and performance. But as inferencing becomes the main use case for AI systems, Wall Street investors have questioned whether Nvidia's customers will opt for cheaper, less powerful chips. Huang, however, contends that DeepSeek's models, and those like them, illustrate that inferencing will require plenty of power in their own right. In addition to addressing DeepSeek, Huang also hit on the impact of ASICs on the industry — and what it could mean for Nvidia. ASICs or application-specific integrated circuits, are chips designed specifically for, as you might guess, specific applications. Google used its Tensor Processing Unit, which is an ASIC, to train its Gemini AI platform. In Huang's estimation, Nvidia's chips offer 2x to 8x better performance per watt than ASICs and can be used across various AI applications because they're built for general-purpose computing and have a large software ecosystem that customers can rely on. 'There's a lot of different reasons why we do well, why we win,' Huang said. What's more, the CEO said that just because an ASIC is built doesn't mean it will be deployed. 'There are a lot of chips that get built, but when the time comes, a business decision has to be made, and that business decision is about deploying a new engine, a new processor into a limited AI factory in size, in power,' he explained. Beyond ASICs, Huang hit on the larger issue of whether Nvidia can grow beyond its heavy reliance on cloud service providers. Currently, CSPs make up 50% of Nvidia's data center sales. And if those customers continue to develop their own ASICs and end up relying on them, Nvidia risks losing a key source of revenue. But Huang said the company has far more options in front of it. 'We've really only tapped consumer AI and search and some amount of consumer generative AI, advertising, recommenders … the next wave is coming,' he explained. 'Agentic AI for enterprise, physical AI for robotics, and sovereign AI … each one of these are barely off the ground, and we can see them. We can see great activity happening in all these different places and these will happen,' Huang added. The upshot: Nvidia sees more use cases for its chips beyond being power plants for Amazon, Google, Meta, and Microsoft. Up next, the company will host its GTC conference on March 18, where it's expected to launch its Blackwell Ultra chip and provide details about its next-generation Vera Rubin processor. Email Daniel Howley at dhowley@ Follow him on Twitter at @DanielHowley. Sign in to access your portfolio
Yahoo
30-01-2025
- Business
- Yahoo
Arista Networks (ANET): Cramer Says ‘Better Than NVIDIA'? Here's the Truth
We recently published a list of . In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other stocks discussed by Jim Cramer with insights on the DeepSeek AI sell-off. On the day that Wall Street's favorite AI GPU stock bled 17% in the wake of investors panicking about Chinese AI startup DeepSeek's low development costs for AI, Jim Cramer had a lot to say about the topic. Cramer has been one of the biggest fans of the GPU company, and right off the bat, he started out by sharing that the key thing to consider now is whether the GPU orders for the firm will materialize. He also commented on 'traveler stocks' or those that have benefited from the broad AI sentiment. Cramer shared 'What I find most interesting is that, the fellow travelers to these are the nuclear stocks that have been up a lot. . . .Are the memes. Are the crypto.' He commented that the fact that these stocks were all simultaneously losing value was not great for the market. According to Cramer, 'So looks [like] they are all you know one stock and that is not good. That's not good because that says you have hype and froth in here that has to come out no matter what.' The CNBC host also shared his experience using DeepSeek's R-1 model. In his previous remarks, Cramer revealed that he was a fan of ChatGPT and had used OpenAI's product to research stocks ahead of his appearances on CNBC. However, he wasn't impressed by R-1. Cramer outlined that he 'tried to do a couple of, I tried to get it to give me Netflix's performance from 2010. And it says I can't do that. Well I mean, honestly? I can do that.' Another aspect of R-1 that left him unimpressed was censorship. 'This is a Chinese product,' Cramer said. 'So when I put into my very helpful DeepSeek, what famous picture has a man with grocery bags in front of a tank? And it initially says, the famous picture you are referring to, Tank Man, unknown rebel, June 5, 1989,' he added. While this is all good, soon after the initial response, R-1 'takes that back and says sorry, can't help you with that. And then secondarily it says sorry that's beyond my current scope,' according to him. When co-host Carl Quintanilla asked him whether it was worth buying any of the AI stocks, Cramer was rather direct. He shared 'I don't have the knowledge to be able to make that decision. It's better to own that.' Cramer also noted that before Monday's appearance, there was a debate about whether 'can we just make a determination, or is the determination that we don't want to let anybody down so we can't make that?' Given the absolute bloodbath in the premarket that day, he felt 'like, whatever you do, maybe twisted between now and the opening.' As a result, Cramer shared 'But sometimes you have to admit, like if you were at the hedge fund you'd just say, you know I'm not sure what to do, it's not a cop-out. I'm not sure what to do.' However, with respect to the doubt surrounding AI, he added 'When in doubt do you go against Zuckerberg? Do you go against Ellison? And I come back and say, I don't know. Sometimes it's better to say I don't know.' Like social media CEO Mark Zuckerberg's AI, DeepSeek is also open source. When asked about whether being open source threatens the ecosystem, Cramer replied 'Yeah I know that, again, I don't want to front row Mark Zuckerberg on what he's saying, but I would say that we do have tremendous chip allocation problems here. And I know that David, we, if you have open source, would you think, that you do not need as many chips. Right. Not necessarily.' The sell-off in tech stocks did make him feel that 'it's not such a bad idea to look away from one moment and go back and say the healthcare rotation was so powerful last week.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on January 27th. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (). A technician in a server room managing a large-scale network of computers. Number of Hedge Fund Holders In Q3 2024: 70 Arista Networks Inc (NYSE:ANET) is a computer hardware and software company that primarily sells networking products. Since networking products such as Ethernet adapters are heavily used in AI data centers, it has performed well on the stock market. Arista Networks (NYSE:ANET)'s shares closed in 2024 after gaining 92%, but the impact of DeepSeek's AI sell-off was equally brutal. The stock lost a whopping 22% amidst investor panic about lower demand for data centers due to lower AI training costs. As the stock fell, here's what Cramer said about Arista Networks Inc (NYSE:ANET): 'And then, Arista, people forget, Arista is integral to [the] inside. They were white boxing a lot of technology inside a data center, there are some people who think, no, that it's no doubt that is a better stock than NVIDIA. I always question that and it seems a little fanciful frankly. But I know people who hold that view.' Overall, ANET ranks 9th on our list of stocks discussed by Jim Cramer with insights on the DeepSeek AI sell-off. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-01-2025
- Business
- Yahoo
Vertiv Holdings (VRT): The Most Obvious Data Center Play in the DeepSeek Fallout
We recently published a list of . In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against other stocks discussed by Jim Cramer with insights on the DeepSeek AI sell-off. On the day that Wall Street's favorite AI GPU stock bled 17% in the wake of investors panicking about Chinese AI startup DeepSeek's low development costs for AI, Jim Cramer had a lot to say about the topic. Cramer has been one of the biggest fans of the GPU company, and right off the bat, he started out by sharing that the key thing to consider now is whether the GPU orders for the firm will materialize. He also commented on 'traveler stocks' or those that have benefited from the broad AI sentiment. Cramer shared 'What I find most interesting is that, the fellow travelers to these are the nuclear stocks that have been up a lot. . . .Are the memes. Are the crypto.' He commented that the fact that these stocks were all simultaneously losing value was not great for the market. According to Cramer, 'So looks [like] they are all you know one stock and that is not good. That's not good because that says you have hype and froth in here that has to come out no matter what.' The CNBC host also shared his experience using DeepSeek's R-1 model. In his previous remarks, Cramer revealed that he was a fan of ChatGPT and had used OpenAI's product to research stocks ahead of his appearances on CNBC. However, he wasn't impressed by R-1. Cramer outlined that he 'tried to do a couple of, I tried to get it to give me Netflix's performance from 2010. And it says I can't do that. Well I mean, honestly? I can do that.' Another aspect of R-1 that left him unimpressed was censorship. 'This is a Chinese product,' Cramer said. 'So when I put into my very helpful DeepSeek, what famous picture has a man with grocery bags in front of a tank? And it initially says, the famous picture you are referring to, Tank Man, unknown rebel, June 5, 1989,' he added. While this is all good, soon after the initial response, R-1 'takes that back and says sorry, can't help you with that. And then secondarily it says sorry that's beyond my current scope,' according to him. When co-host Carl Quintanilla asked him whether it was worth buying any of the AI stocks, Cramer was rather direct. He shared 'I don't have the knowledge to be able to make that decision. It's better to own that.' Cramer also noted that before Monday's appearance, there was a debate about whether 'can we just make a determination, or is the determination that we don't want to let anybody down so we can't make that?' Given the absolute bloodbath in the premarket that day, he felt 'like, whatever you do, maybe twisted between now and the opening.' As a result, Cramer shared 'But sometimes you have to admit, like if you were at the hedge fund you'd just say, you know I'm not sure what to do, it's not a cop-out. I'm not sure what to do.' However, with respect to the doubt surrounding AI, he added 'When in doubt do you go against Zuckerberg? Do you go against Ellison? And I come back and say, I don't know. Sometimes it's better to say I don't know.' Like social media CEO Mark Zuckerberg's AI, DeepSeek is also open source. When asked about whether being open source threatens the ecosystem, Cramer replied 'Yeah I know that, again, I don't want to front row Mark Zuckerberg on what he's saying, but I would say that we do have tremendous chip allocation problems here. And I know that David, we, if you have open source, would you think, that you do not need as many chips. Right. Not necessarily.' The sell-off in tech stocks did make him feel that 'it's not such a bad idea to look away from one moment and go back and say the healthcare rotation was so powerful last week.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on January 27th. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (). A close-up of a group of technicians working on complex data center systems. Number of Hedge Fund Holders In Q3 2024: 91 Vertiv Holdings Co (NYSE:VRT) is a diversified data center company that provides busbars, racks, analytical services, and project management. The firm has been one of the key stocks in the AI era due to its liquid cooling products which have grown in importance due to the high heat generated by AI products. Vertiv Holdings Co (NYSE:VRT) grew sales by 54% in Q2 2024 and closed the year with the stock having gained 140%. Yet, it was also one of the worst-hit AI stocks in the DeepSeek sell-off as the shares tanked by a whopping 30%. Cramer wasn't surprised with the performance: 'Vertiv, which, the most obviously data center oriented play. I mean that stock's going to come down.' Overall, VRT ranks 4th on our list of stocks discussed by Jim Cramer with insights on the DeepSeek AI sell-off. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-01-2025
- Business
- Yahoo
Broadcom (AVGO): Jim Cramer on the ‘Extraordinary Move' Amid AI Market Chaos
We recently published a list of . In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other stocks discussed by Jim Cramer with insights on the DeepSeek AI sell-off. On the day that Wall Street's favorite AI GPU stock bled 17% in the wake of investors panicking about Chinese AI startup DeepSeek's low development costs for AI, Jim Cramer had a lot to say about the topic. Cramer has been one of the biggest fans of the GPU company, and right off the bat, he started out by sharing that the key thing to consider now is whether the GPU orders for the firm will materialize. He also commented on 'traveler stocks' or those that have benefited from the broad AI sentiment. Cramer shared 'What I find most interesting is that, the fellow travelers to these are the nuclear stocks that have been up a lot. . . .Are the memes. Are the crypto.' He commented that the fact that these stocks were all simultaneously losing value was not great for the market. According to Cramer, 'So looks [like] they are all you know one stock and that is not good. That's not good because that says you have hype and froth in here that has to come out no matter what.' The CNBC host also shared his experience using DeepSeek's R-1 model. In his previous remarks, Cramer revealed that he was a fan of ChatGPT and had used OpenAI's product to research stocks ahead of his appearances on CNBC. However, he wasn't impressed by R-1. Cramer outlined that he 'tried to do a couple of, I tried to get it to give me Netflix's performance from 2010. And it says I can't do that. Well I mean, honestly? I can do that.' Another aspect of R-1 that left him unimpressed was censorship. 'This is a Chinese product,' Cramer said. 'So when I put into my very helpful DeepSeek, what famous picture has a man with grocery bags in front of a tank? And it initially says, the famous picture you are referring to, Tank Man, unknown rebel, June 5, 1989,' he added. While this is all good, soon after the initial response, R-1 'takes that back and says sorry, can't help you with that. And then secondarily it says sorry that's beyond my current scope,' according to him. When co-host Carl Quintanilla asked him whether it was worth buying any of the AI stocks, Cramer was rather direct. He shared 'I don't have the knowledge to be able to make that decision. It's better to own that.' Cramer also noted that before Monday's appearance, there was a debate about whether 'can we just make a determination, or is the determination that we don't want to let anybody down so we can't make that?' Given the absolute bloodbath in the premarket that day, he felt 'like, whatever you do, maybe twisted between now and the opening.' As a result, Cramer shared 'But sometimes you have to admit, like if you were at the hedge fund you'd just say, you know I'm not sure what to do, it's not a cop-out. I'm not sure what to do.' However, with respect to the doubt surrounding AI, he added 'When in doubt do you go against Zuckerberg? Do you go against Ellison? And I come back and say, I don't know. Sometimes it's better to say I don't know.' Like social media CEO Mark Zuckerberg's AI, DeepSeek is also open source. When asked about whether being open source threatens the ecosystem, Cramer replied 'Yeah I know that, again, I don't want to front row Mark Zuckerberg on what he's saying, but I would say that we do have tremendous chip allocation problems here. And I know that David, we, if you have open source, would you think, that you do not need as many chips. Right. Not necessarily.' The sell-off in tech stocks did make him feel that 'it's not such a bad idea to look away from one moment and go back and say the healthcare rotation was so powerful last week.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on January 27th. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (). A technician working at a magnified microscope, developing a new integrated circuit. Number of Hedge Fund Holders In Q3 2024: 128 Broadcom Inc. (NASDAQ:AVGO) is a technology company that is present in the semiconductor and software industries. It was one of the best-performing stocks in 2024 due to its exposure to AI chips. Broadcom Inc. (NASDAQ:AVGO) is one of the few firms in the world capable of designing custom chips. This led the stock to soar by a whopping 62% in December after management revealed that strong demand for AI chips could allow the firm to earn $70 billion in AI revenue in 2027. Yet, the bigger they are, the harder they fall, and Broadcom Inc. (NASDAQ:AVGO)'s stock bled 17.4% during the DeepSeek sell-off. Here is what Cramer said: 'Then there's fellow travelers, there's Broadcom, Marvell, that's all data center. Broadcom of course we know has far more than data center but today no one cares. Extraordinary move up [over the last quarter] because there've been so many reasons to buy the stock.' Overall, AVGO ranks 2nd on our list of stocks discussed by Jim Cramer with insights on the DeepSeek AI sell-off. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
