Latest news with #chipexport
Yahoo
06-07-2025
- Business
- Yahoo
Prediction: Nvidia Will Soar in the Second Half
Nvidia stock was a sure winner over the past two years before slipping a few months ago. Investors worried that import tariffs would weigh on growth. Since then, though, positive momentum has returned. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) was a surefire winner for investors over the past two calendar years. The artificial intelligence (AI) giant soared more than 800% over that time as it wowed investors with its explosive earnings growth. And as they aimed to get in on the AI growth story, Nvidia seemed like the obvious choice. After all, this tech player sells the world's top-performing AI chips, a critical product for customers building AI platforms. But earlier this year, Nvidia stock slid into the doldrums alongside the rest of the tech market. This happened as investors worried about the impact of U.S. import tariffs on the consumer and corporate earnings. The idea was that this could lead to companies reining in spending, which might include lower spending on AI, potentially bad news for Nvidia. On top of this, U.S. controls on chip exports to China also weighed on Nvidia's growth potential. These concerns resulted in a decline of nearly 30% in Nvidia stock from the start of the year through early April. Since then, though, the stock and the general market have rebounded and even gone on to advance. Nvidia has climbed more than 60% from its low, while the S&P 500 and the Nasdaq have both recorded new record highs. Now, my prediction is that this movement isn't over, and Nvidia will soar in the second half. Let's find out why. First, though, let's take a look at the Nvidia story so far to understand what may lie ahead. Nvidia wasn't always synonymous with AI. In fact, the company's graphics processing units (GPUs) were originally most known for powering video games. But the GPU's ability to handle many tasks simultaneously prompted Nvidia to create the parallel computing platform CUDA and expand the chip's uses into other industries, including AI. This proved to be a key move for the company, as AI has helped revenue skyrocket, as you can see in the chart below. Importantly, Nvidia isn't just growing revenue but also increasing profitability on sales. We can see this in gross margin figures, which have exceeded 70% in recent quarters. The one exception was in the latest quarter, when the gross margin slipped to 60% due to a charge linked to export controls -- U.S. restrictions blocked planned sales, resulting in a billion-dollar charge. Excluding the charge, though, gross margin still topped 70%. Now, let's consider why Nvidia stock could surge in the months ahead. One major point is that the stock today is reasonably priced at 36 times forward earnings estimates, down from more than 50 times just a few months ago. This offers Nvidia stock plenty of room to run, and recognizing this, investors may pile into the shares. Also, general trade-related news could act as a catalyst for stock performance. So far, trade talks and deals suggest that tariff levels may not be as high as originally planned, and any confirmation of this moving forward may boost stocks, particularly growth stocks like Nvidia that thrive in strong economic environments. News from Nvidia itself could boost the stock in the months to come, too. Considering the strong spending plans of Nvidia's customers, from Meta Platforms to Alphabet, and given that the launch of the company's Blackwell platform is rather recent, there's reason to be optimistic about revenue figures in the next quarter. Since Nvidia has committed to an annual rhythm of chip updates, we should also monitor the rollout of the next one -- the Blackwell Ultra -- in the second half. This has just begun and may act as another positive catalyst. Investors will appreciate seeing evidence that Nvidia is able to keep up this pace of annual updates, potentially resulting in share price gains. Finally, the overall AI market is booming, with demand for infrastructure buildout continuing and the next stages of AI, such as the use of AI agents, ready to unfold. This growth environment, with the AI market forecast to reach into the trillions of dollars in a few years, is clearly positive for the leading seller of AI chips. All this means that Nvidia, even if faced with certain hurdles -- such as a halt in chip sales to China -- has many other growth drivers propelling earnings higher right now. And this could continue well into the future. That's why I predict that Nvidia, after a first half of ups and downs, will soar in the second half of the year. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. Prediction: Nvidia Will Soar in the Second Half was originally published by The Motley Fool
Yahoo
26-06-2025
- Business
- Yahoo
China's Manycore Tech Unfazed by US Chip Curbs
Chinese spatial design software maker Manycore Tech says its business model isn't affected by US restrictions on chip exports. Co-founder and Chairman Victor Huang spoke with Bloomberg about how he's managing the global growth of the firm that is part of a group referred to as "China's six little dragons", that includes Deepseek. 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
NHK
18-06-2025
- Business
- NHK
US pressure: Taiwan's high-stakes chips
Global semiconductor powerhouse Taiwan walks a fine line as it balances US tariff threats with its China chip export and plant interests.
Phone Arena
15-06-2025
- Business
- Phone Arena
Taiwan bans chip exports to Huawei and SMIC so that TSMC "Won't get fooled again"
It took the world's leading foundry five years but the Taiwan Commerce Ministry has finally joined the U.S. Commerce Department by banning chip exports to Huawei and SMIC. The latter is China's largest foundry and is the third largest in the world after Taiwan's own TSMC and Samsung Foundry. But there is a lot more going on here than just Taiwan deciding to lock arms with the U.S. Back in April, anonymous sources said that the U.S. Commerce Department was considering a $1 billion or higher fine against TSMC for supplying Huawei with a chiplet for its Ascend 910B AI accelerator chip. First, let's point out the difference between a chip and a chiplet. The difference is in the manufacturing process. With a chip, all parts are built on a single die using the same process node. As a result, even parts of a monolithic chip that don't need to be built with the latest technology have to use it. A chiplet is an integrated circuit built using a modular process. Multiple smaller and independent chiplets are used, each one making up a particular part of a chip such as the CPU cores, GPU cores, memory controllers, I/O dies, AI accelerators, and specialized cache blocks. TSMC unknowingly supplied chiplets to Huawei for its Ascend 910B AI accelerator chip. | Image credit-Huawei Because TSMC uses American technology to produce integrated circuits, it is already banned from shipping cutting-edge silicon to Huawei and SMIC without obtaining a U.S. Commerce Department license under U.S. export laws. The U.S. sanctions alone have been enough to force Huawei and SMIC to turn to costly and less precise manufacturing methods such as multiple patterning using older lithography technology in an attempt to close the gap between TSMC's cutting-edge silicon components and those made by SMIC. While Huawei CEO Ren Zhengfei says that his company's latest processors are just one generation behind the U.S., the actual gap is two to three generations. The new sanctions announced by Taiwan are sure to make life worse for Huawei when it comes to sourcing chips. It would appear that TSMC feels that Huawei deceived them by using shell companies to have the foundry build two billion AI compute chiplets that ended up in Huawei's chips. Had TSMC known who the customer really was, it most likely would have followed the U.S. sanctions and not sold the chiplets to the shell companies. With the new rules in place, both Huawei and SMIC will need to obtain export permits from Taiwan-based suppliers to receive manufactured products. This should give the Taiwan government more control over transactions TSMC makes with the two Chinese companies and prevent the foundry from getting scammed again by Huawei and SMIC. Taiwan, more than any other country, fears the weaponization of advanced chips by China. There is always the concern that because China believes in the "One-China Principle," Taiwan could be attacked by the country under the goal of reunification. The People's Republic of China (PRC) has not renounced the use of force to achieve this and that means that cutting-edge chips obtained by Huawei could be used to build weapons used against Taiwan. Additionally, with the PRC wanting to be self-sufficient manufacturing chips, an attack on Taiwan would allow China to take control of TSMC. The foundry has plans to make it difficult for the PRC to take control of the fabs and other equipment used to manufacture chips in the event of an attack. There is speculation that Taiwan's decision to ban chip exports to Huawei and SMIC was the result of negotiations between the U.S. and Taiwan over the potential $1 billion+ fine that TSMC faced from the U.S. for shipping the chiplets to Huawei. But as we pointed out, TSMC was deceived by Huawei and having imposed its own ban on shipments to Huawei and SMIC, Taiwan and the U.S. are now on the same page.
Washington Post
02-06-2025
- Business
- Washington Post
China blasts US for its computer chip moves and for threatening student visas
TAIPEI, Taiwan — China blasted the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas. 'These practices seriously violate the consensus' reached during trade discussions in Geneva last month, the Commerce Ministry said in a statement.
