Latest news with #chipmaker
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
TNB Tech Minute: Lawmakers Accuse Nvidia of Being Too Close to China - Tech News Briefing
Full Transcript This transcript was prepared by a transcription service. This version may not be in its final form and may be updated. Victoria Craig: Here's your TNB Tech Minute for Thursday, May 29th. I'm Victoria Craig for The Wall Street Journal. Nvidia shares rose three and a quarter percent today on Wall Street, far outpacing more muted gains on the major averages. Enthusiasm over the American chipmaker's quarterly revenue surge helped propel shares higher. That's despite a projected $8 billion loss in sales for the current quarter due to President Trump's tariff policy. Still, The Journal exclusively reports Nvidia is facing fresh accusations from U.S. lawmakers who say the company is too close to China. That stems from plans the chip giant has for a facility in Shanghai, which a bipartisan group of senators say would risk giving China access to cutting-edge technology. Elsewhere, Meta Platforms has teamed up again with its former virtual reality chief Palmer Luckey to build high-tech headsets for the U.S. Army. Lucky's defense company said today that with Meta, it will build a line of new rugged helmets, glasses, and other wearables to provide a VR or augmented reality experience. The new system dubbed Eagle Eye will have sensors that enhance hearing and vision and allow soldiers to operate AI-powered weapon systems. And finally, at the second day of The Wall Street Journal's Future of Everything conference here in New York City, United Airlines CEO said, "Air traffic control's tech and staffing issues have dented the airline's profit. Thanks to a decline in bookings at Newark airport." Scott Kirby though reassured customers, not only is it safe to fly to Newark, it will have the least travel disruptions of the three airports in the Tri-State area this summer. He said the upheavals have led to empty seats, which has lowered prices, and he encouraged travelers to "book now." For a deeper dive into what's happening in tech, check out Friday's Tech News Briefing podcast.
Daily Mail
3 days ago
- Business
- Daily Mail
Nvidia sees revenue top $44bn despite sales limits to China
Nvidia shares rose 6 per cent in after hours trading after the chipmaker and artificial intelligence bellwether unveiled another quarter of strong growth despite tariff-driven turbulence. Trump's stop-start trade tariff saga has whipsawed Nvidia and other Big Tech firms riding AI mania to propel their revenue and stock prices upward. Ahead of its earnings announcement on Wednesday, Nvidia's share price was where it was at the beginning of 2025, before Trump took office and started making announcements about tariffs. Nvidia raked in nearly $44.1billion in revenue during its first quarter, representing a 69 per cent increase year-on-year. However, revenue levels fell slightly short market expectations amid the Trump administration's quest to tighten its grip on tech exports to China. The company conceded it took a $45billion write-down on unsold chips intended for the Chinese market, causing it to miss out on approximately $2.5billion worth of additional sales. Nvidia said that restrictions on the use of open-source AI models from China such as DeepSeek and Qwen could hurt its business, as could US rules barring connected vehicle technology from China, where Nvidia's long-struggling car chip business has finally blossomed. Total net income for the quarter reached £18.7billion, up 26 per cent, while adjusted gross margins came in at 71.3 per cent before China-related charges. Nvidia expects US export controls to shave off around $8billion from its current quarter's top line. Chief executive Jensen Huang remained upbeat, stating: 'Global demand for Nvidia's AI infrastructure is incredibly strong .' Huang said the company's flagship 'backwell' system was enjoying particularly strong sales. During a phone call with US analysts, Huang praised Trump's decision to rescind an export rule put in place by Joe Biden that would have regulated the flow of Nvidia's chips around the world. However, the company's quarterly filing noted that no new rule had been issued in its place and that a 'replacement rule may impose new restrictions on our products or operations.' Huang criticised certain new export curbs imposed by the Trump administration in April. The curbs prevent the company from selling its H20 chip made for the Chinese market, which Huang called 'a springboard to global success.' However, Huang praised some of Trump's action. He said: 'President Trump wants US tech to lead. The deals he announced are wins for America, creating jobs, advancing infrastructure, generating tax revenue and reducing the US trade deficit.' In its latest results, the group's data centre arm, which is the engine of its AI drive, delivered $39.1billion in revenue for the quarter, up 73 per cent year-on-year. The firm's data centre division comprises 88 per cent its total turnover. Nvidia's networking arm, a key part of its AI push, raked in $5billion, while sales in the group's gaming arm rose 42 per cent to $3.8billion. Josh Gilbert, a market analyst at eToro, said: 'In a quarter of uncertainty, Nvidia has reminded markets why it is the cornerstone of the AI revolution with another solid result and upbeat forecast. 'Investors came into this quarter looking for signs that Nvidia could alleviate short-term concerns. 'What they got was a clear message that demand remains robust, Blackwell is ramping up fast and these results will restore investor confidence. 'Despite the China drag, Nvidia's top-line strength speaks for itself with $44billion in Q1 sales and another $45 billion expected next quarter tells us they're making up for the China loss elsewhere.' Garry White, chief investment commentator at Charles Stanley, said: 'Artificial intelligence titan Nvidia appears to be absorbing the shock of Donald Trump's investment restrictions on China – to an extent. 'Management provided second-quarter guidance that was a little shy of market expectations – with the revenue loss from Washington's ban on its H20 chips to China expected to be as high as $8billion in the quarter. 'Clearly, the company faces a period of elevated political risk. Nevertheless, the results also showed that the long-term investment case in AI remains intact. Tech bros can relax.' A US federal court has now blocked Trump's sweeping global trade tariffs, in a major blow to a key component of his economic policies.
Bloomberg
4 days ago
- Business
- Bloomberg
Nvidia Posts Solid Sales Outlook Despite China Hit
Nvidia Corp., the world's most valuable chipmaker, gave a solid revenue forecast for the current period, even as a slowdown in China weighed on results. Sales will be about $45 billion in the fiscal second quarter, which runs through July, the company said on Wednesday. That included the loss of roughly $8 billion in revenue from China because of export controls. (Source: Bloomberg)
South China Morning Post
4 days ago
- Business
- South China Morning Post
Nvidia gives solid forecast, even as China slump mars growth
Nvidia Corp., the world's most valuable chipmaker, gave an upbeat revenue forecast for the current period, even as a slowdown in China weighed on results. Sales will be about US$45 billion in the second fiscal quarter, which runs through July, the company said on Wednesday. That included the loss of roughly US$8 billion in revenue from China because of export controls. The forecast was in line with analysts' estimates, according to data compiled by Bloomberg. The outlook shows that Nvidia is ramping up production of Blackwell, its latest semiconductor design. The chipmaker – now the world's largest by revenue – dominates the market for AI accelerators, the components that help develop and run artificial intelligence models. And an ever-broader line-up of hardware and software is letting Nvidia sell more products to customers. As part of that push, the company is increasingly offering its chips as part of whole computer systems – a move it says is necessary to speed up the deployment of more complex and powerful technology. Nvidia expects AI infrastructure to eventually transform much of the economy, part of what Chief Executive Officer Jensen Huang refers to as a new industrial revolution.
Bloomberg
4 days ago
- Business
- Bloomberg
Nvidia Gives Upbeat Forecast, Even as China Slowdown Mars Growth
Nvidia Corp., the world's most valuable chipmaker, gave a solid revenue forecast for the current period, even as a slowdown in China weighed on results. Sales will be about $45 billion in the fiscal second quarter, which runs through July, the company said on Wednesday. That included the loss of roughly $8 billion in revenue from China because of export controls. The forecast was in line with analysts' estimates, according to data compiled by Bloomberg.
