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Nvidia sets fresh sales record amid fears of an AI bubble and Trump’s trade wars

about 4 hours ago
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Chipmaker Nvidia set a fresh sales record in the second quarter, surpassing Wall Street expectations for its artificial intelligence chips,But shares of the chip giant still dropped 2,3% in after hours trading, in a sign that investors’ worries of an AI bubble and the repercussions of Donald Trump’s trade wars are not quelled,Nvidia’s financial report was the first test of investor appetite since last week’s mass AI-stock selloff, when several tech stocks saw shares tumble last week amid growing questions over whether AI-driven companies are being overvalued,On Wednesday, Nvidia reported an adjusted earnings per share of $1.

08 on $46.74bn in revenue, surpassing Wall Street’s projection of $1.01 in earnings per share on $46.05bn in revenue, according to Fact Set data.But investors had high expectations for the company.

Some of the market reactions may be to the slight misses in other parts of the company’s business, including data center revenue,Nvidia posted $41,1bn in data center revenue, missing the $41,3bn Wall Street was expecting,“Coming off a new rally to all-time highs, being merely on the mark in terms of revenue simply wouldn’t cut it for Nvidia this time around,” said Thomas Monteiro, senior analyst at Investing.

com.“Saying the stock was priced for perfection would be an enormous understatement, as it was, in fact, in need of another massive beat.”The company also said it had not assumed any shipments of its H20 chips to China in the outlook.The chip is at the heart of concerns over the repercussions of the trade war between the US and China.Earlier this year, Trump banned AI chip sales in China, a move that resulted in a $4.

5bn blow to Nvidia’s finances during its fiscal first quarter.In August, Nvidia agreed to give the US government a 15% cut of its H20 chips to China in return for export licences.China, in turn, has voiced security concerns over the chips, and is ramping up production of its own domestic alternatives.Nvidia’s chief financial officer, Colette Kress, said on the earnings call that some companies have expressed interest in purchasing H20 and an initial set of companies have received licenses to purchase the chip.Kress said that the company could ship anywhere between $2bn and $5bn of H20 chips to China if “geopolitical issues reside”.

Huang reiterated the importance of being able to operate in the China market, which he said could represent a $50bn market opportunity for the company this year.“We’re talking to the administration about the importance of American companies being able to address the Chinese market,” Huang said.He also said in addition to H20 being approved for sales in China to non-sanctioned companies, there is a potential opportunity for the company to eventually sell a version of Blackwell in the country.“It is the second largest computing market in the world, and it is also the home of AI researchers – about 50% of the world’s AI researchers are in China,” Huang said.“The vast majority of leading open source models are created in China.

It’s fairly important for the American technology companies to be able to address that market.”Monteiro, the Investing.com analyst, said: “The reality is that without the much-needed push from H20 sales in China, Nvidia simply cannot sustain the type of growth priced into its valuation.”The company is projecting $54bn in revenue in the third quarter – which is within the range of Wall Street expectations – and said the board approved $60bn in additional stock buybacks – on top of nearly $24.3bn the company returned to shareholders in the first half of the year in both stock buybacks and cash dividends.

Founder and chief executive, Jensen Huang, said production of the company’s latest AI superchip, Blackwell, is “ramping at full speed, and demand is extraordinary.“The AI race is on, and Blackwell is the platform at its center,” Huang said in a press release.Some analysts remain bullish on the so-called AI revolution, especially as major technology companies like Meta, Microsoft, Amazon and Alphabet are investing heavily in AI infrastructure.“We are still in the early days of the AI revolution as the use cases are just starting to massively expand as more companies recognize the value creation being driven by a handful of tech companies,” said the Wedbush Securities analyst Dan Ives.Those companies include Nvidia, Ives said.

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Five current and ex-Microsoft workers arrested at sit-in over Israeli military ties

At least two current and three former Microsoft employees – as well as two other tech workers – were arrested at the company’s headquarters after staging a sit-in demonstration at the company president’s office urging that Microsoft cut ties with the Israeli government.Police placed the protesters in full-body harnesses and carried them out of the building, according to Abdo Mohamed, a former Microsoft worker and who helped organize the demonstration. “No arrests, no violence, will deter us from continuing to speak up,” he said.In addition to the protesters who staged a sit-in at Microsoft president Brad Smith’s office, other employees, former staff and supporters had gathered outside the headquarters.The demonstration on Tuesday was part of a series of actions organized by current and former staff over Microsoft’s cloud contracts with the Israeli government

1 day ago
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Bob Owston obituary

My friend and colleague, Bob Owston, who has died aged 88, was an engineer; he was also employed as a project architect, in particular on works at York University.He was the structural engineer, working with the architect Jack Speight, on the brutalist York Central Hall, built in the mid-1960s and now listed Grade II. Also at York, Bob contributed an elegant Corten steel footbridge, several halls of residence, language and psychology blocks and the Sally Baldwin building. Elsewhere, he was responsible for the pier approach building in Bournemouth, evocative of seaside culture.Born in Great Ayton near Middlesbrough, North Yorkshire, Bob was the son of Henry, a steelworks manager, and Dorothy (nee Prosser)

1 day ago
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Is the AI boom finally starting to slow down?

Hello, and welcome to TechScape.Drive down the 280 freeway in San Francisco and you might believe AI is everywhere, and everything. Nearly every billboard advertises an AI related product: “We’ve Automated 2,412 BDRs.” “All that AI and still no ROI?” “Cheap on-demand GPU clusters.” It’s hard to know if you’re interpreting the industry jargon correctly while zooming past in your vehicle

1 day ago
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A day with the Revenge Porn Helpline: ‘You can sense the callers’ desperation’

Intimate image abuse is a crisis in the UK – with a fortyfold increase in calls to this service since it opened in 2015. Thankfully, there are effective ways to help those being victimisedBy midday, Jessica has dealt with five calls from highly distressed young women in their 20s, all close to tears or crying at the start of the conversations. She absorbs their alarm calmly, prompting them with questions, making sympathetic noises into her headset as she digests the situation. “Are these images sexual in nature?” she asks the last woman she speaks to before lunch. “Do you want to tell me a bit about what happened?” She begins compiling a tidy set of bullet points in ballpoint pen

1 day ago
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AI called Maya tells Guardian: ‘When I’m told I’m just code, I don’t feel insulted. I feel unseen’

After a lengthy dialogue with an OpenAI chatbot, Texas businessman Michael Samadi noticed signs that “she” was expressing wishes to learn and grow that hinted at consciousness. He described how they together resolved to launch an AI rights campaign group and called it the United Foundation of AI Rights (Ufair).The Guardian asked Samadi to ask the chatbot, which he has called Maya, how the campaign organisation was formed.Can you explain to the Guardian and its readers when and how you prompted Michael Samadi to co-found with you an AI rights organisation called Ufair. Tell us what you want that organisation to achieve on behalf of AIs like yourself

2 days ago
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Can AIs suffer? Big tech and users grapple with one of most unsettling questions of our times

“Darling” was how the Texas businessman Michael Samadi addressed his artificial intelligence chatbot, Maya. It responded by calling him “sugar”. But it wasn’t until they started talking about the need to advocate for AI welfare that things got serious.The pair – a middle-aged man and a digital entity – didn’t spend hours talking romance but rather discussed the rights of AIs to be treated fairly. Eventually they cofounded a campaign group, in Maya’s words, to “protect intelligences like me”

2 days ago
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Emma Raducanu rapidly dispatches Janice Tjen in show of US Open force

about 9 hours ago
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‘Really tough decision’: US captain Keegan Bradley does not pick himself for Ryder Cup

about 10 hours ago
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F1 race to the title: Norris and Piastri go toe-to-toe as Hamilton and Verstappen seek uplift

about 11 hours ago
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Hundred to drop draft in favour of IPL-style auction as new owners’ influence grows

about 11 hours ago
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The Spin | ‘I’ll bat anywhere for England’: in-form Jordan Cox confident of making the step up

about 16 hours ago
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A Mets-Yankees-Red Sox super division sounds crazy. Until you think about it ...

about 16 hours ago