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Los Angeles Times
2 days ago
- Business
- Los Angeles Times
Nvidia is the first $4-trillion company. Here are three things to know
SAN FRANCISCO — Nvidia is already the world's most valuable company being one of the biggest beneficiaries of the global artificial intelligence boom. This week, the Santa Clara-based chip maker got another windfall. The Jensen Huang-led technology giant on Monday received approval from the U.S. government to sell some of its AI chips in China, boosting Nvidia's stock price by 4% to $170.70 a share on Tuesday. Rival Advanced Micro Devices Inc. has received similar assurances from the government. Nvidia's valuation has risen dramatically over the last two years since generative artificial intelligence became a mainstream topic. Last week, the 32-year-old company became the first publicly traded firm to reach $4 trillion in market capitalization, beating tech titans including Microsoft and Apple. Though it's a largely symbolic moment, the milestone raised the stakes for competition in the AI space, which has attracted enormous amounts of capital from established tech players and start-up investors. 'Once you reach that level of market cap, everybody and their brother wants to be you,' said Rob Enderle, principal analyst with advisory services firm Enderle Group. 'So that means that there's going to be a huge focus on creating competitive technologies to Nvidia because it looks incredibly lucrative.' Nvidia has become a primary force in the growth of AI technology, as many applications are built with Nvidia's chips. Prior to the AI boom, Nvidia was mostly known for creating premium graphics cards that were attractive to gamers in rendering high-speed visuals. Most recently, the company is known for selling powerful chips that help chatbots such as OpenAI's ChatGPT and self-driving cars process information quickly enough to make the technology useful. Nvidia said in its 2025 annual report that it powers more than 75% of the supercomputers on the TOP500 list, which ranks the 500 most powerful computer systems in the world. Founded in 1993, Nvidia has ridden many technology waves, including the crypto frenzy. But lately, Nvidia has seen tremendous growth thanks to worldwide investor interest — and competition for dominance — in artificial intelligence. Companies are eager to explore how AI can make processes more efficient and figure out complex problems. But getting the computing power behind AI can be expensive if companies are building hardware on their own. That's where Nvidia comes in. Nvidia's sales increased 69% to $44.1 billion in its fiscal first quarter compared to a year ago. Net income was nearly $18.8 billion, up 26% from a year ago. In its fiscal year 2025, the company's revenue more than doubled to about $130.5 billion compared to a year earlier, and net income increased 145% to nearly $72.9 billion compared to fiscal year 2024. In the last 12 months, Nvidia's shares have increased more than 30%. Since five years ago, the stock has risen more than 16-fold. 'It is clear AI is going to change the world and people want to get on that train, and Nvidia is the easiest entry point,' wrote Berna Barshay, a partner at online investment platform Wall Street Beats, in an email. Over time, new winners and formidable rivals may emerge, Barshay said. 'But during this foundational period of infrastructure creation, Nvidia has certainly been king.' Other companies were slower to innovate in AI, including Apple and Intel, and underestimated how quickly AI technology would advance, analysts said. Huang, a former microprocessor designer, discussed the idea behind Nvidia inside a Denny's in San Jose with fellow entrepreneurs Chris Malachowsky and Curtis Priem. The company's name is partly based on the Latin word 'invidia' — which means envy, according to the Wall Street Journal. Many businesses are certainly jealous of Nvidia's success now, but in the 1990s, the company almost went out of business when its first chip, NV1, failed, according to media reports. Huang has said in public comments, including commencement speeches, that adversity can help people become better leaders. Born in Tainan, Taiwan, in 1963, the onetime Denny's dishwasher has become one of the industry's most recognizable names, on par with Apple chief Tim Cook and Meta's Mark Zuckerberg. Thousands of people watch Huang's keynote at Nvidia's developer conference, as his vision could provide a road map for companies eager to expand investments in AI. Some analysts regularly refer to him as the 'godfather of AI.' The biggest challenges facing Nvidia are trade wars and competition, analysts say. Tariffs in the semiconductor industry could hurt companies like Nvidia, which manufacture and sell countless chips abroad. The company said in its annual report that 53% of its revenue in its 2025 fiscal year came from outside the U.S. The company said that worldwide geopolitical tensions and conflicts in countries like China, Hong Kong, Israel, Korea and Taiwan, where the manufacturing of its product components and final assembly are concentrated, could disrupt its operations, product demand and profitability. Nvidia has worked with its production partners to increase U.S. manufacturing of its chips. Several years ago, the U.S. restricted Nvidia's sales of its chips in China due to concerns that its AI technology could be used to help the Chinese military. Huang has said that since the U.S. government could choose to apply restrictions, he didn't think policymakers needed to be concerned about that and warned that allowing Nvidia to lose market share in China would cede a major advantage to Chinese tech company Huawei, according to Bloomberg. While many analysts say Nvidia has a significant lead on competitors, it is possible over time they could catch up. OpenAI, which uses Nvidia products for ChatGPT, is developing its own chip design, according to Reuters. There's also the question of whether the power grid is robust enough to support the infrastructure needs of the fast-growing technology, which could slow down not just Nvidia but the larger AI ecosystem. Despite the challenges, Thomas Monteiro, senior analyst at is bullish on Nvidia, saying it is possible that the company could reach $5 trillion in market cap during the next 18 months. 'The world's still catching up and the thing is, it's going to take years for them to catch up,' he said. 'As long as we're looking at the AI revolution as a multidecade transformation, it's going to be really hard to take Nvidia out of that position.'
France 24
19-06-2025
- Business
- France 24
Trump extends deadline for TikTok sale by 90 days
"I've just signed the Executive Order extending the Deadline for the TikTok closing for 90 days (September 17, 2025)," Trump posted on his Truth Social platform, putting off the ban for the third time. A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's January inauguration. The Republican, whose 2024 election campaign relied heavily on social media, has previously said he is fond of the video-sharing app. "I have a little warm spot in my heart for TikTok," Trump said in an NBC News interview in early May. "If it needs an extension, I would be willing to give it an extension." TikTok on Thursday welcomed Trump's decision. "We are grateful for President Trump's leadership and support in ensuring that TikTok continues to be available for more than 170 million American users," said a statement issued by the platform. Digital Cold War? Trump said in May that a group of purchasers was ready to pay TikTok owner ByteDance "a lot of money" for the video-clip-sharing sensation's US operations. Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's US business. The White House had announced Monday that Trump would throw the wildly popular video-sharing app, which has almost two billion global users, another lifeline. During this new grace period the administration will work "to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure," the administration said in a statement. The president is "just not motivated to do anything about TikTok," said independent analyst Rob Enderle. "Unless they get on his bad side, TikTok is probably going to be in pretty good shape." Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election. Motivated by national security fears and a belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor. TikTok "has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control," said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain. The president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19. Now the deadline is September 17. Tariff turmoil Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law." Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company. Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok. Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally. Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm. "TikTok without its algorithm is like Harry Potter without his wand -- it's simply not as powerful," said Forrester Principal Analyst Kelsey Chickering. Despite the turmoil, TikTok has been continuing with business as usual. The platform on Monday introduced a new "Symphony" suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.
Malay Mail
17-06-2025
- Business
- Malay Mail
Trump expected to extend TikTok sale deadline again amid ongoing uncertainties
SAN FRANCISCO, June 18 — US President Donald Trump is widely expected to extend the Thursday deadline for TikTok to find a non-Chinese buyer or face a ban in the United States. It would be the third time Trump put off enforcing a federal law requiring its sale or ban, which was to take effect the day before his January inauguration. 'I have a little warm spot in my heart for TikTok,' Trump said in an NBC News interview in early May. 'If it needs an extension, I would be willing to give it an extension.' Trump said a group of purchasers is ready to pay TikTok owner ByteDance 'a lot of money' for the video-clip-sharing sensation's US operations. Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's US business. The president is 'just not motivated to do anything about TikTok,' said independent analyst Rob Enderle. 'Unless they get on his bad side, TikTok is probably going to be in pretty good shape.' Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election. 'Trump's not really doing great on his election promises,' Enderle maintained. 'This could be one that he can actually deliver on.' Digital Cold War? Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor. TikTok 'has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control,' said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain. 'National security, economic policy, and digital governance are colliding,' Singh added. The Republican president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19. As of Monday, there was no word of a TikTok sale in the works. Tariff turmoil Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over tariffs imposed by Washington on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be 'subject to approval under Chinese law'. Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company. Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok. Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally. Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm. 'TikTok without its algorithm is like Harry Potter without his wand—it's simply not as powerful,' said Forrester Principal Analyst Kelsey Chickering. Meanwhile, it appears TikTok is continuing with business as usual. TikTok on Monday introduced a new 'Symphony' suite of generative artificial intelligence (AI) tools for advertisers to turn words or photos into video snippets for the platform. 'With TikTok Symphony, we're empowering a global community of marketers, brands, and creators to tell stories that resonate, scale, and drive impact on TikTok,' global head of creative and brand products Andy Yang said in a release. — AFP
Arab News
17-06-2025
- Business
- Arab News
Despite law, US TikTok ban likely to remain on hold
SAN FRANCISCO, United States: US President Donald Trump is widely expected to extend the Thursday deadline for TikTok to find a non-Chinese buyer or face a ban in the United States. It would be the third time Trump put off enforcing a federal law requiring its sale or ban, which was to take effect the day before his January inauguration. 'I have a little warm spot in my heart for TikTok,' Trump said in an NBC News interview in early May. 'If it needs an extension, I would be willing to give it an extension.' Trump said a group of purchasers is ready to pay TikTok owner ByteDance 'a lot of money' for the video-clip-sharing sensation's US operations. Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's US business. The president is 'just not motivated to do anything about TikTok,' said independent analyst Rob Enderle. 'Unless they get on his bad side, TikTok is probably going to be in pretty good shape.' Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election. 'Trump's not really doing great on his election promises,' Enderle maintained. 'This could be one that he can actually deliver on.' Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor. TikTok 'has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control,' said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain. 'National security, economic policy, and digital governance are colliding,' Singh added. The Republican president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19. As of Monday, there was no word of a TikTok sale in the works. Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over tariffs imposed by Washington on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be 'subject to approval under Chinese law.' Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company. Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok. Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally. Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm. 'TikTok without its algorithm is like Harry Potter without his wand — it's simply not as powerful,' said Forrester Principal Analyst Kelsey Chickering. Meanwhile, it appears TikTok is continuing with business as usual. TikTok on Monday introduced a new 'Symphony' suite of generative artificial intelligence (AI) tools for advertisers to turn words or photos into video snippets for the platform. 'With TikTok Symphony, we're empowering a global community of marketers, brands, and creators to tell stories that resonate, scale, and drive impact on TikTok,' global head of creative and brand products Andy Yang said in a release.
CNA
17-06-2025
- Business
- CNA
Despite law, US TikTok ban likely to remain on hold
SAN FRANCISCO: United States President Donald Trump is widely expected to extend the Thursday (Jun 19) deadline for TikTok to find a non-Chinese buyer or face a ban in the US. It would be the third time Trump put off enforcing a federal law requiring its sale or ban, which was to take effect the day before his January inauguration. "I have a little warm spot in my heart for TikTok," Trump said in an NBC News interview in early May. "If it needs an extension, I would be willing to give it an extension." Trump said a group of purchasers is ready to pay TikTok owner ByteDance "a lot of money" for the video-clip-sharing sensation's US operations. Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's US business. The president is "just not motivated to do anything about TikTok", said independent analyst Rob Enderle. "Unless they get on his bad side, TikTok is probably going to be in pretty good shape." Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election. "Trump's not really doing great on his election promises," Enderle maintained. "This could be one that he can actually deliver on." DIGITAL COLD WAR? Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on Jan 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor. TikTok "has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control", said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain. "National security, economic policy, and digital governance are colliding," Singh added. The Republican president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to Jun 19. As of Monday, there was no word of a TikTok sale in the works. TARIFF TURMOIL Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over tariffs imposed by Washington on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law". Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company. Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok. Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally. Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm. "TikTok without its algorithm is like Harry Potter without his wand - it's simply not as powerful," said Forrester Principal Analyst Kelsey Chickering. Meanwhile, it appears TikTok is continuing with business as usual. TikTok on Monday introduced a new "Symphony" suite of generative artificial intelligence (AI) tools for advertisers to turn words or photos into video snippets for the platform.
