Latest news with #China-bound
CNBC
2 days ago
- Business
- CNBC
Chip stocks fall on report U.S. could terminate waivers for Taiwan Semi and others
Semiconductor stocks declined Friday following a report that the U.S. is weighing measures that would terminate waivers allowing some chipmakers to send American technology to China. Commerce Department official Jeffrey Kessler told Samsung Electronics, SK Hynix and Taiwan Semiconductor this week that he wanted to cancel their waivers, which allow them to send U.S. chipmaking tech to their factories in China, the Wall Street Journal reported, citing people familiar with the matter. The VanEck Semiconductor ETF declined about 1%. Nvidia, Qualcomm and Marvell Technology fell about 1%, while Taiwan Semiconductor slipped about 2%. U.S. chipmakers have been hit with curbs over the last few years, limiting the ability to sell advanced artificial intelligence chips to China due to national security concerns. During its earnings report last month, Nvidia said the recent export restriction on its China-bound H20 chips hindered sales by about $8 billion. Nvidia CEO Jensen Huang told investors on an earnings call that the $50 billion market in China for AI chips is "effectively closed to U.S. industry." During a CNBC interview in May, he called getting blocked from China's AI market a "tremendous loss." Read the full WSJ report here.
Nikkei Asia
10-06-2025
- Business
- Nikkei Asia
Taiwan's exports tilt toward US as China ratio drops to 24-year low
TAIPEI -- Taiwan's export focus has shifted toward the U.S. and away from China, the latest data highlights, as the Asian semiconductor power appears to be trading one set of risks for another. Shipments to the U.S. reached 26.8% of Taiwan's total exports in the January-May period, while those to China, still the largest destination, declined to 28.1%. This marked the first time in 24 years that the China-bound figure for the same period was below 30%, the Ministry of Finance's data shows.
The Star
10-06-2025
- Business
- The Star
Boeing set to restart jet handovers to Beijing amid tariff dispute
The Boeing logo is displayed at the company's factory, Sept. 24, 2024, in Renton, Washington. - AP NEW YORK: Boeing Co has begun shipping commercial jets to China for the first time since early April, indicating a reopening of trade flows amid the long-simmering tariff war between the United States and Asia's biggest economy. A Boeing 737 Max registered N230BE took off for Hawaii last Friday, according to Flightradar24 flight data. It was the first stop on a journey to the US planemaker's centre in Zhoushan, China where it typically finalises delivery of that model for domestic customers. The pending resumption of China-bound Boeing planes to one of the world's largest aviation markets comes after sparring between Washington and Beijing over the licensing of rare earth minerals and semiconductors. Under US President Donald Trump, aerospace has become increasingly enmeshed in negotiations over tariffs, with agreements punctuated by Boeing jet orders. The stakes were brought into focus after Bloomberg reported that China is considering placing an order for hundreds of aircraft built by European rival Airbus SE as soon as next month. The Boeing 737 Max jet took off at around 10am Seattle time last Friday, according to Flightradar24 data. The plane departed from King County International Airport-Boeing Field, south of downtown Seattle, heading to Kailua-Kona in Hawaii, the data showed. Previously, planes registered as N230BE had flown to Boeing's China delivery centre in Zhoushan and back to Seattle when Beijing asked its airlines to reject delivery of the US-made jets. Chinese government officials on May 12 lifted a ban on airlines taking delivery of Boeing planes after striking a truce with the United States that temporarily slashed tariffs on each side. China reduced its 125% duties on US goods to 10%, while the United States agreed to drop the combined 145% levies on most Chinese imports to 30%. But the accord struck in Geneva is for 90 days, leaving Boeing and its Chinese customers at risk of more trade gyrations. There's been added uncertainty as the White House moved to impose new restrictions on US technology shared with the Commercial Aircraft Corp of China Ltd, China's planemaker, and the jet it created to challenge Boeing and Airbus. China's airlines have been cautious about resuming US imports. Delivery activity has only recently stepped up at Boeing's Seattle facilities, including jets for Air China, Hainan Airlines, Xiamen Airlines, according to a website that tracks plane movements at the manufacturer. At stake for Boeing is the opportunity to finally clear its inventory of already built aircraft, a step to improving its finances. The sparring has also left in limbo the first major aircraft order from China since Trump visited Beijing in 2017. Both sides have a mutual interest in preserving commerce around aerospace, which traditionally has generated large trade surpluses for the United States. China's airlines can't rely solely on Boeing's European rival, Airbus, or its domestic upstart to provide the aircraft they need to expand operations. Planebuilder Comac also needs US-made engines, avionics and other technology to build its C919 jetliner. Boeing had expected to deliver another 50 planes to China when the latest trade spat erupted in April, with Beijing countering Trump's new levies by hiking tariffs that priced the US-made jets out of the market for Chinese carriers. With demand for new aircraft far-outstripping supply, Boeing has indicated that it's willing to find new takers if its China-bound aircraft get caught up in the trade wrangling. — Bloomberg
Yahoo
06-06-2025
- Business
- Yahoo
US Targets Niche Gas That China Can't Replace as Trade War Chip
(Bloomberg) -- The US is using its dominance of a niche petroleum gas as a bargaining chip in its trade war with China. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars America supplies China with almost all of its ethane, a product of the shale boom that's used as a building block for making plastics. But the commerce department is now ordering shippers to apply for export licenses, and has told at least one, Enterprise Products Partners LP, that it intends to withhold permits for three China-bound cargoes. The trade war is throwing a spotlight on how the US and China rely on each other for certain commodities — dependencies that both nations are seeking to leverage as they negotiate terms to resolve their dispute. In this case, America is the world's biggest producer of ethane, which is converted into ethylene for plastics factories, and China is its largest customer. The commerce department has cited risks that petroleum products like ethane could be diverted to the military, copying the playbook deployed by Beijing in justifying restrictions on what it calls dual-use items such as rare earths and other critical minerals. 'Ethane is no longer just a byproduct of shale — it's now a geopolitical weapon,' said Julian Renton, lead analyst covering natural gas liquids at East Daley Analytics. 'China bet billions building infrastructure around US ethane, and Washington is now questioning whether that bet should continue to pay off.' America's shale revolution and China's rapid industrialization have coincided this century to create a market where cheap energy byproducts are parlayed into millions of tons of materials used as trash bags and shampoo bottles, car seats and computer keyboards. But companies that prospered from cooperation are now caught in the crossfire of an increasingly antagonistic trade relationship between Washington and Beijing. Chinese firms such as Satellite Chemical Co. operate giant petrochemical plants that process US ethane almost exclusively. US producers like Enterprise Products Partners and Energy Transfer LP rely on exports, almost half of which go to China, to augment sales in their heavily saturated domestic market. Joint Venture Energy Transfer and Satellite formed a joint venture in 2018 to construct a new export terminal on the U.S. Gulf Coast to provide ethane for the Chinese company's plants. It's an example of how infrastructure that facilitates the ethane trade — from specialized terminals and pipelines to expensive tankers purpose-built to carry the fuel — can revolve around long-term relationships between a single buyer and seller, said Renton. The vessels that ship the gas, dubbed Very Large Ethane Carriers, are another case in point. There are about 30 in the world, according to Kpler ship-tracking data, plying dedicated routes. There's not much of a spot market to absorb dislocations in supply or demand, said Renton. 'These aren't oil tankers that can pivot mid-ocean,' he said. At least one VLEC is now idling off the Gulf Coast waiting for its next move, which looks dependent on the US government's approach to licensing. But there's more at stake than the fate of a few cargoes. 'It throws a wrench into multi-billion dollar, multi-decade commercial planning cycles,' said Renton. --With assistance from Sarah Chen. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. 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
Yahoo
05-06-2025
- Business
- Yahoo
Nvidia (NVDA) Maintains Market-Beating Pace as AI Boom Soothes Thorny Trade War
Nvidia's (NVDA) Q1 results landed like a bombshell last week, shattering expectations with $44.1 billion in revenue, marking a 69% surge year-over-year, driven by relentless demand for its AI and data center chips. From fueling Microsoft's (MSFT) AI workloads to posting record-breaking gaming sales, NVIDIA's dominance is staggering. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Even with a $4.5 billion hit from U.S. export restrictions on its China-bound H20 chips, the company didn't waver, posting numbers that still left Wall Street stunned. And yet, NVDA stock lingers near last year's levels, even as profits soar, making it a compelling bet for market-beating returns. NVIDIA's data center business has been the beating heart of its success, raking in $39.1 billion in Q1, up 73% from last year. NVIDIA is literally crafting the infrastructure for the AI era. On the earnings call, CEO Jensen Huang described the Blackwell NVL72 AI supercomputer as a 'thinking machine' now in full production, with Microsoft deploying tens of thousands of Blackwell GPUs to process 100 trillion AI tokens. I mean, that's the kind of scale that makes competitors sweat. From cloud giants like Amazon Web Services (AMZN) to sovereign AI projects in Saudi Arabia, NVIDIA's chips are the backbone of a global AI race. The wins keep piling up. Strategic moves, such as partnering with HUMAIN to build AI factories in Saudi Arabia, demonstrate NVIDIA's ambition to integrate its technology into every corner of the globe. Huang's vision of AI as critical infrastructure (like roads or power grids) does not exist in the realm of hype but is instead more like a blueprint for the future. With data center revenue making up 89% of Q1's haul, NVIDIA's grip on AI's plumbing is only getting stronger. While AI steals the spotlight, NVIDIA's gaming and networking segments are quietly flexing their muscles. Gaming revenue hit a record $3.8 billion, up 42% year-over-year, thanks to the GeForce RTX 50 series. And despite reports of some hardware glitches, NVIDIA's quick response with replacements kept gamers loyal, cementing its brand as the gold standard for high-performance graphics. Networking is another unsung hero, with Q1 revenue soaring 64% quarter-over-quarter to $5 billion. NVIDIA's Spectrum-X Ethernet solutions are becoming the go-to for data centers handling massive AI workloads. Think of it as building the highways for AI's data deluge. The company's ability to scale these complementary businesses demonstrates that it's not just a chipmaker, but a full-stack powerhouse with multiple growth engines firing simultaneously. You'd expect a $4.5 billion charge from U.S. export restrictions on NVIDIA's H20 chip for China to throw a wrench in the works, but NVIDIA barely flinched. The company still beat Wall Street's $43.3 billion revenue forecast, even with a $2.5 billion sales loss in China. CFO Colette Kress noted on the call that customer demand remains 'firm,' and NVIDIA's already exploring compliant chip designs to tap China's $50 billion AI market. Without the H2O hit, adjusted gross margins would have reached 71.3%, proving the core business remains a profit juggernaut. This resilience is almost surreal. Imagine taking a multi-billion-dollar punch and still delivering a knockout quarter. Huang's comments about China as a 'springboard to global success' signal that NVIDIA is not backing down, with active lobbying for export licenses to regain its footing. The fact that growth still smashed expectations despite this setback made NVIDIA's Q1 feel like a masterclass in navigating adversity. Despite NVIDIA's adjusted EPS soaring quarter after quarter (coming in at $0.81 in Q1, up from $0.61 a year ago), the stock hasn't maintained the same pace over the past year, resulting in valuation multiple compression. At 34x this fiscal year's expected EPS, I view the stock as quite attractively priced. With consensus estimates forecasting EPS growth of 43% this year and 34% next, driven by AI and data center tailwinds, today's multiple doesn't really feel rich. I believe these trends could persist for years, given NVIDIA's dominance in AI infrastructure (think robotics, autonomous vehicles, and enterprise AI), which could power substantial gains from current share prices. Despite trading near its highs, Wall Street remains extremely bullish on NVDA stock. NVIDIA features a Strong Buy consensus rating, with 36 analysts currently bullish, four neutral, and just one bearish. NVDA's average stock price target of $173.19 indicates significant upside potential of nearly 23% over the next twelve months. NVIDIA's Q1 report was nothing short of explosive, showcasing dominance across AI, gaming, networking, and more, all while mitigating headwinds such as the China export restrictions. Trading at just 34x forward earnings, the stock appears to be a steal, given its expected 43% EPS growth this year and the powerful, long-term momentum behind AI. NVIDIA isn't just part of the tech revolution; it's leading it, setting the standard for the entire industry. Investors dragging their feet risk missing out on what could be a once-in-a-generation opportunity to ride a true market giant to new heights. Disclaimer & DisclosureReport an Issue 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
