On October 24, Nvidia announced numerous partnerships with major Indian firms and launched a Hindi language model, as the American chip company looks to ramp up business in one of the world’s biggest technology markets as detailed in a report by CNBC.

Nvidia CEO Jensen Huang spoke about the firm’s technology and efforts in India at its AI Summit in Mumbai . This was an event that featured Bollywood superstar Akshay Kumar and India’s richest person Mukesh Ambani, the chair of Reliance Industries, the CNBC report detailed further.

Amid the flurry of partnerships announced during the event, was a deal between Reliance and Nvidia to build artificial intelligence infrastructure in India. Huang stated that Nvidia is working with companies including Yotta and Tata Communications &nbsp;to also build computing infrastructure.

Jensen Huang is bullish on India’s AI story<o:p></o:p>

Huang said that by the end of the year, India will have “20 times more compute” than just over a year ago, referring to the country’s computing power. “India used to be a country that produced software, later on it exported software. In the future, India is going to export AI,” Huang said.

Nvidia also announced Nemotron-4-Mini-Hindi 4B, a small language model in Hindi, the widest-spoken of India’s multitude of languages. Companies running Nvidia hardware can deploy this language model, while Indian IT consultancy Tech Mahindra is using Nvidia’s model to launch its own Hindi AI model, Project Indus 2.0. Nvidia is also collaborating with other major Indian IT companies like Infosys, Wipro and TCS to train around 500,000 developers in creating and implementing AI agents with its software.

Nvidia’s ramp-up in India takes place as the company looks to find new regions and markets to boost business, while the rapid speed of growth it has experienced over the last year and a half begins to slow down.

India aims to advance semi-conductor industry to $500 billion by 2030<o:p></o:p>

In India, Prime Minister Narendra Modi has been looking to lure in major foreign technology companies, particularly in the semiconductor industry, to increase investment in the country.

India aims to establish itself as a major player in the semiconductor industry, as it strives for self-sufficiency in manufacturing. Modi has outlined various objectives to advance the semiconductor sector, setting a significant target to grow the country’s electronics industry from its current value of around $155 billion to $500 billion by 2030.

“India is very, very dear to the world’s computer industry, central to the IT industry,” Huang said.

Further, Ambani’s presence at the Nvidia event also highlighted his conglomerate’s ambition to become a leading AI player in India. Reliance Jio, the telecommunications firm under Ambani’s Reliance Industries and an upstart less than a decade ago, is now India’s biggest mobile provider.

“Jio aims to build large scale AI infrastructure to democratize AI leveraging data emanating from almost a billion Internet users in next few years. With this planned investments and scale, Jio aims to be the flag bearer of proliferating AI adoption from consumers to enterprises to government,” Neil Shah, partner at Counterpoint Research, told CNBC. This “unlocks significant opportunity” for Nvidia and other companies, Shah added.

On October 24, Nvidia announced numerous partnerships with major Indian firms and launched a Hindi language model, as the American chip company looks to ramp up business in one of the world’s biggest technology markets as detailed in a report by CNBC.

On October 24, Nvidia announced numerous partnerships with major Indian firms and launched a Hindi language model, as the American chip company looks to ramp up business in one of the world’s biggest technology markets as detailed in a report by CNBC. Nvidia CEO Jensen Huang spoke about the firm’s technology and efforts in India at its AI Summit in Mumbai . This was an event that featured Bollywood superstar Akshay Kumar and India’s richest person Mukesh Ambani, the chair of Reliance Industries, the CNBC report detailed further. Amid the flurry of partnerships announced during the event, was a deal between Reliance and Nvidia to build artificial intelligence infrastructure in India. Huang stated that Nvidia is working with companies including Yotta and Tata Communications to also build computing infrastructure. Jensen Huang is bullish on India’s AI story Huang said that by the end of the year, India will have “20 times more compute” than just over a year ago, referring to the country’s computing power. “India used to be a country that produced software, later on it exported software. In the future, India is going to export AI,” Huang said. Nvidia also announced Nemotron-4-Mini-Hindi 4B, a small language model in Hindi, the widest-spoken of India’s multitude of languages. Companies running Nvidia hardware can deploy this language model, while Indian IT consultancy Tech Mahindra is using Nvidia’s model to launch its own Hindi AI model, Project Indus 2.0. Nvidia is also collaborating with other major Indian IT companies like Infosys, Wipro and TCS to train around 500,000 developers in creating and implementing AI agents with its software. Nvidia’s ramp-up in India takes place as the company looks to find new regions and markets to boost business, while the rapid speed of growth it has experienced over the last year and a half begins to slow down. India aims to advance semi-conductor industry to $500 billion by 2030 In India, Prime Minister Narendra Modi has been looking to lure in major foreign technology companies, particularly in the semiconductor industry, to increase investment in the country. India aims to establish itself as a major player in the semiconductor industry, as it strives for self-sufficiency in manufacturing. Modi has outlined various objectives to advance the semiconductor sector, setting a significant target to grow the country’s electronics industry from its current value of around $155 billion to $500 billion by 2030. “India is very, very dear to the world’s computer industry, central to the IT industry,” Huang said. Further, Ambani’s presence at the Nvidia event also highlighted his conglomerate’s ambition to become a leading AI player in India. Reliance Jio, the telecommunications firm under Ambani’s Reliance Industries and an upstart less than a decade ago, is now India’s biggest mobile provider. “Jio aims to build large scale AI infrastructure to democratize AI leveraging data emanating from almost a billion Internet users in next few years. With this planned investments and scale, Jio aims to be the flag bearer of proliferating AI adoption from consumers to enterprises to government,” Neil Shah, partner at Counterpoint Research, told CNBC. This “unlocks significant opportunity” for Nvidia and other companies, Shah added.

Nvidia boosts India presence through Hindi model and major collaborations

Taiwan Semiconductor Manufacturing, the world's largest manufacturer of advanced chips, Thursday posted a phenomenal 54 per cent jump in net profit for its third quarter, sending shares soaring nearly 10 per cent during trading.

The chip giant, which counts some of the best-known names in the industry as high-profile clients, including Apple and Nvidia, has proved itself to be a critical beneficiary of the spiking demand for chips primarily driven by increasing applications of artificial intelligence according to a detailed report by CNBC.

Actually, a good financial performance by TSMC happens at a time when the global chip makers are witnessing an increased demand due to the AI boom. The company now expects a rise in revenues in the last quarter of the year as it outlines a continued expansion process within the semiconductor industry.

Other chip makers' shares also surged after TSMC's earnings release. Nvidia, Micron, and AMD all rose around 1 per cent in Thursday's market close following investor responses to the market's optimistic outlook. 
 
Outperformance: Third quarter beats estimates

The company's revenues for the third quarter came in at $23.5 billion and marked a 36 per cent increase year-over-year, it said, according to the report. TSMC's net income also hit 325.3 billion New Taiwan dollars ($10.1 billion) against the LSEG estimate of NT$300.2 billion for the July-September quarter, said the media outlet. In contrast, the gross margin of TSMC improved to 57.8 per cent from 54.3 per cent during the same period last year.

Taiwan Semiconductor Manufacturing Company Chief Financial Officer Wendell Huang said he is confident about the future performance of the company. "Based on the current business outlook, we expect fourth-quarter revenue to be between $26.1 billion and $26.9 billion, representing a 13 per cent sequential increase or a 35 per cent year-over-year increase at the midpoint," Huang said in an earnings call, according to a FactSet transcript.

The good third quarter was driven by healthy demand for TSMC's 3nm and 5nm technologies, which are particularly necessary for smartphones and AI-related applications. "Our business was supported by strong smartphone and AI-related demand," TSMC noted in a statement.

AI demand and future prospects

TSMC Chairman and CEO C.C. Wei emphasized the growing significance of AI in the semiconductor industry. Speaking during the earnings call, Wei said the demand for AI is "real," and that the growth experienced by TSMC was "the deepest and the widest" compared with others in the industry. He also added that almost every major AI innovation comes from a hyperscaler building its own chip, and they all work with TSMC.

The company's shares have gone up by about 80 per cent year-to-date and are above the overall market rise by 28.57 per cent in the same period.

The Taiwanese-based company, TSMC, has upgraded its book on the capital expenditure (capex) for the year and states that it will marginally surpass $30 billion. The cost of capex during the quarter came at $6.4 billion compared to $6.36 billion during the previous quarter.

International expansion

To answer the steadily increasing demand, which is on the rise in the United States as well, TSMC has also increased its manufacturing capacities worldwide. According to the company, it is ready to spend $65 billion in overseas investments over time through three new chip plants it is constructing in Arizona. In addition, the first factory the company opened was in Japan in this year.

In the same week where a key supplier of chip-making machines to TSMC, ASML, sliced its sales forecast lower than expected and sent shares down, TSMC reported its results. While some market participants sound alarm bells over the long-term sustainability of the AI boom, others look toward industry leaders like Foxconn CEO Young Liu, who still see room to grow the AI frenzy.

Taiwan Semiconductor Manufacturing, the world's largest manufacturer of advanced chips, Thursday posted a phenomenal 54 per cent jump in net profit for its third quarter, sending shares soaring nearly 10 per cent during trading.

Taiwan Semiconductor Manufacturing, the world's largest manufacturer of advanced chips, Thursday posted a phenomenal 54 per cent jump in net profit for its third quarter, sending shares soaring nearly 10 per cent during trading. The chip giant, which counts some of the best-known names in the industry as high-profile clients, including Apple and Nvidia, has proved itself to be a critical beneficiary of the spiking demand for chips primarily driven by increasing applications of artificial intelligence according to a detailed report by CNBC. Actually, a good financial performance by TSMC happens at a time when the global chip makers are witnessing an increased demand due to the AI boom. The company now expects a rise in revenues in the last quarter of the year as it outlines a continued expansion process within the semiconductor industry. Other chip makers' shares also surged after TSMC's earnings release. Nvidia, Micron, and AMD all rose around 1 per cent in Thursday's market close following investor responses to the market's optimistic outlook. Outperformance: Third quarter beats estimates The company's revenues for the third quarter came in at $23.5 billion and marked a 36 per cent increase year-over-year, it said, according to the report. TSMC's net income also hit 325.3 billion New Taiwan dollars ($10.1 billion) against the LSEG estimate of NT$300.2 billion for the July-September quarter, said the media outlet. In contrast, the gross margin of TSMC improved to 57.8 per cent from 54.3 per cent during the same period last year. Taiwan Semiconductor Manufacturing Company Chief Financial Officer Wendell Huang said he is confident about the future performance of the company. "Based on the current business outlook, we expect fourth-quarter revenue to be between $26.1 billion and $26.9 billion, representing a 13 per cent sequential increase or a 35 per cent year-over-year increase at the midpoint," Huang said in an earnings call, according to a FactSet transcript. The good third quarter was driven by healthy demand for TSMC's 3nm and 5nm technologies, which are particularly necessary for smartphones and AI-related applications. "Our business was supported by strong smartphone and AI-related demand," TSMC noted in a statement. AI demand and future prospects TSMC Chairman and CEO C.C. Wei emphasized the growing significance of AI in the semiconductor industry. Speaking during the earnings call, Wei said the demand for AI is "real," and that the growth experienced by TSMC was "the deepest and the widest" compared with others in the industry. He also added that almost every major AI innovation comes from a hyperscaler building its own chip, and they all work with TSMC. The company's shares have gone up by about 80 per cent year-to-date and are above the overall market rise by 28.57 per cent in the same period. The Taiwanese-based company, TSMC, has upgraded its book on the capital expenditure (capex) for the year and states that it will marginally surpass $30 billion. The cost of capex during the quarter came at $6.4 billion compared to $6.36 billion during the previous quarter. International expansion To answer the steadily increasing demand, which is on the rise in the United States as well, TSMC has also increased its manufacturing capacities worldwide. According to the company, it is ready to spend $65 billion in overseas investments over time through three new chip plants it is constructing in Arizona. In addition, the first factory the company opened was in Japan in this year. In the same week where a key supplier of chip-making machines to TSMC, ASML, sliced its sales forecast lower than expected and sent shares down, TSMC reported its results. While some market participants sound alarm bells over the long-term sustainability of the AI boom, others look toward industry leaders like Foxconn CEO Young Liu, who still see room to grow the AI frenzy.

TSMC sees Q3 profit surge driven by AI boom and 54% revenue growth

After wall street finished higher overnight, asian stocks rose early on thursday. A general trend on wall street saw a shift away from megacap tech giants into small-cap firms. Chinese stocks reversed gains following a news briefing by the ministries of housing and finance.

Chinese Stocks Erase Gains as Briefing Lacks Major Stimulus

Seen as a surprising turn of events, ASML Holding NV, a prominent player in the semiconductor equipment industry, saw its shares plummet by 15.7 per cent on October 15. This decline came after the company's third-quarter earnings were accidentally published ahead of schedule, revealing a more cautious than expected outlook for 2025 as detailed in a report by CNBC. <o:p></o:p>

The early release indicated that ASML's projected total net sales for 2025 would range between 30 billion and 35 billion euros, which is at the lower end of the range provided during their 2022 Investor Day. Chief Executive Christophe Fouquet reported, "We expect our 2025 total net sales to grow to a range between 30-35 billion euros, which is the lower half of the range that we provided at our 2022 Investor Day."<o:p></o:p>

As of the afternoon session, shares closed at approximately 668.10 euros ($734.43) following the release. Market analysts noted that this was ASML's biggest single-day drop since the firm went public in January 2002. The company's performance reflects broader concerns within the semiconductor sector about a slower recovery and cautious customer sentiment, particularly in light of ongoing global supply chain issues.<o:p></o:p>

Despite the disappointing sales forecast, ASML reported third-quarter total net sales of 7.5 billion euros, outperforming some analysts' expectations and achieving a net income of 2.1 billion euros. However, total bookings were reported at 2.6 billion euros, falling below the anticipated figures. While demand for chips related to artificial intelligence remains robust, other sectors are reportedly taking longer to bounce back.<o:p></o:p>

Investors reacted swiftly to the news, reflecting their anxiety over the future performance of ASML and the semiconductor market as a whole. The unexpected report triggered significant sell-offs of their stocks, marking a volatile day for the technology sector. As ASML continues to navigate these challenges, its strategies for 2025 will undoubtedly be under intense scrutiny from market stakeholders.<o:p></o:p>

The semiconductor industry has faced numerous hurdles in recent years, including supply chain disruptions and fluctuating demand across various sectors. ASML's latest results highlight these ongoing challenges and underscore the cautious outlook that many companies in this space are adopting as they plan for the future.<o:p></o:p>

In a note released following ASML’s results Tuesday, analysts at Bernstein said the weaker-than-expected order book and a disappointing 2025 outlook were “likely to overshadow decent Q3 results.”<o:p></o:p>

As market analysts continue to assess ASML's performance and outlook, investors will be watching closely for any signs of recovery or further adjustments to forecasts in light of changing market dynamics.<o:p></o:p>

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Seen as a surprising turn of events, ASML Holding NV, a prominent player in the semiconductor equipment industry, saw its shares plummet by 15.7 per cent on October 15.

Seen as a surprising turn of events, ASML Holding NV, a prominent player in the semiconductor equipment industry, saw its shares plummet by 15.7 per cent on October 15. This decline came after the company's third-quarter earnings were accidentally published ahead of schedule, revealing a more cautious than expected outlook for 2025 as detailed in a report by CNBC. The early release indicated that ASML's projected total net sales for 2025 would range between 30 billion and 35 billion euros, which is at the lower end of the range provided during their 2022 Investor Day. Chief Executive Christophe Fouquet reported, "We expect our 2025 total net sales to grow to a range between 30-35 billion euros, which is the lower half of the range that we provided at our 2022 Investor Day." As of the afternoon session, shares closed at approximately 668.10 euros ($734.43) following the release. Market analysts noted that this was ASML's biggest single-day drop since the firm went public in January 2002. The company's performance reflects broader concerns within the semiconductor sector about a slower recovery and cautious customer sentiment, particularly in light of ongoing global supply chain issues. Despite the disappointing sales forecast, ASML reported third-quarter total net sales of 7.5 billion euros, outperforming some analysts' expectations and achieving a net income of 2.1 billion euros. However, total bookings were reported at 2.6 billion euros, falling below the anticipated figures. While demand for chips related to artificial intelligence remains robust, other sectors are reportedly taking longer to bounce back. Investors reacted swiftly to the news, reflecting their anxiety over the future performance of ASML and the semiconductor market as a whole. The unexpected report triggered significant sell-offs of their stocks, marking a volatile day for the technology sector. As ASML continues to navigate these challenges, its strategies for 2025 will undoubtedly be under intense scrutiny from market stakeholders. The semiconductor industry has faced numerous hurdles in recent years, including supply chain disruptions and fluctuating demand across various sectors. ASML's latest results highlight these ongoing challenges and underscore the cautious outlook that many companies in this space are adopting as they plan for the future. In a note released following ASML’s results Tuesday, analysts at Bernstein said the weaker-than-expected order book and a disappointing 2025 outlook were “likely to overshadow decent Q3 results.” As market analysts continue to assess ASML's performance and outlook, investors will be watching closely for any signs of recovery or further adjustments to forecasts in light of changing market dynamics.

ASML's shares plunge following early earnings report and weaker outlook

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is poised to announce a remarkable 40 per cent increase in its third-quarter profit, driven by surging demand for artificial intelligence (AI) chips.

Analysts predict that TSMC will report a net profit of T$298.2 billion (approximately $9.27 billion) for the quarter ending September 30, a significant rise from T$211 billion reported in the same period last year as detailed in a report by Reuters. It is also important to note that, $1 = 32.1570 Taiwan dollars.<o:p></o:p>

Strong demand from major clients<o:p></o:p>

The anticipated profit boost reflects the growing reliance on TSMC’s advanced semiconductor technologies by major clients such as Apple, Nvidia, AMD, Qualcomm, and Mediatek. According to Li Fang-kuo, chairman of President Capital Management, “Most of TSMC's major clients are launching new products which heavily rely on TSMC's advanced process technologies.” This trend underlines the critical role that TSMC plays in the tech industry, particularly as companies pivot towards AI-driven solutions.<o:p></o:p>

In addition to its impressive profit forecast, TSMC recently reported a surge in third-quarter revenue that exceeded market expectations. The company is set to provide further insights into its financial outlook during its upcoming earnings call scheduled for Thursday at 0600 GMT.<o:p></o:p>

Expansion plans amidst AI boom<o:p></o:p>

To meet the escalating demand for its products, TSMC is investing billions in expanding its manufacturing capabilities. The company has earmarked $65 billion for the construction of three new plants in Arizona, USA; however, it has indicated that most of its manufacturing operations will continue to be based in Taiwan. In July, TSMC raised its full-year revenue forecast and adjusted its capital expenditure plans for this year to between $30 billion and $32 billion, up from an earlier estimate of $28 billion to $32 billion.<o:p></o:p>

The AI boom has significantly impacted TSMC's stock performance as well. The company's shares have surged by 77 percent this year alone, far outpacing the broader market's 28 percent gain. This remarkable growth highlights TSMC's dominance in the semiconductor industry at a time when competitors like Intel are struggling with mounting losses in their contract manufacturing unit.<o:p></o:p>

Hence, as TSMC prepares to unveil its third-quarter results, all eyes will be on how it plans to navigate the rapidly evolving landscape of AI technology and semiconductor manufacturing. With little competition on the horizon and a robust client base driving demand, TSMC appears well-positioned for continued growth in the coming quarters.<o:p></o:p>

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is poised to announce a remarkable 40 per cent increase in its third-quarter profit, driven by surging demand for artificial intelligence (AI) chips.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is poised to announce a remarkable 40 per cent increase in its third-quarter profit, driven by surging demand for artificial intelligence (AI) chips. Analysts predict that TSMC will report a net profit of T$298.2 billion (approximately $9.27 billion) for the quarter ending September 30, a significant rise from T$211 billion reported in the same period last year as detailed in a report by Reuters. It is also important to note that, $1 = 32.1570 Taiwan dollars. Strong demand from major clients The anticipated profit boost reflects the growing reliance on TSMC’s advanced semiconductor technologies by major clients such as Apple, Nvidia, AMD, Qualcomm, and Mediatek. According to Li Fang-kuo, chairman of President Capital Management, “Most of TSMC's major clients are launching new products which heavily rely on TSMC's advanced process technologies.” This trend underlines the critical role that TSMC plays in the tech industry, particularly as companies pivot towards AI-driven solutions. In addition to its impressive profit forecast, TSMC recently reported a surge in third-quarter revenue that exceeded market expectations. The company is set to provide further insights into its financial outlook during its upcoming earnings call scheduled for Thursday at 0600 GMT. Expansion plans amidst AI boom To meet the escalating demand for its products, TSMC is investing billions in expanding its manufacturing capabilities. The company has earmarked $65 billion for the construction of three new plants in Arizona, USA; however, it has indicated that most of its manufacturing operations will continue to be based in Taiwan. In July, TSMC raised its full-year revenue forecast and adjusted its capital expenditure plans for this year to between $30 billion and $32 billion, up from an earlier estimate of $28 billion to $32 billion. The AI boom has significantly impacted TSMC's stock performance as well. The company's shares have surged by 77 percent this year alone, far outpacing the broader market's 28 percent gain. This remarkable growth highlights TSMC's dominance in the semiconductor industry at a time when competitors like Intel are struggling with mounting losses in their contract manufacturing unit. Hence, as TSMC prepares to unveil its third-quarter results, all eyes will be on how it plans to navigate the rapidly evolving landscape of AI technology and semiconductor manufacturing. With little competition on the horizon and a robust client base driving demand, TSMC appears well-positioned for continued growth in the coming quarters.

TSMC's third-quarter profit predicted to soar 40% amid booming AI chip demand

Advanced Micro Devices (AMD) has made a significant stride in the artificial intelligence (AI) sector by unveiling its new Instinct MI325X chip during Computex 2024 in Taipei. This launch positions AMD directly against Nvidia, a leader in the data centre graphics processing unit (GPU) market, as the demand for advanced AI technologies continues to escalate as detailed in a report by CNBC.

The CNBC report further stated that AMD’s chairperson and CEO, Lisa Su, highlighted the growing need for powerful AI solutions, stating, "Demand for AI has continued to escalate and has surpassed expectations. It is evident that investment rates are on the rise across the board." The MI325X is expected to commence production by the end of 2024, aiming to provide developers and cloud service providers with a competitive alternative to Nvidia’s GPUs.

The surge in generative AI technologies, such as OpenAI's ChatGPT, has created an urgent demand for robust data centres capable of handling extensive processing requirements. Historically, Nvidia has dominated this sector, capturing over 90 per cent of the data centre AI chip market. However, AMD is determined to increase its market share in what it estimates will become a $500 billion industry by 2028.

AMD's strategy includes expediting its product release timeline, with plans to launch new chips annually. The MI325X follows the MI300X, which began shipping late last year. Furthermore, AMD has announced upcoming chips designated as MI350 for 2025 and MI400 for 2026. This aggressive approach aims to enhance AMD's competitiveness against Nvidia’s forthcoming Blackwell chips, which are set to begin shipping in significant quantities early next year.

While no new major clients were announced at the event, AMD previously disclosed partnerships with companies like Meta and Microsoft that utilise its AI GPUs. The pricing details for the MI325X remain undisclosed but are expected to be competitive as AMD seeks to disrupt Nvidia’s pricing strategy.

One of the challenges facing AMD is Nvidia's proprietary programming language, CUDA, which has become a standard among AI developers. To counter this obstacle, AMD is enhancing its ROCm software platform to facilitate smoother transitions for developers switching from Nvidia’s ecosystem. Su noted that AMD’s AI accelerators are particularly advantageous for scenarios involving content generation or predictive modelling.

The MI325X boasts up to 40 per cent greater inference performance compared to Nvidia's H200 Llama3 model, making it an appealing option for developers focused on training and deploying sophisticated AI models. “The MI325 platform provides up to 40 per cent greater inference performance compared to H200 Llama3,” Su stated

Despite the focus on AI chips, AMD remains committed to its core business of central processors (CPUs), which are essential for server operations globally. In the June quarter of this year, AMD reported that its data centre sales more than doubled from the previous year, reaching $2 billion, with AI chips contributing approximately $1 billion.

AMD also announced a new series of CPUs known as EPYC 5th Gen during Computex 2024. These CPUs come in various configurations designed to support data processing in AI workloads effectively. With prices ranging from $527 for an economical 8-core model to $14,813 for high-performance 192-core processors aimed at supercomputers, these new offerings reflect AMD’s ambition to reshape its position in the market.

As AMD continues to innovate and expand its product line, it aims not only to capture a larger share of the lucrative data centre market but also to establish itself as a formidable competitor in the rapidly evolving landscape of artificial intelligence technology.

Advanced Micro Devices (AMD) has made a significant stride in the artificial intelligence (AI) sector by unveiling its new Instinct MI325X chip during Computex 2024 in Taipei.

Advanced Micro Devices (AMD) has made a significant stride in the artificial intelligence (AI) sector by unveiling its new Instinct MI325X chip during Computex 2024 in Taipei. This launch positions AMD directly against Nvidia, a leader in the data centre graphics processing unit (GPU) market, as the demand for advanced AI technologies continues to escalate as detailed in a report by CNBC. The CNBC report further stated that AMD’s chairperson and CEO, Lisa Su, highlighted the growing need for powerful AI solutions, stating, "Demand for AI has continued to escalate and has surpassed expectations. It is evident that investment rates are on the rise across the board." The MI325X is expected to commence production by the end of 2024, aiming to provide developers and cloud service providers with a competitive alternative to Nvidia’s GPUs. The surge in generative AI technologies, such as OpenAI's ChatGPT, has created an urgent demand for robust data centres capable of handling extensive processing requirements. Historically, Nvidia has dominated this sector, capturing over 90 per cent of the data centre AI chip market. However, AMD is determined to increase its market share in what it estimates will become a $500 billion industry by 2028. AMD's strategy includes expediting its product release timeline, with plans to launch new chips annually. The MI325X follows the MI300X, which began shipping late last year. Furthermore, AMD has announced upcoming chips designated as MI350 for 2025 and MI400 for 2026. This aggressive approach aims to enhance AMD's competitiveness against Nvidia’s forthcoming Blackwell chips, which are set to begin shipping in significant quantities early next year. While no new major clients were announced at the event, AMD previously disclosed partnerships with companies like Meta and Microsoft that utilise its AI GPUs. The pricing details for the MI325X remain undisclosed but are expected to be competitive as AMD seeks to disrupt Nvidia’s pricing strategy. One of the challenges facing AMD is Nvidia's proprietary programming language, CUDA, which has become a standard among AI developers. To counter this obstacle, AMD is enhancing its ROCm software platform to facilitate smoother transitions for developers switching from Nvidia’s ecosystem. Su noted that AMD’s AI accelerators are particularly advantageous for scenarios involving content generation or predictive modelling. The MI325X boasts up to 40 per cent greater inference performance compared to Nvidia's H200 Llama3 model, making it an appealing option for developers focused on training and deploying sophisticated AI models. “The MI325 platform provides up to 40 per cent greater inference performance compared to H200 Llama3,” Su stated Despite the focus on AI chips, AMD remains committed to its core business of central processors (CPUs), which are essential for server operations globally. In the June quarter of this year, AMD reported that its data centre sales more than doubled from the previous year, reaching $2 billion, with AI chips contributing approximately $1 billion. AMD also announced a new series of CPUs known as EPYC 5th Gen during Computex 2024. These CPUs come in various configurations designed to support data processing in AI workloads effectively. With prices ranging from $527 for an economical 8-core model to $14,813 for high-performance 192-core processors aimed at supercomputers, these new offerings reflect AMD’s ambition to reshape its position in the market. As AMD continues to innovate and expand its product line, it aims not only to capture a larger share of the lucrative data centre market but also to establish itself as a formidable competitor in the rapidly evolving landscape of artificial intelligence technology.

AMD launches new AI chip to challenge Nvidia's dominance in the data centre market

Nvidia Corporation has experienced a noticeable surge in its stock price, with shares rising by 25 per cent over the past month. As the technology earnings season approaches, Nvidia is nearing an all-time high, reflecting strong investor confidence driven by its pivotal role in the artificial intelligence (AI) sector. This surge follows a year that has seen Nvidia's stock more than double, with an increase of over 165 per cent since January as detailed in a report by CNBC.

The US tech industry is buzzing with anticipation as major firms such as Meta, Alphabet, Microsoft, Oracle, and OpenAI continue to roll out innovative AI technologies. These advancements require significant investments in Nvidia's graphics processing units (GPUs), which are essential for powering AI applications. As a result, Nvidia has positioned itself as a key player in this rapidly expanding market.

In recent trading sessions, Nvidia's stock saw a slight dip to approximately $132 per share, just below its July peak of $135.58. The stocks all time high was $140.76, however, the recent minor setback has not dampened overall enthusiasm for the company. Further, following a brief decline in late August and early September, Nvidia's stock has rebounded strongly, overtaking Microsoft to become the second-most valuable company in the world, trailing only Apple. Currently Nvidia has a market capitalization of $3.253 trillion.

Reasons behind Nvidia’s exceptional performance<o:p></o:p>

Nvidia's impressive performance can be attributed to its status as the primary beneficiary of the AI boom. The company reported staggering second-quarter results earlier this year, showcasing a year-over-year revenue increase of 122 per cent and net income more than doubling to $166 billion.

Furthermore, Nvidia provided optimistic guidance for the upcoming quarter and announced plans to ship several billion dollars' worth of its new Blackwell artificial intelligence (AI) chip. This chip is expected to retail between $30,000 and $40,000 per unit and will see production ramping up significantly in the fourth quarter and continuing through fiscal 2026.

Future prospects and market share of Nvidia<o:p></o:p>

Market analysts are also optimistic about Nvidia's future prospects. In a recent note from Mizuho analysts, it was estimated that Nvidia holds approximately 95 per cent of the market share in AI training and inference chips for data centre applications. They set a price target of $140 for Nvidia's stock but also cautioned investors about potential risks associated with increasing export restrictions to China and geopolitical tensions related to Taiwan.

“Everyone desires to be the first and to possess the most,” said CEO Jensen Huang during an interview on CNBC’s 'Closing Overtime,' highlighting the "insane" demand for the Blackwell chip. This sentiment reflects the competitive landscape among tech giants vying for dominance in AI technology.

The recent uptick in Nvidia’s stock can also be attributed to various factors over the past month. Notably, on September 23, shares rose by 4 per cent following a filing indicating that Jensen Huang, Chief Executive Officer (CEO) of Nvidia had completed selling a portion of his stock holdings.

Therefore, as investors eagerly await updates from major clients like Meta and Microsoft regarding their anticipated investments in AI technology, all eyes will remain on Nvidia as it continues to lead the charge in this transformative sector.

Nvidia Corporation has experienced a noticeable surge in its stock price, with shares rising by 25 per cent over the past month. As the technology earnings season approaches, Nvidia is nearing an all-time high, reflecting strong investor confidence driven by its pivotal role in the artificial intelligence (AI) sector.

Nvidia Corporation has experienced a noticeable surge in its stock price, with shares rising by 25 per cent over the past month. As the technology earnings season approaches, Nvidia is nearing an all-time high, reflecting strong investor confidence driven by its pivotal role in the artificial intelligence (AI) sector. This surge follows a year that has seen Nvidia's stock more than double, with an increase of over 165 per cent since January as detailed in a report by CNBC. The US tech industry is buzzing with anticipation as major firms such as Meta, Alphabet, Microsoft, Oracle, and OpenAI continue to roll out innovative AI technologies. These advancements require significant investments in Nvidia's graphics processing units (GPUs), which are essential for powering AI applications. As a result, Nvidia has positioned itself as a key player in this rapidly expanding market. In recent trading sessions, Nvidia's stock saw a slight dip to approximately $132 per share, just below its July peak of $135.58. The stocks all time high was $140.76, however, the recent minor setback has not dampened overall enthusiasm for the company. Further, following a brief decline in late August and early September, Nvidia's stock has rebounded strongly, overtaking Microsoft to become the second-most valuable company in the world, trailing only Apple. Currently Nvidia has a market capitalization of $3.253 trillion. Reasons behind Nvidia’s exceptional performance Nvidia's impressive performance can be attributed to its status as the primary beneficiary of the AI boom. The company reported staggering second-quarter results earlier this year, showcasing a year-over-year revenue increase of 122 per cent and net income more than doubling to $166 billion. Furthermore, Nvidia provided optimistic guidance for the upcoming quarter and announced plans to ship several billion dollars' worth of its new Blackwell artificial intelligence (AI) chip. This chip is expected to retail between $30,000 and $40,000 per unit and will see production ramping up significantly in the fourth quarter and continuing through fiscal 2026. Future prospects and market share of Nvidia Market analysts are also optimistic about Nvidia's future prospects. In a recent note from Mizuho analysts, it was estimated that Nvidia holds approximately 95 per cent of the market share in AI training and inference chips for data centre applications. They set a price target of $140 for Nvidia's stock but also cautioned investors about potential risks associated with increasing export restrictions to China and geopolitical tensions related to Taiwan. “Everyone desires to be the first and to possess the most,” said CEO Jensen Huang during an interview on CNBC’s 'Closing Overtime,' highlighting the "insane" demand for the Blackwell chip. This sentiment reflects the competitive landscape among tech giants vying for dominance in AI technology. The recent uptick in Nvidia’s stock can also be attributed to various factors over the past month. Notably, on September 23, shares rose by 4 per cent following a filing indicating that Jensen Huang, Chief Executive Officer (CEO) of Nvidia had completed selling a portion of his stock holdings. Therefore, as investors eagerly await updates from major clients like Meta and Microsoft regarding their anticipated investments in AI technology, all eyes will remain on Nvidia as it continues to lead the charge in this transformative sector.

Nvidia shares surge 25% in a month, nearing record highs ahead of tech earnings

Nvidia has deepened ties with technology consultant Accenture as part of its campaign to spur the deployment of artificial intelligence in businesses and thereby ramp up demand for its semiconductor products.

The partnership will see Accenture establish an Nvidia Business Group devoted to assisting clients in using and scaling generative AI tools, said the companies in a statement issued on Wednesday. Accenture has trained 30,000 specialists to use Nvidia's technology to help their customers implement and benefit from the technology in a very short period.

While Nvidia's chips dominate AI hardware deployments, orders mostly come from just a few of the largest data centre operators, including Microsoft Corp., Amazon.com Inc.'s AWS and Alphabet Inc.'s Google. Analysts and investors have complained that the tens of billions of dollars companies are sinking into new infrastructure haven't yet produced a financial payback that's worth the expense.

Nvidia has responded with a wave of software, services, and hardware that makes the technology more accessible and useful to a wider range of customers, all geared to sustaining what Nvidia Chief Executive Officer Jensen Huang describes as a new industrial revolution.

Huang told CNBC he considers Accenture the "connective fabric" between Nvidia's technology and customers. He and Accenture Chief Executive Julie Sweet began mulling the deal four months ago, Huang said.

Nvidia's CEO also provided an update on its newest line of chips, Blackwell. It is currently being produced in full volume and ahead of schedule. There had been concerns that production snags might slow the product’s rollout.

“Demand for Blackwell is insane,” he told CNBC. “Everybody wants the most, and everybody wants to be first.”

Nvidia shares, which were up 1.6 per cent on Wednesday in New York, rose more than 1 per cent in extended trading following these comments.

Accenture has invested very heavily in generative AI and introduced its so-called AI Refinery using Nvidia's technology in July. The tool empowers clients to build bespoke large language models to power AI applications specific to their industries. The company attributed its most recent quarterly earnings beat to high demand for its help in deploying generative AI.

According to Lan Guan, AI lead at Accenture, 9 out of 10 organisations now feel that generative AI is going to have an impact, but less than 10 per cent have found a way to make it work for them yet.

Nvidia has deepened ties with technology consultant Accenture as part of its campaign to spur the deployment of artificial intelligence in businesses and thereby ramp up demand for its semiconductor products.

Nvidia has deepened ties with technology consultant Accenture as part of its campaign to spur the deployment of artificial intelligence in businesses and thereby ramp up demand for its semiconductor products. The partnership will see Accenture establish an Nvidia Business Group devoted to assisting clients in using and scaling generative AI tools, said the companies in a statement issued on Wednesday. Accenture has trained 30,000 specialists to use Nvidia's technology to help their customers implement and benefit from the technology in a very short period. While Nvidia's chips dominate AI hardware deployments, orders mostly come from just a few of the largest data centre operators, including Microsoft Corp., Amazon.com Inc.'s AWS and Alphabet Inc.'s Google. Analysts and investors have complained that the tens of billions of dollars companies are sinking into new infrastructure haven't yet produced a financial payback that's worth the expense. Nvidia has responded with a wave of software, services, and hardware that makes the technology more accessible and useful to a wider range of customers, all geared to sustaining what Nvidia Chief Executive Officer Jensen Huang describes as a new industrial revolution. Huang told CNBC he considers Accenture the "connective fabric" between Nvidia's technology and customers. He and Accenture Chief Executive Julie Sweet began mulling the deal four months ago, Huang said. Nvidia's CEO also provided an update on its newest line of chips, Blackwell. It is currently being produced in full volume and ahead of schedule. There had been concerns that production snags might slow the product’s rollout. “Demand for Blackwell is insane,” he told CNBC. “Everybody wants the most, and everybody wants to be first.” Nvidia shares, which were up 1.6 per cent on Wednesday in New York, rose more than 1 per cent in extended trading following these comments. Accenture has invested very heavily in generative AI and introduced its so-called AI Refinery using Nvidia's technology in July. The tool empowers clients to build bespoke large language models to power AI applications specific to their industries. The company attributed its most recent quarterly earnings beat to high demand for its help in deploying generative AI. According to Lan Guan, AI lead at Accenture, 9 out of 10 organisations now feel that generative AI is going to have an impact, but less than 10 per cent have found a way to make it work for them yet.

Nvidia partners with Accenture to accelerate AI adoption in businesses

Chinese chip maker Cambricon technologies corp. Saw its stocks surge by the maximum daily limit of 20%. Following the reports that the Chinese government is urging local companies to shift away from NVIDIA processors in favor of homegrown alternatives.

China Pushes Local Chips Over NVIDIA's H20

Chinese chip maker Cambricon Technologies&nbsp;saw its stocks surge by the maximum daily limit of 20 per cent. This follows reports that the Chinese government is urging local companies to shift away from Nvidia processors in favour of homegrown alternatives. 
&nbsp; 
This surge is part of a broader sector rally within the Chinese semiconductor industry. Key Chinese AI chip players like semiconductor manufacturing international&nbsp;also gained nearly 20 per cent. 
&nbsp; 
According to a report published by Bloomberg News, this surge indicates that Beijing is intensifying its pressure on domestic firms to reduce dependency on Nvidia's H20 chips. These chips are essential for developing and running advanced AI models and are crucial for the tech industry's growth.&nbsp; 
&nbsp; 
While the Chinese government has not yet issued a formal ban, it has provided guidance discouraging purchases of Nvidia chips. This strategic move aims to bolster local manufacturers like Cambricon and Huawei, especially considering potential future restrictions from the US.&nbsp; 
&nbsp; 
Earlier this year, Beijing directed electric vehicle manufacturers to source supplies from local chipmakers as part of its broader goal to achieve self-sufficiency in critical technologies. This clearly indicates China's strategy to cultivate a robust domestic tech ecosystem.&nbsp; 
&nbsp; 
Major Chinese tech companies stepping into the spotlight signals a turning point for the Chinese semiconductor landscape and fosters innovation and resilience against international market fluctuations.&nbsp; 
&nbsp; 
Beyond the geopolitics plays, consumers might soon benefit from a diverse range of homegrown technology solutions.&nbsp;

Chinese chip maker Cambricon Technologies saw its stocks surge by the maximum daily limit of 20 per cent. This follows reports that the Chinese government is urging local companies to shift away from Nvidia processors in favour of homegrown alternatives.

Chinese chip maker Cambricon Technologies saw its stocks surge by the maximum daily limit of 20 per cent. This follows reports that the Chinese government is urging local companies to shift away from Nvidia processors in favour of homegrown alternatives. This surge is part of a broader sector rally within the Chinese semiconductor industry. Key Chinese AI chip players like semiconductor manufacturing international also gained nearly 20 per cent. According to a report published by Bloomberg News, this surge indicates that Beijing is intensifying its pressure on domestic firms to reduce dependency on Nvidia's H20 chips. These chips are essential for developing and running advanced AI models and are crucial for the tech industry's growth. While the Chinese government has not yet issued a formal ban, it has provided guidance discouraging purchases of Nvidia chips. This strategic move aims to bolster local manufacturers like Cambricon and Huawei, especially considering potential future restrictions from the US. Earlier this year, Beijing directed electric vehicle manufacturers to source supplies from local chipmakers as part of its broader goal to achieve self-sufficiency in critical technologies. This clearly indicates China's strategy to cultivate a robust domestic tech ecosystem. Major Chinese tech companies stepping into the spotlight signals a turning point for the Chinese semiconductor landscape and fosters innovation and resilience against international market fluctuations. Beyond the geopolitics plays, consumers might soon benefit from a diverse range of homegrown technology solutions.

AI & Geopolitics: China pushes for local chips over Nvidia's H20

Technology giants Google and Nvidia will enhance their engagement in India with more focus on leveraging artificial intelligence technology in the country, top officials of the companies said on Monday after meeting Prime Minister Narendra Modi.

Graphics Processing Unit (GPU) major Nvidia CEO Jensen Huang said the Prime Minister has always been keen on learning about artificial intelligence, its potential, and opportunities for India.

"I have enjoyed so many meetings with the Prime Minister. He's such an incredible student, and every time I see him, he wants to learn about technology, artificial intelligence, the potential and opportunity for India, the impact on India, society, and industry," Huang said.

Huang's Nvidia is estimated to have an 88 per cent market share in the GPU segment, which is in huge demand for AI workloads across the world.

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Had a fruitful roundtable with tech CEOs in New York, discussing aspects relating to technology, innovation and more. Also highlighted the strides made by India in this field. I am glad to see immense optimism towards India. <a bis_size="{&quot;x&quot;:415,&quot;y&quot;:343,&quot;w&quot;:155,&quot;h&quot;:14,&quot;abs_x&quot;:448,&quot;abs_y&quot;:2030}" href="https://t.co/qW3sZ4fv3t">pic.twitter.com/qW3sZ4fv3t</a>
— Narendra Modi (@narendramodi) <a bis_size="{&quot;x&quot;:439,&quot;y&quot;:372,&quot;w&quot;:117,&quot;h&quot;:14,&quot;abs_x&quot;:472,&quot;abs_y&quot;:2059}" href="https://twitter.com/narendramodi/status/1838011132126085280?ref_src=twsrc%5Etfw">September 23, 2024</a></blockquote>
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He said India is home to some of the world's greatest computer scientists, which is a great opportunity.

"Artificial intelligence is also a new industry, a new manufacturing industry. I'm looking forward to partnering with India in a very deep way to make that possible. We have many partnerships with India. For one, we're helping India gain access to our most advanced technologies," Huang said.

Nvidia has partnered with Yotta Data Services, which plans to scale up its GPU stable to 32,768 units by the end of 2025.

Huang said India is the home of the third-largest startup economy, and the work of all new generations of startups is based on AI.

"Every IIT has an Nvidia AI Center of Excellence. We're teaching professionals. We're teaching students how to upskill into this new world of AI. AI is a very complicated technology, but in the end it enables a country to take advantage of the technology in a way that has never been possible before. AI really democratised computing. This is India's moment, you have to seize," Huang said.

Google CEO Sundar Pichai said the Prime Minister has been focused on transforming India with his Digital India vision and pushed the company to make in India and design in India.

"He challenged us to think about applications in healthcare, education, agriculture, and he's also thinking about the infrastructure of India, be it data centres, power, energy, and investing to make sure India can transition. We are robustly investing in AI in India, and we look forward to doing more," Pichai said.

He said that the PM has asked Google to do more in the field of AI and wants to make sure AI is there to benefit the people of India.

"He has a clear vision, both in terms of the opportunity that AI will create, but he wants to make sure ultimately, AI is there to benefit the people of India, and he has a clear vision, that it should all be in the service of the people of India. He is challenging us to do more," Pichai said.

The meeting took place at the Lotte New York Palace Hotel on Sunday during the second leg of Modi's three-day US visit.

The Prime Minister participated in the roundtable with CEOs of US-based firms working on cutting-edge technologies such as AI, quantum computing, and semiconductors.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience. 
&nbsp;

Technology giants Google and Nvidia will enhance their engagement in India with more focus on leveraging artificial intelligence technology in the country, top officials of the companies said on Monday after meeting Prime Minister Narendra Modi.

Technology giants Google and Nvidia will enhance their engagement in India with more focus on leveraging artificial intelligence technology in the country, top officials of the companies said on Monday after meeting Prime Minister Narendra Modi. Graphics Processing Unit (GPU) major Nvidia CEO Jensen Huang said the Prime Minister has always been keen on learning about artificial intelligence, its potential, and opportunities for India. "I have enjoyed so many meetings with the Prime Minister. He's such an incredible student, and every time I see him, he wants to learn about technology, artificial intelligence, the potential and opportunity for India, the impact on India, society, and industry," Huang said. Huang's Nvidia is estimated to have an 88 per cent market share in the GPU segment, which is in huge demand for AI workloads across the world. Had a fruitful roundtable with tech CEOs in New York, discussing aspects relating to technology, innovation and more. Also highlighted the strides made by India in this field. I am glad to see immense optimism towards India. pic.twitter.com/qW3sZ4fv3t — Narendra Modi (@narendramodi) September 23, 2024 × He said India is home to some of the world's greatest computer scientists, which is a great opportunity. "Artificial intelligence is also a new industry, a new manufacturing industry. I'm looking forward to partnering with India in a very deep way to make that possible. We have many partnerships with India. For one, we're helping India gain access to our most advanced technologies," Huang said. Nvidia has partnered with Yotta Data Services, which plans to scale up its GPU stable to 32,768 units by the end of 2025. Huang said India is the home of the third-largest startup economy, and the work of all new generations of startups is based on AI. "Every IIT has an Nvidia AI Center of Excellence. We're teaching professionals. We're teaching students how to upskill into this new world of AI. AI is a very complicated technology, but in the end it enables a country to take advantage of the technology in a way that has never been possible before. AI really democratised computing. This is India's moment, you have to seize," Huang said. Google CEO Sundar Pichai said the Prime Minister has been focused on transforming India with his Digital India vision and pushed the company to make in India and design in India. "He challenged us to think about applications in healthcare, education, agriculture, and he's also thinking about the infrastructure of India, be it data centres, power, energy, and investing to make sure India can transition. We are robustly investing in AI in India, and we look forward to doing more," Pichai said. He said that the PM has asked Google to do more in the field of AI and wants to make sure AI is there to benefit the people of India. "He has a clear vision, both in terms of the opportunity that AI will create, but he wants to make sure ultimately, AI is there to benefit the people of India, and he has a clear vision, that it should all be in the service of the people of India. He is challenging us to do more," Pichai said. The meeting took place at the Lotte New York Palace Hotel on Sunday during the second leg of Modi's three-day US visit. The Prime Minister participated in the roundtable with CEOs of US-based firms working on cutting-edge technologies such as AI, quantum computing, and semiconductors. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Modi meets tech CEOs in US: Google and Nvidia to boost AI engagement in India

Nvidia, in a response to a Bloomberg News report about the US Department of Justice sending out subpoenas as part of an antitrust probe, said it has been in touch with the government agency but hasn't been subpoenaed.

Those requests often come in the form of what's called a civil investigative demand, but is better known as a subpoena. The Department of Justice issued one such request to Nvidia for information related to its acquisition of RunAI, along with other areas of its chip business, one person with direct knowledge of the matter said.

Nvidia, in response to the story, said its lead in the market for AI computing is a function of its superior products.

“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the company said in a statement, adding, “We have inquired with the US Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.”

In the probe, which Bloomberg earlier reported in June, investigators have been reaching out to other technology companies for information. The DOJ's San Francisco office is taking the lead in running the inquiry, people familiar with the matter said. A representative for the DOJ declined to comment.

The people, who asked not to be identified because the discussions are private, said antitrust officials are concerned Nvidia is making it harder to switch to alternative suppliers and penalise buyers that don't exclusively use its artificial intelligence chips.

The regulators have been investigating the purchase of RunAI, announced in April. That company makes software to help manage AI computing and there are concerns the tie-up will make it harder for customers to switch away from Nvidia chips. Regulators also are inquiring whether Nvidia gives preferential supply and pricing to customers that use its technology exclusively or buy its complete systems, according to the people.

Nvidia has drawn regulatory scrutiny since it became the world's most valuable chipmaker and a key beneficiary of the AI spending boom, with sales more than doubling each quarter while it's eclipsed one-time chip leaders such as Intel Corp.

Nvidia, in a response to a Bloomberg News report about the US Department of Justice sending out subpoenas as part of an antitrust probe, said it has been in touch with the government agency but hasn't been subpoenaed.

Nvidia, in a response to a Bloomberg News report about the US Department of Justice sending out subpoenas as part of an antitrust probe, said it has been in touch with the government agency but hasn't been subpoenaed. Those requests often come in the form of what's called a civil investigative demand, but is better known as a subpoena. The Department of Justice issued one such request to Nvidia for information related to its acquisition of RunAI, along with other areas of its chip business, one person with direct knowledge of the matter said. Nvidia, in response to the story, said its lead in the market for AI computing is a function of its superior products. “Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the company said in a statement, adding, “We have inquired with the US Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.” In the probe, which Bloomberg earlier reported in June, investigators have been reaching out to other technology companies for information. The DOJ's San Francisco office is taking the lead in running the inquiry, people familiar with the matter said. A representative for the DOJ declined to comment. The people, who asked not to be identified because the discussions are private, said antitrust officials are concerned Nvidia is making it harder to switch to alternative suppliers and penalise buyers that don't exclusively use its artificial intelligence chips. The regulators have been investigating the purchase of RunAI, announced in April. That company makes software to help manage AI computing and there are concerns the tie-up will make it harder for customers to switch away from Nvidia chips. Regulators also are inquiring whether Nvidia gives preferential supply and pricing to customers that use its technology exclusively or buy its complete systems, according to the people. Nvidia has drawn regulatory scrutiny since it became the world's most valuable chipmaker and a key beneficiary of the AI spending boom, with sales more than doubling each quarter while it's eclipsed one-time chip leaders such as Intel Corp.

Nvidia faces antitrust scrutiny from DOJ over AI chip dominance and RunAI acquisition

Let's look at the worst selloff in US stocks since a meltdown in early August. Worries about the state of the global economy were fuelled by bad US data and plunging oil prices. This sent Asian stocks tumbling after Wall Street had its worst day since the August 5 crash. Meanwhile, AI-darling nVIDIA suffered a $279 billion rout in market value.

Nvidia drives a deep plunge in tech stocks

In a noteworthy turn of events, Nvidia's stock price has plummeted, wiping out nearly $279 billion from its market capitalization. This sharp decline follows a report from Bloomberg indicating that the Department of Justice (DOJ) has issued a subpoena to Nvidia as part of an ongoing antitrust investigation.<o:p></o:p>

What is the investigation about?<o:p></o:p>

The Department of Justice’s (DOJ's) inquiry centers on allegations that Nvidia may be creating barriers for customers who wish to transition to alternative AI chip suppliers. This probe has not yet progressed to a formal accusation, but it has already sent shockwaves through the tech industry. Nvidia's dominance in the artificial intelligence (AI) chip market, particularly in data centers, is a key focus of the investigation. The company commands an impressive 80 per cent market share in this sector, a position it has maintained for several years.<o:p></o:p>

Nvidia's success in the AI chip market can be traced back to its early adoption and innovation in this field. Nearly a decade ago, Nvidia introduced Compute Unified Device Architecture (CUDA), a programming language that has become indispensable for engineers developing advanced AI models, including those powering technologies like ChatGPT. This strategic move allowed Nvidia to secure a strong foothold in the market well before competitors like AMD and Intel began to invest heavily in AI chip technology.<o:p></o:p>

This development resulted in an intense impact on the market and Nvidia’s client base. Nvidia's client list includes some of the biggest names in the tech industry, such as Microsoft, Alphabet, Amazon, and Tesla. The surge in demand for its AI chips has driven significant growth for the company. In addition to its hardware offerings, Nvidia has also expanded into enterprise software subscription services and networking products, which are designed to enhance the performance of its chips. The latest iterations of Nvidia's chips are often pre-installed in specially designed server racks, reflecting the company's strategy to evolve from a component supplier to an integrated systems provider.<o:p></o:p>

Stock reaction and future implications for Nvidia<o:p></o:p>

The news of the Department of Justice (DOJ) subpoena has had an immediate impact on Nvidia's stock price. During regular trading hours, the shares dropped nearly 10 per cent, and the decline continued in after-hours trading, with the stock sliding an additional 2 per cent. This dramatic fall underlines the market's sensitivity to regulatory scrutiny and the potential implications for Nvidia's business model.<o:p></o:p>

A representative for Nvidia stated in a conversation with CNBC that the company "wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them." <o:p></o:p>

As the investigation unfolds, it remains to be seen how this will affect Nvidia's market position and its relationships with key clients. The antitrust probe could potentially lead to changes in how Nvidia operates, particularly if the Department of Justice (DOJ) finds evidence of anti-competitive practices. For now, the tech giant faces a period of uncertainty, and investors are closely watching the developments.<o:p></o:p>

How much is a loss of $279 billion to Nvidia’s market cap, what investors in India should know?<o:p></o:p>

To give a fair estimation of the loss in the market capitalisation of Nvidia investors should know several key facts about the company. Currently Nvidia is a 2.649 trillion-dollar enterprise i.e., 2649 billion US dollars in market capitalisation. Now the company has fallen to this market capitalization post a 10 to 11 per cent correction in its stock price thus losing $279 billion in a single trading session.<o:p></o:p>

In a straight comparison the total market capitalization of India’s biggest listed company Reliance Industries is $244.46 billion US dollars according to the companies market cap website. <o:p></o:p>

Further, currently Reliance Industries is the 45th most valuable company in the world. Therefore, it is interesting to note that Nvidia has suffered a bigger loss than the entire market capitalisation of Reliance Industries in a single trading session. <o:p></o:p>

In a noteworthy turn of events, Nvidia's stock price has plummeted, wiping out nearly $279 billion from its market capitalization. This sharp decline follows a report from Bloomberg indicating that the Department of Justice (DOJ) has issued a subpoena to Nvidia as part of an ongoing antitrust investigation.

In a noteworthy turn of events, Nvidia's stock price has plummeted, wiping out nearly $279 billion from its market capitalization. This sharp decline follows a report from Bloomberg indicating that the Department of Justice (DOJ) has issued a subpoena to Nvidia as part of an ongoing antitrust investigation. What is the investigation about? The Department of Justice’s (DOJ's) inquiry centers on allegations that Nvidia may be creating barriers for customers who wish to transition to alternative AI chip suppliers. This probe has not yet progressed to a formal accusation, but it has already sent shockwaves through the tech industry. Nvidia's dominance in the artificial intelligence (AI) chip market, particularly in data centers, is a key focus of the investigation. The company commands an impressive 80 per cent market share in this sector, a position it has maintained for several years. Nvidia's success in the AI chip market can be traced back to its early adoption and innovation in this field. Nearly a decade ago, Nvidia introduced Compute Unified Device Architecture (CUDA), a programming language that has become indispensable for engineers developing advanced AI models, including those powering technologies like ChatGPT. This strategic move allowed Nvidia to secure a strong foothold in the market well before competitors like AMD and Intel began to invest heavily in AI chip technology. This development resulted in an intense impact on the market and Nvidia’s client base. Nvidia's client list includes some of the biggest names in the tech industry, such as Microsoft, Alphabet, Amazon, and Tesla. The surge in demand for its AI chips has driven significant growth for the company. In addition to its hardware offerings, Nvidia has also expanded into enterprise software subscription services and networking products, which are designed to enhance the performance of its chips. The latest iterations of Nvidia's chips are often pre-installed in specially designed server racks, reflecting the company's strategy to evolve from a component supplier to an integrated systems provider. Stock reaction and future implications for Nvidia The news of the Department of Justice (DOJ) subpoena has had an immediate impact on Nvidia's stock price. During regular trading hours, the shares dropped nearly 10 per cent, and the decline continued in after-hours trading, with the stock sliding an additional 2 per cent. This dramatic fall underlines the market's sensitivity to regulatory scrutiny and the potential implications for Nvidia's business model. A representative for Nvidia stated in a conversation with CNBC that the company "wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them." As the investigation unfolds, it remains to be seen how this will affect Nvidia's market position and its relationships with key clients. The antitrust probe could potentially lead to changes in how Nvidia operates, particularly if the Department of Justice (DOJ) finds evidence of anti-competitive practices. For now, the tech giant faces a period of uncertainty, and investors are closely watching the developments. How much is a loss of $279 billion to Nvidia’s market cap, what investors in India should know? To give a fair estimation of the loss in the market capitalisation of Nvidia investors should know several key facts about the company. Currently Nvidia is a 2.649 trillion-dollar enterprise i.e., 2649 billion US dollars in market capitalisation. Now the company has fallen to this market capitalization post a 10 to 11 per cent correction in its stock price thus losing $279 billion in a single trading session. In a straight comparison the total market capitalization of India’s biggest listed company Reliance Industries is $244.46 billion US dollars according to the companies market cap website. Further, currently Reliance Industries is the 45th most valuable company in the world. Therefore, it is interesting to note that Nvidia has suffered a bigger loss than the entire market capitalisation of Reliance Industries in a single trading session.

Nvidia's market value plummets by $279 Billion amid Department of Justice antitrust probe

Nvidia reported a 122 per cent surge in revenue, driven by skyrocketing demand for its data centre chips, particularly those powering artificial intelligence (AI) applications. The company's earnings, announced after the market closed, exceeded Wall Street expectations and included a robust forecast for the upcoming quarter, as detailed in a report by CNBC.

For the quarter, Nvidia reported earnings per share of 68 cents, surpassing the expected 64 cents, and revenue of $30.04 billion, also beating the anticipated $28.7 billion. Nvidia projects $32.5 billion in revenue for the current quarter, up from $31.7 billion expected by analysts. This marks an 80 per cent increase from the previous year.

Nvidia stock reacts negatively despite robust forecast&nbsp;

Nvidia has been a major beneficiary of the ongoing AI boom, with its market value soaring. Despite this, the stock fell 8 per cent in after-hours trading but remains up approximately 150 per cent year to-date. The company's net income more than doubled, reaching $16.6 billion, up from $6.18 billion in the same quarter last year.&nbsp;

The data centre segment, which includes AI processors, was the standout performer, with revenue jumping 154 per cent year-over-year to $26.3 billion, accounting for 88 per cent of Nvidia's total sales. This figure exceeded StreetAccount's expectations of $25.24 billion.&nbsp;

However, not all the revenue came from AI chips, $3.7 billion was generated by Nvidia's networking products. Nvidia's CEO, Jensen Huang, highlighted the strong demand for the current-generation Hopper chip while noting the high anticipation for the upcoming Blackwell AI chip.&nbsp;

"Hopper demand remains strong, and the anticipation for Blackwell is incredible," Huang said. Nvidia's gaming revenue, once the company's primary focus, grew 16 per cent to $2.9 billion, driven by increased sales of PC gaming cards and console system-on-chips (SOCs). Additionally, the company's professional visualization business and automotive/robotics segments also saw growth, reporting revenues of $454 million and $346 million, respectively. Further, in a significant move, Nvidia announced a $50 billion share buyback, signalling confidence in its continued growth amid the AI boom.

Nvidia reported a 122 per cent surge in revenue, driven by skyrocketing demand for its data centre chips, particularly those powering artificial intelligence (AI) applications.

Nvidia reported a 122 per cent surge in revenue, driven by skyrocketing demand for its data centre chips, particularly those powering artificial intelligence (AI) applications. The company's earnings, announced after the market closed, exceeded Wall Street expectations and included a robust forecast for the upcoming quarter, as detailed in a report by CNBC. For the quarter, Nvidia reported earnings per share of 68 cents, surpassing the expected 64 cents, and revenue of $30.04 billion, also beating the anticipated $28.7 billion. Nvidia projects $32.5 billion in revenue for the current quarter, up from $31.7 billion expected by analysts. This marks an 80 per cent increase from the previous year. Nvidia stock reacts negatively despite robust forecast Nvidia has been a major beneficiary of the ongoing AI boom, with its market value soaring. Despite this, the stock fell 8 per cent in after-hours trading but remains up approximately 150 per cent year to-date. The company's net income more than doubled, reaching $16.6 billion, up from $6.18 billion in the same quarter last year. The data centre segment, which includes AI processors, was the standout performer, with revenue jumping 154 per cent year-over-year to $26.3 billion, accounting for 88 per cent of Nvidia's total sales. This figure exceeded StreetAccount's expectations of $25.24 billion. However, not all the revenue came from AI chips, $3.7 billion was generated by Nvidia's networking products. Nvidia's CEO, Jensen Huang, highlighted the strong demand for the current-generation Hopper chip while noting the high anticipation for the upcoming Blackwell AI chip. "Hopper demand remains strong, and the anticipation for Blackwell is incredible," Huang said. Nvidia's gaming revenue, once the company's primary focus, grew 16 per cent to $2.9 billion, driven by increased sales of PC gaming cards and console system-on-chips (SOCs). Additionally, the company's professional visualization business and automotive/robotics segments also saw growth, reporting revenues of $454 million and $346 million, respectively. Further, in a significant move, Nvidia announced a $50 billion share buyback, signalling confidence in its continued growth amid the AI boom.

Nvidia's revenue soars 122% amid AI demand surge

AI juggernaut Nvidia (NVDA) will report its second quarter earnings after the bell on Wednesday. Nvidia’s announcement — the most anticipated results of the quarter — will send ripple effects throughout the tech sector as investors look for signs that the AI trade will continue to dominate market conversations into the second half of the year.

nVIDIA is due to report results after the Wednesday's close

A new report has revealed that employees working at AI chipmaker Nvidia despite facing extremely stressful conditions are not quitting, thanks to the hefty pay packages. They often work seven days a week and until 2 am. Ten people who spoke to Bloomberg said the staff works in a pressure cooker environment. However, the company has one of the lowest attrition rates worldwide.

Most of them attend endless meetings, sometimes over 10 a day, with people ending up howling and shouting in there, a former marketing employee at Nvidia told Bloomberg News. However, what stops them from leaving are the "golden handcuffs," the ex-staffer said.

Based in Santa Clara, California, the company gives its employees stock grants that typically vest over a four-year period. It sells semiconductors used to power artificial intelligence technology, which has led to a massive growth in its stocks.&nbsp;

Nvidia’s stock has surged by 3,776 per cent by 2019, which means that every employee who has been a part of the company for the past five years has turned into a millionaire by now.&nbsp;

According to the Bloomberg report, the stock compensation package has turned out to be a powerful incentive for the staff who are ready to endure the harsh surroundings at work.&nbsp;

<h2>Lowest attrition rate&nbsp;</h2>

Nvidia's attrition rate is the lowest in the semiconductor industry. Last year, 5.3 per cent of employees left the company.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/nvidias-earnings-to-set-ai-market-pulse-amid-soaring-stakes-and-sky-high-expectations-753347">Nvidia's earnings to set AI market pulse amid soaring stakes and sky-high expectations</a>

But the attrition rate fell further to just 2.7 per cent after the company’s market capitalization exceeded $1 trillion. As per Nvidia, the rate of employee turnover in the industry is 17.7 per cent.

A former Nvidia engineer told the publication that people who have been working with the company for over 10 years have enough money to retire. However, a carrot is dangling in front of them and they are racing to get it. A larger windfall awaits them when the next stock grant vests, and so they continue to work.&nbsp;

He talked about how several staff members have been buying luxurious vacation homes and even managed to get their hands on expensive Super Bowl and the NBA Finals tickets. You can also spot Porsches, Corvettes and Lamborghinis in the parking lot of the company.&nbsp;

A real estate agent told Bloomberg that several Nvidia employees put down 40 to 60 per cent of down payments on homes worth millions of dollars.

Nvidia has not commented on the report. 
&nbsp;

A new report has revealed that employees working at AI chipmaker Nvidia despite facing extremely stressful conditions are not quitting, thanks to the hefty pay packages.

A new report has revealed that employees working at AI chipmaker Nvidia despite facing extremely stressful conditions are not quitting, thanks to the hefty pay packages. They often work seven days a week and until 2 am. Ten people who spoke to Bloomberg said the staff works in a pressure cooker environment. However, the company has one of the lowest attrition rates worldwide. Most of them attend endless meetings, sometimes over 10 a day, with people ending up howling and shouting in there, a former marketing employee at Nvidia told Bloomberg News. However, what stops them from leaving are the "golden handcuffs," the ex-staffer said. Based in Santa Clara, California, the company gives its employees stock grants that typically vest over a four-year period. It sells semiconductors used to power artificial intelligence technology, which has led to a massive growth in its stocks. Nvidia’s stock has surged by 3,776 per cent by 2019, which means that every employee who has been a part of the company for the past five years has turned into a millionaire by now. According to the Bloomberg report, the stock compensation package has turned out to be a powerful incentive for the staff who are ready to endure the harsh surroundings at work. Lowest attrition rate Nvidia's attrition rate is the lowest in the semiconductor industry. Last year, 5.3 per cent of employees left the company. Also Read: Nvidia's earnings to set AI market pulse amid soaring stakes and sky-high expectations But the attrition rate fell further to just 2.7 per cent after the company’s market capitalization exceeded $1 trillion. As per Nvidia, the rate of employee turnover in the industry is 17.7 per cent. A former Nvidia engineer told the publication that people who have been working with the company for over 10 years have enough money to retire. However, a carrot is dangling in front of them and they are racing to get it. A larger windfall awaits them when the next stock grant vests, and so they continue to work. He talked about how several staff members have been buying luxurious vacation homes and even managed to get their hands on expensive Super Bowl and the NBA Finals tickets. You can also spot Porsches, Corvettes and Lamborghinis in the parking lot of the company. A real estate agent told Bloomberg that several Nvidia employees put down 40 to 60 per cent of down payments on homes worth millions of dollars. Nvidia has not commented on the report.

Nvidia staff works 7 days a week till 2 am, but 'golden handcuffs' stop them from quitting

Investors will eye the earnings report from AI-Darling, nVIDIA. The real question: Will the earnings reports reflect the euphoria surrounding artificial intelligence in real numbers?

Will tech earnings reports reflect AI euphoria?

Nvidia stock has returned, but it's going to be put to the test once more. The next big event for the market will be when that chip darling reports earnings after the bell on Wednesday.

It's not just the Nvidia stock that is at stake: Nvidia's results will set the pace for other AI players.

"Nvidia's report and guidance will be absolutely key to the AI infrastructure trade," tech investor Paul Meeks told Yahoo Finance.

It's been something of a wild ride for tech investors in recent weeks. Shares of AI giants Amazon, Microsoft, and Alphabet have all tumbled in the last three months: Alphabet by more than 6 per cent, and Amazon and Microsoft by more than 3 per cent.

Neither can the second-tier AI players regain entry into the playing field. AMD has lost more than 16 per cent since mid-July, and Marvell Technology almost 6 per cent within that period.

Strong results from Nvidia could revive some of that lost momentum, according to Wedbush's Dan Ives.

"Nvidia is the heart and lungs of this bullish tech trade as the AI Revolution takes hold," Ives told Yahoo Finance.

Ives, anticipating an Nvidia quarter of "shock and awe", says continued strong demand for the company's chips would have industry-wide ripple effects. Ives estimated in a client note that for every dollar spent on a Nvidia GPU chip, there is an $8 to $10 multiplier across the tech sector.

Bernstein's Mark Shmulik, who covers many of Nvidia's biggest customers, including Meta, Amazon, and Google, quoted that the chip giant's results are likely to determine Big Tech's next step.

"Nvidia is a bellwether of the Magnificent Seven and AI trade," Shmulik explained. "If there is any softness, maybe rotation out of the Mag 7 picks up a little bit of steam, but listening to other tech earnings, core fundamentals keep delivering."

Nvidia stock has been soaring this year. Shares are up 180 per cent and up nearly 2,900 per cent over the past five years—making for a very tough bar for earnings this quarter.

Estimates call for Nvidia's revenue to rise 112 per cent in its latest quarter, a dramatic slowdown from more than 250 per cent growth one year ago. For Wall Street, the consensus remains bullish. KeyBanc, Citi, and Goldman Sachs were among those on the street who reiterated their Buy ratings on the stock this week ahead of results.&nbsp;

Only time will tell if Nvidia lives up to the hype this earnings season, but it's safe to say the stakes are high.

Nvidia stock has returned, but it's going to be put to the test once more. The next big event for the market will be when that chip darling reports earnings after the bell on Wednesday.

Nvidia stock has returned, but it's going to be put to the test once more. The next big event for the market will be when that chip darling reports earnings after the bell on Wednesday. It's not just the Nvidia stock that is at stake: Nvidia's results will set the pace for other AI players. "Nvidia's report and guidance will be absolutely key to the AI infrastructure trade," tech investor Paul Meeks told Yahoo Finance. It's been something of a wild ride for tech investors in recent weeks. Shares of AI giants Amazon, Microsoft, and Alphabet have all tumbled in the last three months: Alphabet by more than 6 per cent, and Amazon and Microsoft by more than 3 per cent. Neither can the second-tier AI players regain entry into the playing field. AMD has lost more than 16 per cent since mid-July, and Marvell Technology almost 6 per cent within that period. Strong results from Nvidia could revive some of that lost momentum, according to Wedbush's Dan Ives. "Nvidia is the heart and lungs of this bullish tech trade as the AI Revolution takes hold," Ives told Yahoo Finance. Ives, anticipating an Nvidia quarter of "shock and awe", says continued strong demand for the company's chips would have industry-wide ripple effects. Ives estimated in a client note that for every dollar spent on a Nvidia GPU chip, there is an $8 to $10 multiplier across the tech sector. Bernstein's Mark Shmulik, who covers many of Nvidia's biggest customers, including Meta, Amazon, and Google, quoted that the chip giant's results are likely to determine Big Tech's next step. "Nvidia is a bellwether of the Magnificent Seven and AI trade," Shmulik explained. "If there is any softness, maybe rotation out of the Mag 7 picks up a little bit of steam, but listening to other tech earnings, core fundamentals keep delivering." Nvidia stock has been soaring this year. Shares are up 180 per cent and up nearly 2,900 per cent over the past five years—making for a very tough bar for earnings this quarter. Estimates call for Nvidia's revenue to rise 112 per cent in its latest quarter, a dramatic slowdown from more than 250 per cent growth one year ago. For Wall Street, the consensus remains bullish. KeyBanc, Citi, and Goldman Sachs were among those on the street who reiterated their Buy ratings on the stock this week ahead of results. Only time will tell if Nvidia lives up to the hype this earnings season, but it's safe to say the stakes are high.

Nvidia's earnings to set AI market pulse amid soaring stakes and sky-high expectations

The so-called 'Magnificent Seven' tech giants are poised to lose approximately USD 800 billion in market value as investors grapple with growing recession fears and concerns over the sustainability of artificial intelligence (AI) investments. This massive sell-off, which unfolded on Monday, has sent shockwaves through the technology sector and broader financial markets.

Apple, Tesla, Alphabet, Amazon, Nvidia, Microsoft, and Meta Platforms – the companies that have been driving much of the stock market's gains in recent months – all experienced significant declines. Apple, Tesla, Alphabet, and Amazon each saw their stock prices drop by more than 4%, while Nvidia suffered a staggering 7% fall. Microsoft and Meta Platforms were not spared, with both declining by 3%.

The sell-off was exacerbated by news that Warren Buffett's Berkshire Hathaway had reduced its stake in Apple by half. This move by one of the world's most renowned investors raised additional concerns about the tech industry's outlook, particularly given Apple's status as Berkshire's top holding.

Adding to the market turbulence, reports emerged of design flaws and production issues potentially delaying the launch of Nvidia's new AI processor. This news hit Nvidia particularly hard, as the company has been at the forefront of the AI revolution and a favourite among investors betting on the technology's future.

The broader semiconductor industry also felt the impact, with the Philadelphia Semiconductor Index (SOX) declining by 2.6%, bringing its three-day loss to a substantial 14%. This downturn in chip stocks underscores the growing unease about the massive capital expenditures required to build AI infrastructure and the uncertain timeline for realising returns on these investments.

Dan Coatsworth, an investment analyst at AJ Bell, commented on the situation, saying, "Expectations have arguably become too high for the so-called Magnificent Seven group of companies. Their success has made them untouchable in the eyes of investors and when they fall short of greatness, out come the knives."

The tech sell-off comes in the wake of a weak U.S. payrolls report released on Friday, which has intensified fears of a potential recession and fueled speculation that the Federal Reserve may need to cut interest rates more quickly than previously anticipated to stave off economic contraction.

Despite the current downturn, some analysts view this as a potential buying opportunity for long-term investors. Dan Ives, a veteran tech analyst at Wedbush Securities, expressed optimism, stating, "Our playbook for 24 years covering tech stocks on the Street is we handhold investors through the panic and irrational global sell-offs to own the best tech names and winners driving the growth themes."

The so-called 'Magnificent Seven' tech giants are poised to lose approximately USD 800 billion in market value as investors grapple with growing recession fears and concerns over the sustainability of artificial intelligence (AI) investments.

The so-called 'Magnificent Seven' tech giants are poised to lose approximately USD 800 billion in market value as investors grapple with growing recession fears and concerns over the sustainability of artificial intelligence (AI) investments. This massive sell-off, which unfolded on Monday, has sent shockwaves through the technology sector and broader financial markets. Apple, Tesla, Alphabet, Amazon, Nvidia, Microsoft, and Meta Platforms – the companies that have been driving much of the stock market's gains in recent months – all experienced significant declines. Apple, Tesla, Alphabet, and Amazon each saw their stock prices drop by more than 4%, while Nvidia suffered a staggering 7% fall. Microsoft and Meta Platforms were not spared, with both declining by 3%. The sell-off was exacerbated by news that Warren Buffett's Berkshire Hathaway had reduced its stake in Apple by half. This move by one of the world's most renowned investors raised additional concerns about the tech industry's outlook, particularly given Apple's status as Berkshire's top holding. Adding to the market turbulence, reports emerged of design flaws and production issues potentially delaying the launch of Nvidia's new AI processor. This news hit Nvidia particularly hard, as the company has been at the forefront of the AI revolution and a favourite among investors betting on the technology's future. The broader semiconductor industry also felt the impact, with the Philadelphia Semiconductor Index (SOX) declining by 2.6%, bringing its three-day loss to a substantial 14%. This downturn in chip stocks underscores the growing unease about the massive capital expenditures required to build AI infrastructure and the uncertain timeline for realising returns on these investments. Dan Coatsworth, an investment analyst at AJ Bell, commented on the situation, saying, "Expectations have arguably become too high for the so-called Magnificent Seven group of companies. Their success has made them untouchable in the eyes of investors and when they fall short of greatness, out come the knives." The tech sell-off comes in the wake of a weak U.S. payrolls report released on Friday, which has intensified fears of a potential recession and fueled speculation that the Federal Reserve may need to cut interest rates more quickly than previously anticipated to stave off economic contraction. Despite the current downturn, some analysts view this as a potential buying opportunity for long-term investors. Dan Ives, a veteran tech analyst at Wedbush Securities, expressed optimism, stating, "Our playbook for 24 years covering tech stocks on the Street is we handhold investors through the panic and irrational global sell-offs to own the best tech names and winners driving the growth themes."

Tech giants face USD 800 billion market value plunge amid recession fears

Intel&nbsp;said on Thursday (Aug 1) it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chipmaker pursues a turnaround focused on its money-losing manufacturing business.

It also forecast third-quarter revenue below market estimates, grappling with a pullback in spending on traditional data centre semiconductors and a focus on AI chips, where it lags behind rivals.

Shares of Santa Clara, California-based&nbsp;Intel&nbsp;slumped 20 per cent in extended trade, setting the chipmaker up to lose more than $24 billion in market value. The stock had closed down seven per cent on Thursday, in tandem with a plunge in US chip stocks after a conservative forecast from Arm Holdings on Wednesday.

The results did not rock the broader chip industry.

AI powerhouse Nvidia and smaller rival AMD ticked up after hours, underscoring how well-positioned they were to take advantage of the AI boom, and&nbsp;Intel's relative disadvantage.

"I need less people at headquarters, more people in the field, supporting customers," CEO Pat Gelsinger told Reuters in an interview, talking about the job cuts. On the dividend suspension, he said: "Our objective is to ... pay a competitive dividend over time, but right now, focusing on the balance sheet, deleveraging."

Intel, which employed 116,500 people as of June 29, excluding some subsidiaries, said the majority of the job cuts would be completed by the end of 2024. In April, it declared a quarterly dividend of 12.5 cents per share.

Intel&nbsp;is in the middle of a turnaround plan, focused on developing advanced AI processors and building-out its for-hire manufacturing capabilities, as it aims to recoup the technological edge it lost to Taiwan's TSMC, the world's largest contract chipmaker.

The push to energize that contracting foundry business under Gelsinger has increased&nbsp;Intel's costs and pressured profit margins. More recently, the chipmaker has said it will cut costs.

On Thursday,&nbsp;Intel&nbsp;announced it would cut operating expenses and reduce capital expenditure by more than $10 billion in 2025, more than it initially planned.

"A $10 billion cost reduction plan shows that management is willing to take strong and drastic measures to right the ship and fix problems. But we are all asking, 'is it enough' and is it a bit of a late reaction considering that CEO Gelsinger has been at the helm for over three years?" said Michael Schulman, chief investment officer of Running Point Capital.

The company had cash and cash equivalents of $11.29 billion, and total current liabilities of about $32 billion, as of June 29.

Intel's lagging position in the market for AI chips has sent its shares down more than 40 per cent so far this year.

For the third quarter,&nbsp;Intel&nbsp;expects revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $14.35 billion, LSEG data showed. It forecast adjusted gross margin of 38 per cent, well short of market expectations of 45.7 per cent.

Watch |&nbsp;Intel restructures its manufacturing business

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<h2>Cutting capex</h2>

Analysts believe&nbsp;Intel's plan to turn around the foundry business will take years to materialize and expect TSMC to maintain its lead in the coming years, even as&nbsp;Intel&nbsp;has ramped up production of AI chips for personal computers.

The PC chip business grew nine per cent in the April-June quarter.

"The irony is that their first AI PC-focused processors are selling much better than expected. The problem is that the costs for those chips are much higher, meaning their profitability on them isn't great," said Bob O'Donnell, chief analyst at TECHnalysis Research.

"In addition, the data centre decline reinforces the fact that while companies are buying lots of infrastructure for AI, the vast majority is for non-Intel&nbsp;GPUs," he said, referring to graphic processing units like those sold by Nvidia.

Intel's data centre business declined three per cent in the quarter.

<a href="https://www.wionews.com/business-economy/wion-business-wrap-intels-plan-to-overtake-tsmc-struggles-of-us-natural-gas-producers-and-more-692651">Also read |&nbsp;WION Business Wrap | Intel’s plan to overtake TSMC, Struggles of US natural gas producers and more</a>

CFO David Zinsner said on a post-earnings call that the chipmaker expects weaker consumer and enterprise spending in the current quarter, especially in China.

Export licenses that were revoked in May also hurt&nbsp;Intel's business in China in the second quarter, he said.&nbsp;Intel&nbsp;said in May its sales there would take a hit after Washington revoked some of the chipmaker's export licenses for a customer in China.

Intel&nbsp;is also slashing investments.

It expects to cut capital expenses by 17 per cent in 2025 year-on-year to $21.5 billion, calculated on the midpoint of a range the chipmaker forecast. It expects these costs to stay roughly flat in 2024.

Intel said on Thursday (Aug 1) it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chipmaker pursues a turnaround focused on its money-losing manufacturing business.

Intel said on Thursday (Aug 1) it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chipmaker pursues a turnaround focused on its money-losing manufacturing business. It also forecast third-quarter revenue below market estimates, grappling with a pullback in spending on traditional data centre semiconductors and a focus on AI chips, where it lags behind rivals. Shares of Santa Clara, California-based Intel slumped 20 per cent in extended trade, setting the chipmaker up to lose more than $24 billion in market value. The stock had closed down seven per cent on Thursday, in tandem with a plunge in US chip stocks after a conservative forecast from Arm Holdings on Wednesday. The results did not rock the broader chip industry. AI powerhouse Nvidia and smaller rival AMD ticked up after hours, underscoring how well-positioned they were to take advantage of the AI boom, and Intel's relative disadvantage. "I need less people at headquarters, more people in the field, supporting customers," CEO Pat Gelsinger told Reuters in an interview, talking about the job cuts. On the dividend suspension, he said: "Our objective is to ... pay a competitive dividend over time, but right now, focusing on the balance sheet, deleveraging." Intel, which employed 116,500 people as of June 29, excluding some subsidiaries, said the majority of the job cuts would be completed by the end of 2024. In April, it declared a quarterly dividend of 12.5 cents per share. Intel is in the middle of a turnaround plan, focused on developing advanced AI processors and building-out its for-hire manufacturing capabilities, as it aims to recoup the technological edge it lost to Taiwan's TSMC, the world's largest contract chipmaker. The push to energize that contracting foundry business under Gelsinger has increased Intel's costs and pressured profit margins. More recently, the chipmaker has said it will cut costs. On Thursday, Intel announced it would cut operating expenses and reduce capital expenditure by more than $10 billion in 2025, more than it initially planned. "A $10 billion cost reduction plan shows that management is willing to take strong and drastic measures to right the ship and fix problems. But we are all asking, 'is it enough' and is it a bit of a late reaction considering that CEO Gelsinger has been at the helm for over three years?" said Michael Schulman, chief investment officer of Running Point Capital. The company had cash and cash equivalents of $11.29 billion, and total current liabilities of about $32 billion, as of June 29. Intel's lagging position in the market for AI chips has sent its shares down more than 40 per cent so far this year. For the third quarter, Intel expects revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $14.35 billion, LSEG data showed. It forecast adjusted gross margin of 38 per cent, well short of market expectations of 45.7 per cent. Watch | Intel restructures its manufacturing business × Cutting capex Analysts believe Intel's plan to turn around the foundry business will take years to materialize and expect TSMC to maintain its lead in the coming years, even as Intel has ramped up production of AI chips for personal computers. The PC chip business grew nine per cent in the April-June quarter. "The irony is that their first AI PC-focused processors are selling much better than expected. The problem is that the costs for those chips are much higher, meaning their profitability on them isn't great," said Bob O'Donnell, chief analyst at TECHnalysis Research. "In addition, the data centre decline reinforces the fact that while companies are buying lots of infrastructure for AI, the vast majority is for non-Intel GPUs," he said, referring to graphic processing units like those sold by Nvidia. Intel's data centre business declined three per cent in the quarter. Also read | WION Business Wrap | Intel’s plan to overtake TSMC, Struggles of US natural gas producers and more CFO David Zinsner said on a post-earnings call that the chipmaker expects weaker consumer and enterprise spending in the current quarter, especially in China. Export licenses that were revoked in May also hurt Intel's business in China in the second quarter, he said. Intel said in May its sales there would take a hit after Washington revoked some of the chipmaker's export licenses for a customer in China. Intel is also slashing investments. It expects to cut capital expenses by 17 per cent in 2025 year-on-year to $21.5 billion, calculated on the midpoint of a range the chipmaker forecast. It expects these costs to stay roughly flat in 2024.

Intel to fire over 17,000 employees, suspend dividend as growth stalls

Advanced Micro Devices on Wednesday said it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash in an increasingly competitive landscape of AI chips. The transaction is part of a bid to improve AMD's AI chip capabilities to better compete with arch-rival Nvidia Corporation.

Training and developing large language models is a complex task, even for the largest tech companies. The Silo AI acquisition will let AMD further develop and deploy AMD-powered AI models and help potential customers build complex AI models with the company's chips, AMD said.

The acquisition is likely to beef up AMD's software development efforts as well. While the transaction will not have any immediate impact on AMD's financials, it "unlocks a significant amount of business moving forward," AMD Senior Vice President of AI, Vamsi Boppana said in an interview. However, AMD did not give any concrete estimates for the business that this acquisition would generate.

Silo AI is a Helsinki, Finland-based startup offering end-to-end AI-driven solutions to customers by the integration of AI technology into their products and services. Working across Europe and North America, this company has operated with some of the most recognisable brands, such as Philips, Rolls-Royce, and Unilever.

Peter Sarlin, CEO and co-founder of Silo AI, will still be at the helm to lead the unit as part of the AMD Artificial Intelligence Group, AMD said. The deal is expected to close in the second half of 2024.

This acquisition is the latest in a series of strategic moves aimed at furthering AMD in the AI space. AMD also purchased AI software firms Mipsology and Nod.ai last year, and it has invested over $125 million in a dozen AI companies over the past 12 months.

Advanced Micro Devices on Wednesday said it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash in an increasingly competitive landscape of AI chips.

Advanced Micro Devices on Wednesday said it will acquire Finnish artificial intelligence startup Silo AI for about $665 million in cash in an increasingly competitive landscape of AI chips. The transaction is part of a bid to improve AMD's AI chip capabilities to better compete with arch-rival Nvidia Corporation. Training and developing large language models is a complex task, even for the largest tech companies. The Silo AI acquisition will let AMD further develop and deploy AMD-powered AI models and help potential customers build complex AI models with the company's chips, AMD said. The acquisition is likely to beef up AMD's software development efforts as well. While the transaction will not have any immediate impact on AMD's financials, it "unlocks a significant amount of business moving forward," AMD Senior Vice President of AI, Vamsi Boppana said in an interview. However, AMD did not give any concrete estimates for the business that this acquisition would generate. Silo AI is a Helsinki, Finland-based startup offering end-to-end AI-driven solutions to customers by the integration of AI technology into their products and services. Working across Europe and North America, this company has operated with some of the most recognisable brands, such as Philips, Rolls-Royce, and Unilever. Peter Sarlin, CEO and co-founder of Silo AI, will still be at the helm to lead the unit as part of the AMD Artificial Intelligence Group, AMD said. The deal is expected to close in the second half of 2024. This acquisition is the latest in a series of strategic moves aimed at furthering AMD in the AI space. AMD also purchased AI software firms Mipsology and Nod.ai last year, and it has invested over $125 million in a dozen AI companies over the past 12 months.

Can AMD outsmart Nvidia with $665 Million Silo AI deal?

The outperformance of Nvidia Corp. has stalled according to New Street Research analyst, Pierre Ferragu, to cut the AI-focused chipmaker from buy to neutral. Ferragu commented that it felt like the shares of Nvidia were "getting fully valued" after surging 154 per cent this year and almost 240 per cent the previous one. On Friday, Nvidia dropped 1.9 per cent while the Nasdaq 100 Index went up by 1 per cent.

Additional upside “will only materialise in a bull case, in which the outlook beyond 2025 increases materially, and we do not have the conviction on this scenario playing out yet,” Ferragu wrote.

While the “quality of the franchise is nevertheless intact,” there is, “if anything, a risk of derating” should the current outlook remain unchanged, he added.

As much as it has been the second-best performing stock among S&amp;P 500 components this year — trailing just Super Micro Computer Inc.'s gain — Nvidia's valuation has raised flags. Its stock's run, a rise of almost $1.9 trillion in market capitalisation that briefly made it the world's largest company, doesn't come cheap. According to Bloomberg data, Nvidia is trading for more than 22 times its estimated revenue in the next 12 months, making it the richest-valued stock in the S&amp;P 500 Index.

With Friday's close at $125.82, New Street set a one-year price target for Nvidia at $135.

It's not all Nvidia; New Street Research views Advanced Micro Devices Inc. as upbeat, alongside Taiwan Semiconductor Manufacturing Co. Ltd., for the very same reason: positive trends in growth and valuation.

AMD and TSMC are “the best names to own in the group, offering strong upside in both in our base and high scenarios,” New Street said in a note, adding that among other stocks with AI exposure, Broadcom Inc., Arista Networks Inc. and Micron Technology Inc. all “remain attractively valued.”

The outperformance of Nvidia Corp. has stalled according to New Street Research analyst, Pierre Ferragu, to cut the AI-focused chipmaker from buy to neutral. Ferragu commented that it felt like the shares of Nvidia were "getting fully valued" after surging 154 per cent this year and almost 240 per cent the previous one.

The outperformance of Nvidia Corp. has stalled according to New Street Research analyst, Pierre Ferragu, to cut the AI-focused chipmaker from buy to neutral. Ferragu commented that it felt like the shares of Nvidia were "getting fully valued" after surging 154 per cent this year and almost 240 per cent the previous one. On Friday, Nvidia dropped 1.9 per cent while the Nasdaq 100 Index went up by 1 per cent. Additional upside “will only materialise in a bull case, in which the outlook beyond 2025 increases materially, and we do not have the conviction on this scenario playing out yet,” Ferragu wrote. While the “quality of the franchise is nevertheless intact,” there is, “if anything, a risk of derating” should the current outlook remain unchanged, he added. As much as it has been the second-best performing stock among S&P 500 components this year — trailing just Super Micro Computer Inc.'s gain — Nvidia's valuation has raised flags. Its stock's run, a rise of almost $1.9 trillion in market capitalisation that briefly made it the world's largest company, doesn't come cheap. According to Bloomberg data, Nvidia is trading for more than 22 times its estimated revenue in the next 12 months, making it the richest-valued stock in the S&P 500 Index. With Friday's close at $125.82, New Street set a one-year price target for Nvidia at $135. It's not all Nvidia; New Street Research views Advanced Micro Devices Inc. as upbeat, alongside Taiwan Semiconductor Manufacturing Co. Ltd., for the very same reason: positive trends in growth and valuation. AMD and TSMC are “the best names to own in the group, offering strong upside in both in our base and high scenarios,” New Street said in a note, adding that among other stocks with AI exposure, Broadcom Inc., Arista Networks Inc. and Micron Technology Inc. all “remain attractively valued.”

Nvidia's valuation peak: Is the AI chip leader losing its lead?

AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.3 trillion. It was, however, followed by a $430 billion slump.

Microsoft's market value increased by 7.6 per cent, while that of Apple surged 9.6 per cent over the past month. Amazon recently became the fifth company to cross the $2 trillion mark. All these big tech firms are riding high on the AI boom.

Investors are betting on AI as the future of work, and this has got all the big tech firms working overtime. Countries are ready to escalate trade tensions as they look to protect their AI technologies. This highlights the geopolitical importance of winning in the AI race.&nbsp;

Broadcom's market value also jumped 20 per cent in June after increasing its annual revenue forecast for AI-related chips by 10 per cent. 7 out of 10 top companies in the world are tech-related. <a href="https://www.wionews.com/business-economy/global-markets-roundup-tech-rally-leads-global-markets-in-2024-736244">Global stocks have also hit record highs</a> amid the AI rally.&nbsp;

Despite the flight, analysts are looking at potential gaps. Some point to the fact that only the top AI firms are winning, while competition in the mid-range is heating up. This is leading to uneven growth and winning for a few big tech firms. However, analysts at Morgan Stanley point to the exponential growth observed within the top 500 stocks.

AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.

AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.3 trillion. It was, however, followed by a $430 billion slump. Microsoft's market value increased by 7.6 per cent, while that of Apple surged 9.6 per cent over the past month. Amazon recently became the fifth company to cross the $2 trillion mark. All these big tech firms are riding high on the AI boom. Investors are betting on AI as the future of work, and this has got all the big tech firms working overtime. Countries are ready to escalate trade tensions as they look to protect their AI technologies. This highlights the geopolitical importance of winning in the AI race. Broadcom's market value also jumped 20 per cent in June after increasing its annual revenue forecast for AI-related chips by 10 per cent. 7 out of 10 top companies in the world are tech-related. Global stocks have also hit record highs amid the AI rally. Despite the flight, analysts are looking at potential gaps. Some point to the fact that only the top AI firms are winning, while competition in the mid-range is heating up. This is leading to uneven growth and winning for a few big tech firms. However, analysts at Morgan Stanley point to the exponential growth observed within the top 500 stocks.

AI-focused firms see big jump in Market cap in June

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