Nvidia quarterly earnings show immunity to AI bubble fears as it cashes in on data center boom

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Nvidia released its quarterly earnings on Wednesday, with the chipmaker revealing higher than expected revenues and extending its yearslong streak of surpassing Wall Street’s sky-high expectations.The company receives the vast majority of its revenue from its data center business, which has been buoyed by the tech industry’s immense investment into AI infrastructure.On Wednesday, Nvidia reported 75% year-over-year growth of this vertical to $62.3bn.The world’s most valuable publicly traded company, Nvidia has dominated the chip market as its processing units have become the backbone of the artificial intelligence boom.

The company also posted an enormous total profit for the fiscal year: $120bn.“Our customers are racing to invest in AI compute – the factories powering the AI industrial revolution and their future growth,” CEO Jensen Huang said in a statement accompanying the earnings report.Investors have been more skeptical in recent months regarding the massive amount of spending that big tech companies have poured into advancing their AI products, with share prices for most of the so-called Magnificent Seven tech firms starting the year off in decline.Nvidia’s growth, meanwhile, has acted as a reassurance to the market, with a stock rally on Wednesday ahead of the company’s earnings report.Throughout the 2024 and 2025 fiscal years, Nvidia beat Wall Street’s expectations every quarter.

The chipmaker reported earnings of $1.62 per share, beating the $1.53 per share that Wall Street analysts estimated.Its overall revenue for the quarter was $68.13bn, more than analysts’ prediction of $66.

2bn in revenue.Shares in the company rose by around 3% in after-hours trading immediately following the earnings report, although those gains dropped to less than 1% as the day went on.Despite Nvidia’s huge profits, there has been increased scrutiny of the company’s various multibillion dollar deals with AI firms like OpenAI.The circular nature of these deals, where Nvidia invests in a company only for that company to turn around and purchase chips from Nvidia, has led some analysts to worry that the AI industry is on riskier footing than its backers would admit.One of Nvidia’s marquee deals, a proposed $100bn investment into OpenAI, also fell through earlier this month.

Instead, Nvidia will reportedly invest $30bn into OpenAI as the ChatGPT creator seeks to go public later this year at a valuation of around $730bn.“We continue to work with OpenAI towards a partnership agreement, and believe we are close,” Huang said on Wednesday’s earnings call.Huang has repeatedly downplayed concerns around how AI will disrupt or replace workers across numerous industries.Last month, Huang spoke out against fears of AI replacing software technologies during a global rush to sell off software stocks.At the World Economic Forum in Davos earlier this year, he also framed AI as a job creator that would unlock productivity gains and become a core part of international infrastructure.

“In this new world of AI, compute equals revenues,” Huang said on the call.After years of markets swooning over advances in generative AI, however, some investors have grown more skittish and wary of volatility or potential negative effects that AI may have on the economy.This week, a piece of speculative fiction from a research firm caused a market downturn and panic on Wall Street after it outlined an imagined future where AI had caused surging unemployment.
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Public health advocates say more transparency needed in debate over illicit tobacco as industry links questioned

A former Australian Border Force officer who has positioned himself before government inquiries as Australia’s “foremost law enforcement expert” on illicit tobacco also advises nicotine industry-linked organisations – leading public health advocates to argue more transparency is needed.Rohan Pike, who spent more than two decades in law enforcement and now runs a consultancy, has become a prominent media commentator on the illicit tobacco trade, promoting policies that align with those supported by the tobacco industry.Those positions include opposing further excise increases on cigarettes and pushing for the legalisation of nicotine pouches.In May, he was appointed as an illicit-trade adviser to the Global Institute for Novel Nicotine Products (GINN), a UK-based trade association representing manufacturers of alternative nicotine products, including pouches and “heat not burn” nicotine products. Pike said he does not receive funding or payment from GINN

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France’s Engie strikes deal to buy UK Power Networks for £10.5bn

A French utility has agreed to buy the owner of the electricity cables and power lines across London, the south-east and the east of England in a deal worth £10.5bn.Paris-headquartered Engie said on Wednesday that it had struck a deal to buy UK Power Networks (UKPN) in a “major milestone” for the company’s ambition to become the “best energy transition utility”.Engie will buy the electricity network operator, which operates about 192,000km of power lines serving 8.5 million customers across London and southern and eastern England, from a Hong Kong-based conglomerate founded by billionaire business magnate Li Ka-shing, which has owned UKPN for the past 15 years

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Top US body-camera maker reports record revenue amid Trump immigration crackdown

The largest body-camera maker in the US celebrated its latest financial results on Tuesday – reporting record revenue and forecasting major growth – as it prepares to cash in on the Department of Homeland Security’s planned rapid acquisition and deployment of these devices nationwide.In Tuesday’s earnings presentation, body-camera maker Axon, which also makes the well-known Taser device, announced that it blew past Wall Street expectations with $797m in revenue, up 39% year-over-year.The company attributed its growth to the offerings of its “AI era plan”, which includes a voice-activated companion for its body cameras. Executives also outlined a “major opportunity” for working with federal law enforcement in the year to come, in particular: body cameras and software licenses for the DHS.Asked by investors about his biggest worries, CEO Rick Smith said: “A misstep around privacy and data handling

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Meta’s AI sending ‘junk’ tips to DoJ, US child abuse investigators say

Meta’s use of artificial intelligence software to moderate its social media platforms is generating large volumes of useless reports about cases of child sexual abuse, which are draining resources and hindering investigations, said officers from the US Internet Crimes Against Children (ICAC) taskforce.“We get a lot of tips from Meta that are just kind of junk,” Benjamin Zwiebel, a special agent with the ICAC taskforce in New Mexico, said last week during his testimony in the state’s trial against Meta. The state’s attorney general alleges the company’s platforms are putting profits over child safety. Meta disputes these allegations, citing changes it has introduced on its platforms, such as teen accounts with default protections. The ICAC taskforce is a nationwide network of law enforcement agencies coordinated with the US Department of Justice to investigate and prosecute online child exploitation and abuse cases

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English cricket’s hunger for Indian money has led it into a moral and legal minefield | Barney Ronay

The thing about inviting a tiger round for tea is, for all the excitement, the fur, the teeth, the muscles, they do tend to walk off with your dinner and drink all the water in the taps. The thing about saying yes to the person with the biggest stick is, in the end, you don’t get to say yes, or no, or anything at all. And that person still has a very big stick.The thing about closing your eyes and just taking the money is: money passes only in exchange for something of value, and full payment will be taken. Welcome to English cricket in full blind, groping crisis mode, and the first small tremor of what lies in store whatever happens in the next few weeks

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Steve Borthwick turns to 2003 World Cup heroes for Six Nations inspiration

Steve Borthwick has turned to England’s 2003 World Cup winners to arrest his side’s drastic decline after enduring another setback with the scrum‑half Alex Mitchell ruled out for the rest of the Six Nations.Borthwick’s squad were due on Wednesday night to have dinner with members of the 2003 team, including the captain Martin Johnson, the Test centurion Jason Leonard and Lewis Moody, who revealed in October that he had been diagnosed with motor neurone disease.Borthwick urged his players to use the opportunity to ask how they dealt with setbacks, after England’s Six Nations hopes went up in smoke for another year with the dismal 42-21 defeat against Ireland last Saturday, seven days after they were outclassed by Scotland.Borthwick is under renewed pressure as a result and will lead England into their final two matches against Italy in Rome and France in Paris without Mitchell, who sustained a hamstring injury against Ireland. Jack van Poortvliet is standing by for the No 9 jersey while Ollie Lawrence has had a knee injection and is a doubt for the Italy match