Latest news with #MI308
CNBC
4 days ago
- Business
- CNBC
These overbought stocks could take a dip after the market's record gains
Stocks including Northrop Grumman and Advanced Micro Devices appear overbought after this week's rally, according to one widely used technical metric. The three major U.S. indexes notched strong gains this week, powered by a slew of positive earnings reports and developments on trade deals. The S & P 500 rose 1.5% in the period after recording five record closes this week alone and notching 14 total record closes this year. The 30-stock Dow gained roughly 1.3% this week, and the Nasdaq Composite rose 1%. Stocks that popped during this winning run could be on risky ground moving forward, though. Using the CNBC Pro stock screener tool , we identified the most oversold and overbought stocks this week by their 14-day relative strength index. An RSI above 70 suggests that a stock is overbought and could see a decline, while a result below 30 indicates a stock could be oversold and may be due for a boost. Take a look at the overbought names below, which were each up at least 5% this week. Chipmaker Advanced Micro Devices made the list this week with an RSI of nearly 77. Shares rallied 6% this week. Earlier this month, the company said it will soon resume shipments of its MI308 artificial intelligence chips to China, once license applications are approved by the U.S. Commerce Department. Defense and aerospace company Northrop Grumman jumped 9.8% this week, putting the stock in the overbought group with an RSI of about 73. Northrop on Tuesday posted a second-quarter revenue beat along with a guidance raise for the full year. CEO Kathy Warden said on a conference call with analysts that the company believes revenue from its B-21 stealth bomber could potentially exceed 10% of total revenue "in the future." Other stocks that have high RSIs and could see their shares dip include Block , Newmont and GE Vernova . GE Vernova shares rallied about 12% this week on strong second-quarter results, which led analysts from firms including Citi and Bank of America to raise their price targets on the stock. International Business Machines , Texas Instruments and Philip Morris International are considered some of the broader market's most oversold companies, per their high RSIs. IBM shares slid more than 9% this week after the tech company's second-quarter software revenue came in below expectations, even though its overall revenue and earnings topped analysts' forecasts, per LSEG. The stock has an RSI of around 26. Tobacco giant Philip Morris fell on the back of lackluster results, which missed second-quarter revenue expectations. Wall Street was also disappointed by the company's Zyn nicotine shipments. Shares dropped almost 10% this week, and the stock had an RSI reading of about 29.
Mint
6 days ago
- Business
- Mint
Nvidia, AMD CEOs rally behind President Trump's AI ‘action plan'
WASHINGTON—The chief executives of chip giants Nvidia and Advanced Micro Devices stood behind the Trump administration's new artificial-intelligence 'action plan" on Wednesday, welcoming a set of moves that could serve as a further boon for the American chip sector. The plan, which also has been embraced by the broader tech and business community, promises to clear away red tape around the development and use of AI and boost exports of American tech—including semiconductors essential for AI. Additionally, it aims to streamline the creation of data centers and make energy for them more readily available. On stage Wednesday at a Washington tech industry event, Nvidia Chief Executive Jensen Huang proclaimed that the unique advantage America has that other countries don't is President Trump. 'On the first day of his administration, he realized the importance of AI and he realized the importance of energy," Huang said. 'For the last, I don't know how many years, energy production was vilified." AMD Chief Executive Lisa Su told The Wall Street Journal that the Trump administration's AI plan is excellent and heralds an era where the U.S. stands to win the global AI race. 'For the U.S. to lead in AI, we have to run fast, and the AI action plan is a great way of just laying out all the various pieces that will be helpful for us to run fast," said Su, who also spoke at the event. 'It's a great day for those of us, like us, who are really trying to get technology adopted as fast as possible, in partnership with the government," she added. The administration's new AI plan—the first step of which involved President Trump signing AI-related executive orders late Wednesday—could further bolster the businesses of both Nvidia and AMD. Trump also spoke at the tech event, and he took a moment to recognize Huang and Su as leaders vital to helping America win the AI race. Huang recently lobbied President Trump to remove restrictions the Commerce Department had placed on selling Nvidia's H20 AI chip to China. The administration reversed course after a meeting Huang had with the president. AMD also is expected to resume shipments to China once licenses for a restricted chip are approved. Exports of the company's MI308 accelerators to China were similarly halted in April. 'We understand the sensitivity," Su said, referring to the restriction. 'I think the balance was found in a good place with the new policies." Speeding up the construction of data centers and getting energy to power them also is a key win for the U.S. chip sector. Powerful AI chips called graphics processing units, or GPUs, are the engine behind AI models like the ones that power OpenAI's ChatGPT. They run inside of data centers and require immense amounts of power to keep them running. During his remarks, Trump said the administration would use 'every rule at our disposal" to ensure that the country could build AI infrastructure like data centers and chip-manufacturing facilities. Those moves will likely involve deregulation—a message that was received warmly by tech execs. 'How do we clear the regulatory environment so it's easier to build, it's easier to permit, and get more power throughout the distribution network? All of that is enabling," Su said. Trump officials said Wednesday that the U.S. needs to sell homegrown chips and software to allies so their AI is dependent on American companies, not Chinese ones. The plan is to use the U.S. Export-Import Bank and Development Finance Corp. to help spread American technology in other countries. Daniel Castro, vice president at the Information Technology and Innovation Foundation, said the administration's AI action plan is incredibly promising for businesses. The ITIF is a think tank backed by tech companies that promotes innovation. 'The [AI] plan's focus on clearing regulatory red tape, supporting American workers, and accelerating adoption is huge for businesses that are ready to embrace AI-driven productivity growth," Castro said. While Nvidia and AMD have a heated rivalry in building the advanced chips that power AI, Su said the administration's package of moves are beneficial for both. 'We have very similar principles, which is, we want American technology to be as capable as possible, and we want to get it proliferated as much as possible," Su said. 'It is really about doing what is good for the overall industry, which happens to also help all of our competitive positions globally." Write to Belle Lin at
The Hill
7 days ago
- Business
- The Hill
Selling US-made AI chips to China sacrifices America's global standing
In what Bloomberg termed 'a dramatic reversal,' the Trump administration will grant licenses to Nvidia Corp. so that it can sell its H20 chips to Chinese parties. In April, Trump officials had prohibited the sale of H20s to that country. At the same time, Advanced Micro Devices announced plans to resume sales of its MI308 artificial intelligence chip to China. The sale of advanced microchips to China is a mistake, almost certainly a grave one, but it is a mistake that the industry is determined to make. Not satisfied with exporting just the H20, Nvidia Chief Executive Jensen Huang said at a press conference in Beijing this month that he wanted to sell even more advanced chips. 'The reason for that is because technology is always moving on,' he explained. 'It's not like wood.' 'Today, [the NVIDIA Hopper GPU architecture] is terrific, but some years from now we will have more and more and better and better technology, and I think it's sensible that whatever we're allowed to sell in China will continue to get better and better over time as well,' Huang said. Nvidia said it will develop for export to China a new chip based on its Blackwell design. The chip will allow users to integrate AI into manufacturing. Commerce Secretary Howard Lutnick justified the reversal of the export ban by pointing out that the H20 was only Nvidia's 'fourth best' chip. 'We don't sell them our best stuff — not our second-best stuff, not even our third-best,' he told CNBC on the 15th. 'You want to sell the Chinese enough that their developers get addicted to the American technology stack.' 'The idea is the Chinese are more than capable of building their own,' the Commerce secretary said. 'You want to keep one step ahead of what they can build, so they keep buying our chips.' The problem with this thinking is that it is based on the false premise that China does not at its core need American chips, so there's no harm in selling them to prolong Chinese dependence. 'Despite Beijing pouring significant subsidies into its domestic semiconductor industry, China cannot produce chips capable of training leading AI models, leaving Chinese firms reliant on American suppliers,' wrote Jack Burnham and Miles Kershner of the Foundation for Defense of Democracies after the H20 announcement. 'This reliance has led to significant computing shortages. Even DeepSeek, a leading Chinese AI developer, has publicly stated that its models' power remains constrained due to American export controls on advanced AI chips.' So will China be able to develop comparable chips to America's best? 'China's Communist Party has always been known for lying, and we need look no further than its tech leviathan Loongson Technology,' Blaine Holt, a retired U.S. Air Force general and now China commentator, told me this month. 'Loongson, we were told, was 'better than Intel' and powered everything electronic in China. The discovery that their flagship chip, the 3C6000, was barely on par with Intel chips from 13 generations ago has consequences for users, especially the People's Liberation Army.' Huang assures Americans that China will not use the H20 for its military. 'We don't have to worry about it,' he told CNN's Fareed Zakaria earlier this month. Despite what Huang says, we must worry. According to Burnham and Kershner, giving China the H20 'will allow it to rapidly integrate AI into its military while it continues to pursue self-sufficiency.' The H20, significantly more powerful than Nvidia's export-compliant H100 line, will be 'essential for AI deployment due to its memory capabilities,' the Foundation for Defense of Democracies scholars point out. 'The Trump administration,' they note, 'is giving China a much-needed boost in the race for artificial intelligence.' And that boost comes at a crucial time for AI development. 'The No. 1 factor that will define whether the U.S. or China wins this race is whose technology is most broadly adopted in the rest of the world,' said Brad Smith, Microsoft's president, in congressional testimony. 'Whoever gets there first will be difficult to supplant.' 'According to Jensen Huang, China is going to defeat the United States in the push for AI supremacy,' Brandon Weichert, senior national security editor of The National Interest, told me. Weichert said since the Trump administration's first attempt at slowing the sale of high-end chips to China 'Beijing's AI development has been slower than that of America's because they lacked direct and easy access to those high-end chips. Authorizing Huang's Nvidia to sell these chips to China will ensure that China does, in fact, outpace the Americans.' So why would Trump allow the sale of the H20 to China? Many suspect the permission was part of a deal: China resumes sales of rare earths to the U.S. and America removes chip restrictions. Lutnick confirmed the outlines of this arrangement. China certainly got the better of the bargain. America can source rare earths elsewhere or even buy them surreptitiously from Chinese parties — these minerals are actually so rare — but China must buy American chips, from Nvidia, AMD, or some other U.S. company. It is true that, up to now, Chinese parties have been able to buy Nvidia chips through black market channels, but now they will be able to get more chips at cheaper prices and at a faster pace because they will be buying from Nvidia directly. Speed, as Smith noted, is critical in the race to develop artificial intelligence. Beijing has been touting its technological supremacy, and nothing would undercut its grand claims more than if its AI development visibly stalled because the Chinese could not get microchips from American companies. Xi Jinping in June said that high tech is a main area of global competition. 'The Commerce Department made the right call in banning the H20,' Rep. John Moolenaar, the Michigan Republican who chairs the House Select Committee on the Chinese Communist Party, posted on X last week. 'Now it must hold the line. We can't let the Chinese communists use American chips to train AI models that will power its military, censor its people and undercut American innovation.'
Politico
22-07-2025
- Business
- Politico
Did Big Tech just outfox the China hawks?
One of the most dizzying pivots in American policy toward China happened just last week, when two chipmakers — Nvidia and AMD — said that Donald Trump's White House had effectively given its blessing to let them sell high-end artificial intelligence chips to China. Just in April, the White House had banned sales of Nvidia's H20 and AMD's MI308 chips to China. Recent administrations spent years trying to contain China's ambitions in tech — and particularly in AI. My colleague Gabby Miller called it 'policy whiplash' in her Morning Tech newsletter on Thursday. China hawks in Congress are up in arms, worried that the H20 compute power could enable the country to develop state-of-the-art AI models. Republican Rep. John Moolenaar (R-Mich), chair of the House China Committee, sent a letter to Commerce Secretary Howard Lutnick on Friday insisting on a briefing about the decision. Democratic ranking member Raja Krishnamoorthi said the move would 'hand our foreign adversaries our most advanced technologies.' (In fairness, these are not the most advanced technologies — Nvidia's highest-end AI chips are still illegal to export to China.) What's really going on here? Is this just Trump being strategically unpredictable in the middle of a stuck trade negotiation with China? Or is he taking the industry's side against the national-security community? Possibly either. Or both. But to longtime observers, this is also an attempt to take another position in a years-long argument: If countries are going to develop AI, the thinking goes, it's far better to have it built on American tech. Proponents of the H20 exports contend that they further national security by keeping the world dependent on the U.S.'s AI hardware, as well as fortifying its market power. During a CNBC interview on July 15, Lutnick argued that Nvidia's sales get China's developers 'addicted to the American technology stack.' This is also the argument Nvidia CEO Jensen Huang has been making, according to the New York Times. Nvidia told DFD in a statement, 'America wins when the world builds on the U.S. technology stack. The Government made the best decision for America, promoting U.S. technology leadership, economic growth, and national security.' AMD did not respond to an inquiry. Patrick Moorhead, a former VP at AMD, said a strong market position is important to keeping Chinese competitors at bay. 'Any dollar that's not going to Nvidia is going to Huawei,' he told DFD. Part of the policy tension is simply over risk tolerance, Moorhead said. The national-security community — especially military and defense officials — typically 'just want to take all risk off the table,' he said. Businesses, of course, thrive on a measure of risk — especially when they see big gains at stake. This was clearly in evidence when Trump brokered deals to send tens of thousands of high-end chips to Gulf countries in May, over objections that it would open the door to chip smuggling. 'The White House seems to be prioritizing the economic gains [...] and they have a philosophy about why that won't create challenges on the national security side,' said Michael Horowitz, a deputy assistant secretary of defense under Biden who had concerns that the exports could be harmful in the long term. 'Given the way that China aggressively harvests American technology to improve its military, there are reasons to be nervous.' A White House official told DFD on background that the administration sees its application process for selling chips like H20, which Biden did not restrict, as creating a middle path that promotes the industry while addressing serious national security concerns. In the classic Washington game of 'who's winning,' it looks like this round goes to the chipmakers over the hawks. AI and chip companies have been 'been pretty good at convincing the president to take some measure of risk,' said Moorehead. Nvidia CEO Jensen Huang seems to have masterminded this particular about-face. He's been in regular contact with White House allies to protest against export controls, and reportedly convinced Trump to change course on Nvidia's chip sales to China in early July. National security wonks aren't so sure this will work to keep China dependent on America's tech stack. China has been investing more than any other geographic region on building up domestic manufacturing capabilities since 2023. 'Even if China has access to U.S. chips and architectures, they're strategically aware enough to know that they shouldn't rely on a competitor for a technology this vital,' Janet Egan, a senior fellow at the Center for a New American Security, told DFD. 'At the end of the day, Chinese firms are going to be actively trying to create alternative ecosystems regardless,' she said. The industry's initial victories on export controls aren't set in stone. Since Trump set the H20 restrictions in the first place, only to revoke them, he could easily pull another 180 in the future. In fact, national security concerns are reportedly holding up UAE chip deals. Plus, the industry-hawk dichotomy can be a bit reductive when it comes to this debate. Chris Miller, a Tufts University historian who wrote the book 'Chip War,' told DFD that chip exports can help or hurt different parts of the tech industry — Anthropic notably called for strong controls on advanced microchips in April. 'Obviously chip companies, at least in the short run, benefit from selling more chips, but then AI companies in the U.S. probably lose out by having stronger Chinese competitors,' he said. In a storyline as complex as chips, China and AI, perhaps it's more accurate to look at Big Tech as a collection of different industries, whose interests don't always align. On the question of the new H20 exports, Miller said: 'It depends on which industry you're talking about — you get different answers.' China-linked hackers breach Sharepoint China-backed groups hacked Microsoft's SharePoint service, the American tech giant said Tuesday, as POLITICO's John Sakellariadis and Dana Nickel report. They add the U.S. has yet to name a culprit. The hack hit some 100 targets, which began to notice the security breach last week. Microsoft named three groups based in China — Linen Typhoon, Violet Typhoon and Storm-2603 — as being responsible for the hack. It added that Linen Typhoon and Violet Typhoon are Chinese state actors. Internet researchers told POLITICO that the cyberattack exploited a SharePoint flaw to remotely access servers belonging to dozens of organizations around the world. Microsoft said in a statement that it was 'coordinating closely with [the Cybersecurity and Infrastructure Security Agency], [Department of Defense] Cyber Defense Command, and key cybersecurity partners around the world throughout our response.' The company's threat intelligence team also recommended that SharePoint customers install its latest security updates and antivirus programs. A U.S. official told POLITICO that government investigators suspect the hackers were able to infiltrate four to five federal agencies. Officials told John and Dana they had not yet determined how or whether China was involved in the attack. The Chinese embassy in Washington did not respond to POLITICO's inquiries. Congress wants answers on Senate Democrats are pressing the Trump administration on the development of an AI chatbot known as for federal employees. POLITICO's Morning Tech team obtained a letter that 15 Senate Democrats sent to the Department of Government Efficiency initiative and the General Services Administration inquiring about The letter, helmed by Sen. Brian Schatz (D-Hawaii), requests information on the application's use cases, data privacy safeguards and protections against bias. 'Poorly planned AI deployments can risk disrupting workflows and fostering distrust, especially when workers are not adequately trained or consulted,' the letter reads. The outlet 404 Media was the first to report on the government's efforts in June. Based on information from GitHub and audio from internal meetings, 404 Media found that federal officials had considered incorporating AI coding agents and an analytics feature to track AI use across government teams. post of the day THE FUTURE IN 5 LINKS Stay in touch with the whole team: Aaron Mak (amak@ Mohar Chatterjee (mchatterjee@ Steve Heuser (sheuser@ Nate Robson (nrobson@ and Daniella Cheslow (dcheslow@
Yahoo
22-07-2025
- Business
- Yahoo
Nvidia and AMD Shares Jump With Sales Set to Resume to China. Is It Too Late to Buy the Stocks?
Key Points Nvidia and AMD are both set to benefit from easing export restrictions to China. Nvidia remains the GPU leader, and this news should add billions in sales for the company. AMD has a big opportunity in inference, and the China news will expand its total addressable market. 10 stocks we like better than Nvidia › The trade war between the U.S. and China recently took an unexpected turn, and the biggest beneficiaries look to be Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). Both stocks popped after news broke that the U.S. is set to ease chip export restrictions, potentially allowing the companies to resume selling their artificial intelligence (AI) chips to China. China is a huge market that had recently been closed off to the two companies. Nvidia will now be allowed to sell its H20 graphics processing units (GPUs), which were designed specifically to comply with prior export rules, to China. Sales were halted in April after new rules required the company to apply for a license, putting billions of dollars in revenue at risk. But Nvidia said that the U.S. government has assured it that licenses will be granted, and shipments could resume shortly. This marks a major policy reversal and signals that the Trump administration is softening its stance. It's no coincidence that this follows Nvidia CEO Jensen Huang's recent meeting with President Donald Trump. Nvidia has made it clear that it supports American job creation and wants to keep AI innovation centered in the U.S., but it was afraid that cutting off China completely would threaten the company's global leadership. It was also set to take a $5.5 billion revenue hit tied to its H20 chips. AMD was also swept up in the news, saying that it expects to restart shipments of its MI308 AI chips once the Commerce Department resumes license reviews. AMD had warned of up to $800 million in lost revenue from the restriction. The shift comes just weeks after Washington and Beijing agreed to ease rare-earth export restrictions and work toward a broader tech trade framework. Nvidia is still the leader of AI infrastructure Bringing the H20 back into China should add billions in incremental sales, but Nvidia wasn't sitting still. It had already been developing a new, fully compliant GPU -- the RTX PRO --aimed at industrial automation and smart factories. This could open up another growth vertical for the company. While the China news is a near-term catalyst, the Nvidia story remains about much more than China. Nvidia is the dominant player in the GPU market, capturing a whopping 92% share in Q1. While the company has arguably the most powerful chips on the market, its real moat is its CUDA software platform. Nvidia created the platform as a way to expand the use of GPUs beyond gaming, and as other markets took time to develop, the company pushed the platform into academic institutions and research labs, which is where early AI efforts were taking place. This led to CUDA becoming the software platform on which developers learned to program GPUs, and led to libraries, frameworks, and tools being built on top of it designed specifically to enhance the performance of its chips for use in AI. Nvidia remains the leader of AI, and with China reopening, the stock got even more attractive. As such, I don't think it's too late to buy Nvidia stock, even after its recent run-up. AMD has a huge inference opportunity AMD isn't Nvidia, and it will likely never overtake its GPU rival. Its AI-related revenue is just a fraction of Nvidia's, but the stock could have far more upside if it can make just modest share gains. The good news is that AMD has carved out a meaningful niche in AI inference, which is eventually expected to become the much larger market compared to AI model training. The company recently said that one of the world's largest AI model developers is using its GPUs to run a big chunk of its daily inference. Importantly, AMD is part of a consortium that is working on the open UALink standard to challenge Nvidia's proprietary NVLink. If successful, it would allow customers to mix and match AI chips, which could open the door for more of AMD's chips being used. The China news helps AMD, as well. The company said it expects to resume shipments of its MI308 chips once it gets license approval. Those chips were designed specifically for the Chinese market in response to prior export restrictions. Reopening China won't make or break the company, but it does provide incremental growth. Overall, AMD is well-positioned as the market moves toward inference. It doesn't need to take a huge portion of this market -- just a slice would be enough to spur meaningful growth. Now, with China back in play, its total addressable market just got bigger. That makes the stock a solid buy, even after its recent run-up. 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 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* 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 July 21, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Nvidia and AMD Shares Jump With Sales Set to Resume to China. Is It Too Late to Buy the Stocks? 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
