Latest news with #A800
Perth Now
23-07-2025
- Business
- Perth Now
Australia pays US second $800m for AUKUS amid review
Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine.
Yahoo
03-05-2025
- Business
- Yahoo
Nvidia (NVDA) Redesigns Chips to Sidestep U.S. Export Ban, Eyes June China Rollout
Nvidia (NVDA, Financials) is redesigning its AI chips to comply with U.S. export rules while maintaining access to the Chinese market, The Information reported, citing conversations with key clients. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Nvidia has told major Chinese customers including Alibaba Group, ByteDance, and Tencent Holdings that new versions of its AI chips are in development and could be available for sampling in June, the report said. CEO Jensen Huang reportedly outlined the redesign strategy during an April trip to Beijing, following a fresh round of U.S. restrictions targeting AI chip exports to China. The company warned in its previous disclosures that the loss of access to China for its H20 chips could cost up to $5.5 billion in revenue. In response, Nvidia is also working on a China-specific adaptation of its Blackwell-generation AI chips, according to the same report. U.S. regulators have intensified export controls on advanced AI semiconductors in recent months, aiming to limit China's access to cutting-edge computing technology. Nvidia had previously designed downgraded chips such as the A800 and H800 to meet earlier compliance thresholds. The continued pivot highlights Chinas significance as a market for Nvidias AI products and the company's strategy to protect long-term revenue despite geopolitical headwinds. Investors will want to watch for June chip sampling updates and progress on Blackwell's regional customization, as the company tries to navigate tightening U.S.-China tech regulations. See insider trades for NVDA. Explore Peter Lynch chart. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Nvidia Stock Crashed on Bad News From Washington. Should Investors Buy the Dip?
Nvidia (NASDAQ: NVDA) shares fell more than 7% on Wednesday morning, after the company disclosed new export restrictions on its artificial intelligence (AI) chips. Specifically, the company must now obtain licenses from the U.S. government to sell its H20 processors in China. However, Nvidia doesn't expect those licenses to be forthcoming. The company plans to take a $5.5 billion charge related to "H20 products for inventory, purchase commitments, and related services" in the first quarter of fiscal 2026 (which ends April 27), according to a regulatory filing. 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 » Nvidia stock now has plummeted 30% from the record high it reached in January. Should investors buy the dip? Nvidia has been navigating export restrictions in China for several years. In 2022, the Biden administration prohibited the company from selling its most powerful artificial intelligence (AI) accelerators, A100 and H100 graphics processing units ( GPUs), to Chinese businesses due to concerns about their military applications. Nvidia responded by tweaking its A100 and H100 architectures to build less powerful chips that complied with export requirements. Those processors, called A800 and H800, were adopted by several Chinese technology companies, including Alibaba, Baidu, and Tencent. However, in 2023, the Biden administration restricted the sale of those processors in China. Next, Nvidia developed an even less powerful Hopper GPU called the H20 that complied with latest export curbs, but the Trump administration has now effectively prohibited the sale of those processors in China, too. In total, Bloomberg Intelligence estimates that the latest restrictions will cost the company between $14 billion and $18 billion in revenue in fiscal 2026. While Nvidia has reported exceptional financial results since the generative AI boom began in late 2022, export restrictions have still taken a severe toll. China accounted for over 26% of total revenue in fiscal 2022 but just 13% of total revenue in fiscal 2025. Put differently, total sales increased at 69% annually during that period, but revenue from China increased at just 34% annually. Nvidia announced the H20 export controls on April 15 in a regulatory filing that told investors the licensing requirements will remain effective "for the indefinite future." Several analysts subsequently revised their target prices lower on April 16, as detailed below: Vivek Arya at Bank of America cut his forecast to $160 per share, down from $200. Harsh Kumar at Piper Sandler cut his forecast to $150 per share, down from $175. Srini Pajjuri at Raymond James cut his forecast to $150 per share, down from $170. However, several analysts maintained their target prices despite the latest export controls, including those at Cantor Fitzgerald, Evercore, and Wedbush. Likewise, Joseph Moore at Morgan Stanley reiterated Nvidia as his "top pick" in the semiconductor space. In total, the median target price declined from $175 per share to $170 per share, but that still implies 63% upside from its current share price of $104. Dan Ives at Wedbush urged investors to "look past the chaos." He believes Nvidia is the only chipmaker in the world that can supply the processors required to run the most advanced artificial intelligence applications. He said the financial impact would be "relatively small," but acknowledged the restrications are still a strategic blow for the company. More analysts may lower their forecasts in the coming days, but the average estimate currently calls for Nvidia's earnings to increase 51% in fiscal 2026. That consensus makes the current valuation of 35 times earnings look cheap. 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The Motley Fool has positions in and recommends Baidu, Bank of America, Nvidia, and Tencent. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy. Nvidia Stock Crashed on Bad News From Washington. Should Investors Buy the Dip? was originally published by The Motley Fool
Yahoo
16-04-2025
- Business
- Yahoo
Nvidia stock dives after chipmaker discloses $5.5 billion hit from 'surprise' China chip controls
Nvidia (NVDA) stock sank as much as 6.9% premarket Wednesday after the AI chipmaker disclosed that it would take a $5.5 billion hit from the US government's surprise new controls on its semiconductor exports to China. Nvidia said in a regulatory filing late Tuesday night that the US government informed the company that it would require a special license for exports of its H20 chips made specifically for the Chinese market. Notably, no licenses for GPU shipments into China have ever been granted given the US government's concern that the chips could be used to build AI supercomputers in the country. Jefferies analyst Blayne Curtis wrote in an analysis following the news the latest rule is effectively a ban. Other Wall Street analysts noted the move was a 'surprise,' given a recent report from NPR that the Trump administration had backed off its plans to restrict Nvidia's H20 chips following a dinner with CEO Jensen Huang at Mar-a-Lago. Nvidia said it will incur $5.5 billion in charges in its first quarter from the latest curb. Jefferies' Curtis projected the company will take an even bigger hit to revenue — $10 billion in lost sales — over the coming quarters. That's because Curtis said the majority of the writedown is related to finished or partially finished goods, rather than future supply agreements, meaning Nvidia will essentially have to toss out billions worth of now-unsellable chips rather than simply canceling future orders. "Banning the H20 makes little sense to us," wrote Bernstein analyst Stacy Rasgon in a note to investors early Wednesday. "H20 performance is low, well below already-available Chinese alternatives; a ban essentially simply hands the Chinese AI market over to Huawei." Raymond James analyst Ed Mills wrote in his own note: "The restrictions on H20 chips comes as a surprise, given explicit approval of the product by the Biden administration and recent media reports that the U.S. government was walking back from banning the product." Nvidia has made multiple specialized chips for China since 2022 — the A800, H800, L20, L2 and the H800's successor H20 — to comply with ever-changing trade rules as the US looks to restrict China's access to hardware necessary to innovate AI. China accounted for $17 billion, or 13%, of Nvidia's revenue in its fiscal year 2025, Rasgon noted. For context, Chinese AI startup DeepSeek said it used roughly 2,000 of Nvidia's now-banned H800 chips to train its latest artificial intelligence model — a much cheaper feat than OpenAI's training requirements. DeepSeek's announcement roiled US markets earlier this year. 'While this is a clear negative, it could be potentially offset by an altering or withdrawal of the country caps on Nvidia chips set to go into effect on May 15,' Raymond James' Mills wrote. Mills was referring to the US' AI Diffusion rule issued by the Biden administration in its final days in January. Nvidia has called on the US government to change what it called a 'misguided' set of restrictions. The White House declined to answer Yahoo Finance's question over whether it is looking to change or revoke the AI Diffusion rule, but Republican lawmakers sent a letter to Commerce Secretary Howard Lutnick made public Tuesday asking him to toss out the rule. News of the new curbs on Nvidia H20 chips comes two days after the chipmaker said it will produce up to $500 billion of AI infrastructure in the US within the next four years as the tech industry looks to bolster its domestic manufacturing footprint in the face of Trump's aggressive approach to trade policy. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at
South China Morning Post
16-03-2025
- Business
- South China Morning Post
Chip war: Chinese start-up aims to break Nvidia's grip on AI with new model framework
A new artificial intelligence (AI) framework developed by teams associated with China's Tsinghua University is said to be able to reduce reliance on Nvidia chips for AI model inference, marking the latest effort by the country to enhance technological self-sufficiency. Advertisement Chitu, a high-performance inference framework for large language models (LLMs), can operate on chips made in China, challenging the dominance of Nvidia's Hopper series graphics processing units (GPUs) in supporting certain models, such as DeepSeek-R1 , according to a joint statement by start-up and a team led by computer science professor Zhai Jidong at Tsinghua University on Friday. AI frameworks serve as the building blocks of sophisticated, intelligent AI models, offering a collection of libraries and tools that enable developers to design, train and validate complex models efficiently. The Chitu framework, which has been open-sourced since Friday, supports mainstream models, including those from DeepSeek and Meta Platforms' Llama series, according to the company. When tested with the full-strength version of DeepSeek-R1 using Nvidia's A800 GPUs, the framework achieved a 315 per cent increase in model inference speed while reducing GPU usage by 50 per cent compared to foreign open-source frameworks, the company said. 05:00 Does the arrival of China's low-cost DeepSeek mean the end of Nvidia's chip dominance? Does the arrival of China's low-cost DeepSeek mean the end of Nvidia's chip dominance? The initiative is part of a broader effort by Chinese AI companies to lessen dependence on Nvidia, whose high-performance GPUs are subject to US export controls. Nvidia is banned by Washington from selling its advanced H100 and H800 chips from the Hopper series to China-based clients.
