Latest news with #ComputexTaipei
Time of India
a day ago
- Business
- Time of India
David Sacks 'warns' US, says DeepSeek 'proof' China can advance AI chips despite restrictions
David Sacks David Sacks , the White House's AI and crypto czar, has warned that the United States' overly strict chip export rules could weaken its long-term tech dominance, potentially boosting Chinese rivals. He pointed to January's " DeepSeek moment " where the launch of the AI model revealed China was perhaps only "three to six months behind" in AI capabilities, a much smaller gap than previously believed. In a Bloomberg Television interview (via Business Insider), Sacks emphasised that China is rapidly closing the AI gap, urging the US to rethink its chip export controls if it intends to maintain its leading edge. He pointed to a "DeepSeek moment" in January, where the launch of the Chinese AI model revealed China was perhaps only "three to six months behind" in AI capabilities, a much smaller gap than previously believed. Sacks says Chinese companies moving fast in AI chip-making Despite current "supply-constrained" conditions for chip production in China, Sacks predicts this will change quickly. While he estimates China might be one and a half to two years behind the US in chip design, companies like Huawei are "moving fast" to catch up. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cặp EUR/USD: Đà Tăng? IC Markets Undo "Even before they fully caught up, I think you will see them exporting their chips for the global market," Sacks cautioned. He warned that if the US becomes "overly restrictive in terms of US sales to the world," it risks a future where "Huawei is everywhere." Sacks' concerns echo sentiments from other prominent tech leaders. At the Computex Taipei tech conference in May, Nvidia CEO Jensen Huang stated that US chip export rules were a "failure" because they spurred Chinese tech development. Huang noted that Nvidia's market share in China has plummeted from 95% four years ago to 50%, attributing this decline directly to the export controls. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
2 days ago
- Business
- Yahoo
David Sacks says overly strict US export controls may backfire because China's AI models are just 'months behind'
David Sacks says overly strict chip export rules may weaken US tech dominance in the long run. He said DeepSeek demonstrated China's ability to advance despite export controls. US chip export rules could end up helping Chinese companies like Huawei gain ground globally, he said. China is closing the AI gap fast, and the US must rethink its chip export controls if it wants to stay ahead, said David Sacks, the White House's AI and crypto czar. In a Bloomberg Television interview published on Wednesday, Sacks said that the US should be mindful of the speed at which Chinese companies are catching up in the AI race despite the chip export rules in place. Even though China is "supply-constrained" on the number of chips it can produce, Sacks said he expects that to change quickly. "Back in January, we had this DeepSeek moment where, before DeepSeek, people thought that Chinese AI models were years behind. And then DeepSeek launched, we realized that maybe they're more like three to six months behind," Sacks said. Sacks added that he thinks China might be one and a half to two years behind the US in chip design, but companies like Huawei are "moving fast" to catch up. "Even before they fully caught up, I think you will see them exporting their chips for the global market," he said, adding that this could cause the US to lose its edge. "If we're overly restrictive in terms of US sales to the world, I think there'll be a time where we're kind of kicking ourselves when, all of a sudden, Huawei is everywhere," he said. "We'll be saying, well, wait, when we had this whole market to ourselves, why didn't we take advantage of the opportunity and lock in the American tech stock?" Other tech leaders have similarly highlighted concerns with US export controls, which often hit their businesses' bottom lines. During the Computex Taipei tech conference in May, Nvidia's Jensen Huang slammed US chip export rules because they encouraged Chinese tech development. "The export control gave them the spirit, the energy, and the government support to accelerate their development. So I think, all in all, the export control is a failure," Huang said. He added that Nvidia's market share in China has decreased to 50%, down from 95% four years ago. Bernstein analysts said in an April note that banning Nvidia chips is unlikely to stop China's AI progress, as Chinese firms are turning to domestic alternatives like Huawei. "In the longer run, expect Huawei to keep closing the gap in performance and Chinese foundational models making up for compute deficiency with Deepseek-like innovation," the analysts wrote. A representative for Sacks did not immediately respond to a request for comment sent by Business Insider outside regular hours. Read the original article on Business Insider
Yahoo
29-05-2025
- Business
- Yahoo
Nvidia beats on Q1 revenue, warns of $8 billion sales hit in Q2 from H20 export ban
Nvidia (NVDA) reported its first quarter earnings after the bell on Wednesday, beating expectations on revenue but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 chips to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. Nvidia stock was up 5% in premarket trading on Thursday following the announcement. For the quarter, Nvidia reported EPS of $0.81 on revenue of $44.1 billion, compared to analysts' expectations of $0.93 on revenue of $43.3 billion, according to Bloomberg analyst consensus data. Without the charge for the H20 chips in Q1, adjusted EPS would have topped out at $0.96. The company reported adjusted EPS of $0.61 on revenue of $26 billion in the same period last year. Nvidia's data center segment, its largest business, saw revenue of $39.1 billion, up from $22.5 billion last year but behind Wall Street expectations of $39.2 billion. According to Nvidia CFO Colette Kress, Nvidia generated just under 50% of its data center revenue via hyperscalers like Amazon (AMZN), Google (GOOG), and Microsoft (MSFT). "Global demand for Nvidia's AI infrastructure is incredibly strong," CEO Jensen Huang said in a statement. "AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation,' he said. Nvidia had to write down $4.5 billion in charges related to the Trump administration's ban on sales of its H20 chip to China. The company announced the news in an April regulatory filing. Nvidia's shares have fluctuated wildly since the start of the year as the company has dealt with setbacks ranging from export controls to concerns related to expected semiconductor tariffs. But a last-minute reprieve from Washington's planned AI diffusion rule, which was put in place by the Biden administration to limit GPU sales to certain countries, and major investment announcements during Trump's visit to the Middle East have increased Nvidia's share price to more than $136 — slightly less than 2% up from the stock's value at the start of the year, and up roughly 20% over the past 12 months as of Wednesday. Nvidia's report follows the company's showing at the annual Computex Taipei trade show in Taiwan, where it showcased new technologies, such as a cloud offering that gives customers access to cloud-based versions of Nvidia's GPUs via third-party providers like CoreWeave (CRWV) and Foxconn ( Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. "There is simply no offset to this," Morgan Stanley analyst Joseph Moore wrote in an investor note ahead of the earnings report. "Blackwell demand is very strong ... but they are supply constrained, and lost H20 does not result in more Blackwell supply. We assume that this takes about $1 billion out of the April [quarter] — impact was effective April 7, so 23 days of lost H20 revenue—and about $5 billion of lost revenue in July. We actually think demand for H20 is much higher, driven by the surge of inference in China." According to Reuters, Nvidia is now working on a modified version of the H20 that meets the Trump administration's performance requirements. During a press conference at Computex, Huang came out swinging against the US's policies, saying that they've been a failure and that they benefit China's own AI chipmakers, according to Bloomberg. Nvidia received relief from some export restrictions when the Trump administration axed the Biden administration's planned AI diffusion rules, which would have created a tiered system that determined which countries could purchase AI chips and which required special licenses or couldn't get them at all. The administration plans to introduce a new set of export requirements in the future. The move set up Nvidia's announcement that it will provide hundreds of thousands of GPUs over the next five years to Humain, an artificial intelligence startup backed by Saudi Arabia's sovereign wealth fund. The news came during Trump's trip to the Middle East, which also included the announcement of a second Project Stargate that will be built in the United Arab Emirates using Nvidia's Blackwell systems. "For investors worried about AI capex sustainability, we now have another deep pocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub," Bernstein analyst Stacy Rasgon wrote in an investor note. Read more about Nvidia's earnings: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Nvidia beats on Q1 revenue, warns of $8 billion sales hit in Q2 from H20 export ban
Nvidia (NVDA) reported its first quarter earnings after the bell on Wednesday, beating expectations on revenue but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 chips to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. Nvidia stock was up 5% in premarket trading on Thursday following the announcement. For the quarter, Nvidia reported EPS of $0.81 on revenue of $44.1 billion, compared to analysts' expectations of $0.93 on revenue of $43.3 billion, according to Bloomberg analyst consensus data. Without the charge for the H20 chips in Q1, adjusted EPS would have topped out at $0.96. The company reported adjusted EPS of $0.61 on revenue of $26 billion in the same period last year. Nvidia's data center segment, its largest business, saw revenue of $39.1 billion, up from $22.5 billion last year but behind Wall Street expectations of $39.2 billion. According to Nvidia CFO Colette Kress, Nvidia generated just under 50% of its data center revenue via hyperscalers like Amazon (AMZN), Google (GOOG), and Microsoft (MSFT). "Global demand for Nvidia's AI infrastructure is incredibly strong," CEO Jensen Huang said in a statement. "AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation,' he said. Nvidia had to write down $4.5 billion in charges related to the Trump administration's ban on sales of its H20 chip to China. The company announced the news in an April regulatory filing. Nvidia's shares have fluctuated wildly since the start of the year as the company has dealt with setbacks ranging from export controls to concerns related to expected semiconductor tariffs. But a last-minute reprieve from Washington's planned AI diffusion rule, which was put in place by the Biden administration to limit GPU sales to certain countries, and major investment announcements during Trump's visit to the Middle East have increased Nvidia's share price to more than $136 — slightly less than 2% up from the stock's value at the start of the year, and up roughly 20% over the past 12 months as of Wednesday. Nvidia's report follows the company's showing at the annual Computex Taipei trade show in Taiwan, where it showcased new technologies, such as a cloud offering that gives customers access to cloud-based versions of Nvidia's GPUs via third-party providers like CoreWeave (CRWV) and Foxconn ( Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. "There is simply no offset to this," Morgan Stanley analyst Joseph Moore wrote in an investor note ahead of the earnings report. "Blackwell demand is very strong ... but they are supply constrained, and lost H20 does not result in more Blackwell supply. We assume that this takes about $1 billion out of the April [quarter] — impact was effective April 7, so 23 days of lost H20 revenue—and about $5 billion of lost revenue in July. We actually think demand for H20 is much higher, driven by the surge of inference in China." According to Reuters, Nvidia is now working on a modified version of the H20 that meets the Trump administration's performance requirements. During a press conference at Computex, Huang came out swinging against the US's policies, saying that they've been a failure and that they benefit China's own AI chipmakers, according to Bloomberg. Nvidia received relief from some export restrictions when the Trump administration axed the Biden administration's planned AI diffusion rules, which would have created a tiered system that determined which countries could purchase AI chips and which required special licenses or couldn't get them at all. The administration plans to introduce a new set of export requirements in the future. The move set up Nvidia's announcement that it will provide hundreds of thousands of GPUs over the next five years to Humain, an artificial intelligence startup backed by Saudi Arabia's sovereign wealth fund. The news came during Trump's trip to the Middle East, which also included the announcement of a second Project Stargate that will be built in the United Arab Emirates using Nvidia's Blackwell systems. "For investors worried about AI capex sustainability, we now have another deep pocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub," Bernstein analyst Stacy Rasgon wrote in an investor note. Read more about Nvidia's earnings: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Nvidia beats on Q1 revenue, says it expects an additional $8 billion charge on H20 losses in Q2
Nvidia (NVDA) reported its first quarter earnings after the bell on Wednesday beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 chips to China. The company also said it expects to miss out on roughly $8 billion in revenue due to losses from the ban. Nvidia stock was up 2.6% following the announcement For the quarter, Nvidia reported EPS of $0.81 on revenue of $44.1 billion. Analysts' expectations of $0.93 on revenue of $43.3 billion, according to Bloomberg analyst consensus data. The company reported adjusted EPS of $0.61 on revenue of $26 billion in the same period last year. Nvidia's data center segment, its largest business, saw revenue of $39.1 billion, up from $22.5 billion last year, but behind Wall Street expectations of $39.2 billion. Nvidia had to write down $4.5 billion in charges related to the Trump administration's ban on sales of its H20 chip to China. The company announced the news in an April regulatory filing. Nvidia's shares have fluctuated wildly since the start of the year as the company has dealt with setbacks ranging from export controls to concerns related to expected semiconductor tariffs. But a last-minute reprieve from Washington's planned AI diffusion rule, which was put in place by the Biden administration to limit GPU sales to certain countries, and major investment announcements during Trump's visit to the Middle East have increased Nvidia's share price to more than $136 — slightly less than 2% up from the stock's value at the start of the year, and up roughly 20% over the past 12 months as of Wednesday. Nvidia's report follows the company's showing at the annual Computex Taipei trade show in Taiwan, where it showcased new technologies, such as a cloud offering that gives customers access to cloud-based versions of Nvidia's GPUs via third-party providers like CoreWeave (CRWV) and Foxconn ( Read more: How does Nvidia make money? Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. "There is simply no offset to this," Morgan Stanley analyst Joseph Moore wrote in an investor note ahead of the earnings report. "Blackwell demand is very strong ... but they are supply constrained, and lost H20 does not result in more Blackwell supply. We assume that this takes about $1 billion out of the April [quarter] — impact was effective April 7, so 23 days of lost H20 revenue—and about $5 billion of lost revenue in July. We actually think demand for H20 is much higher, driven by the surge of inference in China." According to Reuters, Nvidia is now working on a modified version of the H20 that meets the Trump administration's performance requirements. During a press conference at Computex, Nvidia CEO Jensen Huang came out swinging against the US's policies, saying that they've been a failure and that they benefit China's own AI chipmakers, according to Bloomberg. Nvidia received relief from some export restrictions when the Trump administration axed the Biden administration's planned AI diffusion rules, which would have created a tiered system that determined which countries could purchase AI chips and which required special licenses or couldn't get them at all. The administration plans to introduce a new set of export requirements in the future. The move set up Nvidia's announcement that it will provide hundreds of thousands of GPUs over the next five years to Humain, an artificial intelligence startup backed by Saudi Arabia's sovereign wealth fund. The news came during Trump's trip to the Middle East, which also included the announcement of a second Project Stargate that will be built in the United Arab Emirates using Nvidia's Blackwell systems. "For investors worried about AI capex sustainability, we now have another deep pocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub," Bernstein analyst Stacy Rasgon wrote in an investor note. Read more about Nvidia: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. 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
